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Industry Awaits ITC Decision On Patent Dispute
by Winter Casey
The U.S. International Trade Commission has postponed its decision on a patent dispute between Broadcom and Qualcomm, two providers of wireless communications technology.
An administrative law judge for the ITC previously determined that Qualcomm violated a Broadcom patent on technology that helps mobile telephones conserve battery power when out of cellular network range.
The commission held a rare two-day hearing on the topic in March that included testimony from Reps. Darrell Issa, R-Calif., and Adam Schiff, D-Calif., as well as industry experts. The case has attracted attention from the technology industry due to its potential impact on the U.S. economy.
The ITC is now expected to issue its decision on June 7, analysts with the investment firm Stifel Nicolaus said in an e-mail.
The ITC is considering what penalties to impose on Qualcomm for violating a Broadcom patent. The commission could decide that Qualcomm's infringing product, which is made abroad, should not be allowed into the United States.
If the commission took that action, no cellular devices containing Qualcomm's infringing WCDMA chips would be allowed to be imported into the United States. Some observers say because the patent is so widely used such an order would have a huge impact on the U.S. economy and public service communications.
"We would expect that if the decision is adverse to Qualcomm and its wireless company allies, they would immediately file a petition for a stay with the ITC and perhaps with the federal circuit," according to the analysts.
Ronald Cass, former vice chairman of the ITC, said the decision could be delayed because the commission is split on the issue and struggling to determine how to balance patent and industry concerns.
"The usual instinct for some commissioners is to just shut down imports," Cass said. "But here that would shut down the mobile phone industry. It probably would leave the commission looking out of touch, and it also probably would lead to the first presidential override of an ITC Section 337 decision in decades."
Section 337 of the 1930 Tariff Act deems unlawful the infringement of a copyright, patent or trademark by an import. The president has the power to override ITC decisions.
The companies have been engaged in other legal battles.
On Tuesday, Broadcom said that a unanimous federal jury found that Qualcomm patents for cellular baseband chips and software infringe three Broadcom patents. Broadcom was awarded $19.6 million in damages.
Broadcom claimed in its original lawsuit filed in May 2005 that five of its patents had been infringed.
"We continue to believe that none of the Broadcom patent claims are valid or were infringed by Qualcomm, and we will challenge the jury's findings of infringement, validity and willfulness in post-trial motions and on appeal if necessary," Lou Lupin, Qualcomm's general counsel, said in a statement.
Chamber Urges Piracy Action
The International Chamber of Commerce sent a letter to G8 countries Tuesday asking the international forum for the governments of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States "to take immediate steps to demonstrate their commitment to stop counterfeiting and piracy and to urgently take tougher measures that will serve as an example to the rest of the world."
The ICC letter, signed by 23 CEOs and senior business executives, recommends the global leaders "strictly enforce laws against counterfeiting and adopt tough criminal sanctions and penalties that deter intellectual property theft" and endorse standards that "set minimum performance standards, harmonize customs procedures and deter pirates from moving fake merchandise through countries with weak detection systems." These countries also should prohibit the transshipment of counterfeits through free trade zones, the chamber added.
Also on the intellectual property front, the Motion Picture Association of America last week said the Japanese government has adopted legislation that criminalizes the illegal recording of films in movie theaters.
The law, which will take effect at the end of August, "prohibits the use of a recording device in a movie theater and enables law enforcement authorities to arrest and prosecute camcorder pirates under the country's copyright law," according to the MPAA, which helped push for the law.
MPAA Chairman and CEO Dan Glickman said "it is important that more countries enact effective anti-camcorder legislation."
China To Complete Massive Web Site Database
The Chinese government expects to complete by October a massive database that will contain the basic information on more than 1.6 million Web sites, the government-affiliated Xinhua News Agency reported Tuesday.
The database will enable law enforcement agencies to track Web site registrations such as registrants' names, Internet protocol addresses, and domain names. The database also will blacklist Web sites involved in illegal online activities.
Vice Minister of Information Industry Xi Guohua said Web site operators and Internet access providers will be held responsible for online illegal activities.
India Ends FTV.com Indecency Ban
India's central government on Friday ended a ban it imposed on the transmission of the FTV.com India Channel for showing programs that were considered to be against "good taste and decency and were likely to adversely affect public morality." The ban was previously scheduled to end Wednesday.
The government said the channel regretted its error and has established a committee to oversee program content. The channel also reportedly said that it will remove any programming deemed inappropriate by India's Ministry of Information and Broadcasting.
In January, the Indian government announced it had banned the transmission or re-transmission of another satellite channel for allegedly "indecent" programming that was "against good taste or decency and [is] likely to adversely affect public morality." The channel taking the heat was AXN, a self-described action-and-adventure network that is owned by Sony Pictures Entertainment.
Also in India, the country's Union Minister of Commerce Shri Kamal Nath and Japan's Minister of Economy, Trade and Industry Akira Amari announced Friday that the countries had signed a memorandum of understanding announcing their support of intellectual property rights.
Meanwhile, India's National Consumer Helpline reported Monday that it has been receiving the largest number of complaints related to products and services from consumers upset with actions by telecommunications companies. In April, the national government's hotline received 621 calls against telecom service providers for unsolicited calls, excess billing, poor network coverage and others complaints.
And in Europe, the European Commission is looking for feedback on the economic impact of interoperable electronic health records. The commission has called for proposals for a contract to study the economic aspects of electronic health, records and e-prescriptions.
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