OT:RR:BSTC:EOE H348257 WMW

Mr. Paul Brinkman
Kirkland & Ellis LLP
1301 Pennsylvania Ave., N.W.
Washington, DC 20004

Mr. Daniel Valencia
DLA Piper LLP (US)
500 Eighth Street, NW
Washington, DC 20004

VIA EMAIL: [email protected], [email protected],

RE: Ruling Request; U.S. International Trade Commission; Limited Exclusion Order; Investigation No. 337-TA-1370; Certain Power Converter Modules and Computing Systems Containing the Same

Dear Mr. Brinkman and Mr. Valencia:

Pursuant to 19 C.F.R. Part 177, the Exclusion Order Enforcement Branch (“EOE Branch”), Regulations and Rulings, U.S. Customs and Border Protection (“CBP”) issues this administrative ruling in response to the separately filed requests from Quanta Computer Inc. and Quanta Computer USA, Inc. (collectively, “Quanta”) and NVIDIA Corporation (“NVIDIA”), both of which are dated May 16, 2025. The ruling requests were submitted after initial conference calls and preliminary submissions from Quanta, NVIDIA and Vicor Corporation (“Vicor”), as further detailed below. The question presented in these ruling requests is whether the articles at issue, as described in this ruling, are subject to the limited exclusion order (“LEO”) that the U.S. International Trade Commission (“Commission” or “ITC”) issued in Investigation No. 337-TA- 1370 (“the underlying investigation” or “the 1370 investigation”), based on its finding a violation of Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1337 (“Section 337”). The LEO from the 1370 investigation bars the unlicensed entry for consumption into the United States of power convert modules and computing systems containing the same, as defined in ¶ 2 of the LEO, that infringe claim 1 of U.S. Patent No. 9,166,481 (“the ’481 patent”) or claims 1-7 of U.S. Patent No. 9,516,761 (“the ‘761 patent”) (collectively, “the asserted patents”) and that are manufactured or imported by or on behalf of (i) Delta Electronics, Inc., Delta Electronics (Americas) Ltd., and DET Logistics (USA) Corporation; (ii) Cyntec Co., Ltd.; (iii) Hon Hai Precision Industry Co. Ltd. (d/b/a, Foxconn Technology Group), Foxconn Industrial Internet Co. Ltd., and FII USA Inc. (a/k/a Foxconn Industrial, Internet USA Inc.); (iv) Ingrasys Technology Inc. and Ingrasys Technology USA Inc.; and (v) Quanta. See Certain Power Converter Modules and Computing Systems Containing the Same, Investigation No. 337-TA-1370, EDIS Doc. ID 843485, Limited Exclusion Order (February 13, 2025).

As noted above, this ruling is based on two separately filed requests pursuant to 19 C.F.R. Part 177, which the EOE Branch has adjudicated on an inter partes basis. The proceeding involved the three parties with a direct and demonstrable interest in the question presented by the ruling requests: (1) Quanta, a ruling requester and respondent in the underlying investigation at the Commission; (2) NVIDIA, a ruling requester and non-respondent third party that did not participate in the underlying investigation; and (3) Vicor, the other interested party and complainant from the underlying investigation as the owner of the asserted patents. See 19 C.F.R. § 177.1(c). Furthermore, we note that determinations of the Commission resulting from the underlying investigation or a related proceeding under 19 C.F.R. Part 210 are binding authority on CBP and, in the case of conflict, will modify or revoke by operation of law any contrary CBP ruling or decision pertaining to Section 337 exclusion orders.

Finally, the parties have been asked to identify confidential information, including information subject to the administrative protective order in the underlying investigation, with [[red brackets]] in their submissions. See 19 C.F.R. §§ 177.2, 177.8. If there is information in this administrative ruling not currently bracketed in red [[ ]] that either party believes constitutes confidential information, and should be redacted from the published ruling, the parties are to contact CBP within ten (10) working days of the date of this ruling to indicate the same. See, e.g., 19 C.F.R. § 177.8(a)(3).

I. BACKGROUND

A. ITC Investigation No. 337-TA-1370

The Commission instituted Investigation No. 337-TA-1370 based on a complaint filed by Vicor. Certain Power Converter Modules and Computing Systems Containing the Same, Inv. No. 337-TA-1370, EDIS Doc. ID 844518, Commission Opinion (Feb. 27, 2025) (“Comm’n Op.”) at 2. The complaint, as supplemented, alleged a violation of Section 337 by reason of infringement of certain claims of the ‘481 patent, the ‘761 patent, and the ‘950 patent. Id. The notice of investigation named as respondents Delta Electronics, Inc. of Taipei, Taiwan, Delta Electronics (Americas) Ltd. of Fremont, California, and Delta Electronics (USA) Inc. of Plano, Texas; Cyntec Co., Ltd. of Hsinchu, Taiwan; Quanta Computer Inc. of Taoyuan City, Taiwan, Quanta Cloud Technology Inc. of Taoyuan City, Taiwan, Quanta Cloud Technology USA LLC of San Jose, California, and Quanta Computer USA, Inc. of Fremont, California; Hon Hai Precision Industry Co. Ltd. (d/b/a Foxconn Technology Group) of Taipei City, Taiwan, Foxconn Industrial Internet Co. Ltd. of Shenzhen, China, FII USA Inc. (a/k/a Foxconn Industrial Internet USA Inc.) of Milwaukee, Wisconsin, Ingrasys Technology Inc. of Taoyuan City, Taiwan, and Ingrasys Technology USA Inc. of San Jose, California. Id. The Commission’s Office of Unfair Import Investigations (“OUII”) was named as a party in the investigation. Id.

