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PUBLIC VERSION

UNITED STATES INTERNATIONAL TRADE COMMISSION

WASHINGTON, D.C.

Before the Honorable David P. Shaw

In the Matter of

CERTAIN NOISE CANCELLING

HEADPHONES AND COMPONENTS

THEREOF

Investigation No. 337-TA-927

JOINT MOTION TO TERMINATE THE INVESTIGATION

BASED ON A SETTLEMENT AGREEMENT

Pursuant to 19 U.S.C. 1337(c) and Commission Rules 210.21(a)(2) and (b),

Complainant Bose Corporation (Complainant) and Respondents Beats Electronics, LLC and

Beats Electronics International (together, Beats), Fugang Electronic (Dong Guan) Co., Ltd.,

and P.C.H. International (collectively, Respondents) move for a termination of this

Investigation as to all Respondents, based on a settlement agreement. A memorandum in support

of this motion is attached. For the reasons set forth in this memorandum, Complainant and

Respondents respectfully request that this Investigation be terminated.

Pursuant to Ground Rule 5.e., the moving parties certify as follows: Commission

Investigative Staff was informed of this motion and indicated that Staff will take a position after

the motion is filed.

Respectfully submitted,

Dated: October 10, 2014

___________________________________

Charles H. SandersGOODWIN PROCTER LLP

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53 State Street

Boston, MA 02109

Attorney for Complainant Bose Corporation

Dated: October 10, 2014 /s/ Clayton C. JamesCeline Jimenez Crowson

HOGAN LOVELLS USLLP

555 13th Street, N.W.Washington, D.C. 20004

Clayton C. JamesSrecko Vidmar

HOGAN LOVELLS USLLP

1200 17th Street #1500

Denver, CO 80202

Steven M. Levitan

HOGAN LOVELLS USLLP4085 Campbell Avenue #100

Menlo Park, CA 94025

Attorneys for RespondentsBeatsElectronics, LLC and Beats Electronics

International, Fugang Electronic (Dong

Guan) Co., Ltd., and P.C.H. International

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PUBLIC VERSION

UNITED STATES INTERNATIONAL TRADE COMMISSION

WASHINGTON, D.C.

Before the Honorable David P. Shaw

In the Matter of

CERTAIN NOISE CANCELLING

HEADPHONES AND COMPONENTS

THEREOF

Investigation No. 337-TA-927

MEMORANDUM IN SUPPORT OF

JOINT MOTION TO TERMINATE THE INVESTIGATION

BASED ON A SETTLEMENT AGREEMENT

Complainant Bose Corporation (Complainant) and Respondents Beats Electronics,

LLC and Beats Electronics International (together, Beats), Fugang Electronic (Dong Guan)

Co., Ltd., and P.C.H. International (collectively, Respondents) submit this memorandum in

support of their motion to terminate this Investigation as to all Respondents, on the basis of a

settlement agreement. Confidential and public versions of the settlement agreement are attached

as Exhibits A and B, respectively.

I. Procedural Background.

On July 25, 2014, Complainant filed a Complaint with the U.S. International Trade

Commission (Commission) under Section 337 of the Tariff Act of 1930, as amended, 19

U.S.C. 1337, alleging infringement of U.S. Patent Nos. 6,717,537; 8,073,150; 8,073,151;

8,054,992; and 8,345,888 (the Asserted Patents). The Complaint identified Beats Electronics,

LLC and Beats Electronics International Ltd., Fugang Electronic (Dong Guan) Co., Ltd., and

PCH International Ltd. as proposed Respondents in this Investigation. (Complaint, 1.6.) The

Complaint alleged that the Respondents are in violation of Section 337 through the alleged

importation into the United States, the sale for importation, or the sale within the United States

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after importation of certain noise cancelling headphones and components thereof, including the

Beats Studio and Studio Wireless headphones. (Complaint, 1.5, 1.7.)

The Commission instituted this Investigation by Notice issued on August 27, 2014, to

determine:

whether there is a violation of subsection (a)(1)(B) of section 337 in theimportation into the United States, the sale for importation, or the sale within the

United States after importation of certain noise cancelling headphones and

components thereof by reason of infringement of one or more of claims l-3, 5-7,9-12, 14-16, 18, and 19 of the 537 patent; claims 14, 22, and 23 of the l50

patent; claims 14, 18, 23, and 25 of the 151 patent; claims 1, 4, 6, 15, 16, and 18

of the 992 patent; and claims 1, 2, 5-9, 11-14, and 16 of the 888 patent, and

whether an industry in the United States exists or is in the process of being

established as required by subsection (a)(2) of section 337.

On August 27, 2014, this Investigation was assigned to Administrative Law Judge David P.

