PUBLIC VERSION
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`UNITED STATES INTERNATIONAL TRADE COMMISSION
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`WASHINGTON, D.C. 20436
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`In the Matter of
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`CERTAIN AUDIOVISUAL
`COMPONENTS AND PRODUCTS
`
`CONTAINING THE SAME
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`Investigation No. 337-TA-83'?
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`INITIAL DETERMINATION
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`Administrative Law Judge David P. Shaw
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`Pursuant to the notice of investigation, 77 Fed. Reg. 22803 (Apr. 17, 2012), this is the
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`Initial Determination in Certain Audiovisual Components and Products Containing the Same,
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`United States International Trade Commission Investigation No. 337-TA-837.
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`It is held that a violation of section 337 of the Tariff Act, as amended, has occurred in the
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`importation into the United States, the sale for importation, or the sale within the United States
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`after importation, of certain audiovisual components and products containing the same, with
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`respect to asserted claims 1, 5, 7, 8, 9, 10, 11, and 16 of U.S. Patent No. 5,870,087. It is further
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`held that a violation of section 337 of the Tariff Act, as amended, has not occurred in the
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`importation into the United States, the sale for importation, or the sale within the United States
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`after importation, of certain audiovisual components and products containing the same, with
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`respect to asserted claims 1, 2, 3, 4, 5, 6, 7, 8, 9, and 11 of U.S. Patent No. 6,982,663; asserted
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`claims 22, 23, 24, 25, 26, 29, 32, and 35 of U.S. Patent No. 6,452,958; or asserted claims 20, 23,
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`24, 26, 27, 28, 29,30, 31, 32, 33, 34, 35, 37, 38, 39, 40, 47, 49, 50, 51, S2, 53, 54, 55, 56, 58, 59,
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`60, and 61 of U.S. Patent No. 6,207,867.
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`Avago Exhibit 2001
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`TABLE OF CONTENTS
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`Page
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`Background ....................................................................................................................... .. 1
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`A.
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`B.
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`Institution of the Investigation; Procedural History............................................... ..I
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`The Private Parties; Assignment of Patents ........................................................... ..3
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`Jurisdiction ....................................... .; ............................................................................... .. 4
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`Importation of the Accused Products ................................................................................ .. 5
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`Relevant Summary Determination Rulings .................................................................... .. 13
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`The ‘087 Patent ............................................................................................................... .. 13
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`A.
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`B.
`
`The Asserted Claims and Accused Products ..............
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`....................................... ..13
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`Claim Construction .............................................................................................. ..17
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`1.
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`2.
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`General Principles of Law ....................................................................... .. 17
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`Level of Ordinary Skill ............................................................................ .. 19
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`“single memory” I “memory” and “single memory” r’ “first unified
`memory” .................................................................................................. ..20
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`“wherein the memory .
`
`.
`
`....................................................................... ..25
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`“controlling operations accesses code and data from said first unified
`memory” .................................................................................................. ..27
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`“operable to access the memory” ............................................................. ..28
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`“operates using a first unified memory” I “operates using said first
`unified memory” ...................................................................................... ..29
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`Infringement ......................................................................................................... ..30
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`1.
`
`2.
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`General Principles of Law ....................................................................... ..30
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`Claim 1 ..................................................................................................... ..36
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`Claim 5 ..................................................................................................... ..64
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`Claim 7 ..................................................................................................... ..66
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`TABLE OF CONTENTS (CONT’D)
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`Page
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`Claim 8 ..................................................................................................... ..69
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`Claim 9 ..................................................................................................... ..'?'3
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`Claim 10 ................................................................................................... ..?'5
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`Claim 11 ................................................................................................... ..93
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`Claim 16 ................................................................................................... ..97
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`Induced Infringement ............................................................................... ..98
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`9.
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`10.
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`Validity .............................................................................................................. ..100
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`1.
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`2.
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`3.
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`4.
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`5.
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`General Principles of Law ..................................................................... ..100
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`U.S. Patent No. 5,898,695 (“Fujii”) ....................................................... ..108
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`Fujii in Combination with U.S. Patent No. 5,874,995 (“Naimpal1y”).....1 13
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`Secondary Considerations of Nonobviousness ...................................... ..l15
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`Indefiniteness ......................................................................................... ..1 1 6
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`VI.
