Certain Power Converter Modules and Computing Systems Containing the Same; Notice of a Commission Determination To Review in Part a Final Initial Determination Finding a Violation of Section 337; Request for Written Submissions on the Issues Under Review and on Remedy, the Public Interest, and Bonding, 99278-99280 [2024-28935]
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99278
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
opposition to the motion. OUII filed its
reply on October 1, 2024.
On October 18, 2024, the ALJ issued
Order No. 19 granting-in-part OUII’s
motion for summary determination and
finding no violation. On October 25,
2024, Complainant filed a petition for
review of the ID in Order No. 19. On
November 1, 2024, OUII filed a response
to Complainant’s petition for review of
the ID in Order No. 19.
On October 18, 2024, the ALJ also
issued Order No. 20, asking the parties
to brief whether the investigation
should be terminated in its entirety and
whether all remaining motions are moot
and/or withdrawn in light of Order No.
19. On October 28, 2024, Complainant
responded to Order No. 20, opposing
terminating the investigation. On
October 28, 2024, OUII responded to
Order No. 20 supporting termination of
the investigation and Xenogenic
responded requesting the ALJ to grant
its motion to intervene. On November 4,
2024, Complainant filed a reply
regarding Order No. 20, opposing
terminating the investigation.
On November 8, 2024, the ALJ issued
Order No. 23 granting Xenogenic’s
motion to intervene and terminating the
investigation. On November 9, 2024,
Complainant filed a petition to review
the ID in Order No. 23. On November
18, 2024, OUII filed a response in
opposition to Complainant’ petition to
review of Order No. 23.
Having considered the record in this
investigation, including the complaint,
the filings before the ALJ and the
Commission, the Commission has
determined to review Order No. 19. On
review, the Commission affirms Order
No. 19 finding no infringement of the
asserted patents with the following
supplementation: (1) on page 18 of the
ID, the Commission supplements the
citation to 19 CFR 210.18(a)–(b) to also
include 19 CFR 210.18(c); and (2) on
page 26 of the ID, the Commission adds
a citation to Exhibit 14 of OUII’s motion
for summary determination, which is
RFC 7950 entitled ‘‘The YANG 1.1 Data
Modeling Language’’ (in addition to
already cited Exhibits 13, 15, and 16
from OUII’s motion for summary
determination).
The Commission has further
determined to review and vacate Order
No. 23. Order No. 19 finds that there is
no infringement of the Asserted Patents
and that no violation of section 337 has
occurred. Affirmance of Order No. 19
would result in termination of the
investigation, and thereby, the
Commission finds that as of the time of
issuance of Order No. 23 the
investigation was already pending
before the Commission. However, the
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Commission has determined to grant
third party Xenogenic’s motion to
intervene for the limited purpose of
addressing ownership of the Asserted
Patents. Regardless of ownership, the
Commission’s finding of no
infringement results in a finding of no
violation and the investigation is
terminated.
The Commission vote for this
determination took place on December
4, 2024.
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: December 4, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024–28925 Filed 12–9–24; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 337–TA–1370]
Certain Power Converter Modules and
Computing Systems Containing the
Same; Notice of a Commission
Determination To Review in Part a
Final Initial Determination Finding a
Violation of Section 337; Request for
Written Submissions on the Issues
Under Review and on Remedy, the
Public Interest, and Bonding
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:
Notice is hereby given that
the U.S. International Trade
Commission has determined to review
in part a final initial determination
(‘‘final ID’’) issued by the presiding
administrative law judge (‘‘ALJ’’) on
September 24, 2024, finding a violation
of section 337 in the above referenced
investigation. The Commission requests
written submissions from the parties on
certain issues under review, as
indicated in this notice, and
submissions from the parties, interested
government agencies, and other
interested persons on the issues of
remedy, the public interest, and
bonding, under the schedule set forth
below.
