ALJ Pender Issues Recommended Determination On Remedy And Bonding In Certain Electronic Digital Media Devices (337-TA-796)
On December 28, 2012, ALJ Thomas B. Pender issued the public version (dated November 7, 2012) of the Recommended Determination On Remedy And Bonding (“RD”) in Certain Electronic Digital Media Devices and Components Thereof (Inv. No. 337-TA-796).
By way of background, ALJ Pender determined that a violation of Section 337 has occurred in this investigation by Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., and Samsung Telecommunications America, LLC (collectively, “Samsung”) by reason of infringement of certain valid claims of U.S. Patent Nos. D618,678 (the ‘678 patent), 7,479,949 (the ‘949 patent), RE 41,922 (the ‘922 patent), and 7,912,501 (the ‘501 patent). See October 26, 2012 and January 22, 2013 posts for more details on the initial determination in this investigation.
Complainant Apple, Inc. (“Apple”) requested a limited exclusion order (“LEO”) and a cease and desist order. ALJ Pender held that the Commission should issue a LEO directed to infringing electronic digital media devices. Further, ALJ Pender determined that Samsung maintains a commercially significant quantity of infringing accused products in the United States; therefore, ALJ Pender recommended that the Commission issue a cease and desist order.
Regarding bond, ALJ Pender recommended that the Commission impose a bond of 88% for mobile phones, 32.5% for media players, and 37.6% for tablet computers. ALJ Pender rejected Samsung’s arguments that the proper bond amount is the industry median royalty rate of not more than 4.9% because Samsung failed to produce evidence that Apple ever offered such a royalty rate.