In the Matter of Certain Power Supply Controllers and Products Containing Same; Notice of Commission Determination Not To Review a Final Initial Determination of Violation of Section 337; Schedule for Filing Written Submissions on Remedy, the Public Interest, and Bonding, 38901-38902 [06-6081]

Agencies

• INTERNATIONAL TRADE COMMISSION

[Federal Register Volume 71, Number 131 (Monday, July 10, 2006)]
[Notices]
[Pages 38901-38902]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-6081]


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INTERNATIONAL TRADE COMMISSION


In the Matter of Certain Power Supply Controllers and Products 
Containing Same; Notice of Commission Determination Not To Review a 
Final Initial Determination of Violation of Section 337; Schedule for 
Filing Written Submissions on Remedy, the Public Interest, and Bonding

AGENCY: U.S. International Trade Commission

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined not to review the Administrative Law Judge's 
(``ALJ'') final Initial Determination (``ID'') finding a violation of 
section 337. Notice is further given that the Commission is requesting 
briefing on remedy, public interest, and bonding with respect to the 
respondent found in violation.

FOR FURTHER INFORMATION CONTACT: Michelle Walters, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
SW., Washington, DC 20436, telephone (202) 708-5468. Copies of non-
confidential documents filed in connection with this investigation are 
or will be available for inspection during official business hours 
(8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. 
International Trade Commission, 500 E Street, SW., Washington, DC 
20436, telephone (202) 205-2000. General information concerning the 
Commission may also be obtained by accessing its Internet server at 
https://www.usitc.gov. The public record for this investigation may be 
viewed on Commission's electronic docket (EDIS) at https://
www.usitc.gov/secretary/edis.htm. Hearing-impaired persons are advised 
that information on this matter can be obtained by contacting the 
Commission's ADD terminal on (202) 205-1810.

SUPPLEMENTARY INFORMATION: On June 13, 2005, the Commission instituted 
this investigation, based on a complaint filed by Power Integrations, 
Inc. (``PI'') of San Jose, California. The complaint, as amended and 
supplemented, alleges violations of section 337 of the Tariff Act of 
1930 (19 U.S. 1337) in the importation into the United States, the sale 
for importation, and the sale within the United States after 
importation of certain power supply controllers and products containing 
the same by reason of infringement of claims 1-3, 6, 9, and 17-19 of 
United States Patent No. 6,212,079; claims 1-3, 5, 6, 24, 28, and 29 of 
United States Patent No. 6,351,398 (``the `398 patent''; claims 8 and 
12 of United States Patent No. 6,366,481; and claims 1, 4, 9-11, 12, 
17, 19, 20, 22, 23, 26, 27, 30, 31, and 34 of United States Patent No. 
6,538,908 (``the `908 patent''). During the investigation, the 
Commission allowed PI to terminate the investigation with regard to 
several claims, leaving only claims 1, 3, 5, and 6 of the `398 patent 
and claims 26 and 27 of the `908 patent in this investigation. The 
complaint named a single respondent, System General Corporation 
(``SG'').
    On May 15, 2006, the ALJ issued a final ID, including his 
recommended determination on remedy and bonding. In his ID, the ALJ 
found that SG's accused products infringe claims 1, 3, 5, and 6 of the 
`398 patent and claims 26 and 27 of the `908 patent. Moreover, he 
concluded that these claims are not invalid for anticipation under 35 
U.S.C. 102 and that the `398 patent and the `908 patent are not 
unenforceable due to inequitable conduct. Finally, the ALJ concluded 
that PI proved that there is a domestic industry in the United States 
with respect to both patents. As a result, the ALJ recommended issuing 
a limited exclusion order directed to infringing power supply 
controllers produced by SG, as well as certain downstream products 
containing these controllers.
    On May 26, 2006, respondent SG filed a petition for review, 
challenging various aspects of the ALL's final ID. On June 5, 2006, PI 
and the Commission investigative attorney separately filed responses to 
SG's petition for review, asserting that the ALJ properly determined 
that there was a violation of section 337 with regard to the asserted 
claims.
    Having examined the record of this investigation, including the 
ALL's final ID, the petitions for review, and the responses thereto, 
the Commission has