FOR FURTHER INFORMATION CONTACT:
Joelle Justus, Esq., Office of the General
Counsel, U.S. International Trade
Commission, 500 E Street SW,
Washington, DC 20436, telephone (202)
SUMMARY:
PO 00000
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205–2593. Copies of non-confidential
documents filed in connection with this
investigation may be viewed on the
Commission’s electronic docket (EDIS)
at https://edis.usitc.gov. For help
accessing EDIS, please email
EDIS3Help@usitc.gov. General
information concerning the Commission
may also be obtained by accessing its
internet server at https://www.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 August
17, 2023, the Commission instituted this
investigation under section 337 of the
Tariff Act of 1930, as amended, 19
U.S.C. 1337 (‘‘section 337’’), based on a
complaint filed by Vicor Corporation
(‘‘Complainant’’ or ‘‘Vicor’’) of Andover,
Massachusetts. See 88 FR 56050 through
56051 (Aug. 17, 2023). The complaint,
as supplemented, alleges a violation of
section 337 based upon the importation
into the United States, the sale for
importation, and the sale within the
United States after importation of
certain power converter modules and
computing systems containing the same
by reason of the infringement of certain
claims of U.S. Patent Nos. 9,166,481;
9,516,761; and 10,199,950. See id. The
notice of investigation names the
following respondents: Delta
Electronics, Inc. of Taipei, Taiwan;
Delta Electronics (Americas) Ltd. of
Fremont, California; Delta Electronics
(USA) Inc. of Plano, Texas; Cyntec Co.,
Ltd. of Hsinchu, Taiwan; Quanta
Computer Inc. and Quanta Cloud
Technology Inc., both of Taoyuan City,
Taiwan; Quanta Cloud Technology USA
LLC of San Jose, California; Quanta
Computer USA Inc. of Fremont,
California; Hon Hai Precision Industry
Co. Ltd. (d/b/a, Foxconn Technology
Group) of Taipei City, Taiwan; Foxconn
Industrial internet Co. Ltd. of Shenzhen,
China; FII USA Inc. (a/k/a Foxconn
Industrial, internet USA Inc.) of
Milwaukee, Wisconsin; Ingrasys
Technology Inc. of Taoyuan City,
Taiwan; and Ingrasys Technology USA
Inc. of Fremont, California (collectively,
‘‘Respondents’’). See id. The Office of
Unfair Import Investigations (‘‘OUII’’) is
also a party to the investigation. See id.
On January 25, 2024, the Commission
partially terminated the investigation as
to respondents Delta Electronics (USA)
Inc., Quanta Cloud Technology Inc., and
Quanta Cloud Technology USA LLC
based on withdrawal of the complaint as
to those respondents. See Order No. 16
(Dec. 22, 2023), unreviewed by Comm’n
Notice (Jan. 25, 2024).
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On January 26, 2024, the Commission
amended the complaint and notice of
investigation to add DET Logistics
(USA) Corporation of Fremont,
California as a respondent. See Order
No. 18 (Jan. 2, 2024), unreviewed by
Comm’n Notice (Jan. 26, 2024).
On March 22, 2024, the ALJ granted
in part Respondents’ motion for
summary determination, specifically as
to no infringement of any patent under
the doctrine of equivalents. See Order
No. 37. The Commission determined not
to review the partial grant of summary
determination. See Comm’n Notice
(Apr. 23, 2024).
On September 27, 2024, the ALJ
issued the final ID finding that a
violation of section 337 has occurred.
The Final ID finds, inter alia: (1) as to
the ’481 patent, the accused Cyntec
products infringe asserted claim 1 but
that the accused Delta products and
certain asserted redesign products do
not infringe claim 1, asserted claim 1 is
not invalid, and certain asserted
domestic industry products practice
asserted claim 1; (2) as to the ’761
patent, the accused Delta products
infringe asserted claims 1–7, claims 1–
3 and 7 are invalid as anticipated,
claims 4–6 are not invalid for
obviousness or indefiniteness, and the
asserted domestic industry products
practice claims 1–7; (3) as to the ’950
patent, the accused Delta and Cyntec
products do not infringe asserted claims
9, 13, 14, and 33–38, the asserted claims
are not invalid for obviousness, and the
domestic industry products do not
practice any asserted claim; (4)
Respondents do not have a license to
practice the asserted patents; and (5)
Vicor has satisfied the domestic
industry requirement of section 337
with respect to each of the asserted
patents.
The ALJ also issued a Recommended
Determination on remedy and bonding
(‘‘RD’’). The RD recommends that, if the
Commission finds a violation, it should
issue a limited exclusion order. The RD
also recommends the issuance of cease
and desist orders as to all Respondents.
