COMMITTEE ON
`FOREIGN AFFAIRS
`.
`Chm
`COMMITTEE ON
`FINANCIAL SERVICES
`
`Subcommittees
`FINANCIAL INSTITUTIONS AND
`CONSUMER CREDIT
`HOUSING AND INSURANCE
`
`23l0 RAYBURN HOUSE OFFICE BUILDING
`WASHING I'ON. DC 20515—0539
`I202) 225—“ ll
`(20,22,033.
`2 10 WEST BIRCH STREET, SUITE 201
`BREA. CA 9282]
`(714) 255—0101
`10
`0‘00
`DIAMOND PLA7J\
`1380 SOUTH FULLERTON ROAD. SUITE 203
`ROWLAND HEIGHTS, CA 91748
`(626) 964—5l23
`
`www.mycc house go»
`wwwfaccbook com/EdRoyce
`www.Iw1IIer.com/chEdRuyce
`www.inSlagrum.C0m/chEdRoycc
`
`August 4, 2017
`
`Via Electronic Filing
`
`UNITED STATES
`HOUSE OF REPRESENTATIVES
`
`F m.“-
`a ,
`
`-
`
`
`
`R.
`
`I
`
`Thirty-ninth District—Califomia
`
`The Hon. Rhonda K. Schmidtlein, Chairman
`
`The Hon. David S. Johanson, Vice Chairman
`United States International Trade Commission
`
`500 E Street, SW
`Washington, DC. 20436
`
`Re: Statement on the Public Interest
`
`Certain Semiconductor Devices, Semiconductor Device Packages, and Products Containing the
`Same, Inv. No. 337-TA-1010
`
`Dear Chairman Schmidtlein, Vice Chairman Johanson, and Commissioners:
`
`I am writing on behalf of Broadcom, a company that employs constituents from my
`congressional district. According to Broadcom, there would be severe disruptions to legitimate
`trade and domestic operations, and the public welfare generally, that could result from any
`remedy in this Investigation. I understand that Tessera has accused a broad swath of
`semiconductor components and products integrating such components in this investigation. The
`Administrative Law Judge presiding over it has recommended a sweeping exclusion order, a
`cease-and-desist order, and a maximum bond preventing the importation and/or sale of products
`including cable set—top boxes, cable modems, wireless routers, telecommunications switches,
`mobile phones, and tablets.
`
`Such a broad remedial order would have a significant, negative impact on the American public
`and compromise the ability of millions of American businesses and consumers to access such
`fiandamental services as cable television, internet, and telecommunication. As one example of
`the Significant downstream impact of a broad remedial order, Respondent Broadcom is the sole
`supplier of chips for set-top boxes manufactured by co-Respondents ARRIS and Technicolor,
`who are themselves the suppliers of cable set-top boxes for co-Respondent Comcast. Disruption
`to Comcast’s ability to supply cable set-top boxes could impact the ability of its roughly 22.5
`million subscribers to access cable television and internet services. Moreover, even non-
`Comcast subscribers would suffer due to a less competitive marketplace, where other companies
`can limit choices and raise prices. The most recent Internet & Television Association statistics
`indicate that as of 2016, the cable industry, directly and indirectly, accounted for more than 2.3
`million US. jobs, which represents $106 billion in personal income.
`
`

`

`According to Broadcom, Tessera has a non-practicing entity business model, and does not
`manufacture products protected by its asserted patents. But rather it seeks profits from such
`manufacturers in the form of patent royalties. Tessera did not invent the patent that underlies the
`currently recommended remedy (a patent that expires next year)—-it bought the patent and has
`now asserted it against these respondent manufacturers. Also of concern, I understand Tessera’s
`patented technology has been found trivial in the context of the technology of a semiconductor
`chip; even more so in the context of a downstream product incorporating such a chip. Careful
`consideration of any remedy in this investigation is surely warranted.
`
`While I express no opinion on the merits of the case, I am deeply concerned about the impact a
`remedial order may have on the US. economy and American consumers generally. If the
`Commission determines a remedy of some kind is appropriate, I think it is worth considering
`whether to tailor any remedial order to avoid disruption to legitimate domestic operations of the
`cable television, intemet, and telecommunications industries, as well as the tens of millions of
`citizens who rely on the essential services those industries provide. In particular, I have been
`informed the Respondents here will not know until the day the Commission issues its final
`decision and any remedial orders whether the infringement finding on the current products will
`be upheld and whether to alter the products based on the Commission's final decision to be non-
`infringing.
`
`Thus, I think it is worth considering whether any Commission remedy should include a grace
`period for those companies to convert their operations to products that do not infringe the
`asserted patents.
`
`Sincerely,
`
`52/ Kora
`
`Ed Royce
`Member of Congress
`
`