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`The ‘663 Patent ...................
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`........................................................................................ .. 11'?
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`A.
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`B.
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`The Asserted Claims and Accused Products ..................................................... ..117
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`Claim Construction ............................................................................................ ..121
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`1.
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`2.
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`Level of Ordinary Skill .......................................................................... .. 121
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`“setting said index value to a threshold” 2’ “set an index value to a
`threshold” ............................................................................................... ..121
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`“adding an offset to said index value” I “add an offset to said index
`value” ..................................................................................................... .. 123
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`“adding a value to said index value” 2’ “add a value to said index
`value” ..................................................................................................... .. 129
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`“said index value” .................................................................................. ..129
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`“generating said index value based on a fourth pattern in said first
`portion in response to said fourth pattern being other than said first
`pattern” ................................................................................................... .. 130
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`TABLE OF CONTENTS (CONT’D)
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`“wherein said codeword is compatible with at least one of an
`International Organization for Standardizationflnternational
`Electrotechnical Commission 14496-10 standard and an International
`Telecommunication Union-Telecommunications Standardization
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`Sector Recommendation h.:’264” ........................................................... .. 133
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`Infringement ....................................................................................................... ..1 3 5
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`1.
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`2.
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`3.
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`4.
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`Complainants’ Reliance on the H.264 Reference Software to Show
`Infringement ........................................................................................... ..I35
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`The Accused Funai Products ................................................................. ..138
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`Accused Products Containing MediaTek Decoders .............................. ..139
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`Indirect Infringement ............................................................................. .. 1 56
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`Validity .............................................................................................................. ..159
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`1.
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`2.
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`5.
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`6.
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`Priority Date ........................................................................................... ..159
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`Indefiniteness ......................................................................................... . .1 63
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`Written Description................................................................................ .. 164
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`Patentable Subject Matter ...................................................................... ..165
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`The JVT-C162-L Reference .................................................................. .. 168
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`The VCEG—P07 Reference ..................................................................... .. 169
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`VII.
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`The ‘958 Patent ............................................................................................................. .. 170
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`A.
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`B.
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`The Asserted Claims and Accused Products ..................................................... ..170
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`Claim Construction ............................................................................................ ..176
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`1.
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`2.
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`Level of Ordinary Skill .......................................................................... ..176
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`“chip ..................................................................................................... .._176
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`“code” .................................................................................................... ..177
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`“a code having N chips in response to the group of data bits, the code
`being a member of a code set that includes M codes, wherein M>N”
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`1 80
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`5.
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`“autocorrelation sidelobes suitable for multipath environments” .......... ..1S1
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`Infringement ....................................................................................................... .. 1 81
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`1.
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`2.
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`3.
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`10.
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`11.
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`The Accused CCK Functionality of the 802.11 Standards .................... ..181
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`Complainants’ Reliance on HDL Code to Show Infringement ............. ..183
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`Claim 22 ................................................................................................. ..184
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`Claim 23 ................................................................................................. ..198
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`Claim 24 ................................................................................................. ..200
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`Claim 25 ................................................................................................. ..20l
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`Claim 26 ................................................................................................. ..201
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`Claim 29 ................................................................................................. ..203
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`Claim 32 ................................................................................................. ..204
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`Claim 35 ................................................................................................. ..205
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`Funai I [
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`] Products ......................................................................... ..205
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`Validity .............................................................................................................. "207
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`1.
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`2.
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`Priority Date ........................................................................................... .207
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`The Prasad Reference ............................................................................ ..211
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`The Harris Proposal ............................................................................... ..214
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`Combinations of Prior Art ..................................................................... .215
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`Secondary Considerations ...................................................................... ..217
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`Indefiniteness ......................................................................................... ..217
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`Written Description ................................................................................ ..219
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`TABLE OF CONTENTS (CONT’D)
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`Page
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`VIII. The ‘867 Patent ............................................................................................................. .. 220
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`A.
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`B.
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`The Asserted Claims a11d Accused Products ..................................................... .220
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`Claim Construction ............................................................................................ ..228
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`1.
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`2.
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`8.
