U.S. and Hong Kong (2007)

United States International Trade Commission

December 6, 2007
News Release 07-121
Inv. No. 337-TA-619
Contact: Peg O'Laughlin, 202-205-1819

ITC INSTITUTES SECTION 337 INVESTIGATION ON CERTAIN FLASH MEMORY CONTROLLERS, DRIVES, MEMORY CARDS, AND MEDIA PLAYERS AND PRODUCTS CONTAINING SAME

The U.S. International Trade Commission (ITC) has voted to institute an investigation of certain flash memory controllers, drives, memory cards, and media players and products containing same. The products at issue in this investigation are semiconductor chips which manage the operation of flash memories used in products such as memory cards and media players.

The investigation is based on a complaint filed by SanDisk Corporation of Milpitas, CA, on October 24, 2007. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States of certain flash memory controllers, drives, memory cards, and media players and products containing same that infringe patents owned by SanDisk. The complainant requests that the ITC issue a permanent exclusion order and a permanent cease and desist order.

The ITC has identified the following as respondents in this investigation:

Phison Electronics Corporation of Taiwan;
Silicon Motion Technology Corporation of Taiwan;
Silicon Motion, Inc., of Milpitas, CA;
USBest Technology, Inc., of Taiwan;
Skymedi Corporation of Taiwan;
Chipsbrand Microelectronics (HK) Co., Ltd., of Hong Kong;
Chipsbank Technology (Shenzhen) Co., Ltd., of China;
Zotek Electronic Co., Ltd., of Taiwan;
Infotech Logistic, LLC, of Fremont, CA;
Power Quotient International Co., Ltd., of Taiwan;
Power Quotient International (HK) Co., Ltd., of Hong Kong;
Syscom Development Co., Ltd., of Tortola, British Virgin Islands;
PQI Corporation of Fremont, CA;
PNY Technologies, Inc., of Parsippany, NJ;
Kingston Technology Company, Inc., of Fountain Valley, CA;
Payton Technology Corporation of Fountain Valley, CA;
MemoSun, Inc., of Fountain Valley, CA;
Melco Holdings, Inc., of Japan;
Buffalo, Inc., of Japan;
Buffalo Technology (USA), Inc., of Austin, Texas;
Verbatim Corporation of Charlotte, NC;
Transcend Information, Inc., of Taiwan;
Transcend Information Inc. of Orange, CA;
Transcend Information Maryland, Inc., of Linthicum, MD;
Imation Corp. of Oakdale, MN;
Memorex Products, Inc., of Cerritos, CA;
Add-On Computer Peripherals, Inc., of Irvine, CA;
Add-On Technology Co. of Taiwan;
A-Data Technology Co., Ltd., of Taiwan;
A-Data Technology (USA) Co., Ltd., of Fremont, CA;
Acer, Inc., of Taiwan;
Apacer Technology Inc. of Taiwan;
Apacer Memory America, Inc., of San Jose, CA;
Behavior Tech Computer Corp. of Taiwan;
Exprex Technologies Corp. of Taiwan;
Behavior Tech Computer (USA) Corp. of Fremont, CA;
Corsair Memory, Inc., of Fremont, CA;
Dane-Elec Memory S.A. of France;
Deantusaiocht Dane-Elec TEO of Ireland;
Dane Elec Corp. USA of Irvine, CA;
EDGE Tech Corporation of Ada, OK;
Interactive Media Corp. of Holliston, MA;
Kaser Corporation of Fremont, CA;
LG Electronics, Inc., of Korea;
LG Electronics U.S.A., Inc., of Englewood Cliffs, NJ;
TSR Silicon Resources Inc., of Englewood, NJ; and
Welldone Company of Taiwan.

By instituting this investigation (337-TA-619), the ITC has not yet made any decision on the merits of the case. The case will be referred to the Honorable Charles E. Bullock, an ITC administrative law judge, who will schedule and hold an evidentiary hearing. Judge Bullock will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The ITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the ITC will set a target date for completing the investigation. ITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.