[Federal Register Volume 62, Number 194 (Tuesday, October 7, 1997)]
[Notices]
[Pages 52359-52360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26649]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-383]


Commission Decision Not To Review a Final Initial Determination, 
and Schedule For Filing of Written Submissions on the Issues of Remedy, 
the Public Interest, and Bonding, and Appeals of ALJ Order No. 96

Certain Hardware Logic Emulation Systems and Components Thereof;

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined not to review the final initial determination 
issued by the presiding administrative law judge on August 1, 1997, 
finding a violation of section 337, 19 U.S.C. Sec. 1337, in the above-
captioned investigation.

FOR FURTHER INFORMATION CONTACT: Jay H. Reiziss, Esq., Office of the 
General Counsel, U.S. International Trade Commission, telephone 202-
205-3116.

SUPPLEMENTARY INFORMATION: This patent-based section 337 investigation 
was instituted on March 8, 1996, based upon a complaint and motion for 
temporary relief filed on January 26, 1996, by Quickturn Design 
Systems, Inc. (``Quickturn''). 61 FR 9486 (March 8, 1996). The 
respondents are Mentor Graphics Corporation (``Mentor'') and Meta 
Systems (``Meta'') (collectively ``respondents''). After an 11-day 
evidentiary hearing, in April and May of 1996, the presiding 
administrative law judge (``ALJ'') issued an initial determination 
(``TEO ID'') granting Quickturn's motion for temporary relief.
    On August 5, 1996, the Commission determined not to modify or 
vacate the TEO ID and issued a temporary limited exclusion order and a 
temporary cease and desist order against domestic respondent Mentor. 
The Commission imposed a bond of 43 percent of entered value on 
respondents' importations and sales of emulation systems and components 
thereof during the remaining pendency of the investigation. The 
Commission set complainant's bond at $200,000.
    Beginning on April 7, 1997, the ALJ held a pre-hearing conference 
and a 14-day evidentiary hearing concerning permanent relief issues and 
several sanctions-related motions. Closing arguments were held on June 
25 and 26, 1997. On August 1, 1997, the ALJ issued an initial 
determination (``Final ID''), finding that respondents violated section 
337 of the Tariff Act of 1930, as amended (19 U.S.C. Sec. 1337) by 
infringing claims of all five of Quickturn's asserted patents. The ALJ 
found: (1) There has been importation and sale of the accused products; 
(2) Quickturn practices the patents in controversy and satisfies the 
domestic industry requirements of section 337; (3) the claims in issue 
are valid; (4) the accused products directly infringe the claims in 
issue; (5) components of the accused products contributorily infringe 
the claims in issue; and (6) respondents have induced infringement of 
the claims in issue. Based on these findings, the ALJ concluded there 
was a violation of section 337. The ALJ recommended issuance of a 
permanent exclusion order and a cease and desist order.
    Having examined the record in this investigation, including the 
Final ID, the petition for review, and the responses thereto, the 
Commission has determined not to review the Final ID; thus, the 
Commission has found a violation of section 337.
    In connection with the final disposition of this investigation, the 
Commission may issue (1) an order that could result in the exclusion of 
the subject articles from entry into the United States, and/or (2) 
cease and desist orders that could result in respondents 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 the 
Commission Opinion, In the Matter of Certain Devices for Connecting 
Computers via Telephones Lines, Inv. No. 337-TA-360, USITC Pub. No. 
2843 (December, 1994).
    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, and (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 President has 60 
days to approve or disapprove the Commission's action. During this 
period, the subject articles would be entitled to enter the United 
States under a 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.
    On August 1, 1997, the ALJ also issued Order No. 96 in the 
investigation finding that respondents have engaged in discovery abuses 
and abuse of process justifying the imposition of evidentiary and 
monetary sanctions. Pursuant to rule 210.25(d) of the Commission's 
Rules of Practice and Procedure, 19 C.F.R. Sec. 210.25(d), the 
Commission has specified below the schedule for the filing of petitions 
appealing Order No. 96 and responses thereto.

Written Submissions

    The 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 August 1, 1997, recommended 
determination by the ALJ on remedy and bonding. Complainant and the 
Commission investigative attorney are also requested to submit proposed 
remedial orders for the Commission's consideration. The written 
submissions and proposed remedial orders must be filed no later than 
close of business on October 16, 1997. Reply submissions must be filed 
no later than the close of business on October 23, 1997. No further 
submissions on these issues will be

[[Page 52360]]

permitted unless otherwise ordered by the Commission.
    Parties to the investigation also may file written submissions 
concerning Order No. 96. Any written submissions appealing Order No. 96 
must be filed no later than close of business on November 6, 1997. 
Reply submissions must be filed no later than the close of business on 
November 13, 1997.
    Persons filing written submissions must file with the Office of the 
Secretary the original document and 14 true copies thereof on or before 
the deadlines stated above. Any person desiring to submit a document 
(or portion thereof) to the Commission in confidence must request 
confidential treatment unless the information has already been granted 
such treatment during the proceedings. All such requests should be 
directed to the Secretary of the Commission and must include a full 
statement of the reasons why the Commission should grant such 
treatment. See 19 CFR 201.6. Documents for which confidential treatment 
by the Commission will be treated accordingly. All nonconfidential 
written submissions will be available for public inspection at the 
Office of the Secretary.
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930 (19 U.S.C. Sec. 1337) and sections 210.25 and 
210.45-210.51 of the Commission's Rules of Practice and Procedure (19 
CFR 210.25, 210.45-210.51).
    Copies of the public versions of the Final ID, Order No. 96, and 
all other nonconfidential 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, D.C. 
20436, telephone 202-205-2000. Hearing-impaired persons are advised 
that information can be obtained by contacting the Commission's TDD 
terminal on 202-205-1810.

    Issued: October 2, 1997.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-26649 Filed 10-6-97; 8:45 am]
BILLING CODE 7020-02-P