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`9.
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`Level of Ordinary Skill .......................................................................... ..228
`
`“periodically receiving [a transmission signal from a transmitter]” ...... ..229
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`“a timestamp having a value In for synchronizing the receiver
`counter with a transmitter timer, wherein the timestamp represents
`a value 111 within a count sequence of the transmitter timer” I “a
`timestamp for synchronizing the receiver timer with a transmitter
`timer that counts up to 11 counts, the timestamp being a value m” ........ ..230
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`“accounts for delay” I “accounts for delays” I “accounts for a delay” ....236
`
`“as to synchronize the receiver timer with the transmitter timer” ......... .237
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`“the traffic pending field” ...................................................................... "237
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`“at the time of transmission of the transmission signal” r‘ “an actual
`time of transmitting the transmission signal" ........................................ ..237
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`“a receiver counter that counts up to 11 counts” ..................................... ..238
`
`“timer interval field” .............................................................................. ..24I
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`Infringement ....................................................................................................... ..242
`
`1.
`
`The Accused Timing Synchronization Functionality of the 802.11
`Standards ................................................................................................ ..242
`
`Complainants’ Reliance on I-IDL Code to Show Infringement ............. ..244
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`Claim 20 ................................................................................................. ..244
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`Claim 23 ................................................................................................. .262
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`Claim 24 ................................................................................................. ..263
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`Claim 26 ................................................................................................. ..263
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`Claim 27 ................................................................................................. ..266
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`TABLE OF CONTENTS (CONT’D)
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`Page
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`Claim 28 ................................................................................................. ..269
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`Claim 29 ................................................................................................. ..269
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`Claim 30 .................................
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`.............................................................. ..2'?l
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`Claim 31 ................................................................................................. ..2'}’3
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`Claim 32 ................................................................................................. .275
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`Claim 33 ................................................................................................. .275
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`Claim 34 ................................................................................................. ..2'?'6
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`Claim 35 ................................................................................................. .277
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`Claim 37 ................................................................................................. ..280
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`Claim 38 ................................................................................................. ..280
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`Claim 39 ................................................................................................. ..280
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`Claim 40 ................................................................................................. ..281
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`Claim 47 ................................................................................................. ..28l
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`Claim 50 ................................................................................................. .283
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`Claim 51 ................................................................................................. ..283
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`Claim 52 ................................................................................................. ..283
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`Claim 53 ................................................................................................. ..284
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`Claim 54 ................................................................................................. ..284
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`Claim 55 ................................................................................................. .284
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`Claim 56 ................................................................................................. ..285
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`Claim 58 ................................................................................................. ..285
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`Claim 59 ................................................................................................. ..285
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`TABLE OF CONTENTS (CONT’D)
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`Page
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`31.
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`Claim
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`32.
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`Claim 61 ................................................................................................. .286
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`33.
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`Funaif [
`
`] Products ........................................................................... ..286
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`Validity .............................................................................................................. ..288
`
`1.
`
`2.
`
`3.
`
`4.
`
`Priority Date ........................................................................................... ..288
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`Anticipation............................................................................................ .290
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`Obviousness ........................................................................................... .-3 12
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`Indefiniteness ......................................................................................... ..314
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`Domestic Industry ......................................................................................................... .. 315
`
`A.
`
`B.
`
`C.
`
`General Principles of Law ................................................................................. ..315
`
`Complainants’ Investments in Licensing the Asserted Patents ......................... ..319
`
`[
`
`] Domestic Investments in Products Licensed from Complainants ............ ..329
`
`Unenforceability ........................................................................................................... .. 331
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`A.
`
`RAND Obligations; Contractual andfor Equitable Estoppel
`
`1.
`
`2.
`
`Summary of the Parties’ Arguments ...................................................... ..333
`
`Discussion and Ruling ........................................................................... ..351
`
`B.
`
`Breach of Duty to Disclose SEPS tothe
`
`1.
`
`2.
`
`Summary of the Parties’ Arguments ...................................................... ..360
`
`Discussion and Ruling ........................................................................... ..368
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`Equitable Estoppel As to Realtek ...................................................................... ..371
`
`1.
`
`2.