2 On September 27, 2024, the Administrative Law Judge (“ALJ”) issued a final initial determination (“FID”) finding a violation of Section 337. Id. at 3. Specifically, the ALJ determined that a violation of Section 337 occurred in the importation into the United States, the sale for importation, or the sale within the United States after importation, of the accused products that infringed the ‘481 and ‘761 patents, but not as to the ‘950 patent. Id. On December 4, 2024, the Commission issued a notice in which it determined to review the FID in part and requested submissions responding to the Commission’s issues under review and on remedy, the public interest, and bonding. Id. at 5.

In the limited exclusion order, the Commission ordered that “[p]ower converter modules and computing systems containing the same that infringe one or more of claim 1 of the ’481 patent and claims 1-7 of the ’761 patent and are manufactured abroad by, or on behalf of, or imported by or on behalf of Respondents or any of their affiliated companies, parents, subsidiaries, agents, or other related business entities, or their successors or assigns, are excluded from entry for consumption into the United States, entry for consumption from a foreign-trade zone, or withdrawal from a warehouse for consumption, for the remaining terms of the Asserted Patents, except under license from, or with the permission of, the patent owner or as provided by law.” Certain Power Converter Modules and Computing Systems Containing the Same, Inv. No. 337- TA-1370, EDIS Doc. ID 843485, Limited Exclusion Order (February 13, 2025) at 2.

The Commission defined the articles covered by the limited exclusion order as “power converter modules used in data center server, artificial intelligence and cloud computing systems, to power artificial intelligence (‘AI’) accelerators, tensor processing units (‘TPU’), graphical processing units (‘GPU’) and central processing units (‘CPU’), and computing systems containing the same. Id. at 3.

B. Articles At Issue

According to NVIDIA, the “NVIDIA products that are the subject of this request include, at least, the products listed below (‘NVIDIA Blackwell Products’):

o ‘Blackwell’ is the name of the architecture of a Graphics Processing Unit (‘GPU’). NVIDIA Blackwell GPUs may be included on ‘mezzanine’ boards marketed as ‘SXM6’ or [[ ]] boards. Unlike the products accused in the 1370 Investigation, the GPU mezzanine boards do not use power converter modules. Instead, power conversion is performed by circuitry distributed on the GPU mezzanine board. The GPU mezzanine board does not have a power converter module at all, let alone one from Delta or Cyntec.

o The GPU mezzanine boards are designed to be plugged into baseboards. For example, a Blackwell baseboard includes eight (8) GPU mezzanine boards. The baseboards likewise do not contain any power converter modules, let alone any made by Delta or Cyntec.

o NVIDIA also designs server boards with Grace CPUs and Blackwell GPUs that work with a [[ ]] Power Delivery Board. As with the other NVIDIA Blackwell Products put at

3 issue by Vicor, these Power Delivery Boards do not contain power converter modules, let alone any made by Delta or Cyntec.”

NVIDIA Ruling Request at 2. Additionally, these “Nvidia Blackwell Products [are] manufactured and/or imported by Quanta.” Quanta Ruling Request at 1. While the parties dispute several points in this inter partes proceeding, there appears to be no dispute that the NVIDIA Blackwell Products at issue in this ruling request do not contain power converter modules manufactured by or on behalf of Delta or Cyntec. See NVIDIA Ruling Request at 6 (“The NVIDIA Blackwell Products do not use the infringing Delta or Cyntec power converter modules.”); Quanta Ruling Request at 6 (“Vicor does not define what it means by Nvidia’s ‘new Blackwell computing systems,’ but Nvidia presumes from context that Vicor refers to its SXM6 mezzanine boards and B200 server boards (‘Nvidia Blackwell Products’), neither of which contain Delta or Cyntec power converter modules.”); Vicor Response at 2 (“[T]he LEO in the 1370 Investigation is not limited to Quanta’s (and Foxconn’s) computing systems that contain only the adjudicated Delta and Cyntec modules.”).

II. PRELIMINARY SUBMISSIONS

Before establishing this inter partes proceeding, the EOE Branch held an initial round of conference calls with Vicor, Quanta, and NVIDIA based on their joint request. These preliminary conference calls allowed each side to discuss certain issues, provide the relevant factual background, and identify differing views regarding the proper administration of the LEO. For instance, on April 3, 2025, the EOE Branch held a conference call and, at its conclusion, requested that Vicor provide its views in writing by the following day. Vicor submitted a letter to the EOE Branch on April 4, 2025, in which Vicor disputed NVIDIA’s argument that the articles at issue “do not fall within the scope of the limited exclusion order in the 1370 Investigation because [Nvidia Blackwell Products] replace Respondent Delta’s power converter modules with power converters the ITC did not have an opportunity to adjudicate in the 1370 Investigation.” Victor Preliminary Submission at 1. In Vicor’s view, “Nvidia’s view is erroneous under Commission and Federal Circuit precedent.” Id.

