Certain Two-Way Radio Equipment and Systems, Related Software and Components Thereof; Commission Determination To Review in Part an Initial Determination Finding a Violation of Section 337 and Order Nos. 38 and 47; To Request Written Submissions on Remedy, Bonding, and the Public Interest; and To Extend the Target Date, 45679-45681 [2018-19499]
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Federal Register / Vol. 83, No. 175 / Monday, September 10, 2018 / Notices
Pursuant to section 331 of the Tariff Act,
19 U.S.C. 1331, the Chairman of the
Commission has the authority to
‘‘appoint and fix the compensation of
such employees of the Commission as
he deems necessary,’’ including ALJs.
19 U.S.C. 1331(a)(1)(A)(1). Any such
decision by the Chairman, however, is
‘‘subject to disapproval by a majority
vote of all the commissioners in office.’’
Id. § 1331(a)(1)(C). The hiring of the
Commission’s ALJs has been in
conformity with Titles 5 and 19 of the
U.S. Code, as well as with such
regulations as were then in force by the
Office of Personnel Management, 5 CFR
930.201–.211.
The Appointments Clause of the
Constitution, art. II, § 2, cl. 2, provides,
in relevant part, that Congress may vest
the appointment of inferior officers ‘‘in
the Heads of Departments.’’ In the past
two years, there have been legal
developments concerning the
Appointments Clause. These
developments have included the 2016
decision of the U.S. Court of Appeals for
the Tenth Circuit finding ALJs of the
Securities and Exchange Commission
(‘‘SEC’’) to be ‘‘inferior officers’’ for the
purpose of the Appointments Clause,
Bandimere v. SEC, 844 F.3d 1168, 1188
(10th Cir. 2016), reh’g en banc denied
(May 3, 2017). In 2018, the Supreme
Court decided that the ALJs of the SEC
are inferior officers whose appointments
were to be made by SEC and not by the
SEC’s staff. Lucia v. SEC, 138 S. Ct.
2044, 2053–54 (2018); see Free
Enterprise Fund v. Public Company
Accounting Oversight Bd., 561 U.S. 477,
512 (2010).
The hiring of the Commission’s ALJs
is, and has been, consistent with the
Appointments Clause and with the
Commission’s organic statute.
Throughout at least the period of time
between the hiring of the most-senior
ALJ at the Commission (Chief Judge
Bullock) until the present, the
appointment of ALJs has been made by
the Chairman, and no Commissioner has
initiated a vote to disapprove the
appointment of an ALJ, as is the
Commissioner’s right under 19 U.S.C.
1331(a)(1)(C). Out of an abundance of
caution, on March 14 and 15, 2018, the
Commission (then-Chairman
Schmidtlein, joined by then-Vice
Chairman Johanson, and Commissioners
Williamson and Broadbent) voted, by
notational voting, to ratify the earlier
appointments of Judges Bullock, Lord,
McNamara, Pender and Shaw. Also out
of an abundance of caution, on February
8, 2018, the Commission voted, by
notational voting, in connection with
Judge Cheney’s original appointment.
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Accordingly, the Commission’s ALJs
have all been appointed and/or ratified
in conformance with the Constitution,
and all applicable statutes and
regulations. In addition, by this Notice,
the Commission reiterates its approval
of the appointments of Judges Bullock,
Cheney, Lord, McNamara, Pender, and
Shaw as its own under the Constitution.
By order of the Commission.
Issued: September 5, 2018.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2018–19584 Filed 9–7–18; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
Government in the Sunshine Act
Meeting Notice
United
States International Trade Commission.
AGENCY HOLDING THE MEETING:
September 12, 2018 at
11:00 a.m.
Room 101, 500 E Street SW,
Washington, DC 20436, Telephone:
(202) 205–2000.
PLACE:
STATUS:
MATTERS TO BE CONSIDERED:
1. Agendas for future meetings: None.
2. Minutes.
3. Ratification List.
4. Vote on Inv. No. 731–TA–1189
(Review)(Large Power Transformers
from Korea). The Commission is
currently scheduled to complete
and file its determination and views
of the Commission by September
26, 2018.
