Kyocera Strikes Deal To End ITC Probe Over Wireless Imports

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Law360, New York (August 28, 2013, 7:30 PM ET) -- Kyocera Corp. has reached a settlement that will allow it to exit a U.S. International Trade Commission investigation over imported wireless electronic devices that allegedly infringe a microprocessor patent, the ITC's investigative staff said Wednesday.
The staff supported a motion to terminate the probe after the settlement agreement reached between Kyocera and the complainants, which include Technology Properties Ltd. LLC, Patriotic Scientific Corp. and Phoenix Digital Solutions LLC, was filed with the ITC on Aug. 23.

According to the terms of the agreement, which was heavily redacted, TPL and Patriotic Scientific's joint venture Phoenix Digital Solutions will grant a license to Kyocera with respect to U.S. Patent Number 5,809,336.

“The staff is not aware of any information that would indicate that the termination of this investigation based upon the agreement accompanying the joint motion would be contrary to the public health and welfare, competitive competitions in the U.S. economy, the production of like or directly competitive articles in the United States, or U.S. consumers,” an investigative attorney with the Office of Unfair Import Investigations said in a brief supporting the motion.

TPL, Patriot Scientific and Phoenix Digital Solutions filed the ITC complaint in June 2012.

The commission's probe has been looking into whether tablets, smartphones, e-readers and other consumer devices imported into the U.S. by the respondent infringed the '336 patent, titled, "High-performance microprocessor having variable-speed system clock."

In their original complaint, Patriot and Phoenix Digital Solutions said that the '336 patent described a design to increase the speed and the efficiency of microprocessors.

The patent holders listed numerous products that allegedly used the design, including e-readers like Amazon.com Inc.'s Kindle and Barnes & Noble Inc.'s Nook, a GPS navigation system from Garmin USA Inc. and smartphones like HTC Corp.'s Thunderbolt.

Should the motion be granted, the investigation would continue to target the remaining companies, which include Amazon, Barnes & Noble, Garmin, HTC, Acer Inc., Huawei Technologies Co. Ltd., LG Electronics Inc., Nintendo of America Inc., Novatel Wireless Inc.,Samsung Electronics Co. Ltd., Sierra Wireless Inc. and ZTE Corp.

The patent-in-suit is U.S. Patent Number 5,809,336.

Representatives for the parties were not immediately available for comment Tuesday.

TPL is represented by James C. Otteson of Agility IP Law LLP. Patriot Scientific is represented by Charles T. Hoge of Kirby Noonan Lance & Hoge LLP.

Kyocera is represented by M. Andrew Woodmansee of Morrison & Foerster LLP.

The case is Certain Wireless Consumer Electronics Devices and Components Thereof, case number 337-TA-853, in the U.S. International Trade Commission.