The RD further recommended that the
Commission set no bond as to Cyntec’s
products and various bond amounts as
to the other infringing products during
the period of Presidential review.
On October 29, 2024, Complainant
and respondent FII USA submitted
public interest comments pursuant to
Commission Rule 210.50(a)(4) (19 CFR
210.50(a)(4)). No submissions were filed
in response to the Commission’s
Federal Register notice seeking
submissions on the public interest. See
89 FR 80604 through 80605 (Oct. 3,
2024).
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On October 11, 2024, Vicor filed a
petition for review of the Final ID’s
findings concerning: (1) as to the ’481
patent, no infringement by the Delta
accused products, and certain aspects of
the Final ID’s validity analysis; (2) as to
the ’761 patent, that certain claims are
invalid as anticipated and certain
subsidiary aspect of the Final ID’s
remaining validity analysis; (3) as to the
’950 patent, no infringement, no
technical domestic industry, and certain
aspects of the Final ID’s economic prong
analysis; and (4) as to all patents, no
copying (secondary indicia of nonobviousness). Also on October 11, 2024,
Respondents filed a petition for review
of the Final ID’s findings concerning: (1)
as to the ’481 patent, that claim 1 is not
invalid as obvious; (2) as to the ’761
patent, that the accused products
infringe the asserted claims and claims
4–6 are not invalid as obvious; (3) as to
the ’950 patent, that the asserted claims
are not invalid as obvious; (4) certain of
the ALJ’s pre-hearing orders; and (5)
that Vicor has satisfied the economic
prong as to each Asserted Patent. On
October 21, 2024, OUII filed a combined
response to the petitions. On October
22, 2024, Vicor and Respondents each
filed responses to the other party’s
petition.
Having examined the record in this
investigation, including the final ID, the
petitions for review, and the responses
thereto, the Commission has determined
to review the final ID in part.
Specifically, the Commission has
determined to review the final ID’s
findings regarding: (1) as to the ’481
patent, whether the accused Delta
products 1 infringe claim 1 and whether
Vicor has demonstrated commercial
success to overcome a finding of prima
facie obviousness; (2) as to the ’761
patent, whether the accused Delta
products infringe asserted claims 1–7
and whether the asserted claims are
valid; (3) as to the ’950 patent, whether
the accused Delta and Cyntec products
and redesigned products infringe
asserted claims 9, 13, 14, and 33–36 and
whether Vicor has satisfied the
technical prong of the domestic industry
requirement; (4) whether Vicor has
satisfied the economic prong of the
domestic industry requirement as to all
of the asserted patents; and (5) the
license defense asserted by respondents
FII USA, Inc., Ingrasys Technology, Inc.,
and Ingrasys Technology USA Inc.
(collectively, ‘‘Foxconn’’). The
Commission has determined not to
1 Unless otherwise indicated ‘‘accused products’’
does not include redesigned products. See Final ID
at 9–10.
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99279
review the remainder of the Final ID’s
findings.
In connection with its review, the
Commission requests responses to the
following questions. The parties are
requested to brief their positions with
reference to the applicable law and the
existing evidentiary record.
1. With respect to the ’761 patent:
a. What is the proper claim
construction of the term ‘‘magnetically
coupled’’? Applying the proper
construction, do the accused products
infringe claim 1?
b. Do the terms ‘‘dissipate power’’ and
‘‘heat generation’’ as recited in claim 1
have distinct meanings? Do the accused
products practice both limitations?
c. With reference to Fox Factory, Inc.
v. SRAM, LLC, 944 F.3d 1366 (Fed. Cir.
2019), are the domestic industry
products ‘‘coextensive’’ with the
claimed invention for purposes of
commercial success?
2. With respect to the ’950 patent:
a. What is the proper claim
construction of the terms ‘‘input circuit’’
and ‘‘output circuit’’ as recited in the
asserted claims? Applying the proper
construction, do the accused and
redesigned products infringe the
asserted claims?
b. How, if at all, is the phase of
operation relevant to the determination
of whether the accused and redesigned
products satisfy the limitation that ‘‘an
input voltage VIN is applied to the input
circuit’’?