On April 9, 2025, Quanta submitted a letter to the EOE Branch in response to Vicor. Quanta argued “that Vicor, the ALJ and the Commission consistently and repeatedly limited the scope of the 1370 investigation and the products subject to exclusion to Delta and Cyntec power converter modules ‘Accused Products’) and computing systems containing the same (‘Accused Systems’)—not computing systems containing other manufacturers’ power converter modules.” Quanta Preliminary Response at 4.

NVIDIA also submitted a letter to the EOE Branch on April 9, 2025, stating its view that “Vicor mistakenly argues that NVIDIA’s ‘new Blackwell computing systems are within the scope of the LEO in the 1370 Investigation and these unlicensed computing systems are barred from entry into the United States by Respondents.’ Vicor bases its argument solely on the opinions in Certain Graphics Sys., Components Thereof, and Digital Televisions Containing the Same, Inv. No. 337-TA-1318 (‘Graphics Systems’). But those opinions recognize that the scope of an LEO is limited to ‘all products of named respondents within the scope of the investigation that are covered by the patent claims as to which a violation has been found.’ Graphics Systems, Comm’n

4 Op. on Pet. for Recon. at 17-18; see also Kyocera Wireless Corp. v. Int’l Trade Comm’n, 545 F.3d 1340, 1358 (Fed. Cir. 2008) (‘Section 337 permits exclusion of the imports of non-respondents only via a general exclusion order’).” NVIDIA Preliminary Response at 1.

On April 14, 2025, Vicor submitted another letter to the EOE Branch responding to arguments Quanta and NVIDIA raised in their respective letters from April 9, 2025. In particular, Vicor stated that, as with the parties in Graphics Systems, Quanta is a named respondent manufacturing the Blackwell computing systems, which places them within scope of the LEO. Vicor Letter to EOE Branch, dated April 14, 2025, at 2. On April 15, 2025, NVIDIA submitted a letter to the EOE Branch to address certain points, highlighting its view that Vicor “does not dispute that the Commission’s determination in Certain Graphics Sys., Components Thereof, and Digital Televisions Containing the Same, Inv. No. 337-TA-1318 (“Graphics Systems”) is distinguishable from and did not overrule the Commission’s Advisory Opinion in Certain GPS Devices and Products Containing Same, Inv. No. 337-TA-602 (“GPS Devices”). NVIDIA Letter to EOE Branch, dated April 15, 2025, at 1.

On April 17, 2025, the EOE Branch held another conference call with Vicor, Quanta, and NVIDIA to discuss various procedural issues arising from the submissions to that point. Following the conference call, the EOE Branch sent an email to the parties reiterating the issues raised during the conference call and made the following request:

As discussed, the EOE Branch requests the views of the parties on the following three procedural questions. As a reminder, the parties should not discuss or present any arguments on the merits question regarding admissibility of the articles at issue.

(1) Should the EOE Branch or the ITC address admissibility of the articles at issue and, if the latter, what should CBP do in the interim with respect to any importation of the articles at issue? (2) If the EOE Branch addresses admissibility of the articles at issue, which party should request the ruling and initiate the inter partes proceeding under 19 CFR 177? (3) If the EOE Branch addresses admissibility of the articles at issue, what should be the procedural schedule for the inter partes proceeding, taking into account the different grounds or legal theories related to admissibility that have been discussed in the submissions to this point or mentioned during the conference call?

EOE Branch Email to Parties, dated April 17, 2025.

On April 21, 2025, Vicor submitted a response to the EOE Branch. In Vicor’s view, either the EOE Branch or the ITC could address the admissibility of the articles at issue and that either Quanta or NVIDIA should be the party that submits a ruling request to initiate an inter partes proceeding under 19 C.F.R. Part 177. Vicor Procedural Submission at 1-3. Vicor also proposed a procedural schedule. Id. at 4. On the same day, NVIDIA submitted a response to the EOE Branch, stating that either the ITC or the EOE Branch could reach the admissibility determination and requested expedited treatment for any inter partes proceeding under 19 C.F.R. Part 177.

5 NVIDIA Procedural Submission at 2. Furthermore, NVIDIA stated that Vicor should be the party that submits the ruling request under Part 177. Id. NVIDIA likewise provided a procedural schedule. Id. at 3. Finally, Quanta submitted a response to the EOE Branch, indicating that “[i]t would be preferable to downstream Respondents for the Commission to clarify that the LEO does not apply to downstream Respondents’ computing systems that do not contain any Respondents’ power converter modules, particularly if done in a way that would be directly appealable to the Federal Circuit (i.e. in a modification proceeding).” Quanta Procedural Submission at 1. As such, the “downstream Respondents suggest[ed] that the parties submit this issue to the ITC for determination only if CBP agrees not to exclude this category of products in the interim. If CBP determines otherwise, downstream Respondents request that the EOE Branch decide the legal issue through a formal 177 ruling on an expedited basis.” Id. (emphasis in original). As with the other parties, Quanta provided a procedural schedule for any inter partes proceeding. Id. at 2.