5. Outstanding action jackets: None.
In accordance with Commission
policy, subject matter listed above, not
disposed of at the scheduled meeting,
may be carried over to the agenda of the
following meeting.
By order of the Commission.
Issued: September 5, 2018.
William Bishop,
Supervisory Hearings and Information
Officer.
[FR Doc. 2018–19703 Filed 9–6–18; 4:15 pm]
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[Investigation No. 337–TA–1053]
Certain Two-Way Radio Equipment and
Systems, Related Software and
Components Thereof; Commission
Determination To Review in Part an
Initial Determination Finding a
Violation of Section 337 and Order
Nos. 38 and 47; To Request Written
Submissions on Remedy, Bonding,
and the Public Interest; and To Extend
the Target Date
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:
Notice is hereby given that
the U.S. International Trade
Commission has determined to reviewin-part a final initial determination
(‘‘ID’’) of the presiding administrative
law judge (‘‘ALJ’’) finding a violation of
section 337 and the ALJ’s Order Nos. 38
and 47. The Commission is requesting
written submissions on remedy,
bonding, and the public interest
including submissions in response to
certain questions directed to the public
interest. The Commission has also
extended the target date for completion
of the investigation to November 16,
2018.
FOR FURTHER INFORMATION CONTACT:
Open to the public.
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
SUMMARY:
[USITC SE–18–041]
TIME AND DATE:
45679
Clint Gerdine, Esq., Office of the
General Counsel, U.S. International
Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202)
708–2310. 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 May 3, 2017, based on a complaint
filed on behalf of Motorola Solutions,
Inc. (‘‘Motorola’’) of Chicago, Illinois. 82
FR 20635–36. The complaint alleged
violations of section 337 of the Tariff
Act of 1930, as amended, 19 U.S.C.
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45680
Federal Register / Vol. 83, No. 175 / Monday, September 10, 2018 / Notices
1337, by reason of infringement of
certain claims of the ’284 patent and the
following U.S. Patent Nos.: 7,369,869
(‘‘the ’869 patent’’); 7,729,701 (‘‘the ’701
patent’’); 8,279,991 (‘‘the ’991 patent’’);
9,099,972; 8,032,169; and 6,591,111.
The Commission’s notice of
investigation named Hytera
Communications Corp. Ltd. of
Shenzhen, China; Hytera America, Inc.
of Miramar, Florida; and Hytera
Communications America (West), Inc. of
Irvine, California as respondents
(collectively, ‘‘Hytera’’). The Office of
Unfair Import Investigations is not
participating in the investigation. Id.
On September 18, 2017, the
Commission issued notice of its
determination not to review the ALJ’s ID
(Order No. 10) terminating the
investigation as to: (1) Claims 2, 5, 10,
and 16 of the ’284 patent; (2) claims 2–
3, 8, 12, 14–15, 20, 22–24, and 30 of the
’169 patent; (3) claims 5, 8, 11–14, 18,
and 22 of the ’869 patent; (4) claims 3,
5, 8–10, 15, and 17–18 of the ’701
patent; (5) claim 3 of the ’972 patent;
and (6) claims 3–5, 8–10, and 14 of the
’111 patent. On October 17, 2017, the
Commission issued notice of its
determination not to review the ALJ’s ID
(Order No. 16) terminating the
investigation as to claim 10 of the ’869
patent. On November 14, 2017, the
Commission issued notice of its
determination not to review the ALJ’s ID
(Order No. 19) terminating the
investigation as to: (1) Claims 1, 4, 12,
and 18 of the ’284 patent’’); (2) claims
4, 13, 16, and 25 of the ’169 patent; (3)
claims 3–4, 9, 19–20, and 23–24 of the
’869 patent; (4) claims 2, 4, and 14 of the
’701 patent; (5) claims 4 and 8 of the
’972 patent; (6) claims 6 and 12 of the
’111 patent; and (7) claim 19 of the ’991
patent for the purposes of satisfying the
technical prong of the domestic industry
requirement.