3. With respect to the economic prong
of the domestic industry requirement:
Does the record permit allocation of
the overall payments made by
Complainant to foreign IC Vendors, see
Final ID at 198, to the DI products for
each of the Asserted Patents? If so,
please provide such allocations.
4. With respect to Foxconn’s license
defense:
a. With citation to legal authority
(binding or persuasive) interpreting
Massachusetts General Law (‘‘MGL’’)
106 section 2–207, Uniform Commercial
Code section 2–207, or any other
relevant provision, is there a binding
agreement between Complainant and
the Foxconn respondents that includes
the license provision set forth in
General Term 10 of the Foxconn
purchase orders (see RX–1630C.0002;
RX–1635C.0002; RX–16359.0002)? If
such an agreement exists, does MGL 106
section 2–207(2) or 2–207(3) govern
what terms are part of the agreement?
b. In addition to any issues the parties
deem relevant, the parties should
address whether the purported
acceptance of the alleged offers was
‘‘sent within a reasonable time’’ (MGL
106 section 2–207(1)) in light of Note 3
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of the Foxconn purchase orders (see
RX–1630C.0001; RX–1635C.0001; RX–
1639C.0001).
c. If there is a binding agreement
between Complainant and the Foxconn
respondents including the license
provision, to which Respondents,
Asserted Patents, and accused products
does that license apply?
The parties are invited to brief only
the discrete issues requested above. The
parties are not to brief other issues on
review, which are adequately presented
in the parties’ existing filings.
In connection with the final
disposition of this investigation, the
statute authorizes issuance of, inter alia,
(1) an exclusion order that could result
in the exclusion of the subject articles
from entry into the United States; and/
or (2) a cease and desist order 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, Comm’n Op. at 7–10
(Dec. 1994).
The statute requires the Commission
to consider the effects of that remedy
upon the public interest. The public
interest factors the Commission will
consider include the effect that an
exclusion order and cease and desist
order 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,
disapprove, or take no action on the
Commission’s determination. See
Presidential Memorandum of July 21,
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17:28 Dec 09, 2024
Jkt 265001
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: 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.
In its initial submission, Complainant
is also requested to identify the remedy
sought and to submit proposed remedial
orders for the Commission’s
consideration. Complainant is further
requested to provide the HTSUS
subheadings under which the accused
products are imported, and to supply
the identification information for all
known importers of the products at
issue in this investigation. The initial
written submissions and proposed
remedial orders must be filed no later
than close of business on December 18,
2024. Reply submissions must be filed
no later than the close of business on
December 27, 2024. No further
submissions on these issues will be
permitted unless otherwise ordered by
the Commission. Opening submissions
are limited to 50 pages. Reply
submissions are limited to 30 pages. 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. The Commission’s paper
filing requirements in 19 CFR 210.4(f)
are currently waived. 85 FR 15798 (Mar.
19, 2020). Submissions should refer to
the investigation number (Inv. No. 337–
TA–1370) in a prominent place on the
cover page and/or the first page. (See
Handbook for Electronic Filing
Procedures, https://www.usitc.gov/
documents/handbook_on_filing_
procedures.pdf). Persons with questions
regarding filing should contact the
Secretary, (202) 205–2000.
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Any person desiring to submit a
document to the Commission in
confidence must request confidential
treatment by marking each document
with a header indicating that the
document contains confidential
information. This marking will be
deemed to satisfy the request procedure
set forth in Rules 201.6(b) and
210.5(e)(2) (19 CFR 201.6(b) &
210.5(e)(2)). Documents for which
confidential treatment by the
Commission is properly sought will be
treated accordingly. Any non-party
wishing to submit comments containing
confidential information must serve
those comments on the parties to the
investigation pursuant to the applicable
Administrative Protective Order. A
redacted non-confidential version of the
document must also be filed with the
Commission and served on any parties
to the investigation within two business
days of 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, solely for cybersecurity
purposes. All contract personnel will
sign appropriate nondisclosure
agreements. All nonconfidential written
submissions will be available for public
inspection on EDIS.
The Commission vote for this
determination took place on December
4, 2024.
