TRADE ALERT

Limited Exclusion Order – Integrated Circuits

(October 25, 2006)

The International Trade Commission (ITC) has issued a limited exclusion order against Actions Semiconductor Co. of Guangdong, China in its section 337 patent-based investigation of certain audio processing integrated circuits and products containing same by reason of infringement of various patent claims.

According to the text of the ITC order, audio processing integrated circuits covered by claim 13 of U.S. Patent No. 6,633,187 or claims 1, 6, 9, and 13 of U.S. Patent No. 6,366,522 that are manufactured abroad or imported by or on behalf of Actions Semiconductor or any of its affiliated companies, parents, subsidiaries, licensees, or other related business entities, or their successors or assigns, and MP3 players with two gigabytes or less of flash memory that contain any such audio processing integrated circuits, are excluded from entry for consumption into the U.S., entry for consumption from a foreign trade zone (FTZ), or withdrawal from warehouse for consumption, for the remaining term of the patent, except under license of the patent owner, or as provided by law.

Furthermore the order states that when U.S. Customs and Border Protection (CBP) is unable to determine by inspection whether the subject audio processing integrated circuits and MP3 players fall within the scope of the order, CBP may, at its discretion, accept a certification, pursuant to procedures specified and deemed necessary by CBP, from persons seeking to import said products that they are familiar with the terms of the order, that they have made appropriate inquiry, and to the best of their knowledge and belief, the products being imported are not excluded from entry. The order adds that CBP may require records or analyses, as necessary, to substantiate the certification.

For more information, please refer to ITC Notice (Inv. No. 337-TA-538, FR Pub 09/20/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-7794.pdf

Deringer's consulting & regulatory affairs group offers a full scope of services to support importers/exporters, carriers, and supply chain partners. For more information regarding this advisory, please call 518-297-3511, or email us at consulting@anderinger.com