On December 4, 2017, the
Commission issued notice of its
determination not to review the ALJ’s ID
(Order No. 21) terminating the
investigation as to claims 5 and 18 of
the ’169 patent. On January 3, 2018, the
Commission issued notice of its
determination not to review the ALJ’s ID
(Order No. 23) terminating the
investigation as to: (1) The ’111 and ’169
patents; (2) claims 2 and 7 of the ’869
patent; and (3) claims 7–8 and 19 of the
’284 patent. On the same date, the
Commission issued notice of its
determination not to review the ALJ’s ID
(Order No. 24) terminating the
investigation as to claim 1 of the ’701
patent. On February 6, 2018, the
Commission issued notice of its
determination not to review the ALJ’s ID
(Order No. 31) terminating the
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17:54 Sep 07, 2018
Jkt 244001
investigation as to the following patent
claims: (1) Claim 13 of the ’701 patent;
(2) claim 6 of the ’284 patent; and (3)
claim 1 of the ’972 patent. On February
26, 2018, the Commission issued notice
of its determination not to review the
ALJ’s ID (Order No. 40) terminating the
investigation as to the ’972 patent.
On January 26, 2018, the ALJ issued
Order No. 38 which granted Motorola’s
motion in limine to preclude Hytera’s
licensing defense. On May 18, 2018, the
ALJ issued Order No. 47 which grantedin-part Motorola’s motion to strike
certain portions of Hytera’s expert
testimony at the evidentiary hearing. On
July 3, 2018, the ALJ issued her final ID
and recommended determination (RD)
on remedy and bonding in one
document. The ID finds that Hytera’s
accused products infringe claims 1, 6,
17, and 21 of the ’869 patent; claims 1
and 11 of the ’701 patent; and claims 7–
8 of the ’991 patent. The ID also finds
that Hytera’s accused legacy products
literally infringe claims 9 and 13–15 of
the ’284 patent and that Hytera’s
accused redesigned products infringe
these claims under the doctrine of
equivalents. The ID also finds that
Hytera induced infringement of and
contributorily infringed all of the claims
of the asserted patents. As part of the
ID’s finding of indirect infringement, the
ID applied an adverse inference against
Hytera for certain of its witnesses’
invocation of their Fifth Amendment
right against self-incrimination. The ID
also finds that Motorola satisfies the
domestic industry requirement with
respect to the ’869, ’701, and ’991
patents, but that its domestic products
do not satisfy the technical prong of the
domestic industry requirement with
respect to the ’284 patent. Accordingly,
the ID finds a violation of section 337
with respect to the ’869, ’701, and ’991
patents. The RD recommended the
issuance of limited exclusion orders
directed against Hytera’s infringing
products and cease and desist orders
directed against Hytera.
On July 17, 2018, Motorola and
Hytera petitioned for review of the final
ID. Hytera’s petition for review included
a petition for review of Order No. 47. On
July 25, 2018, Motorola and Hytera each
filed a response in opposition to the
other party’s petition for review. On
August 6 and 7, 2018, respectively,
Hytera and Motorola filed statements on
the public interest. On August 10, 2018,
the Commission received statements on
the public interest from the general
public.
Having examined the record of this
investigation, including the ID, related
Orders including Order Nos. 38 and 47,
the parties’ petitions for review, and the
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Sfmt 4703
responses thereto, the Commission has
determined to review-in-part the final
ID and Order Nos. 38 and 47.
Specifically, the Commission has
determined to review (1) Order No. 38’s
finding that Hytera’s licensing defense
is precluded; (2) Order No. 47’s finding
that certain expert testimony from
Hytera at the evidentiary hearing is
stricken; (3) the ID’s finding that
Hytera’s accused redesigned products
infringe claims 9 and 13–15 of the ’284
patent under the doctrine of
equivalents; (4) the ID’s application of
an adverse inference against Hytera as
part of the finding of indirect
infringement; and (5) the ID’s finding
that insufficient record evidence exists
to make a conclusive determination as
to whether any redesigned products
infringe the ’701 patent and ID’s lack of
an express finding on this issue with
respect to the ’869 or ’991 patent. The
Commission has determined not to
review the remainder of the final ID.
