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`
`August 7, 2017
`
`Via Electronic Filing
`
`The Hon. Rhonda K. Schmidtlein, Chairman
`
`The Hon. David S. Johanson, Vice Chairman
`United States International Trade Commission
`
`500 E Street, SW
`
`Washington, DC. 20436
`
`Cable Television Laboratories, Inc.’s Statement on the Public Interest
`
`Certain Semiconductor Devices, Semiconductor Device Packages, and Products
`Containing the Same, Inv. No. 33 7-TA-1010
`
`Dear Chairman Schmidtlein, Vice Chairman Johanson, and Commissioners:
`
`On behalf of CableLabs, I respectfully submit these comments in response to the Commission’s
`Notice of Request for Statements on the Public Interest in the matter of Certain Semiconductor
`Devices, Semiconductor Device Packages, and Products Containing the Same, Inv. No. 33 7—TA—
`101, dated July 10, 2017.
`
`CableLabs is a non-profit research and development Lab founded in 1988 by members of the
`cable television industry. CableLabs” membership is comprised of the major cable operators
`worldwide, and includes most of the top cable operators in the U.S. See
`htLp:t/www.cablclabs.com/abuut-cahIclabs/membcr—companicsi. CableLabs also performs
`testing and certification of equipment manufactured for the cable industry (cg, DOCSIS cable
`modems).
`
`As a leader of the cable industry, CableLabs strongly urges the Commission to consider severe
`disruptions to legitimate trade and domestic operations, and the public welfare generally, that
`could result from any remedy in this Investigation.
`I understand Complainant Tessera has
`accused a broad swath of semiconductor components and products integrating such components
`in this Investigation, including products which implicate the cable and wireless industries
`(among others), such as cable set-top boxes, wireless modems, telecommunication switches,
`smart phones, and more.
`I further understand that the Administrative Law Judge (ALJ) presiding
`over this Investigation has recommended a sweeping exclusion order, a cease-and-desist order,
`and a maximum bond preventing the importation and/or sale of these products.
`
`An expansive remedial order such as the one the ALJ has recommended here poses significant
`repercussions to the cable industry. Broadcom, for example, is a world—leading chip supplier
`whose technologies are utilized in a wide range of consumer electronics, from cable set-top
`boxes, wireless modems, mobile phones, tablets, and even Virtual Reality technology
`(technologies offered by Broadcom’s co-Respondents, against whom the presiding ALI
`recommended an equally severe remedy). To suddenly exclude and ban the sale of Broadcom’s
`
`

`

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`chips and the multitude of consumer products that carry them would deprive American
`consumers of access to fundamental technologies. This, in turn, will harm the industries that
`supply those technologies.
`
`As one example of the significant downstream impact of a broad remedial order, Respondent
`Broadcom is the sole supplier of chips for set-top boxes manufactured by co—Respondents
`ARRIS and Technicolor, who are themselves the suppliers of cable set—top boxes for co-
`Respondent Comcast, and a majority of the set-top boxes sold in the U.S. cable marketplace.
`Disruption to Comcast’s ability to supply cable set-top boxes could impact the ability of its
`roughly 22.5 million subscribers to access cable television and internet services. Moreover, even
`non—Comcast subscribers would suffer due to a less competitive marketplace, where other
`companies can limit choices and raise prices. The most recent Internet & Television Association
`statistics indicate that the U.S. cable industry, directly and indirectly, has a $421 billion
`economic impact, and supports 2.9 million U.S. jobs which represents $152 billion in personal
`income. '
`
`Finally, the severity of the currently recommended remedy causes CableLabs particular concern
`given Tessera’s non—practicing entity business model, and the effect on the public interest,
`particularly the cable industry. We understand Tessera does not manufacture products protected
`by its asserted patents, but rather seeks to profit from such manufacturers in the form of patent
`royalties. Indeed, we have learned Tessera did not even invent the patent that underlies the
`currently recommended remedy (a patent that expires next year)—it bought the patent and has
`now asserted it against these respondent manufacturers. Other branches of the U.S. government
`are taking a closer look at such entities, and the appropriate relief that they should be afforded.2
`Also of concern, we understand Tessera’s patented technology has been found trivial in the
`context of the technology of a semiconductor chip; even more so in the context of a downstream
`product incorporating such a chip. Careful consideration of any remedy in this investigation is
`surely warranted.
`
`While CableLabs expresses no opinion on the merits of the Investigation, we are deeply
`concerned about the impact a remedial order may have on the cable industry. If the Commission
`determines a remedy of some kind is appropriate, I urge you to consider tailoring any remedial
`order to avoid the immediate disruption to the cable and other large industries, and to the lives of
`the millions of Americans who will be affected. In particular, we have been informed the
`Respondents here will not know until the day the Commission issues its final decision and any
`remedial orders whether the infringement finding on the current products will be upheld and thus
`whether it is necessary to alter those products. And, even after altering such products, many of
`the products would need to be re-Certified by CableLabs (e.g., DOCSIS cable modems)—a
`process that can take 3-5 months. Thus, please consider whether any Commission remedy
`
`1 https://www.ncta.com/impact
`2 See, e.g., HR. 2189, “Trade Protection Not Troll Protection Act”, available at
`
`l11i)S://WWW.COI‘I lrcss. iow’billll lSlh—con 'rcss/housc—bill/2189, seeking to bar non-practicing
`
`

