The International Trade Commission voted to open a Tariff Act Section 337 investigation (337-TA-1190) into allegations Fitbit and Garmin fitness trackers infringe Philips patents (see 1912120031), said the agency Friday. Philips alleges the trackers, manufactured by Ingram Micro, Maintek Computer and Iventec Appliances in China, copy the patented designs of Philips’ GoSafe and HomeSafe motion biosensor and sleep diagnostics products. The ITC will consider a limited exclusion order and cease and desist orders banning import and sale of infringing merchandise. The claims "are without merit and a result of Philips’s failure to succeed in the wearables market," emailed a Fitbit representative Monday. "Fitbit plans to defend itself vigorously against all allegations made in the complaint." It’s Garmin's "long-standing policy not to comment on on-going litigation," a spokesperson emailed.

France’s digital services tax (see 1912030002) sets a “troubling precedent” because the DST “unnecessarily departs from progress towards stable, long lasting international income tax policies,” and “disproportionately impacts U.S.-headquartered companies.” So testified Sam Rizzo, Information Technology Industry Council director-policy, before an Office of the U.S. Trade Representative hearing Tuesday on Trade Act Section 301, per a transcript released Friday. The tech industry worries about “an accelerating trend toward the unilateral adoption of DSTs” in other countries, said Rizzo. U.S. “policy responses” need to be “about more” than the French DST, he said. “It is about preventing the wide-scale application of targeted, unilateral taxes.” USTR proposed retaliatory tariffs of up to 100 percent on some French non-tech imports.

A California tech company falsely claimed participation in the EU-U.S. Privacy Shield, the FTC said Thursday in a 5-0 settlement. Medable is prohibited from misrepresenting itself again. An attorney for the company didn’t comment.

The PowerPic wireless-charging picture frame for mobile phones imported from China under the 8504.40.85.00 subheading was one of 68 exclusions the Office of the U.S. Trade Representative granted from the List 3 Section 301 tariffs, said Monday’s Federal Register. The exclusions are retroactive to Sept. 24, 2018, when the tariffs took effect at 10 percent before being raised to 25 percent months later. “After a great deal of time, effort and expense by our small company, we are 100% convinced that there are no manufacturers anywhere in the world but in China which can produce our products at prices and in quantities needed to allow us to succeed in selling to consumers,” said importer Twelve South in its PowerPic exclusion request.

ITU adopted ATSC 3.0 as an international recommended DTV standard, said Sinclair Thursday. The U.S. delegation starting in April pushed for that, the release said. The next step toward implementation involves updating “the ITU-sanctioned Digital Handbook” instructions for moving to 3.0, the broadcaster said. Sinclair Vice President-Spectrum Engineering and Policy Louis Libin chairs the ITU Rapporteur Group assigned to modify the Digital Handbook. “With initial U.S. deployments in place, we’re anticipating the first announcements of consumer receivers for the U.S. market in the coming days" at CES, said ATSC Board Chairman Lynn Claudy, NAB senior vice president-technology. "The decision by the ITU is yet another signal that digital terrestrial broadcasting has a bright future ahead,”

The China Ministry of Commerce doesn't like provisions in the 2020 National Defense Authorization Act that target Huawei and ZTE. The law bars the Trump administration from lifting the Commerce Department Bureau of Industry and Security's addition of Chinese telecom equipment manufacturer Huawei to its export entity blacklist without congressional approval (see 19121700590). The law also requires reports to Congress on waivers issued to companies doing business with Huawei, and ZTE's compliance with a 2018 agreement that lifted Commerce's ban on U.S. companies selling telecom software and equipment to ZTE. “We have noticed that the U.S. National Defense Authorization Act for FY 2020 has been signed into law, which contains a number of unfavorable provisions for Chinese companies,” a ministry spokesperson said during a Thursday news conference, according to an unofficial translation. “China is firmly opposed to this,” he said. Specifically, “the Chinese side believes that the provisions of the act on restricting the purchase of Chinese products and tightening export control sanctions against Chinese enterprises are a bad example of state intervention in the normal business activities of enterprises, which is in stark contrast to the fairness, equality, and free trade promoted by the United States,” the spokesperson said. China plans to “pay close attention to the impact on the Chinese enterprises during the implementation of the 'Bill' and take all necessary measures to protect the legitimate rights and interests of Chinese enterprises,” he said. President Donald Trump signed the NDAA Dec. 20.

The Commerce Department extended until Jan. 10 the deadline for comments its proposed new procedures for reviewing transactions, including imports, that involve information and communications technology and services and are seen as a potential threat (see 1911260044), says Monday’s Federal Register. Industry groups requested the extension beyond the original due date of Dec. 27.

CTA hailed the House's "swift" 385-41 OK of legislation ratifying the U.S.-Mexico-Canada Agreement on free trade, saying the Senate "now needs to do its part." USMCA "will help American technology leadership and ensure business of all sizes thrive in a competitive global marketplace," said CTA President Gary Shapiro. USMCA's "modernized provisions will help ensure that North American trade policy reflects today’s global economy and will continue to benefit the U.S. economy," said David French, National Retail Federation senior vice president-government relations. "USMCA is a meaningful trade victory that will provide benefits for decades to come.”

The U.S. government didn’t violate the Fourth Amendment when it incidentally collected communications of a U.S. citizen through a foreign surveillance program, the 2nd U.S. Circuit Court of Appeals ruled Wednesday in U.S. v. Hasbajrami. Agron Hasbajrami was arrested at JFK airport in New York in 2011 and charged with attempting to provide material support to a terrorist organization. The prosecution partly relied on information gathered without warrant under Foreign Intelligence Surveillance Act Section 702, which Hasbajrami sought to suppress under the Fourth Amendment. The case was remanded to the district court. The American Civil Liberties Union disagreed with the 2nd Circuit's ruling that “NSA can collect Americans’ international communications without a warrant, [but] the court rightly finds that the Fourth Amendment applies when the government searches for that sensitive information in intelligence databases,” said National Security Project staff attorney Patrick Toomey.

The U.S. should restrict use of drones and funding for state-owned firms trying to undermine national security, Senate Republicans wrote the Transportation Department and FAA Wednesday. Sens. Marsha Blackburn, Tennessee; Marco Rubio and Rick Scott, Florida; John Cornyn, Texas; and Tom Cotton, Arkansas, demanded immediate restrictions on the equipment, in response to Chinese threats. “American taxpayer dollars should not fund state-controlled or state-owned firms that seek to undermine American national security and economic competitiveness,” they wrote Transportation Secretary Elaine Chao and FAA Administrator Stephen Dickson. DOT didn’t comment.