Analog semiconductor devices maker Avago Technologies, Ltd. (AVGO) announced Monday that the International Trade Commission or ITC, has issued initial findings in favor of it in the parallel fiber optics case against Emcore Corp. (EMKR). The ITC found that Emcore infringed Avago's intellectual property by importing and selling certain optoelectronics products used in optical communication systems.
In a statement, Avago's General Counsel, Patricia McCall said, "Avago is pleased by the ITC's decision and remains committed to protecting and, where necessary, taking action to enforce its valuable patent and intellectual property rights. Our belief in the strength of our intellectual property in parallel fiber optics is validated by this decision."
The ITC's initial findings were that New Mexico-based Emcore violated Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1337. The ITC found that Avago patents cover parallel fiber optics products and components made and sold by Emcore as well as used by it for data communications for core routing and enterprise networking.
Singapore-based Avago's fiber optic components are covered under U.S. Patent Numbers 5,359,447 and 5,761,229. Avago sued Emcore for infringement of the patents in December 2008 in the U.S. District Court for the Northern District of California. However, the case seeking damages was temporarily stayed as the ITC said in March 2009 that it would take up Avago's complaint.
Avago noted that it will pursue the infringement charges in the District Court when the stay is lifted after he final order from the ITC. Earlier, the ITC had rejected Emcore's invalidity and other defenses after a one-week hearing in November 2009, and post-hearing briefing.
The ITC will now consider an exclusion order to prevent Emcore from importing and employing the infringing products in the U.S. for the term of Avago's patents. The ITC has already recommended an exclusion order to prevent Emcore from selling already imported infringing products.
AVGO closed Monday's regular trading session at $19.42, down $0.23 or 1.17% on a volume of 0.18 million shares, lower than the three-month average volume of 0.85 million shares.
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