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NEWS RELEASE 98-031; MAY 12, 1998 May 12, 1998
News Release 98-031
Inv. No. 337-TA-409

ITC INSTITUTES SECTION 337 INVESTIGATION ON CERTAIN CD-ROM CONTROLLERS

The U.S. International Trade Commission (ITC) has voted to institute a section 337 investigation of certain CD-ROM controllers and products containing same. The products at issue in this investigation manage the flow of data and communication between a CD-ROM drive, which recovers data stored on optical compact disks, and a host computer.

The investigation is based on a complaint filed by Oak Technology, Inc. of Sunnyvale, CA, on April 7, 1998. The complaint, as supplemented, alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain CD-ROM controllers and products containing same by reason of infringement of a patent owned by Oak Technology. In its complaint, Oak Technology requests that the ITC issue a permanent exclusion order and a permanent cease and desist order barring the sale for importation, the importation, and the sale within the United States after importation of the allegedly infringing products.

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

MediaTek, Inc., of Hsinchu, Taiwan;
United Microelectronics Corporation of Hsinchu, Taiwan;
Lite-On Technology Corp., of Taipei, Taiwan; and,
AOpen, Inc., of Hsichih, Taipei Hsien, Taiwan.

By instituting this investigation (337-TA-409), the ITC has not yet made any decision on the merits of the case. The case has been referred to an ITC administrative law judge, who will schedule and hold an evidentiary hearing. The administrative law judge 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 President of the United States within that 60-day period.

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