`
`Summary of the Parties’ Arguments ...................................................... ..371
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`Discussion and Ruling ........................................................................... ..378
`
`Conclusions of Law ...................................................................................................... .. 381
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`TABLE OF CONTENTS (CONT’D)
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`XII.
`
`Initial Determination on
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`XIII.
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`The following abbreviations or acronyms may be used in this Initial Determination:
`
`Administrative Law Judge
`
`Complainants’ Demonstrative Exhibit
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`Complainants’ Physical Exhibit
`
`Complainants’ Exhibit
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`Deposition
`
`Electronic Document Imaging System
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`Joint Demonstrative Exhibit
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`Joint Physical Exhibit
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`Joint Exhibit
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`Moving Picture Experts Group
`
`Manual of Patent Examining Procedure
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`U.S. Patent and Trademark Office
`
`Respondents’ Demonstrative Exhibit
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`Respondents’ Physical Exhibit
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`Rebuttal Witness Statement
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`Respondents’ Exhibit
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`Staff’ s Demonstrative Exhibit
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`Staff’ s Physical Exhibit
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`Staff’ s Exhibit
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`Transcript
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`Witness Statement
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`Avago Exhibit 2001
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`Background
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`A.
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`Institution of the Investigation; Procedural History
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`By publication of a notice in the Federal Register on April 17, 2012, pursuant to
`
`subsection (b) of section 337 of the Tariff Act of 1930, as amended, the Commission instituted
`
`this investigation to determine:
`
`[W]hether there is a violation of subsection (a)(1)(B) of section 337 in the
`importation into the United States, the sale for importation, or the sale
`within the United States after
`importation of certain audiovisual
`components and products containing the same that infringe one or more of
`claims 1, 5, 7-11, and 16 of the ‘037 patent [U.S. Patent No. 5,870,087];
`claims 1-7, 10, 11, 22-26, 29, 30, 32, 35, and 36 of the ‘958 patent [U.S.
`Patent No. 6,452,958]; claims 1, 4-7, 9-21, 23, 24, 26-40, 44, 45, 47, and
`49-74 of the ‘867 patent [U.S. Patent No. 6,707,867]; and claims 1-11 of
`the ‘663 patent [U.S. Patent No. 6,982,663], and whether an industry in
`the United States exists as required by subsection (a)(2) of section 337.
`
`77 Fed. Reg. 22803 (Apr. 17, 2012).
`
`The Commission named as complainants LSI Corporation of Milpitas, California, and
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`Agere Systems lnc. of Allentown, Pennsylvania (collectively, “LS1” or “Complainants”).
`
`Id.
`
`The Commission named as respondents Funai Electric Company, Ltd. of Osaka, Japan;
`
`Funai Corporation, Inc. of Rutherford, New Jersey; P&F USA, Inc. of Alpharetta, Georgia;
`
`Funai Service Corporation, of Groveport, Ohio (together, “Funai”); MediaTek Inc. of Hsinchu
`
`City, Taiwan; MediaTek USA Inc. of San Jose, California; MediaTek Wireless, Inc. of Woburn,
`
`Massachusetts (together, “MediaTek”); Ralink Technology Corporation of Hsinchu County,
`
`Taiwan; Ralink Technology Corporation (USA) of Cupertino, California (together, Ralink); and
`
`Realtek Semiconductor Corporation of Hsinchu, Taiwan (“Realtek”) (collectively,
`
`“Respondents”). Id.
`
`The Office of Unfair Import Investigations was not named as a party to this investigation.
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`The target date for completion of this investigation was set at 16 months, 1'. e., August 19,
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`2013. Order No. 3. Upon subsequent motion by the parties, the administrative lawjudge issued
`
`an initial determination extending the target date by three months, 1'. e., to November 18, 2013.
`
`Order No. 47 (Oct. 25, 2012), off’d, Notice of Commission Determination Not to Review an
`
`Initial Determination Extending the Target Date for Completion of the Investigation (Nov. 7,
`
`2012).
`
`LSI filed a motion to terminate the investigation as to MediaTek and Ralink based on the
`
`withdrawal of all allegations. The administrative lawjudge granted the motion in an initial
`
`determination. Order No. 57 (Jan. 24, 2013), aj_7’d, Notice of a Commission Determination Not
`
`to Review an Initial Determination Terminating the Investigation As to Certain Respondents
`
`(Feb. 13, 2013).
