Andrea Electronics (ANDR)

[falon]

Andrea Electronics Files New 337 Complaint Regarding Certain Audio Processing Hardware And Software

BY ERIC SCHWEIBENZ AND TOM YEBERNETSKY

On January 23, 2015, Andrea Electronics Corp. of Bohemia, New York ("Andrea") filed a complaint requesting that the ITC commence an investigation pursuant to Section 337.

The complaint alleges that the following entities (collectively, the "Proposed Respondents") unlawfully import into the U.S., sell for importation, and/or sell within the U.S. after importation certain audio processing hardware and software and products that infringe one or more claims of United States Patent Nos. 5,825,898 (the '898 patent); 6,483,923 (the '923 patent); 6,049,607 (the '607 patent); 6,363,345 (the '345 patent); and 6,377,637 (the '637 patent) (collectively, the "asserted patents"):

Acer Inc. of Taiwan (SETTLEMENT AGREEMENT DATED NOVEMBER 17, 2015)

Market Cap 40.85B

https://www.sec.gov/Archives/edgar/data/6494/000120677416005177/exhibit10-14.htm

Acer America Corp. of San Jose, California

ASUSTeK Computer Inc. of Taiwan

Market Cap 196.09B

ASUS Computer International of Fremont, California

Dell Inc. of Round Rock, Texas (Francisco Partners and Elliott Management Complete Acquisition of Dell November 1, 2016. Dell is a private company, It's valuation is not exactly known. Dell was initially public traded company in NASDAQ and Hong Kong Market Exchance. In 2013, It proposed to leveraged buyout of stocks at $24.4 Billion and going private.)

Hewlett Packard Co. of Palo Alto, California(SETTLEMENT AGREEMENT DATED DECEMBER 22, 2015)

Market Cap 26.35B

https://www.sec.gov/Archives/edgar/data/6494/000120677416005177/exhibit10-15.htm

Lenovo Group Ltd. of China

Market Cap 53.43B

Lenovo Holding Co., Inc. of Morrisville, North Carolina

Lenovo (United States) Inc. of Morrisville, North Carolina

Toshiba Corp. of Japan

Market Cap 18.45B

Toshiba America, Inc. of New York, New York

Toshiba America Information Systems, Inc. of Irvine, California

Realtek Semiconductor Corp. of Taiwan (SETTLEMENT AGREEMENT DATED OCTOBER 15, 2015)

Market Cap 49.62B

https://www.sec.gov/Archives/edgar/data/6494/000120677416005177/exhibit10-13.htm


According to the complaint, the asserted patents "generally relate to the field of audio processing, with a particular focus on processing audio signals to remove noise and interference." In particular, the disclosed inventions may include technology that "enables communication between electronic devices with enhanced clarity – even if that communication takes place in a noisy environment."

In the complaint, Andrea states that the Proposed Respondents import and sell products that infringe the asserted patents. The complaint specifically refers to various personal computers, computer tablets, audio codec chips, and audio processing software associated with the Proposed Respondents as infringing products.

Regarding domestic industry, Andrea states that it has "significant and continuous investment in plant and equipment, significant and continuous employment of labor, and substantial and ongoing investment in engineering and research and development."

As to related litigation, Andrea states that it has asserted the '898 patent, '923 patent, '607 patent, and '345 patent in the Eastern District of New York against Acer, Lenovo, and Toshiba. Additionally, Andrea states that it has asserted the '898 patent, '923 patent, '607 patent, '345 patent, and '637 patent in the Eastern District of New York against Asus, Dell, HP, and Realtek. Lastly, Andrea states that it has asserted the '637 patent in the Eastern District of New York against Acer, Lenovo, and Toshiba.

With respect to potential remedy, Andrea requests that the Commission issue limited exclusion orders and cease and desist orders directed at the Proposed Respondents.

Some of the alleged infringers (3 of 12) settled with Andrea Electronics. While there may be less than 12 due to the American holding companies for overseas Corporations (ie.. Acer, Asus, Lenovo, Toshiba).
For the most parts no company likes to go to trial. It cost money and the company is exposed to unknown financial losses if they lose. It is much easier and manageable to settle especially if there is some snippet of wrong doing.