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`(ZolebleLobs®
`(Sable lelevusiou latmmlnnes Inc
`
`should include a grace period for those companies to alter their products to fall outside the scope
`of any infringement of the asserted patents, and Certify them at CableLabs.
`
`Sincerely,
`
`/,,
`
`1/
`
`v
`
`/’ L
`
`I
`A Judson D. Cary
`Cable Television Laboratories, Inc. (CableLabs)
`Vice President, Deputy General Counsel
`
`

`

`CERTIFICATE OF SERVICE
`
`The Honorable Dee Lord
`Administrative Law Judge
`U.S. International Trade Commission
`500 E. Street SW, Room 317
`Washington, D.C. 20436
`
`I, Pamela A. Freitik, hereby certify that the attached document has been served upon the
`
`following parties as indicated below on August 7, 2017.
`
`☒ Via EDIS
`The Honorable Lisa R. Barton
`☐ Via First Class Mail
`Secretary to the Commission
`☐ Via Express Delivery
`U.S. International Trade Commission
`☒ Via Hand Delivery
`500 E Street SW, Room 112-A
`Washington, D.C. 20436
`
`☐ Via EDIS
`Sidney A. Rosenzweig
`☐ Via First Class Mail
`Office of the General Counsel
`☐ Via Express Delivery
`U.S. International Trade Commission
`☐ Via Hand Delivery
`500 E Street SW
`☒ Via Electronic Mail at
`Washington, D.C. 20436
`
`sidney.rosenzweig@usitc.gov
`
`☐ Via First Class Mail
`☐ Via Express Delivery
`☒ Via Hand Delivery
`☒ Via Electronic Mail at
`edward.jou@usitc.gov
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Tessera-Broadcom@cov.com
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Tessera-Broadcom@cov.com
`
`
`
`
`
`
`Sturgis M. Sobin
`Shara Aranoff
`Daniel E. Valencia
`COVINGTON & BURLING LLP
`One CityCenter, 850 Tenth Street, N.W.
`Washington, D.C. 20001
`
`
`Michael K. Plimack
`Dale A. Rice
`Nitin Subhedar
`COVINGTON & BURLING LLP
`One Front Street
`San Francisco, CA 94111
`
`
`
`
`
`
`
`
`
`
`

`

`Robert T. Haslam
`Anupam Sharma
`Thomas E. Garten
`COVINGTON & BURLING LLP
`333 Twin Dolphin Drive
`Redwood Shores, CA 94065-1418
`
`
`Counsel for Complainants Tessera Technologies,
`Inc., Tessera, Inc. and Invensas Corporation
`
`KILPATRICK TOWNSEND & STOCKTON LLP
`David E. Sipiora
`Kristopher L. Reed
`Matthew C. Holohan
`Brian P. O’Donnell
`1400 Wewatta Street, Suite 600
`Denver, CO 80202
`
`Joshua B. Pond
`607 14th Street, NW, Suite 900
`Washington, D.C. 20005-2018
`
`
`
`
`
`
`Norris P. Boothe
`Matthew J. Meyer
`William E. Mosley
`1080 Marsh Road
`Menlo Park, CA 94025
`
`
`
`
`FOSTER MURPHY ALTMAN & NICKEL PC
`David F. Nickel
`Matthew N. Duescher
`1899 L Street, N.W., Suite 1150
`Washington, D.C. 20036
`
`Counsel for Respondents Broadcom Limited,
`Broadcom Corporation, Arista Networks, Inc. ARRIS
`International plc, ARRIS Group, Inc., ARRIS
`Technology, Inc., ARRIS Enterprises LLC, ARRIS
`
`
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Tessera-Broadcom@cov.com
`
`
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-
`TesseraITC@kilpatricktownsend.com
`
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-
`TesseraITC@kilpatricktownsend.com
`
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-
`TesseraITC@kilpatricktownsend.com
`
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`FM-Broadcom-
`1010@fostermurphy.com
`
`
`

`

`Solutions, Inc. , Pace Ltd., Pace Americas, LLC, Pace
`USA, LLC, ASUSTeK Computer Inc., ASUS
`Computer International, Comcast Cable
`Communications, LLC, Comcast Cable
`Communications Management, LLC, Comcast
`Business Communications, LLC, Technicolor S.A.,
`Technicolor USA, Inc., Technicolor Connected Home
`USA LLC, NETGEAR, Inc., HTC Corporation and
`HTC America, Inc.
`
`David A. Hickerson
`George C. Beck
`Foley & Lardner LLP
`3000 K Street, N.W., Suite 600
`Washington, D.C. 20007-5109
`
`
`Steven J. Rizzi
`Ramy E. Hanna
`Foley & Lardner LLP
`90 Park Avenue
`New York, New York 10016-1314
`
`
`Counsel for Broadcom Limited
`and Broadcom Corporation
`
`
`
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-Foley@Foley.com
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-Foley@Foley.com
`
`
`
`/s/ Pamela A. Freitik
`Pamela A. Freitik
`
`
`
`
`
`
`
`