Samsung LCD Televisions Infringe Sharp Patents: ITC

By Richard Vanderford

Law360, New York (September 10, 2009) -- Samsung Electronics Co. Ltd. may face a ban on U.S. imports of its liquid crystal display televisions, with the U.S. International Trade Commission upholding a judge's finding that the electronics manufacturer has infringed valid patents held by rival Sharp Corp.

The ITC decision, published Wednesday, upheld a final initial determination by the presiding administrative law judge, who called for a ban on the infringing displays. The commission rejected calls to review the decision from Samsung and the commission's investigative attorney.

“The commission has determined not to review the subject ID,” ITC Secretary Marilyn Abbott said in the notice.

The ITC stopped short of immediately instituting an exclusion order, however. Instead, it solicited written submissions on the effect such an order would have on U.S. production of competing articles, U.S. consumers and “competitive conditions in the U.S. economy.”

The commission launched its investigation into Samsung LCD displays in March 2008, after receiving a complaint from Sharp. Samsung's displays, found in televisions, computer monitors and other products, allegedly infringed four Sharp or Sharp-licensed patents that cover various aspects of LCD technology.

In a decision filed in June, Administrative Law Judge Paul Luckern found that Samsung had violated Section 337 of the Tariff Act of 1930.

The ALJ determined that a domestic industry existed for each of the inventions described in the four patents-in-suit and that each patent was infringed and not invalid, according to a public notice posted in the ITC case file.

The target end date for the investigation has been extended to Nov. 9, which gives the ITC time to hear input from interested parties.

After the commission orders a remedy, the U.S. trade representative will have 60 days to vet the action.

In June, the ITC issued a final determination banning the import of some infringing Sharp displays, in a separate investigation brought after a request from Samsung.

That investigation revolved around three Samsung patents that also cover LCD display devices.

Judge Luckern, who also presided over that case, found in January that Sharp violated two patents — U.S. Patent Numbers 6,771,344 and 6,937,311. But on review, the full commission determined that only the '344 patent had been infringed.

At the time, a Sharp spokeswoman said the company was considering an appeal of the ruling.

Representatives for Samsung and Sharp did not immediately respond to a request for comment.

The patents-in-suit in the ITC's Samsung investigation are U.S. Patent Numbers 6,879,364; 6,952,192; 7,304,703; and 7,304,626.

Sharp is represented by Morrison & Foerster LLP.

Samsung is represented by Fish & Richardson PC.

The case is In the Matter of Certain Liquid Crystal Display Devices, Products Containing Same and Methods Using the Same, case number 337-TA-634, in the U.S. International Trade Commission.