Certain Microfluidic Systems and Components Thereof and Products Containing Same; Commission's Final Determination Finding a Violation of Section 337; Issuance of a Limited Exclusion Order and Cease and Desist Order; and Termination of the Investigation, 9478-9479 [2020-03192]

Agencies

• INTERNATIONAL TRADE COMMISSION

[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Notices]
[Pages 9478-9479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03192]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1100]


Certain Microfluidic Systems and Components Thereof and Products 
Containing Same; Commission's Final Determination Finding a Violation 
of Section 337; Issuance of a Limited Exclusion Order and Cease and 
Desist Order; and Termination of the Investigation

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 that there is a violation in the above-
captioned investigation. The Commission has

[[Page 9479]]

further determined to issue a limited exclusion order and cease and 
desist order and to set a bond rate on the entered value of covered 
products imported during the period of Presidential review.

FOR FURTHER INFORMATION CONTACT: Benjamin S. Richards, Esq., Office of 
the General Counsel, U.S. International Trade Commission, 500 E Street 
SW, Washington, DC 20436, telephone (202) 708-5453. 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: On February 21, 2018, the Commission 
instituted this investigation based on a complaint filed by 10X 
Genomics, Inc. of Pleasanton, CA. 83 FR 7491 (Feb. 21, 2018). The 
complaint alleges violations of section 337 of the Tariff Act of 1930, 
as amended, 19 U.S.C. 1337, in the importation into the United States, 
the sale for importation, or the sale within the United States after 
importation of certain microfluidic systems and components thereof and 
products containing same by reason of infringement of one or more 
claims of U.S. Patent Nos. 9,644,204 (``the '204 patent''); 9,689,024 
(``the '024 patent''); 9,695,468 (``the '468 patent''); and 9,856,530 
(``the '530 patent''). Id. The Commission's notice of investigation 
named as the sole respondent Bio-Rad Laboratories, Inc. of Hercules, 
CA. Id. The Office of Unfair Import Investigations (``OUII'') is 
participating in this investigation. Id.
    On July 12, 2019, the administrative law judge (``ALJ'') issued the 
final initial determination (``ID''). The ID found a violation of 
section 337 by virtue of Bio-Rad's indirect infringement of the '024, 
the '468, and the '530 patents. The ID found that 10X had not 
established a violation with respect to the '204 patent. The ID also 
found that Bio-Rad failed to establish invalidity of any of the 
asserted claims of any patent. The ID further found that the domestic 
industry requirement was satisfied for each of the asserted patents. 
Finally, the ID found that Bio-Rad had not carried its burden with 
respect to various additional affirmative defenses, including improper 
inventorship and ownership.
    On July 25, 2019, the ALJ issued her recommended determination on 
remedy and bonding. The ALJ recommended, upon a finding of violation, 
that the Commission issue a limited exclusion order, issue a cease and 
desist order, and impose a bond in the amount of twenty-five percent of 
the entered value of any covered products imported during the period of 
Presidential review.
    On July 29, 2019, 10X, Bio-Rad, and OUII submitted petitions 
seeking review of the ID. On August 6, 2019, 10X, Bio-Rad, and OUII 
submitted responses to the others' petitions. On August 26, 2019, 10X 
and Bio-Rad submitted comments on the public interest pursuant to 
Commission Rule 210.50(a)(4).
    On October 17, 2019, the Commission issued a notice indicating its 
determination to review the ID with respect to (1) all findings related 
to a violation based on the '024 patent; (2) all findings related to a 
violation based on the '468 patent; (3) noninfringement of the '204 
patent; (4) all findings related to a violation based on the '530 
patent; (5) Bio-Rad's inventorship and ownership defenses; and (6) a 
typographical error on page 91. The same notice also requested briefing 
from the parties on certain of those issues, and on remedy, bonding, 
and the public interest. The notice also included an extension of the 
target date to December 19, 2019.
    The parties filed their initial responses to the Commission's 
questions on October 31, 2019, and their replies on November 7, 2019.
    Upon review of the parties' submissions, the ID, RD, and evidence 
of record, the Commission has determined that Bio-Rad violated section 
337 by reason of infringement of asserted claims 1, 5, 17, 19, and 22 
of the '024 patent, claims 1, 6, 7, 9, and 21 of the '468 patent, and 
claims 1, 4, 11, 14, 19, 26, and 28 of the '530 patent. The Commission 
found no violation with respect to the '240 patent. The Commission has 
further determined to issue a limited exclusion order prohibiting 
further importation of Bio-Rad's infringing microfluidic systems and a 
cease and desist order against Bio-Rad. The Commission will set a bond 
of twenty-five percent of entered value on Bio-Rad's infringing 
microfluidic systems imported during the period of Presidential review.
    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 
210).

    By order of the Commission.

    Issued: February 12, 2020.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2020-03192 Filed 2-18-20; 8:45 am]
 BILLING CODE 7020-02-P