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: December 4, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024–28935 Filed 12–9–24; 8:45 am]
BILLING CODE 7020–02–P
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Agencies
[Federal Register Volume 89, Number 237 (Tuesday, December 10, 2024)]
[Notices]
[Pages 99278-99280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28935]
-----------------------------------------------------------------------
INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1370]
Certain Power Converter Modules and Computing Systems Containing
the Same; Notice of a Commission Determination To Review in Part a
Final Initial Determination Finding a Violation of Section 337; Request
for Written Submissions on the Issues Under Review and on Remedy, the
Public Interest, and Bonding
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 (``final ID'') issued by the presiding administrative law
judge (``ALJ'') on September 24, 2024, finding a violation of section
337 in the above referenced investigation. The Commission requests
written submissions from the parties on certain issues under review, as
indicated in this notice, and submissions from the parties, interested
government agencies, and other interested persons on the issues of
remedy, the public interest, and bonding, under the schedule set forth
below.
FOR FURTHER INFORMATION CONTACT: Joelle Justus, Esq., Office of the
General Counsel, U.S. International Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202) 205-2593. Copies of non-
confidential documents filed in connection with this investigation may
be viewed on the Commission's electronic docket (EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email
[email protected]. General information concerning the Commission may
also be obtained by accessing its internet server at https://www.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 August 17, 2023, the Commission
instituted this investigation under section 337 of the Tariff Act of
1930, as amended, 19 U.S.C. 1337 (``section 337''), based on a
complaint filed by Vicor Corporation (``Complainant'' or ``Vicor'') of
Andover, Massachusetts. See 88 FR 56050 through 56051 (Aug. 17, 2023).
The complaint, as supplemented, alleges a violation of section 337
based upon the importation into the United States, the sale for
importation, and the sale within the United States after importation of
certain power converter modules and computing systems containing the
same by reason of the infringement of certain claims of U.S. Patent
Nos. 9,166,481; 9,516,761; and 10,199,950. See id. The notice of
investigation names the following respondents: Delta Electronics, Inc.
of Taipei, Taiwan; Delta Electronics (Americas) Ltd. of Fremont,
California; Delta Electronics (USA) Inc. of Plano, Texas; Cyntec Co.,
Ltd. of Hsinchu, Taiwan; Quanta Computer Inc. and Quanta Cloud
Technology Inc., both of Taoyuan City, Taiwan; Quanta Cloud Technology
USA LLC of San Jose, California; Quanta Computer USA Inc. of Fremont,
California; Hon Hai Precision Industry Co. Ltd. (d/b/a, Foxconn
Technology Group) of Taipei City, Taiwan; Foxconn Industrial internet
Co. Ltd. of Shenzhen, China; FII USA Inc. (a/k/a Foxconn Industrial,
internet USA Inc.) of Milwaukee, Wisconsin; Ingrasys Technology Inc. of
Taoyuan City, Taiwan; and Ingrasys Technology USA Inc. of Fremont,
California (collectively, ``Respondents''). See id. The Office of
Unfair Import Investigations (``OUII'') is also a party to the
investigation. See id.
On January 25, 2024, the Commission partially terminated the
investigation as to respondents Delta Electronics (USA) Inc., Quanta
Cloud Technology Inc., and Quanta Cloud Technology USA LLC based on
withdrawal of the complaint as to those respondents. See Order No. 16
(Dec. 22, 2023), unreviewed by Comm'n Notice (Jan. 25, 2024).
[[Page 99279]]
On January 26, 2024, the Commission amended the complaint and
notice of investigation to add DET Logistics (USA) Corporation of
Fremont, California as a respondent. See Order No. 18 (Jan. 2, 2024),
unreviewed by Comm'n Notice (Jan. 26, 2024).
On March 22, 2024, the ALJ granted in part Respondents' motion for
summary determination, specifically as to no infringement of any patent
under the doctrine of equivalents. See Order No. 37. The Commission
determined not to review the partial grant of summary determination.
See Comm'n Notice (Apr. 23, 2024).
On September 27, 2024, the ALJ issued the final ID finding that a
violation of section 337 has occurred. The Final ID finds, inter alia:
(1) as to the '481 patent, the accused Cyntec products infringe
asserted claim 1 but that the accused Delta products and certain
asserted redesign products do not infringe claim 1, asserted claim 1 is
not invalid, and certain asserted domestic industry products practice
asserted claim 1; (2) as to the '761 patent, the accused Delta products
infringe asserted claims 1-7, claims 1-3 and 7 are invalid as
anticipated, claims 4-6 are not invalid for obviousness or
indefiniteness, and the asserted domestic industry products practice
claims 1-7; (3) as to the '950 patent, the accused Delta and Cyntec
products do not infringe asserted claims 9, 13, 14, and 33-38, the
asserted claims are not invalid for obviousness, and the domestic
industry products do not practice any asserted claim; (4) Respondents
do not have a license to practice the asserted patents; and (5) Vicor
has satisfied the domestic industry requirement of section 337 with
respect to each of the asserted patents.