The Commission has also extended the
target date for completion of the
investigation to November 16, 2018.
On review, with respect to violation,
the parties are requested to submit
briefing limited to the following issues:
(1) Are the redesigned products that
allegedly infringe the ’284 patent the
same as the redesigned products alleged
to infringe the ’701, ’869, and ’991
patents? If not, how do the products
differ?
(2) Please discuss which specific
redesigned products are sufficiently
fixed and final to be properly within the
scope of the investigation, and whether
each such product has been imported
into the United States. See, e.g., Certain
Multiple Mode Outdoor Grills and Parts
Thereof, Inv. No. 337–TA–895, Comm’n
Op. at 50–55 (Feb. 3, 2015).
(3) Discuss the extent to which Hytera
produced information regarding each
such redesign prior to the close of fact
discovery.
(4) As to each asserted patent, discuss
whether Motorola presented evidence at
the hearing to prove infringement of
each redesigned product.
In addressing these issues, the parties
are requested to make specific reference
to the evidentiary record and to cite
relevant authority.
In connection with the final
disposition of this investigation, the
Commission may (1) issue an order that
results 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 respective respondent being
required to cease and desist from
engaging in unfair acts in the
importation and sale of such articles.
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Federal Register / Vol. 83, No. 175 / Monday, September 10, 2018 / Notices
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 In the Matter of Certain
Devices for Connecting Computers via
Telephone Lines, Inv. No. 337–TA–360,
USITC Pub. No. 2843 (December 1994)
(Commission Opinion).
When 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.
When 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 section 337(j), 19 U.S.C. 1337(j) and
the 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. 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, and
such submissions should address the
recommended determination by the ALJ
on remedy and bonding. Complainant is
also requested to submit proposed
remedial orders for the Commission’s
consideration. Complainant is also
requested to: (1) State the dates that the
patents at issue expire and the HTSUS
numbers under which the accused
articles are imported; and (2) supply a
list of known importers of the accused
products. Also specifically, with respect
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17:54 Sep 07, 2018
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to the public interest, the Commission
requests briefing on the following
issues:
(1) Please comment on the availability
of similar products from suppliers other
than Hytera or Motorola (including
market share of these other sources) that
can perform ‘‘mission-critical’’ two-way
radio communication.
(2) With respect to (1), please
comment on whether such alternative
suppliers also provide the same features
that Hytera’s products provide (e.g.,
unique pseudo trunking, noise
cancellation, ‘‘man down’’ feature,
‘‘lone worker’’ feature) as well as
whether Motorola’s products provide
the same features as Hytera’s products.
Also please address the interoperability
of various suppliers’ products in twoway radio communication systems.
(3) Please comment on the extent to
which a distributor of Motorola two-way
radio communication products must
offer only Motorola products, or
whether such a distributor can also offer
two-way radio communication
equipment and products from other
suppliers.
(4) Please comment on whether any
potential exclusion order and/or cease
and desist order should include a
repair/service exception regarding
service to existing Hytera two-way radio
communications products that were
sold prior to the effective date of any
such order. If you advocate for such an
exception, please address the
appropriate parameters of such an
exception, and provide proposed
language.
The written submissions and
proposed remedial orders must be filed
no later than September 18, 2018. Reply
submissions must be filed no later than
September 25, 2018. No further
submissions on these issues will be
permitted unless otherwise ordered by
the Commission. In addressing the
issues on violation, the parties are
limited to 25 pages for the initial
submission and 15 pages for the reply
submission.
Persons filing written submissions
must file the original document
electronically on or before the deadlines
stated above and submit eight 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–1053’’) 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).