Taking the parties’ procedural submissions into consideration, the EOE Branch responded by email on May 12, 2025, with the following:

Dear Counsel,

The Exclusion Order Enforcement (“EOE”) Branch has reviewed the procedural submissions (filed on April 21, 2025) from (1) Vicor Corporation (“Vicor”), the complainant and patent owner in Investigation No. 337-TA-1370 (“the underlying investigation”) at the U.S. International Trade Commission (“Commission” or “ITC”); (2) Quanta Computer Inc. and Quanta Computer USA, Inc. (“Quanta”) and, to the extent relevant to the import transactions at issue, Foxconn Industrial Internet Co. Ltd. (“Foxconn”), the respondents in the underlying investigation that manufacture downstream products; and (3) NVIDIA Corporation (“NVIDIA”), who was not a party in the underlying investigation but whose Blackwell computing systems (also referred to as the Blackwell boards) (“articles at issue”) are at the center of this dispute. Based on its review of the procedural submissions, and taking into consideration the other submissions from the parties and companies above filed before the procedural submissions, the EOE Branch provides the following in response.

***

A party seeking to import articles potentially subject to an exclusion order issued by the Commission under Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1337 (“Section 337”), has the burden to establish noninfringement, or that the articles are otherwise outside the exclusion order’s scope, as a condition of entry. See Hyundai Elecs. Indus. Co. v. Int’l Trade Comm’n, 899 F.2d 1204, 1210 (Fed. Cir. 1990); see also Certain Road Construction Machines and Components Thereof, Inv. No. 337-TA-1088 (Modification), Commission Opinion, Doc. ID 719534 (Sept. 14, 2020) at 12-13 (“Consistent with the Commission’s long- standing practice, the scope of the [exclusion order] at issue here includes all [ ] infringing road construction machines and components thereof, whether they have been adjudicated in the investigation or were later introduced.”) (emphasis

6 added). When an importer fails to carry this burden to establish admissibility, U.S. Customs and Border Protection (“CBP”) will, as directed by the Commission, exclude the articles from entry for consumption.

With respect to unadjudicated articles in the Section 337 context, the Commission has confirmed the availability of proceedings for parties to carry the burden described above and obtain determinations whether such unadjudicated articles are subject to an exclusion order. Specifically, if a party “wish[es] to import . . . products that have not been adjudicated by the Commission, [that party] may seek an advisory opinion or file a petition for a modification proceeding from the Commission, or a Part 177 ruling from CBP, regarding whether an article is subject to the exclusion order.” Certain Robotic Vacuum Cleaning Devices and Components Thereof Such as Spare Parts, Inv. No. 337-TA-1057, Commission Opinion, Doc. ID 665703 (Feb. 1, 2019) at 60 (citing 19 C.F.R. §§ 210.76, 210.79 and 19 C.F.R. § 177).

Significantly, the U.S. Court of Appeals for the Federal Circuit has held that “import proceedings” such as those above are “the appropriate procedural vehicle for [an importer’s] arguments to be heard” but this does not “stand for the proposition that [an importer] would have been entitled to import its products prior to the conclusion of any such import proceedings.” Certain Road Construction Machines and Components Thereof, Inv. No. 337-TA-1088 (Modification), Commission Opinion, Doc. ID 719534 (Sept. 14, 2020) at 30 (emphasis added) (citing Yingbin-Nature (Guangdong) Wood Indus. Co. v. Int’l Trade Comm’n, 535 F.3d 1322, 1334 (Fed. Cir. 2008)).

However, without displacing the importer’s burden imposed by a Section 337 exclusion order, the EOE Branch may determine at what point during an inter partes proceeding under 19 C.F.R. § 177 to initiate enforcement at the border with respect to any shipments attempting to make entry for consumption. In other words, “the EOE Branch may, in its discretion, . . . take into consideration the question whether the articles at issue include new or different features or functionalities … that are relevant to the asserted claims of the underlying patents when determining the point at which CBP should prevent the entry for consumption of the articles at issue that include these new or different features or functionalities until they are found not to infringe. In appropriate cases, and depending on the relevant facts, that point could be at a preliminary stage in an inter partes proceeding, during the pendency of the proceeding, or at its conclusion.” CBP HQ Ruling H324813 (dated June 3, 2022) at 38 (internal citations and quotation marks omitted) (emphasis added). See also Trump v. United States, 603 U.S. 593, 620 (2024) (“Investigative and prosecutorial decisionmaking is ‘the special province of the Executive Branch[.]’”) (quoting Heckler v. Chaney, 470 U. S. 821, 832, (1985)); see also Mylan Labs. Ltd. v. Janssen Pharmaceutica, N.V., 989 F.3d 1375, 1382 (Fed. Cir. 2021) (“[A]gencies generally are free . . . to choose not to initiate enforcement proceedings.”) (citing Heckler, 470 U.S. at 830-32).

