Circuits Assembly Online Magazine - ITC Orders in Wireless ITC Action Now Fully in Force

SAN JOSE -- A stay order permitting several large semiconductor companies to sell chips said to infringe on Tessera patents has expired, and the International Trade Commission thus far has chosen not to intervene.

The investigation, No. 337-TA-605, also known as the Wireless ITC Action, pits the fabless semiconductor package designer against some of the largest chipmakers in the world, including Qualcomm, Freescale, ST Microelectronics, ATI Technologies and Spansion.

Last week, the Office of the US Trade Representative allowed the 60-day Presidential Review Period to expire without modifying the Limited Exclusion Order and Cease and Desist Orders. On July 17, the ITC declined to delay enforcement of its LEO and CDOs and denied the respondents’ motion to stay those orders.

The ITC’s LEO prohibits the importation of certain infringing electronics devices that use Tessera’s patented, and the CDOs prevent the sale, offer for sale or distribution of those devices. As a result of the review period expiration, the respondents are no longer permitted to import or sell infringing products, even under bond, Tessera claimed in a statement Monday.

In the statement, Tessera president and CEO Henry R. Nothhaft said, “Many companies, including most of the world’s largest semiconductor companies, have licensed and incorporated Tessera’s technologies to the benefit of their customers and shareholders. The ITC's orders in this case affect only unlicensed companies that are trying to maintain an unfair competitive advantage against their law-abiding competitors, who stand to lose even further market share to the respondents and their customers if the ITC’s orders are stayed or overturned.”

The respondents have filed appeals in US federal court, along with emergency motions to delay enforcement of the ITC orders. The motions request that the Federal Circuit grant a temporary stay to allow it time to consider briefing regarding whether to issue a longer stay during the pendency of the Federal Circuit appeal. Tessera has already filed papers with the Federal Circuit opposing a temporary stay and will respond to respondents’ briefings in due course, the company said.