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45681
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 of 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 nonconfidential version of the document
must also be filed simultaneously with
any confidential filing. All information,
including confidential business
information and documents for which
confidential treatment is properly
sought, submitted to the Commission for
purposes of this Investigation may be
disclosed to and used: (i) By the
Commission, its employees and Offices,
and contract personnel (a) for
developing or maintaining the records
of this or a related proceeding, or (b) in
internal investigations, audits, reviews,
and evaluations relating to the
programs, personnel, and operations of
the Commission including under 5
U.S.C. Appendix 3; or (ii) by U.S.
government employees and contract
personnel,1 solely for cybersecurity
purposes. All non-confidential 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 part
210 of the Commission’s Rules of
Practice and Procedure, 19 CFR part
210.
By order of the Commission.
Issued: September 4, 2018.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2018–19499 Filed 9–7–18; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 337–TA–1131]
Certain Wireless Mesh Networking
Products and Related Components
Thereof; Institution of Investigation
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:
1 All contract personnel will sign appropriate
nondisclosure agreements.
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Agencies
[Federal Register Volume 83, Number 175 (Monday, September 10, 2018)]
[Notices]
[Pages 45679-45681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19499]
-----------------------------------------------------------------------
INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1053]
Certain Two-Way Radio Equipment and Systems, Related Software and
Components Thereof; Commission Determination To Review in Part an
Initial Determination Finding a Violation of Section 337 and Order Nos.
38 and 47; To Request Written Submissions on Remedy, Bonding, and the
Public Interest; and To Extend the Target Date
AGENCY: U.S. International Trade Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Notice is hereby given that the U.S. International Trade
Commission has determined to review-in-part a final initial
determination (``ID'') of the presiding administrative law judge
(``ALJ'') finding a violation of section 337 and the ALJ's Order Nos.
38 and 47. The Commission is requesting written submissions on remedy,
bonding, and the public interest including submissions in response to
certain questions directed to the public interest. The Commission has
also extended the target date for completion of the investigation to
November 16, 2018.
FOR FURTHER INFORMATION CONTACT: Clint Gerdine, Esq., Office of the
General Counsel, U.S. International Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202) 708-2310. 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 May 3, 2017, based on a complaint filed on behalf of Motorola
Solutions, Inc. (``Motorola'') of Chicago, Illinois. 82 FR 20635-36.
The complaint alleged violations of section 337 of the Tariff Act of
1930, as amended, 19 U.S.C.
[[Page 45680]]
1337, by reason of infringement of certain claims of the '284 patent
and the following U.S. Patent Nos.: 7,369,869 (``the '869 patent'');
7,729,701 (``the '701 patent''); 8,279,991 (``the '991 patent'');
9,099,972; 8,032,169; and 6,591,111. The Commission's notice of
investigation named Hytera Communications Corp. Ltd. of Shenzhen,
China; Hytera America, Inc. of Miramar, Florida; and Hytera
Communications America (West), Inc. of Irvine, California as
respondents (collectively, ``Hytera''). The Office of Unfair Import
Investigations is not participating in the investigation. Id.
On September 18, 2017, the Commission issued notice of its
determination not to review the ALJ's ID (Order No. 10) terminating the
investigation as to: (1) Claims 2, 5, 10, and 16 of the '284 patent;
(2) claims 2-3, 8, 12, 14-15, 20, 22-24, and 30 of the '169 patent; (3)
claims 5, 8, 11-14, 18, and 22 of the '869 patent; (4) claims 3, 5, 8-
10, 15, and 17-18 of the '701 patent; (5) claim 3 of the '972 patent;
and (6) claims 3-5, 8-10, and 14 of the '111 patent. On October 17,
2017, the Commission issued notice of its determination not to review
the ALJ's ID (Order No. 16) terminating the investigation as to claim
10 of the '869 patent. On November 14, 2017, the Commission issued
notice of its determination not to review the ALJ's ID (Order No. 19)
terminating the investigation as to: (1) Claims 1, 4, 12, and 18 of the
'284 patent''); (2) claims 4, 13, 16, and 25 of the '169 patent; (3)
claims 3-4, 9, 19-20, and 23-24 of the '869 patent; (4) claims 2, 4,
and 14 of the '701 patent; (5) claims 4 and 8 of the '972 patent; (6)
claims 6 and 12 of the '111 patent; and (7) claim 19 of the '991 patent
for the purposes of satisfying the technical prong of the domestic
industry requirement.