7 As delineated in the submissions (procedural or otherwise) to this point, the admissibility question presented in this dispute consists of three theories undergirding the contention that the articles at issue are not subject to the limited exclusion order from the underlying investigation. The first theory is that, since it appears undisputed that the Blackwell boards contain upstream components made by a third party who was not a respondent in the underlying investigation, and is not related to any such respondent, the articles at issue fall outside the scope of the limited exclusion order based on the governing Section 337 precedent (as cited and discussed in the submissions and noted below). The second theory is that the Blackwell computing systems do not contain power converter modules as defined in the limited exclusion order and for purposes of the scope of investigation. The third theory is that the articles at issue do not infringe the asserted patents from the limited exclusion order.

The EOE Branch has determined that this admissibility question should be addressed with an inter partes proceeding under 19 C.F.R. § 177 and that the ruling request should be submitted by Quanta/Foxconn or NVIDIA as either (i) the foreign manufacturer of the articles at issue, (ii) the importer of record for those articles, or (iii) the company with a direct and demonstrable interest in the question presented by the ruling request (i.e., the admissibility of the articles at issue). See 19 C.F.R. § 177.1(c). The EOE Branch defers to Quanta/Foxconn or NVIDIA regarding which company is best positioned, given the legal and factual aspects of this dispute and the import transactions at issue, to submit the ruling request or if they should submit the ruling request jointly.

The ruling request, and the other submissions provided for in the first procedural schedule below, should only address the first theory above as related to admissibility of the articles at issue. Specifically, the ruling request and the other submissions should address the factual description of the articles at issue and the import transactions related to them in sufficient detail and address whether the Commission’s Advisory Opinion from Certain GPS Devices and Products Containing Same, Inv. No. 337-TA-602, Doc. ID 423431 (April 20, 2010), or any of the Commission Opinions from Certain Graphics Systems, Components Thereof, and Digital Televisions Containing The Same, Inv. No. 337-TA-1318, e.g., Doc. ID 814860 (Feb. 23, 2024) and Doc. ID 822069 (May 22, 2024), or any other binding precedent governs admissibility of the articles at issue.

The EOE Branch has decided to establish a procedural schedule for adjudication of the first theory on an expedited basis, as set forth below. Furthermore, the EOE Branch has found that this constitutes an appropriate case where the point at which to initiate any enforcement at the border with respect to any shipments of the articles at issue would be no sooner than the adjudication of this theory with a ruling under 19 C.F.R. § 177 on the question presented above, assuming that Quanta/Foxconn or NVIDIA actually submits a ruling request under 19 C.F.R. § 177 by close of business (11:59pm eastern time) in conformity with the procedural schedule below. If a ruling request is not submitted by that

8 date, the EOE Branch will initiate enforcement measures at the border as of that date.

As noted above, the EOE Branch has established this procedural schedule on an expedited basis and believes this is warranted given that the issue under consideration is narrow and primarily legal in nature, and because the parties have already provided substantive views in previous submissions concerning this issue, which can be supplemented, as appropriate.

Procedural Schedule for the First Theory Related to Admissibility of the Articles at Issue

Event Deadline Quanta/Foxconn or May 16, NVIDIA Ruling 2025 Request Vicor Response May 22, 2025 Quanta/Foxconn or May 29, NVIDIA Reply 2025 EOE Branch Target June 6, Date for Ruling 2025

Furthermore, in its procedural submission, Vicor noted that it would need additional time to address the second theory related to admissibility, specifically that the Blackwell computing systems do not contain power converter modules as defined in the limited exclusion order and for purposes of the scope of investigation. Accordingly, the EOE Branch has decided to establish a procedural schedule for adjudication of the second theory with a ruling under 19 C.F.R. § 177 on the question presented, as set forth below. For this theory, Vicor may rely on the previous submissions related to this dispute and, if needed, may obtain additional information from the other side during the discovery period in the procedural schedule below. Moreover, the ruling request noted above is understood to incorporate these previous submissions and the arguments made therein to the extent they pertain to the second theory.

The EOE Branch recognizes that the outcome of the ruling on the first theory may obviate the need to address the second theory in this inter partes proceeding. Moreover, depending on that outcome and taking into consideration Vicor’s submission below on the second theory if found to be appropriate, the EOE Branch will reevaluate the question regarding the point at which to initiate any enforcement at the border with respect to any shipments of the articles at issue.

9 Procedural Schedule for the Second Theory Related to Admissibility of the Articles at Issue

Event Deadline Quanta/Foxconn or As soon as NVIDIA Makes a possible Sample of Articles and no at Issue Available later than Within the United May 19, States 2025 Vicor Discovery June 12, and Submission 2025 Quanta/Foxconn or June 23, NVIDIA Response 2025 Vicor Reply June 30, 2025 EOE Branch Target July 11, Date for Ruling 2025

Lastly, the EOE Branch does not establish a procedural schedule at this time in this inter partes proceeding with respect to the third theory for admissibility of the articles at issue. However, Quanta/Foxconn or NVIDIA may request a separate ruling request under 19 C.F.R. § 177 at any time regarding this issue and propose a procedural schedule for the question presented on patent infringement. As confirmation, for purposes of the third theory related to patent infringement, the importer will not have carried its burden to establish admissibility until the articles at issue are determined not to infringe.

