Certain Ink Cartridges and Components Thereof; Commission's Determination to Review an Initial Determination in Part and, on Review, To Affirm a Finding of a Violation of Section 337; Request for Written Submissions on Remedy, the Public Interest, and Bonding, 79097-79099 [2015-31817]

Agencies

• INTERNATIONAL TRADE COMMISSION

[Federal Register Volume 80, Number 243 (Friday, December 18, 2015)]
[Notices]
[Pages 79097-79099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31817]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-946]


Certain Ink Cartridges and Components Thereof; Commission's 
Determination to Review an Initial Determination in Part and, on 
Review, To Affirm a Finding of a Violation of Section 337; Request for 
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 to review-in-part the initial determination 
(``ID'') issued by the presiding administrative law judge (``ALJ'') on 
October 28, 2015,

[[Page 79098]]

granting summary determination that 17 defaulting respondents have 
violated section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 
1337. On review, the Commission affirms with modifications the ALJ's 
findings regarding the importation requirement. The Commission's 
determination results in a determination of a violation of section 337. 
Accordingly, the Commission requests written submissions, under the 
schedule set forth below, on remedy, the public interest, and bonding.

FOR FURTHER INFORMATION CONTACT: Michael Liberman, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone (202) 205-3115. 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 the Commission's electronic docket (EDIS) at https://edis.usitc.gov. 
Hearing-impaired persons are advised that information on this matter 
can be obtained by contacting the Commission's TDD terminal on (202) 
205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on January 27, 2015, based on a complaint filed by Epson Portland Inc. 
of Hillsboro, Oregon; Epson America, Inc. of Long Beach, California; 
and Seiko Epson Corporation of Japan (collectively, ``Epson''). 80 FR 
4314-16 (Jan. 27, 2015). The complaint alleged violations of section 
337 by reason of the importation into the United States, the sale for 
importation, and the sale within the United States after importation of 
certain ink cartridges and components thereof that infringe certain 
claims of U.S. Patent Nos. 8,366,233 (``the '233 patent''); 8,454,116 
(``the '116 patent''); 8,794,749 (``the '749 patent''); 8,801,163 
(``the '163 patent''); and 8,882,513 (``the '513 patent''). Id. The 
notice of investigation named 19 respondents. See id. The Office of 
Unfair Import Investigations is a party in this investigation.
    Respondents Zhuhai Nano Digital Technology, Co., Ltd. of Guangdong, 
China and Nano Business and Technology, Inc. of Lake Oswego, Oregon 
were terminated from the investigation based upon a settlement 
agreement and consent order. See Notice of Commission Determination Not 
to Review an Initial Determination Terminating the Investigation as to 
Certain Respondents Based on a Settlement Agreement and Consent Order; 
Issuance of a Consent Order (Aug. 5, 2015).
    The remaining 17 respondents were found in default. See Notice of a 
Commission Determination Not to Review an Initial Determination Finding 
Certain Respondents in Default (July 10, 2015).
    On August 31, 2015, Epson moved for a summary determination of a 
violation of section 337 by the defaulting respondents and for issuance 
of a general exclusion order and cease and desist orders. On September 
11, 2015, the Commission Investigative Attorney (``IA'') filed a 
response in support of the motion. No other responses to the motion 
were received.
    On September 16, 2015, the ALJ issued an ID partially terminating 
the investigation based on Epson's withdrawal of certain claims. See 
Notice of a Commission Determination Not to Review an Initial 
Determination Terminating the Investigation in Part as to Certain 
Claims (Oct. 15, 2015). Claims 1 and 10 of the '233 patent; claims 9, 
14, 18, and 21 of the '116 patent; claims 1, 18, 49, and 60 of the '749 
patent; claims 1 and 6 of the '163 patent; and claims 14, 15, and 19 of 
the '513 patent remain pending in this investigation. See Order No. 12 
at 8-19.
    On October 28, 2015, the ALJ issued the subject ID granting Epson's 
motion for summary determination of violation and recommending the 
issuance of a general exclusion order and cease and desist orders. See 
Order No. 12. No party petitioned for review of the ID.
    The Commission has determined to review only the importation 
analysis in the ID. Upon review, the Commission affirms a finding that 
Epson has met the importation requirement. In addition to the specific 
instances of importation by each defaulting respondent identified in 
the ID, the record evidence supports a finding that respondent Zhuhai 
National, through its intermediary respondent Huebon, sold and imported 
accused ink cartridge control no. 7579 (Group 4 cartridge) in 2014. 
Seitz 2015 Decl. ] 39; Seitz Ex. 1.170. In addition, the record 
evidence supports a finding that respondent Zinyaw sold accused ink 
cartridge control no. 7556 (Group 5 cartridge) after they were imported 
into the United States in 2014. Seitz 2015 Decl. ] 156; Seitz Ex. 
1.215.
    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(s) 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 26, 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: 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. Complainant and the IA are also requested to submit 
proposed remedial orders for the Commission's

[[Page 79099]]

consideration. Complainant is further requested to state the date that 
the patents expire and the HTSUS subheadings under which the accused 
products are imported, and provide identification information for all 
known importers of the subject articles.
    Written submissions and proposed remedial orders must be filed no 
later than close of business on Wednesday, December 30, 2015. Reply 
submissions must be filed no later than the close of business on 
Wednesday, January 6, 2015. Such submissions should address the ALJ's 
recommended determinations on remedy and bonding which were made in 
Order No. 12. No further submissions on any of these issues will be 
permitted unless otherwise ordered by the Commission.
    Persons filing written submissions must file the original document 
electronically on or before the deadlines stated above and submit eight 
(8) true paper copies to the Office of the Secretary by noon the next 
day pursuant to section 210.4(f) of the Commission's Rules of Practice 
and Procedure (19 CFR 210.4(f)). Submissions should refer to the 
investigation number (``Inv. No. 337-TA-946'') in a prominent place on 
the cover page and/or the first page. (See Handbook for Electronic 
Filing Procedures, https://www.usitc.gov/secretary/fed_reg_notices/rules/handbook_on_electronic_filing.pdf). Persons with questions 
regarding filing should contact the Secretary (202-205-2000). Any 
person desiring to submit a document to the Commission in confidence 
must request confidential treatment. All such requests should be 
directed to the Secretary to the Commission and must include a full 
statement of the reasons why the Commission should grant such 
treatment. See 19 CFR 201.6. Documents for which confidential treatment 
by the Commission is properly sought will be treated accordingly. A 
redacted non-confidential version of the document must also be filed 
simultaneously with any confidential filing. All non-confidential 
written submissions will be available for public inspection at the 
Office of the Secretary and on EDIS.
    The authority for the Commission's determinations is contained in 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
in part 210 of the Commission's Rules of Practice and Procedure (19 CFR 
part 210).

    By order of the Commission.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2015-31817 Filed 12-17-15; 8:45 am]
 BILLING CODE 7020-02-P