On December 4, 2017, the Commission issued notice of its
determination not to review the ALJ's ID (Order No. 21) terminating the
investigation as to claims 5 and 18 of the '169 patent. On January 3,
2018, the Commission issued notice of its determination not to review
the ALJ's ID (Order No. 23) terminating the investigation as to: (1)
The '111 and '169 patents; (2) claims 2 and 7 of the '869 patent; and
(3) claims 7-8 and 19 of the '284 patent. On the same date, the
Commission issued notice of its determination not to review the ALJ's
ID (Order No. 24) terminating the investigation as to claim 1 of the
'701 patent. On February 6, 2018, the Commission issued notice of its
determination not to review the ALJ's ID (Order No. 31) terminating the
investigation as to the following patent claims: (1) Claim 13 of the
'701 patent; (2) claim 6 of the '284 patent; and (3) claim 1 of the
'972 patent. On February 26, 2018, the Commission issued notice of its
determination not to review the ALJ's ID (Order No. 40) terminating the
investigation as to the '972 patent.
On January 26, 2018, the ALJ issued Order No. 38 which granted
Motorola's motion in limine to preclude Hytera's licensing defense. On
May 18, 2018, the ALJ issued Order No. 47 which granted-in-part
Motorola's motion to strike certain portions of Hytera's expert
testimony at the evidentiary hearing. On July 3, 2018, the ALJ issued
her final ID and recommended determination (RD) on remedy and bonding
in one document. The ID finds that Hytera's accused products infringe
claims 1, 6, 17, and 21 of the '869 patent; claims 1 and 11 of the '701
patent; and claims 7-8 of the '991 patent. The ID also finds that
Hytera's accused legacy products literally infringe claims 9 and 13-15
of the '284 patent and that Hytera's accused redesigned products
infringe these claims under the doctrine of equivalents. The ID also
finds that Hytera induced infringement of and contributorily infringed
all of the claims of the asserted patents. As part of the ID's finding
of indirect infringement, the ID applied an adverse inference against
Hytera for certain of its witnesses' invocation of their Fifth
Amendment right against self-incrimination. The ID also finds that
Motorola satisfies the domestic industry requirement with respect to
the '869, '701, and '991 patents, but that its domestic products do not
satisfy the technical prong of the domestic industry requirement with
respect to the '284 patent. Accordingly, the ID finds a violation of
section 337 with respect to the '869, '701, and '991 patents. The RD
recommended the issuance of limited exclusion orders directed against
Hytera's infringing products and cease and desist orders directed
against Hytera.
On July 17, 2018, Motorola and Hytera petitioned for review of the
final ID. Hytera's petition for review included a petition for review
of Order No. 47. On July 25, 2018, Motorola and Hytera each filed a
response in opposition to the other party's petition for review. On
August 6 and 7, 2018, respectively, Hytera and Motorola filed
statements on the public interest. On August 10, 2018, the Commission
received statements on the public interest from the general public.
Having examined the record of this investigation, including the ID,
related Orders including Order Nos. 38 and 47, the parties' petitions
for review, and the responses thereto, the Commission has determined to
review-in-part the final ID and Order Nos. 38 and 47. Specifically, the
Commission has determined to review (1) Order No. 38's finding that
Hytera's licensing defense is precluded; (2) Order No. 47's finding
that certain expert testimony from Hytera at the evidentiary hearing is
stricken; (3) the ID's finding that Hytera's accused redesigned
products infringe claims 9 and 13-15 of the '284 patent under the
doctrine of equivalents; (4) the ID's application of an adverse
inference against Hytera as part of the finding of indirect
infringement; and (5) the ID's finding that insufficient record
evidence exists to make a conclusive determination as to whether any
redesigned products infringe the '701 patent and ID's lack of an
express finding on this issue with respect to the '869 or '991 patent.
The Commission has determined not to review the remainder of the final
ID. The Commission has also extended the target date for completion of
the investigation to November 16, 2018.