[[Page 38902]]

determined not to review the ALL's ID. To the extent SG attempts to 
challenge PI's satisfaction of the importation requirement of 19 U.S.C. 
1337(a)(l)(B) in its petition for review, we decline to reconsider the 
issue. SG failed to file a petition for review challenging the ALL's 
December 12, 2005 ID granting PI's motion for summary determination 
that it satisfied the importation requirement, and therefore, SG waived 
the issue. 19 CFR 210.43(b)(2).
    In connection with the final disposition of this investigation, the 
Commission may (1) issue an order that could result in the exclusion of 
the subject articles from entry into the United States, and/or (2) 
issue one or more cease and desist orders that could result in the 
respondent being required to cease and desist from engaging in unfair 
acts in the importation and sale of such articles. Accordingly, the 
Commission is interested in receiving written submissions that address 
the form of remedy, if any, that should be ordered. If a party seeks 
exclusion of an article from entry into the United States for purposes 
other than entry for consumption, the party should so indicate and 
provide information establishing that activities involving other types 
of entry either are adversely affecting it or likely to do so. For 
background, see Certain Devices for Connecting Computers via Telephone 
Lines, Inv. No. 337-TA-360, USITC Pub; No. 2843 (December 1994) 
(Commission Opinion).
    If the Commission contemplates some form of remedy, it must 
consider the effects of that remedy upon the public interest. The 
factors the Commission will consider include the effect that an 
exclusion order and/or cease and desist orders would have on (1) the 
public health and welfare, (2) competitive conditions in the U.S. 
economy, (3) U.S. production of articles that are like or directly 
competitive with those that are subject to investigation, and (4) U.S. 
consumers. The Commission is therefore interested in receiving written 
submissions that address the aforementioned public interest factors in 
the context of this investigation.
    If the Commission orders some form of remedy, the U.S. Trade 
Representative, as delegated by the President, has 60 days to approve 
or disapprove the Commission's action. See Presidential Memorandum of 
July 21, 2005, 70 FR 43251 (July 2, 2005). During this period, the 
subject articles would be entitled to enter the United States under 
bond, in an amount determined by the Commission and prescribed by the 
Secretary of the Treasury. The Commission is therefore interested in 
receiving submissions concerning the amount of the bond that should be 
imposed if a remedy is ordered.
    Written Submissions: The parties to the investigation are requested 
to file written submissions on the issues identified in this notice. 
Parties to the investigation, interested government agencies, and any 
other interested parties are encouraged to file written submissions on 
the issues of remedy, the public interest, and bonding. Such 
submissions should address the recommended determination by the ALJ on 
remedy and bonding. Complainant and the Commission investigative 
attorney are also requested to submit proposed remedial orders for the 
Commission's consideration. Complainant is also requested to state the 
dates that the patents expire and the HTSUS numbers under which the 
accused products are imported. The written submissions and proposed 
remedial orders must be filed no later than close of business on July 
10, 2006. Reply submissions must be filed no later than the close of 
business on July 17, 2006. No further submission on these issues will 
be permitted unless otherwise ordered by the Commission.
    Persons filing written submission must file the original document 
and 12 true copies thereof on or before the deadlines stated above with 
the Office of the Secretary. Any person desiring to submit a document 
to the Commission in confidence must request confidential treatment 
unless the information has already been granted such treatment during 
the proceedings. All such requests should be directed to the Secretary 
of the Commission and must include a full statement of the reasons why 
the Commission should grant such treatment. See 19 CFR 210.6. Documents 
for which confidential treatment by the Commission is sought will be 
treated accordingly. All nonconfidential written submissions will be 
available for public inspection at the Office of the Secretary.
    The authority for the Commission's determination is contained in 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
in sections 210.42-46 and 210.50 of the Commission's Rules of Practice 
and Procedure (19 CFR 210.42-46 and 210.50).

    Issued: June 30, 2006.

    By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 06-6081 Filed 7-7-06; 8:45 am]
BILLING CODE 7020-02-M