ALJ Gildea issued a public version of his Initial Determination and Recommended Remedy in Inv. No. 337-TA-734, Certain Electronic Devices With Image Processing Systems, Components Thereof, and Associated Software. The investigation arose out of a complaint filed by S3 Graphics Co. Ltd and S3 Graphics, Inc. (collectively “S3 Graphics”) against Apple Inc. S3 Graphics alleged that various Apple products infringed U.S. Patent No. 7,043,087 (“the ‘087 patent”); U.S. Patent No. 6,775,417 (“the ‘417 patent”); U.S. Patent No. 6,683,978 (“the ‘978 patent”); and U.S. Patent No. 6,658,146 (“the ‘146 patent”).

ALJ Gildea found no violation of Section 337 with respect to the ‘087 patent or the ‘417 patent because, although Apple’s Mac OS X Devices directly infringe the asserted claims, those claims are obvious. Apple’s Mac OS X Devices were found to directly infringe asserted claims 11, 14, and 16 of the ‘978 patent, but a violation of Section 337 was found only with respect to claim 11, because claim 14 and 16 are invalid for obviousness. Similarly, Apple’s Mac OS X Devices were found to directly infringe asserted claims 4, 13, and 16 of the ‘146 patent, but a violation was found only with respect to claims 4 and 16 because claim 13 is obvious. Additionally, the Court held that an implied license and the doctrine of patent exhaustion apply to those Mac OS X Devices incorporating Nvidia GPU that are protected by an NVidia License. A domestic industry exists with respect to all patents-in-suit. ALJ Gildea found that none of the asserted claims of the four patents-in-suit are indirectly infringed or invalid under 35 U.S.C. § 102 or 35 U.S.C. § 112. In his remedy and bond determination, ALJ Gildea recommended a limited exclusion order, a cease and desist order and that Apple be required to post a bond.