`
`Funai and Realtek moved to terminate the investigation in part, i.e. , as to claims 1-7,
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`10-11, 30, and 36 of the ‘958 patent; claims 1, 4-7, 9-19, 21, 36, 44-45, 57, and 62-74 of the ‘867
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`patent; and claim 10 of the ‘663 patent. The administrative law judge granted the motion in an
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`initial determination. Order No. 72 (Mar. 7, 2013), ajfd, Notice of a Commission Determination
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`Not to Review an Initial Determination Terminating the Investigation As to Certain Claims (Mar.
`
`26, 2013).
`
`A prehearing conference was held on April 2, 2013, with the evidentiary hearing in this
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`investigation commencing immediately thereafter. The hearing concluded on April 10, 2013.
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`See Order No. 73; Hearing Tr. 1-2189. The parties were requested to file post-hearing briefs not
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`to exceed 600 pages in length, and to file reply briefs not to exceed 200 pages in length. See
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`Hearing Tr. 12.
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`IV.
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`Relevant Summary Determination Rulings
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`On February 26, 2013, the administrative law judge granted summary determination of
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`non-infringement for the following Funai model numbers:
`
`[
`
`]
`
`Order No. 67, aff’a’, Notice of Commission Determination Not to Review Order No. 6'? Granting
`
`Respondents’ Motion for Summary Determination of Non—Infringement (Mar. 27, 2013).
`
`On March 5, 2013, the administrative lawjudge granted summary determination that the
`
`importation requirement of section 337 had been satisfied as to the following Realtek products:
`
`[
`
`]
`
`Order No. 71, afi"’d, Notice of a Commission Determination Not to Review an Initial
`
`Determination Granting-in-Part Complainants’ Motion for Summary Determination of
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`Importation of Certain Accused Products (Apr. 2, 2013).
`
`V.
`
`The ‘08’? Patent
`
`A.
`
`The Asserted Claims and Accused Products
`
`Asserted U.S. Patent No. 5,870,087 (“the ‘087 patent”) is titled, “MPEG Decoder System
`
`and Method Having a Unified Memory for Transport Decode and System Controller Functions.”
`
`IX-0001 (‘087 patent). The ‘087 patent issued on February 9, 1999, and the named inventor is
`Avago Exhibit 2001
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`Kwok Kit Chau. Id. The ‘087 patent relates generally to “[a]n MPEG decoder system and
`
`method for performing video decoding or decompression which includes a unified memory for
`
`multiple functions.” Id. at Abstract.
`
`LS1 asserts independent claims 1, I0, and 16, as well as dependent claims 5, 7, 8, 9, and
`
`11 against Funai. These claims read as follows:
`
`1. An MPEG decoder system which includes a single memory for use by
`transport, decode and system controller functions, comprising:
`
`a channel receiver for receiving and MPEG encoded stream;
`
`transport logic coupled to the channel receiver which demultiplexes
`one or more multimedia data streams from the encoded stream;
`
`a system controller coupled to the transport
`operations within the MPEG decoder system;
`
`logic which controls
`
`an MPEG decoder coupled to receive one or more multimedia data
`streams output from the transport logic, wherein the MPEG decoder
`operates to perform MPEG decoding on the multimedia data streams;
`and
`
`a memory coupled to the MPEG decoder, wherein the memory is used
`by the MPEG decoder during MPEG decoding operations, wherein the
`memory stores code and data useable by the system controller which
`enables the system controller to perform control functions within the
`MPEG decoder system, wherein the memory is used by the transport
`logic for demultiplexing operations;
`
`wherein the MPEG decoder is operable to access the memory during
`MPEG decoding operations;
`
`wherein the transport logic is operable to access the memory to store
`and retrieve data during demultiplexing operations; and
`
`wherein the system controller is operable to access the memory to
`retrieve code and data during system control functions.
`
`5. The MPEG decoder system of claim 1, wherein the memory stores
`anchor frame data during reconstruction of temporally compressed frames.