Despite the potential for a separate ruling request, the procedural schedules set forth above will remain in place unless the parties jointly seek to modify them and the EOE Branch agrees to the proposed modifications. Nonetheless, the EOE Branch retains the authority, at its discretion and with notice to the parties, to modify any procedural schedule as warranted.

If the parties have any questions, the EOE Branch is available for a conference call with the parties this week.

EOE Branch Email to Parties, dated May 12, 2025 (emphasis in the original).

III. RULING REQUESTS AND COMMISSION CONFIRMATION

Following the EOE Branch’s email above, Quanta and NVIDIA submitted separate ruling requests on May 16, 2025, and served copies on Vicor. In its ruling request, NVIDIA framed the legal issue as whether “the LEO that issued in the 1370 Investigation, which exclusively concerned

10 certain Delta and Cyntec power converter modules and systems containing those products, cover NVIDIA’s Blackwell products even though (1) NVIDIA was not named as a respondent, (2) the NVIDIA Blackwell Products do not contain Delta and Cyntec power converter modules, and (3) the NVIDIA Blackwell Products were not involved in the 1370 Investigation[.]” NVIDIA Ruling Request at 5. To this, NVIDIA argues, inter alia, that “GPS Devices addresses the exact factual scenario presented in this ruling request[,]” NVIDIA Ruling Request at 5, that “GPS Devices is still good law” and was not overruled by Graphic Systems, NVIDIA Ruling Request at 6, and that Graphics Systems do[es] not govern th[e] situation” presented by this ruling request. NVIDIA Ruling Request at 6. Consistent with that view, Quanta argued that “[t]he Commission’s advisory opinion in Certain GPS Devices & Prods. Containing Same, Inv. No. 337-TA-602, April 20, 2010 (“GPS Devices”) is directly on point with the facts of the -1370 Investigation and compels the conclusion that the Nvidia Blackwell Products are not subject to the LEO here.” Quanta Ruling Request at 7.

On May 22, 2025, Vicor submitted a response to the ruling requests from NVIDIA and Quanta, in which Vicor stated that “[t]he Commission in Graphics Systems twice rejected Respondents’ arguments, relying on the Advisory Opinion in GPS Devices (602), for narrowing the remedial orders, and Respondents’ same arguments here should be rejected for the same reasons.” Vicor Response at 2. According to Vicor, the 1370 investigation is not limited to Delta and Cyntec power converter modules, see Vicor Response at 2-7, and that Graphics Systems, as the governing precedent, confirms this view. See Vicor Response at 7-12. On May 29, 2025, Quanta and NVIDIA submitted replies to the response from Vicor. Both submissions reiterated that GPS Devices, and not Graphics Systems, is the relevant Commission precedent to apply and the reasons that underscore this understanding.

On June 8, 2025, the EOE Branch submitted the letter below to the ITC:

The Exclusion Order Enforcement Branch (“EOE Branch”), Regulations and Rulings, Office of Trade, U.S. Customs and Border Protection, is writing to request confirmation or clarification from the U.S. International Trade Commission (“Commission”) with respect to the scope and applicability of the limited exclusion order that the Commission issued in Certain Power Converter Modules and Computing Systems Containing the Same, Investigation No. 337-TA-1370 (“the underlying investigation”). Specifically, the EOE Branch is requesting confirmation or clarification whether the limited exclusion order extends to downstream products, as described in the underlying investigation,1 that are manufactured or imported by certain respondents found to infringe the asserted patents, when those downstream products incorporate unadjudicated articles consisting of upstream components from non-respondent third parties instead of power converter modules from the upstream respondents (i.e., Delta Electronics, Inc. of Taipei, Taiwan, Delta Electronics (Americas) Ltd. of Fremont, California, and Delta Electronics (USA) Inc. of Plano, Texas (collectively, “Delta”) and Cyntec Co., Ltd. of Hsinchu, Taiwan (“Cyntec”)). ___________________ 1 See, e.g., Certain Power Converter Modules and Computing Systems Containing the Same, Inv. No. 337-TA-1370, EDIS Doc. ID 844518,

11 Commission Opinion (Feb. 26, 2025) at 124 (“The RD recommends three different rates for purposes of bonding. RD at 204-05. First, because neither Vicor nor OUII sought a bond as to Cyntec, the RD recommends no bond as to Cyntec’s accused modules. Id. at 205. Second, the RD recommends a [[ ]] percent bond for Delta products, the rationale being that Vicor and Delta directly compete, and [[ ]] percent represents the price differential between Vicor’s and Delta’s products. Id. at 204. Third, the RD finds that the downstream products sold by the remaining respondents are sold at ‘different levels of commerce,’ making determination of a price differential impractical. Id. at 205. The RD thus recommends a 100 percent bond for the remaining products.”) (emphasis added).

The Commission instituted this investigation on August 17, 2023, based on a complaint filed by Vicor Corporation (“Vicor”). See Certain Power Converter Modules and Computing Systems Containing the Same, Inv. No. 337-TA-1370, EDIS Doc. ID 844518, Commission Opinion (Feb. 26, 2025) (“Comm’n Op.”) at 2 (citing 88 Fed. Reg. 56050-51 (Aug. 17, 2023)). The complaint, as supplemented, alleged violations of section 337 in the importation into the United States, the sale of importation, and the sale within the United States after importation of (i) certain power converter modules and (ii) computing systems containing the same by reason of infringement of claim 1 of the U.S. Patent No. 9,166,481 (“the ’481 patent”); claims 1-7 of U.S. Patent No. 9,516,761 (“the ’761 patent”), and claims 9, 13, 14, and 33-38 of U.S. Patent No. 10,199,950 (“the ’950 patent”). Id.