Shaw. On September 9, 2014, the Administrative Law Judge issued Ground Rules and a

Protective Order. On September 17, 2014, Respondents responded to the Complaint, denying,

among other things, any infringement of the Asserted Patents. The Administrative Law Judge

has not yet issued an Order setting the Procedural Schedule.

II. Points and Authorities.

Commission Rule 210.21(b)(1) provides, in relevant part, that [a]n investigation before

the Commission may be terminated as to one or more respondents pursuant to section 337(c) of

the Tariff Act of 1930 on the basis of a licensing or other settlement agreement. After

deliberations with Respondents, Complainants wish to withdraw the complaint. Respondents do

not oppose. The Motion to Terminate, if granted, will dispose of this Investigation in its entirety.

Accordingly, termination of the Investigation based on the settlement agreement will best serve

the private interests at issue in this Investigation.

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Termination of this Investigation based upon the settlement agreement also best serves

the public interest. Commission policy and the public interest generally favor settlements, and

motions for termination of investigations based on a settlement agreement are routinely granted.

See, e.g., Certain Integrated Circuits and Products Containing Same, Inv. No. 337-TA-656,

Order No. 7, Initial Determination (Nov. 10, 2008); Certain Ground Fault Circuit Interrupters

and Products Containing Same, Inv. No. 337-TA-615, Order No. 29, Initial Determination (Apr.

22, 2008); Certain Stringed Musical Instruments and Components Thereof, Inv. No. 337-TA-

586, Order No. 11, Initial Determination (July 10, 2007). Termination of this Investigation is

also in the public interest in that the termination does not affect the public health and welfare,

competitive conditions in the U.S. economy, the production of like or directly competitive

articles in the United States, or U.S. consumers. 19 C.F.R. 210.50(b)(2).

Pursuant to Commission Rule 210.21(b)(1) and (2), confidential and public versions of

the settlement agreement are submitted herewith. Complainant and Respondents state that there

are no other agreements, written or oral or express or implied, between the parties concerning the

subject matter of this Investigation. Complainant and Beats state that the confidential version of

the settlement agreement contains confidential business information within the meaning of

Commission Rule 201.6(a) and would cause damage to Complainant, Beats, and/or others if

divulged.

III. Conclusion.

For the reasons set forth above, and in accordance with 19 U.S.C. 1337(c) and 19

C.F.R. 210.21, Complainant and Respondents respectfully request that the Administrative Law

Judge issue a final termination of this Investigation as to all Respondents.

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Respectfully submitted,

Dated: October 10, 2014

___________________________________

Charles H. SandersGOODWIN PROCTER LLP

53 State Street

Boston, MA 02109

Attorney for Complainant Bose Corporation

Dated: October 10, 2014 /s/ Clayton C. James

Celine Jimenez CrowsonHOGAN LOVELLS USLLP

555 13th Street, N.W.Washington, D.C. 20004

Clayton C. JamesSrecko Vidmar

HOGAN LOVELLS USLLP

1200 17th Street #1500Denver, CO 80202

Steven M. Levitan

HOGAN LOVELLS USLLP

4085 Campbell Avenue #100

Menlo Park, CA 94025

Attorneys for RespondentsBeats

Electronics, LLC and Beats Electronics

International, Fugang Electronic (Dong

Guan) Co., Ltd., and P.C.H. International

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Exhibit C-1

Confidential Version of Settlement Agreement(Filed Under Seal)

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Exhibit C-2

Public Version of Settlement Agreement

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CERTIFICATE OF SERVICE

The undersigned hereby certifies that the foregoing JOINT MOTION TO

TERMINATE THE INVESTIGATION BASED ON A SETTLEMENT AGREEMENT

(PUBLIC VERSION) was filed with the Commission and copies were served by the indicated

means to the persons below on October 10, 2014:

The Honorable Lisa R. Barton Via First-Class Mail

Secretary, Office of the Secretary Via Hand Delivery

U.S. International Trade Commission Via Overnight Delivery

500 E Street, S.W., Room 112A Via Electronic Mail

Washington, D.C. 20436 Via EDIS

The Honorable David P. Shaw Via First-Class Mail

Administrative Law Judge Via Hand Delivery

U.S. International Trade Commission Via Overnight Delivery

500 E Street, S.W., Room 317 Via Electronic Mail

Washington, D.C. 20436 Via EDIS

Vu Bui , Esq. Via First-Class Mail

Commission Investigative Attorney Via Hand DeliveryU.S. International Trade Commission Via Overnight Delivery

500 E Street, S.W., Suite 401 Via Electronic Mail

Washington, D.C. 20436 Via EDIS

Celine J. Crowson Via First-Class Mail

Hogan Lovells U.S. LLP Via Hand Delivery

555 Thirteenth Street, N.W. Via Overnight Delivery

Washington, D.C. 20004 Via Electronic Mail

Via EDIS

/s/Stacey L. Campbell

Stacey L. Campbell