The ALJ also issued a Recommended Determination on remedy and
bonding (``RD''). The RD recommends that, if the Commission finds a
violation, it should issue a limited exclusion order. The RD also
recommends the issuance of cease and desist orders as to all
Respondents. The RD further recommended that the Commission set no bond
as to Cyntec's products and various bond amounts as to the other
infringing products during the period of Presidential review.
On October 29, 2024, Complainant and respondent FII USA submitted
public interest comments pursuant to Commission Rule 210.50(a)(4) (19
CFR 210.50(a)(4)). No submissions were filed in response to the
Commission's Federal Register notice seeking submissions on the public
interest. See 89 FR 80604 through 80605 (Oct. 3, 2024).
On October 11, 2024, Vicor filed a petition for review of the Final
ID's findings concerning: (1) as to the '481 patent, no infringement by
the Delta accused products, and certain aspects of the Final ID's
validity analysis; (2) as to the '761 patent, that certain claims are
invalid as anticipated and certain subsidiary aspect of the Final ID's
remaining validity analysis; (3) as to the '950 patent, no
infringement, no technical domestic industry, and certain aspects of
the Final ID's economic prong analysis; and (4) as to all patents, no
copying (secondary indicia of non-obviousness). Also on October 11,
2024, Respondents filed a petition for review of the Final ID's
findings concerning: (1) as to the '481 patent, that claim 1 is not
invalid as obvious; (2) as to the '761 patent, that the accused
products infringe the asserted claims and claims 4-6 are not invalid as
obvious; (3) as to the '950 patent, that the asserted claims are not
invalid as obvious; (4) certain of the ALJ's pre-hearing orders; and
(5) that Vicor has satisfied the economic prong as to each Asserted
Patent. On October 21, 2024, OUII filed a combined response to the
petitions. On October 22, 2024, Vicor and Respondents each filed
responses to the other party's petition.
Having examined the record in this investigation, including the
final ID, the petitions for review, and the responses thereto, the
Commission has determined to review the final ID in part. Specifically,
the Commission has determined to review the final ID's findings
regarding: (1) as to the '481 patent, whether the accused Delta
products \1\ infringe claim 1 and whether Vicor has demonstrated
commercial success to overcome a finding of prima facie obviousness;
(2) as to the '761 patent, whether the accused Delta products infringe
asserted claims 1-7 and whether the asserted claims are valid; (3) as
to the '950 patent, whether the accused Delta and Cyntec products and
redesigned products infringe asserted claims 9, 13, 14, and 33-36 and
whether Vicor has satisfied the technical prong of the domestic
industry requirement; (4) whether Vicor has satisfied the economic
prong of the domestic industry requirement as to all of the asserted
patents; and (5) the license defense asserted by respondents FII USA,
Inc., Ingrasys Technology, Inc., and Ingrasys Technology USA Inc.
(collectively, ``Foxconn''). The Commission has determined not to
review the remainder of the Final ID's findings.
---------------------------------------------------------------------------
\1\ Unless otherwise indicated ``accused products'' does not
include redesigned products. See Final ID at 9-10.
---------------------------------------------------------------------------
In connection with its review, the Commission requests responses to
the following questions. The parties are requested to brief their
positions with reference to the applicable law and the existing
evidentiary record.
1. With respect to the '761 patent:
a. What is the proper claim construction of the term ``magnetically
coupled''? Applying the proper construction, do the accused products
infringe claim 1?
b. Do the terms ``dissipate power'' and ``heat generation'' as
recited in claim 1 have distinct meanings? Do the accused products
practice both limitations?
c. With reference to Fox Factory, Inc. v. SRAM, LLC, 944 F.3d 1366
(Fed. Cir. 2019), are the domestic industry products ``coextensive''
with the claimed invention for purposes of commercial success?