The Commission’s notice of investigation based on the complaint named as respondents Delta and Cyntec, as well as downstream product manufacturers or importers Quanta Computer Inc. of Taoyuan City, Taiwan, Quanta Cloud Technology Inc. of Taoyuan City, Taiwan, Quanta Cloud Technology USA LLC of San Jose, California, and Quanta Computer USA, Inc. of Fremont, California (collectively, “Quanta”) and Hon Hai Precision Industry Co. Ltd. (d/b/a Foxconn Technology Group) of Taipei City, Taiwan, Foxconn Industrial Internet Co. Ltd. of Shenzhen, China, FII USA Inc. (a/k/a Foxconn Industrial Internet USA Inc.) of Milwaukee, Wisconsin, Ingrasys Technology Inc. of Taoyuan City, Taiwan, and Ingrasys Technology USA Inc. of San Jose, California (collectively, “Foxconn”). Comm’n Op. at 2.

Significantly, the accused products at issue in the underlying investigation were “power converter modules used in data center server, artificial intelligence and cloud computing systems, to power artificial intelligence (‘AI’) accelerators, tensor processing units (‘TPU’), graphical processing units (‘GPU’) and central processing units (‘CPU’), and computing systems containing the same.” Comm’n Op. at 6 (citing 88 Fed. Reg. 56050). The accused power converter modules in the underlying investigation were manufactured by Delta and Cyntec (the “Accused Modules”). See Certain Power Converter Modules and Computing Systems Containing the Same, Inv. No. 337-TA-1370, EDIS Doc. ID 834565, Initial Determination of Violation of Section 337 and Recommended Determination on Remedy and Bond (Sept. 27, 2024) (“FID”) at 7. The remaining respondents incorporated one or more of the Accused Modules into their computing systems

12 (“the “Accused Systems”), which constitute the downstream products referenced above. Id.

Ultimately, the Commission found, inter alia, that all of the Accused Modules infringed the asserted claims of the ’761 patent. See Comm’n Op. at 1. Accordingly, the Commission determined there was a violation of section 337 and issued a limited exclusion order directed to the respondents and that imposed different bond amounts for the infringing Delta modules, the infringing Cyntec modules, and “all other infringing products” (i.e., the downstream products incorporating an infringing module) when “imported during the Presidential review period.” Id.

In other words, the Commission found the downstream products to infringe because they incorporated an infringing module from Delta or Cyntec and those modules were infringing because they satisfied all of the limitations in the asserted claims of the ’761 patent included in the limited exclusion order. See FID at 3 (“Respondent Quanta Computer Inc. purchases the accused Delta power converter modules outside the United States and then incorporates them into the accused Quanta systems and/or components of the accused Quanta systems, which then are sold for importation into the United States.”); at 9 (“Vicor accuses over 100 Quanta Accused Systems of infringement, and these are enumerated in the parties’ stipulation, along with the Delta Accused Module incorporated into them. . . . It appears, however, that 13 of the Quanta Accused Systems are no longer at issue because Vicor no longer accuses their incorporated Accused Module, the Delta Q50SN12050RND, of infringement. . . . Vicor also accuses several systems made and/or imported by the other respondents of infringement, and these Accused Systems are also enumerated in the parties’ stipulation, although here, too, one of the Accused Systems (the Ingrasys G48C) is no longer at issue because its incorporated Accused Module (the Q54SH120A1NCDHR) is no longer accused of infringement.”) (emphasis added); at 86 (“As noted, the parties agree that two products, Delta’s U50SU4P162PMAR and U50SU4P180PMDAL, are representative of all Delta Accused Modules for purposes of infringement of the 761 patent. See EDIS Doc. ID 816661 at 2. The parties also agree that certain systems of Quanta, Ingrasys, and FIT USA containing one of the two Delta representative modules are representative of other Accused Systems of Quanta, Ingrasys, and FIT USA.”) (emphasis added); and at 90 (“Accordingly, Vicor has shown infringement of claims 1-7 of the 761 patent by all Accused Products.”).

In the context of a request for an administrative ruling under 19 C.F.R. Part 177, an issue has arisen with respect to the scope and applicability of the Commission’s limited exclusion order given the findings from the underlying investigation and in view of other Commission precedent. See Certain Graphics Systems, Components Thereof, and Digital Televisions Containing The Same, Inv. No. 337-TA-1318, EDIS Doc. ID 814860, Commission Opinion (Feb. 23, 2024); see also Certain Graphics Systems, Components Thereof, and Digital Televisions Containing The Same, Inv. No. 337-TA-1318, EDIS Doc. ID 822069, Commission

13 Reconsideration Opinion (May 22, 2024); but see Certain GPS Devices and Products Containing Same, Inv. No. 337-TA-602, EDIS Doc. ID 423431, Advisory Opinion (Apr. 20, 2010).