On review, with respect to violation, the parties are requested to
submit briefing limited to the following issues:
(1) Are the redesigned products that allegedly infringe the '284
patent the same as the redesigned products alleged to infringe the
'701, '869, and '991 patents? If not, how do the products differ?
(2) Please discuss which specific redesigned products are
sufficiently fixed and final to be properly within the scope of the
investigation, and whether each such product has been imported into the
United States. See, e.g., Certain Multiple Mode Outdoor Grills and
Parts Thereof, Inv. No. 337-TA-895, Comm'n Op. at 50-55 (Feb. 3, 2015).
(3) Discuss the extent to which Hytera produced information
regarding each such redesign prior to the close of fact discovery.
(4) As to each asserted patent, discuss whether Motorola presented
evidence at the hearing to prove infringement of each redesigned
product.
In addressing these issues, the parties are requested to make
specific reference to the evidentiary record and to cite relevant
authority.
In connection with the final disposition of this investigation, the
Commission may (1) issue an order that results 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 respective
respondent being required to cease and desist from engaging in unfair
acts in the importation and sale of such articles.
[[Page 45681]]
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 In the Matter of Certain Devices
for Connecting Computers via Telephone Lines, Inv. No. 337-TA-360,
USITC Pub. No. 2843 (December 1994) (Commission Opinion).
When 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.
When 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 section 337(j), 19 U.S.C.
1337(j) and the 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. 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, and such submissions should address the recommended
determination by the ALJ on remedy and bonding. Complainant is also
requested to submit proposed remedial orders for the Commission's
consideration. Complainant is also requested to: (1) State the dates
that the patents at issue expire and the HTSUS numbers under which the
accused articles are imported; and (2) supply a list of known importers
of the accused products. Also specifically, with respect to the public
interest, the Commission requests briefing on the following issues:
(1) Please comment on the availability of similar products from
suppliers other than Hytera or Motorola (including market share of
these other sources) that can perform ``mission-critical'' two-way
radio communication.
(2) With respect to (1), please comment on whether such alternative
suppliers also provide the same features that Hytera's products provide
(e.g., unique pseudo trunking, noise cancellation, ``man down''
feature, ``lone worker'' feature) as well as whether Motorola's
products provide the same features as Hytera's products. Also please
address the interoperability of various suppliers' products in two-way
radio communication systems.
(3) Please comment on the extent to which a distributor of Motorola
two-way radio communication products must offer only Motorola products,
or whether such a distributor can also offer two-way radio
communication equipment and products from other suppliers.
(4) Please comment on whether any potential exclusion order and/or
cease and desist order should include a repair/service exception
regarding service to existing Hytera two-way radio communications
products that were sold prior to the effective date of any such order.
If you advocate for such an exception, please address the appropriate
parameters of such an exception, and provide proposed language.
The written submissions and proposed remedial orders must be filed
no later than September 18, 2018. Reply submissions must be filed no
later than September 25, 2018. No further submissions on these issues
will be permitted unless otherwise ordered by the Commission. In
addressing the issues on violation, the parties are limited to 25 pages
for the initial submission and 15 pages for the reply submission.
Persons filing written submissions must file the original document
electronically on or before the deadlines stated above and submit eight
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-1053'') 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 of 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 information, including
confidential business information and documents for which confidential
treatment is properly sought, submitted to the Commission for purposes
of this Investigation may be disclosed to and used: (i) By the
Commission, its employees and Offices, and contract personnel (a) for
developing or maintaining the records of this or a related proceeding,
or (b) in internal investigations, audits, reviews, and evaluations
relating to the programs, personnel, and operations of the Commission
including under 5 U.S.C. Appendix 3; or (ii) by U.S. government
employees and contract personnel,\1\ solely for cybersecurity purposes.
All non-confidential written submissions will be available for public
inspection at the Office of the Secretary.
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\1\ All contract personnel will sign appropriate nondisclosure
agreements.
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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 part 210 of the Commission's Rules of Practice and Procedure, 19 CFR
part 210.
By order of the Commission.
Issued: September 4, 2018.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2018-19499 Filed 9-7-18; 8:45 am]
BILLING CODE 7020-02-P