2. With respect to the '950 patent:
a. What is the proper claim construction of the terms ``input
circuit'' and ``output circuit'' as recited in the asserted claims?
Applying the proper construction, do the accused and redesigned
products infringe the asserted claims?
b. How, if at all, is the phase of operation relevant to the
determination of whether the accused and redesigned products satisfy
the limitation that ``an input voltage VIN is applied to the
input circuit''?
3. With respect to the economic prong of the domestic industry
requirement:
Does the record permit allocation of the overall payments made by
Complainant to foreign IC Vendors, see Final ID at 198, to the DI
products for each of the Asserted Patents? If so, please provide such
allocations.
4. With respect to Foxconn's license defense:
a. With citation to legal authority (binding or persuasive)
interpreting Massachusetts General Law (``MGL'') 106 section 2-207,
Uniform Commercial Code section 2-207, or any other relevant provision,
is there a binding agreement between Complainant and the Foxconn
respondents that includes the license provision set forth in General
Term 10 of the Foxconn purchase orders (see RX-1630C.0002; RX-
1635C.0002; RX-16359.0002)? If such an agreement exists, does MGL 106
section 2-207(2) or 2-207(3) govern what terms are part of the
agreement?
b. In addition to any issues the parties deem relevant, the parties
should address whether the purported acceptance of the alleged offers
was ``sent within a reasonable time'' (MGL 106 section 2-207(1)) in
light of Note 3
[[Page 99280]]
of the Foxconn purchase orders (see RX-1630C.0001; RX-1635C.0001; RX-
1639C.0001).
c. If there is a binding agreement between Complainant and the
Foxconn respondents including the license provision, to which
Respondents, Asserted Patents, and accused products does that license
apply?
The parties are invited to brief only the discrete issues requested
above. The parties are not to brief other issues on review, which are
adequately presented in the parties' existing filings.
In connection with the final disposition of this investigation, the
statute authorizes issuance of, inter alia, (1) an exclusion order that
could result in the exclusion of the subject articles from entry into
the United States; and/or (2) a cease and desist order 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, Comm'n Op. at 7-10 (Dec. 1994).
The statute requires the Commission to consider the effects of that
remedy upon the public interest. The public interest factors the
Commission will consider include the effect that an exclusion order and
cease and desist order 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,
disapprove, or take no action on the Commission's determination. 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: 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.
In its initial submission, Complainant is also requested to
identify the remedy sought and to submit proposed remedial orders for
the Commission's consideration. Complainant is further requested to
provide the HTSUS subheadings under which the accused products are
imported, and to supply the identification information for all known
importers of the products at issue in this investigation. The initial
written submissions and proposed remedial orders must be filed no later
than close of business on December 18, 2024. Reply submissions must be
filed no later than the close of business on December 27, 2024. No
further submissions on these issues will be permitted unless otherwise
ordered by the Commission. Opening submissions are limited to 50 pages.
Reply submissions are limited to 30 pages. 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. The
Commission's paper filing requirements in 19 CFR 210.4(f) are currently
waived. 85 FR 15798 (Mar. 19, 2020). Submissions should refer to the
investigation number (Inv. No. 337-TA-1370) in a prominent place on the
cover page and/or the first page. (See Handbook for Electronic Filing
Procedures, https://www.usitc.gov/documents/handbook_on_filing_procedures.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 by marking each document
with a header indicating that the document contains confidential
information. This marking will be deemed to satisfy the request
procedure set forth in Rules 201.6(b) and 210.5(e)(2) (19 CFR 201.6(b)
& 210.5(e)(2)). Documents for which confidential treatment by the
Commission is properly sought will be treated accordingly. Any non-
party wishing to submit comments containing confidential information
must serve those comments on the parties to the investigation pursuant
to the applicable Administrative Protective Order. A redacted non-
confidential version of the document must also be filed with the
Commission and served on any parties to the investigation within two
business days of 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, solely for cybersecurity purposes.
All contract personnel will sign appropriate nondisclosure agreements.
All nonconfidential written submissions will be available for public
inspection on EDIS.
The Commission vote for this determination took place on December
4, 2024.
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: December 4, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-28935 Filed 12-9-24; 8:45 am]
BILLING CODE 7020-02-P