Specifically, the EOE Branch is seeking confirmation or clarification whether the Commission’s limited exclusion order extends to downstream products of respondents when those products instead incorporate upstream components from non-respondent third parties that were not accused of infringement or found to violate section 337 in the underlying investigation, such that those downstream products should be refused entry until adjudicated not to infringe or otherwise found not to be subject to the limited exclusion order or if the substitution of upstream components from non-respondent third parties automatically takes the downstream products outside the scope of the limited exclusion order. Given the pending ruling request referenced above, the EOE Branch requests the favor of the Commission’s response, if possible, by June 20, 2025. Thank you for your consideration and please let the EOE Branch know if additional information is needed in connection with this request for confirmation or clarification.

EOE Branch Letter to the ITC, dated June 8, 2025.

On June 24, 2025, the ITC responded to the EOE Branch with the following letter:

Thank you for your letter of June 8, 2025, seeking information regarding the scope of the limited exclusion order issued in the above-referenced investigation. Specifically, you seek “confirmation or clarification whether the Commission’s limited exclusion order extends to downstream products of respondents when those products instead incorporate upstream components from non-respondent third parties that were not accused of infringement or found to violate section 337 [of the Tariff Act of 1930, as amended (19 U.S.C. § 1337)] in the underlying investigation[.]”

The Commission has a “long-standing practice [of] directing its remedial orders to all products covered by the patent claims as to which a violation has been found, rather than limiting its orders to only those specific models selected for the infringement analysis.” Certain Graphic Sys., Components Thereof, & Digital Televisions Containing the Same (“Graphic Sys.”), Inv. No. 337-TA-1318, Comm’n Op. at 59 (Feb. 23, 2024) (alterations in original); see also Graphic Sys., Comm’n Op. on Reconsideration at 14 (May 22, 2024) (collecting cases). In other words, the Commission’s orders extend to “all products of named respondents within the scope of the investigation that are covered by the patent claims as to which a violation has been found, and [are not limited] to only those products actually adjudicated as infringing in the investigation.” Graphic Sys., Comm’n Op. on Reconsideration at 17-18. The Federal Circuit and its predecessor court have long upheld this interpretation as to the scope of Commission exclusion orders. See, e.g., Hyundai Elecs. Indus. Co. v. Int’l Trade Comm’n, 899 F.2d 1204, 1210 (Fed. Cir. 1990) (affirming the Commission’s authority to issue remedial orders that

14 “effectively shifts to would-be importers of potentially infringing articles, as a condition of entry, the burden of establishing noninfringement”).

Consistent with this approach, the Commission has declined to automatically exempt from limited exclusion orders products that are within the scope of an investigation but were not adjudicated in the investigation. For example, in Graphic Systems, the plain language description of the accused products defined the scope of the investigation as “(a) integrated circuits that incorporate one or more graphics processing units (GPUs); (b) printed circuit board assemblies containing the same; and (c) digital televisions containing the same.” Comm’n Op. on Reconsideration at 3. The complainant alleged infringement as to GPUs supplied only by non-party ARM, Inc. Id. at 5. “[P]roducts containing non- ARM GPUs were not adjudicated in the investigation as those products were not accused by [complainant] and [respondent] had not sought non-infringement determinations of such products.” Id. at 16. The Commission rejected the respondent’s request to limit the scope of the limited exclusion order to GPUs supplied by ARM in its final determination and again upon respondent’s motion for reconsideration, explaining that “[u]nder Commission and Federal Circuit precedent, there is no basis to limit the [limited exclusion order] solely to the adjudicated products with ARM GPUs or otherwise exempt from the [limited exclusion order] products with non-ARM GPUs that are within the scope of the investigation unless and until such products have been adjudicated as non- infringing.” Id.; accord Graphic Sys., Comm’n Op. at 59.

Accordingly, we confirm that the Commission’s limited exclusion order in this investigation is not limited to only downstream products of respondents that include the upstream components specifically adjudicated to be infringing. Rather, the order extends to downstream products of respondents within the scope of the investigation, that infringe the patents specified in the exclusion order, even if those products incorporate upstream components from non- respondent third parties that that were not adjudicated as infringing in the underlying investigation.

ITC Letter to the EOE Branch, dated June 24, 2025 (emphasis added).

Therefore, based on the Commission’s confirmation, an exclusion order under Section 337 applies to downstream products of a respondent, such as Quanta, “even if those products incorporate upstream components from non-respondent third parties that [] were not adjudicated,” such as the NVIDIA Blackwell Products at issue in this inter partes proceeding, if the products (i) infringe the asserted patents from the exclusion order and (ii) are within the scope of investigation.

IV. HOLDING

Accordingly, the NVIDIA Blackwell Products at issue in this inter partes proceeding are subject to exclusion from entry unless and until they are found, under the

15 second theory referenced above, not to be subject to the scope of the investigation as defined in the limited exclusion order.

Sincerely,

Dax Terrill
Chief, Exclusion Order Enforcement Branch

CC: Mr. Louis Mastriani
Polsinelli
1401 Eye Street, NW Suite 800
Washington, DC 20005
[email protected]

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