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`7. The MPEG decoder system of claim 1, wherein said memory includes a
`plurality of memory portions, wherein said memory includes a video
`frame portion for storing video frames, a system controller portion for
`storing code and data executable by the system controller, and a transport
`buffer portion for storing data used by the transport logic.
`
`8. The MPEG decoder system of claim 7, wherein said memory further
`includes a video decode buffer portion for storing decoded video data, a
`video display sync buffer, and an on-screen display buffer.
`
`9. The MPEG decoder system of claim 8, wherein said memory further
`includes one or more audio buffers for storing audio data.
`
`10. A method for performing video decoding in an MPEG decoder system
`which includes a single memory for use by transport, decode and system
`controller functions, the method comprising:
`
`receiving an MPEG encoded stream;
`
`demultiplexing one or more multimedia data streams from the encoded
`stream, wherein said demultiplexing one or more multimedia data
`streams from the encoded stream operates using a first unified
`memory;
`
`performing MPEG decoding on the multimedia data streams, wherein
`said performing MPEG decoding operates using said first unified
`memory; and
`
`a system controller controlling operations within the MPEG decoder
`system, wherein said controlling operations accesses code and data
`from said first unified memory;
`
`wherein said demultiplexing one or more multimedia data streams,
`said performing MPEG decoding, and said controlling operations each
`use said first unified memory.
`
`. The method of claim 10,
`
`wherein said demultiplexing one or more multimedia data streams
`from the encoded stream includes accessing multimedia data stream
`data from said first unified memory;
`
`wherein said performing MPEG decoding on the multimedia data
`streams includes accessing video frame data from said first unified
`memory; and
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`wherein said controlling operations includes accessing code and data
`from said first unified memory.
`
`16. A video decoder system which includes a single memory for use by
`transport, decode and system controller fitnctions, comprising:
`
`a cha.nnel receiver for receiving an encoded video stream;
`
`transport logic coupled to the channel receiver which demultiplexes
`one or more multimedia data streams from the encoded stream;
`
`a system controller coupled to the transport
`operations within the video decoder system;
`
`logic which controls
`
`a video decoder coupled to receive one or more multimedia data
`streams output from the transport logic, wherein the video decoder
`operates to perform video decoding on the multimedia data streams;
`and
`
`a memory coupled to the video decoder, wherein the memory is used
`by the video decoder during video decoding operations, wherein the
`memory stores code and data useable by the system controller which
`enables the system controller to perform control functions within the
`video decoder system, wherein the memory is used by the transport
`logic for demultiplexing operations;
`
`wherein the video decoder is operable to access the memory during
`video decoding operations;
`
`wherein the transport logic is operable to access the memory to store
`and retrieve data during demultiplexing operations; and
`
`wherein the system controller is operable to access the memory to
`retrieve code and data during system control functions.
`
`IX-0001 at col. 1?, lns. 15-46; col. 1?, lns. 63-65; col. 18, lns. 1-44; col. 19, In. 6 — col. 20, In. 6.
`
`Complainants accuse the following Funai products, identified by buyer model number, of
`
`infringing the asserted claims of the ‘087 Patent: [
`
`Avago Exhibit 2001
`
`Page 16 of 48
`
`Avago Exhibit 2001
`Page 16 of 48
`
`

`
`PUBLIC VERSION
`
`].1 Compls. Br. at 42-43 (citing CX-1594C
`
`(Acton WS) at 6).
`
`B.
`
`Claim Construction
`
`1.
`
`General Principles of Law2
`
`Claim construction begins with the plain language of the claim.3 Claims should be given
`
`their ordinary and customary meaning as understood by a person of ordinary skill in the art,
`
`viewing the claim terms in the context of the entire patent.4 Phiiiips v. A WH Corp., 415 F.3d
`
`1303, 1312-13 (Fed. Cir. 2005), cert. denied, 546 U.S. 1170 (2006).
`
`In some instances, claim terms do not have particular meaning in a field of art, and claim
`
`construction involves little more than the application of the widely accepted meaning of
`
`1 Funai requests that the administrative lawjudge enter a finding of non-infringement for any
`remaining products listed on the Joint Statement of Accused Products for which Complainants
`have not specifically provided evidence of infringement. See Resps. Br. at 430 n.74. There