The International Trade Commission voted Wednesday to open a Tariff Act Section 337 investigation into Sharp allegations that Vizio, its panel maker Xianyang CaiHong Optoelectronics and TV set manufacturer TPV infringe five Sharp LCD display patents (see 2004270045), said an agency notice Thursday in docket 337-TA-1201. Vizio and the other respondents didn’t comment. They have 20 days to file a response. Administrative Law Judge Dee Lord was assigned to the case.

Taiwan Semiconductor Manufacturing Co. hired outside counsel to “conduct legal analysis and ensure a comprehensive examination and interpretation” of new U.S. restrictions on Huawei (see 2005190030), a TSMC spokesperson emailed us Tuesday, declining to answer some of our questions about the companies' relationship. TSMC reportedly halted processing of all new orders by Huawei. Hours before the Commerce Department further stepped up controls on Huawei, TSMC announced plans to build its first U.S.-based chip factory. Minority Leader Chuck Schumer of New York and two other senior Senate Democrats pressed Secretary of Commerce Wilbur Ross and Defense Secretary Mark Esper Wednesday to tell them about U.S. government involvement in TSMC’s decision to build the U.S. chip factory, including if any “federal subsidies” were part of the negotiations. “We have serious questions as to how this project takes into consideration national security requirements and how it aligns with a broader strategy for building a diverse U.S. semiconductor manufacturing supply chain,” the Democratic senators wrote Esper and Ross. “We ask that you cease any such negotiations or discussions until you have briefed the relevant authorization and appropriations committees with your plans, including any commitments you have made to funding, tax breaks, licensures, or other incentives.” A “one-off investment like the proposed TSMC facility is inadequate to rebuilding U.S. manufacturing capacity in microelectronics, which is essential to our national and economic security,” the senators said. “Unfortunately, there is no evidence that the Administration has a comprehensive, integrated plan for achieving this.”

Samsung joined the Advanced Audio Coding patent pool as a licensee and licensor, said Dolby Labs' Via Licensing Tuesday. The AAC audio compression standard is adopted in broadcast, CE, mobile, automotive and PC products, worldwide.

A Copyright Office request for information Friday seeks potential contractors to manage and develop a “new, web-based, cloud-hosted Enterprise Copyright System.” Responses are due June 16. The CO will use responses for planning purposes or to request more in-depth research, it said Monday.

After receiving a default judgment against named defendant Alejandro Galindo in their litigation alleging piracy by video piracy by IPTV service Nitro TV (see 2005060013), content company plaintiffs and Galindo are asking the court to set aside the default. In a stipulation filed Friday in U.S. District Court in Los Angeles (in Pacer, docket 20-cv-03129), the plaintiffs and Galindo agreed to the judgment being set aside and Galindo filing an answer to the complaint.

Some 41% of U.S. broadband households are concerned about hackers accessing their devices, which could make them reluctant to buy connected products, blogged Parks Associates Thursday. Expansion of smart home adoption and online activity increases consumers’ vulnerability to cyber criminals “so all players would benefit from industry-level solutions that can deliver on the security of connected devices in the home,” said analyst Patrice Samuels. Parks plans a webinar on the need for residential IoT security standards Tuesday at 11 a.m. EDT.

If his inquiry into radio payola doesn’t produce new evidence of the practice, Commissioner Mike O’Rielly could push for the FCC to recommend anti-payola rules be “taken off the books,” he answered our question Wednesday during his news conference. The agency should eliminate unnecessary burdens on companies, he said. O’Rielly posted Wednesday on Twitter the final response to his queries to record labels for information on payola violations (see 2004220045). Like other labels, Universal Music Group didn’t provide evidence of payola, and said it was in compliance with federal rules. The label expressed interest in O’Rielly’s suggestion that the rules could be outdated. “In your letter, you correctly note that the lines among alternative technologies are becoming blurred,” said Universal. O’Rielly’s tweet included a call for evidence: “Again, if anyone has credible, tangible facts disputing this response, please let me know.”

LCDs “are essential to the U.S. economy,” and the COVID-19 pandemic “has only magnified their importance to the national economy, health, and public safety,” said Vizio and its suppliers Xianyang CaiHong Optoelectronics and TPV in public interest comments (login required) at the International Trade Commission in docket 337-3451. Sharp’s April 21 complaint seeks cease and desist and limited exclusion orders against displays from the three companies for allegedly infringing five Sharp LCD patents (see 2004270045). “The disruption in the LCD panels market that Sharp seeks will not be resolved within commercially reasonable time,” said the companies. “Certain major manufacturers of LCD panels are exiting the business by the end of 2020 and the COVID-19 pandemic has adversely impacted the global supply chain of LCD panels,” they said in reference to the Samsung Display decision to speed its exit from LCD production in South Korea and source future supply from Chinese panel makers (see 2004280016). “The COVID-19 pandemic has confirmed the central role of LCD panels,” said the companies. “Non-essential office workers are using LCD displays at home to conduct their daily business.” Students are participating in remote learning “through their video displays,” they said. “The essential nature of these products was apparent when several big-box electronic stores in the U.S. depleted, and were unable to refill, inventories of computer monitors.” Even TVs “are no longer used solely for entertainment,” they said.

Royalty judges are seeking comment through June 5 on a proposal to require claims to royalty fees collected under compulsory licenses be filed electronically, the Copyright Royalty Board said Wednesday.

Gray Television co-CEO Pat LaPlatney wants AT&T to “put aside efforts to secure an extension for complying” with requirements in the permanent renewal of the Satellite Television Extension and Localism Act "and instead work with us toward bringing local TV signals to the residents of all the impacted markets as quickly as possible.” AT&T told members of Congress’ Commerce and Judiciary committees last month it's working to address expected customer upheaval caused by STELA ahead of a June 1 effective date (see 2004200065). The law requires satellite providers using the distant-signal license to serve all 210 designated market areas (see 1912190068). In a letter to AT&T CEO Randall Stephenson dated Monday, LaPlantey noted DirecTV has received significant criticism for not offering local signals in 12 designated market areas (see 1905310051), including seven where Gray has local stations. "The lack of access to local stations [is] an unfortunate situation in normal times" but "intolerable" during the pandemic, he said: Existing retransmission consent agreements would let DirecTV carry Gray stations in those seven markets without any further negotiations. LaPlatney said Gray would host that local receive equipment at its station buildings free. AT&T is "currently in discussions with each of the major broadcast networks to obtain access to their national programming for many of these impacted customers," a spokesperson emailed. "Local stations have exclusive control over who can offer their content within their communities. Our goal is to continue providing network content to as many homes as possible and impacted customers are eligible for a credit." Gray also emailed to the media letters sent in recent weeks to Stephenson from Sens. Susan Collins, R-Maine; Angus King, I-Maine; Deb Fischer, R-Neb.; and Ben Sasse, R-Neb., and Reps. Jared Golden, D-Maine, and Adrian Smith, R-Neb., on local stations.