Kyocera Wireless Corp. v. International Trade Commission

545 F.3d 1340, 89 U.S.P.Q. 2d (BNA) 1057, 2008 U.S. App. LEXIS 21505
Court of Appeals for the Federal Circuit·Decided October 14, 2008·No. 2007-1493 to 2007-1499, 2007-1514, 2007-1573, 2008-1004, 2008-1009, 2008-1010, 2008-1012, 2008-1013, 2008-1015, 2008-1018, 2008-1019·Published·Cited by 85 cases

Opinion

RADER, Circuit Judge.

The United States International Trade Commission (“ITC” or “Commission”) determined that Qualcomm Incorporated (“Qualcomm”) infringed Broadcom Corporation’s (“Broadcom’s”) United States Patent 6,714,983 (“'983 Patent”) with its imports. As a remedy, the ITC issued a limited exclusion order (“LEO”) against the importation of all downstream products containing the accused technology. Aside from Qualcomm, the appellants in this action are Qualcomm’s customers. Some customers are wireless device manufacturers whose products are subject to the LEO. Others are wireless network operators whose networks depend on products subject to the LEO. Despite the broad downstream scope of the LEO, Broadcom named only Qualcomm as a respondent in its ITC complaint. Because the ITC correctly construed the critical disputed claim term in Broadcom’s patent, and because the ITC correctly rejected Qualcomm’s invalidity arguments under 35 U.S.C. §§ 102 and 103, this court affirms the ITC’s finding that the '983 Patent is not invalid. This court also affirms the ITC’s determination of no direct infringement by Qualcomm. However, because the ITC misapplied the standard for induced infringement, this court vacates and remands on infringement. Finally, because the ITC has no statutory authority to issue an LEO against downstream products of non-respondents, this court vacates and remands the limited exclusion order.

I.

Broadcom’s '983 patent is entitled “Modular, portable data processing terminal for use in a communication network.” The patent claims a mobile computing device that can both communicate with wireless networks and operate in a reduced power mode to extend battery life:

One or more circuits adapted for use in a mobile computing device comprising: a terminal adapted to receive battery power for at least one of the circuits; communication circuitry comprising a reduced power mode and being adapted to use a first wireless communication and a second wireless communication different from the first wireless communication to transmit data to access points, the communication circuitry reducing power by controlling the frequency of scanning for the access points; and processing circuitry arranged to process data received from the communication circuitry.

'983 Patent col.42 1.57-col.43 1.2 (Claim 1). In the liability phase at the ITC, the parties vigorously contested the interpretation of the phrase “a first wireless communication and a second wireless communication different from the first wireless communication.” The ITC administrative law judge characterized this dispute in terms of “how different these wireless communications need to be.” In re Certain Base-band Processor Chips & Chipsets, Transmitter & Receiver (Radio) Chips, Power Control Chips, & Prod. Containing Same, Including Cellular Telephone Handsets, Inv. No. 337-TA-543, 2006 WL 3920334, 2006 ITC LEXIS 803, at *185 (Int’l Trade Comm’n Oct. 10, 2006) (“Initial Determination ”).

Before the ITC, Qualcomm argued that “different” is extremely broad and is not limited to any particular type of difference. The ITC concluded Qualcomm’s proposal *1346 was too broad and would “include any slight difference in wireless communications, without regard to the context of the claim.” Id. The ITC construed the term as “referring] to two different methods of communication.” Id. at *186. In this appeal, Qualcomm challenges the ITC’s construction as too narrow and argues instead for its originally proffered broad interpretation.

This action began on May 19, 2005, when Broadcom filed a complaint in the ITC alleging unfair acts in violation of 19 U.S.C. § 1337 (Section 337 of the Tariff Act of 1930, or “Section 337”). Broadcom named Qualcomm, and only Qualcomm, as a respondent. Broadcom alleged that thirteen Qualcomm chips and chipsets infringe several Broadcom patents. The administrative law judge bifurcated the ITC’s proceedings into separate liability and remedy proceedings.

On liability, the ITC determined that Qualcomm had not infringed two of Broad-com’s patents (U.S. Patent Nos. 6,374,311 and 6,583,675). These aspects of the ITC’s rulings were the subject of a separate, recently decided appeal. See Broadcom Corp. v. ITC, No.2007-1164 (Fed.Cir. Sep. 19, 2008).

With regard to the '983 Patent, however, the ITC determined that Qualcomm’s chips, when programmed to enable certain battery-saving features, infringe the '983 patent. Moreover, the ITC found Qual-comm liable for inducing third party manufacturers to incorporate battery-saving software and Qualcomm’s chips into their mobile devices. Further, the Commission rejected Qualcomm’s anticipation and obviousness arguments under 35 U.S.C. §§ 102 and 103.

With regard to remedy, the ITC issued an LEO excluding “[hjandheld wireless communications devices, including cellular telephone handsets and PDAs, containing Qualcomm baseband processor chips or chipsets that are programmed to enable the power saving features covered by claims 1, 4, 8, 9, or 11 of U.S. Patent No. 6,714,983, wherein the chips or chipsets are manufactured abroad by or on behalf of Qualcomm Incorporated.” In re Certain Baseband Processor Chips & Chip-sets, Transmitter & Receiver (Radio) Chips, Power Control Chips, & Prod. Containing Same, Including Cellular Telephone Handsets, Inv. No. 337-TA-543 3-4 (Int’l Trade Comm’n June 7, 2007) (“Limited Exclusion Order ”).

Qualcomm appeals both the liability and remedy findings. Kyocera and other wireless device manufacturers- — -non-respondents to Broadcom’s ITC complaint — are subject to the LEO because they purchase and incorporate Qualcomm chips into their mobile wireless devices outside the United States, and then import them into the United States for sale. AT & T and other wireless network carriers — also not named as respondents to Broadcom’s complaint— deploy networks which depend on devices that include Qualcomm chips. This appeal consolidates the several appeals of Qual-comm and these third-party manufacturers and carriers. This court has jurisdiction to review ITC determinations under 28 U.S.C. § 1295(a)(6) and 19 U.S.C. § 1337(c).

A.

This court reviews claim construction without deference. Cybor Corp. v. FAS Techs., Inc., 138 F.3d 1448, 1451 (Fed.Cir.1998) (en banc). Generally this court gives claim terms their ordinary and customary meanings, according to the customary understanding of a person of ordinary skill in the art who reads them in the context of the intrinsic record. See Phillips v. AWH Corp., 415 F.3d 1303, 1312-13 (Fed.Cir.2005) (en banc).

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Kyocera Wireless Corp. v. International Trade Commission, 545 F.3d 1340, 89 U.S.P.Q. 2d (BNA) 1057, 2008 U.S. App. LEXIS 21505 (Fed. Cir. 2008).

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