`

`CERTIFICATE OF SERVICE
`
`The Honorable Dee Lord
`Administrative Law Judge
`U.S. International Trade Commission
`500 E. Street SW, Room 317
`Washington, D.C. 20436
`
`I, Pamela A. Freitik, hereby certify that the attached document has been served upon the
`
`following parties as indicated below on August 7, 2017.
`
`☒ Via EDIS
`The Honorable Lisa R. Barton
`☐ Via First Class Mail
`Secretary to the Commission
`☐ Via Express Delivery
`U.S. International Trade Commission
`☒ Via Hand Delivery
`500 E Street SW, Room 112-A
`Washington, D.C. 20436
`
`☐ Via EDIS
`Sidney A. Rosenzweig
`☐ Via First Class Mail
`Office of the General Counsel
`☐ Via Express Delivery
`U.S. International Trade Commission
`☐ Via Hand Delivery
`500 E Street SW
`☒ Via Electronic Mail at
`Washington, D.C. 20436
`
`sidney.rosenzweig@usitc.gov
`
`☐ Via First Class Mail
`☐ Via Express Delivery
`☒ Via Hand Delivery
`☒ Via Electronic Mail at
`edward.jou@usitc.gov
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Tessera-Broadcom@cov.com
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Tessera-Broadcom@cov.com
`
`
`
`
`
`
`Sturgis M. Sobin
`Shara Aranoff
`Daniel E. Valencia
`COVINGTON & BURLING LLP
`One CityCenter, 850 Tenth Street, N.W.
`Washington, D.C. 20001
`
`
`Michael K. Plimack
`Dale A. Rice
`Nitin Subhedar
`COVINGTON & BURLING LLP
`One Front Street
`San Francisco, CA 94111
`
`
`
`
`
`
`
`
`
`
`

`

`Robert T. Haslam
`Anupam Sharma
`Thomas E. Garten
`COVINGTON & BURLING LLP
`333 Twin Dolphin Drive
`Redwood Shores, CA 94065-1418
`
`
`Counsel for Complainants Tessera Technologies,
`Inc., Tessera, Inc. and Invensas Corporation
`
`KILPATRICK TOWNSEND & STOCKTON LLP
`David E. Sipiora
`Kristopher L. Reed
`Matthew C. Holohan
`Brian P. O’Donnell
`1400 Wewatta Street, Suite 600
`Denver, CO 80202
`
`Joshua B. Pond
`607 14th Street, NW, Suite 900
`Washington, D.C. 20005-2018
`
`
`
`
`
`
`Norris P. Boothe
`Matthew J. Meyer
`William E. Mosley
`1080 Marsh Road
`Menlo Park, CA 94025
`
`
`
`
`FOSTER MURPHY ALTMAN & NICKEL PC
`David F. Nickel
`Matthew N. Duescher
`1899 L Street, N.W., Suite 1150
`Washington, D.C. 20036
`
`Counsel for Respondents Broadcom Limited,
`Broadcom Corporation, Arista Networks, Inc. ARRIS
`International plc, ARRIS Group, Inc., ARRIS
`Technology, Inc., ARRIS Enterprises LLC, ARRIS
`
`
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Tessera-Broadcom@cov.com
`
`
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-
`TesseraITC@kilpatricktownsend.com
`
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-
`TesseraITC@kilpatricktownsend.com
`
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-
`TesseraITC@kilpatricktownsend.com
`
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`FM-Broadcom-
`1010@fostermurphy.com
`
`
`

`

`Solutions, Inc. , Pace Ltd., Pace Americas, LLC, Pace
`USA, LLC, ASUSTeK Computer Inc., ASUS
`Computer International, Comcast Cable
`Communications, LLC, Comcast Cable
`Communications Management, LLC, Comcast
`Business Communications, LLC, Technicolor S.A.,
`Technicolor USA, Inc., Technicolor Connected Home
`USA LLC, NETGEAR, Inc., HTC Corporation and
`HTC America, Inc.
`
`David A. Hickerson
`George C. Beck
`Foley & Lardner LLP
`3000 K Street, N.W., Suite 600
`Washington, D.C. 20007-5109
`
`
`Steven J. Rizzi
`Ramy E. Hanna
`Foley & Lardner LLP
`90 Park Avenue
`New York, New York 10016-1314
`
`
`Counsel for Broadcom Limited
`and Broadcom Corporation
`
`
`
`
`☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-Foley@Foley.com
` ☐ Via EDIS
`☐ Via First Class Mail
`☐ Via Express Delivery
`☐ Via Hand Delivery
`☒ Via Electronic Mail at
`Broadcom-Foley@Foley.com
`
`
`
`/s/ Pamela A. Freitik
`Pamela A. Freitik
`
`
`
`
`
`
`
`