[Federal Register Volume 63, Number 37 (Wednesday, February 25, 1998)]
[Notices]
[Page 9577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4789]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-370 Sanctions Proceeding]


Certain Salinomycin Biomass and Preparations Containing Same; 
Termination of Sanctions Proceeding; Vacatur of Recommended 
Determination; Cancellation of Commission Hearing

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: The Commission determined to grant a joint motion to terminate 
the sanctions proceedings and vacate the presiding administrative law 
judge's (ALJ) recommended determination (RD) on monetary sanctions. The 
Commission reserved its authority, in an appropriate case, to pursue 
sanctions on its own initiative under rule 210.4(d)(1)(ii) without 
regard to whether there has been a private settlement agreement.

FOR FURTHER INFORMATION CONTACT: Jean H. Jackson, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
S.W., Washington, D.C. 20436, telephone 202-205-3104.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on February 6, 1995, based on a complaint filed by Kaken Pharmaceutical 
Co. Inc. (Kaken). On November 6, 1995, the ALJ issued his final initial 
determination (ID) in this investigation, finding no violation of 
section 337 of the Tariff Act of 1930, 19 U.S.C. Sec. 1337, by 
respondents Hoechst Aktiengesellschaft, Hoechst Veterinar GmbH, and 
Hoechst-Roussel Agri-Vet Co. (collectively, Hoechst). His determination 
was based on his findings that the patent at issue was invalid for 
failure to disclose the best mode of operation and unenforceable due to 
inequitable conduct during prosecution of the patent before the U.S. 
Patent and Trademark Office. The ALJ's ID was not reviewed by the 
Commission and was ultimately upheld on appeal to the U.S. Court of 
Appeals for the Federal Circuit, Kaken Pharmaceutical Co. v. USITC, 
Appeal Nos. 96-1300,-1302, nonprecedential opinion dated March 31, 
1997.
    On January 19, 1996, Hoechst filed a motion for sanctions against 
Kaken, which the Commission referred to the presiding ALJ for issuance 
of an RD. Hoechst's motion alleged, inter alia, that Kaken committed 
sanctionable conduct by filing a complaint totally lacking in merit. On 
May 14, 1997, the ALJ issued his RD in which he recommended that the 
Commission impose on Kaken and its attorneys joint and several 
liability for an amount of money equal to double the entire attorneys 
fees and costs of the Hoechst respondents incurred in both the section 
337 investigation on the merits and in the proceeding on sanctions. All 
parties filed comments on the RD. On August 8, 1997, Kaken and its 
attorneys requested an opportunity to present oral argument before the 
Commission and leave to reply to Hoechst's comments. On October 24, 
1997, the Commission granted the motion for oral argument and issued 
notice of a hearing date of December 10, 1997. 62 FR 58746 (Oct. 30, 
1997).
    On November 5, 1997, Hoechst, Kaken, and Kaken's attorneys filed a 
joint motion for termination of the sanctions proceedings based on 
Hoechst's withdrawal of its motion for sanctions. The parties also 
moved that the RD be vacated. They stated that Hoechst and Kaken have 
entered into a worldwide settlement agreement with respect to 
salinomycin that includes the reissue patent that formed the basis of 
Kaken complaint at the Commission. They stated that, as a result, all 
issues between Hoechst and Kaken have been fully resolved. On November 
17, 1997, the Commission investigative attorney (IA) supported the 
motion to terminate. On November 21, 1997, the Commission determined to 
postpone the oral argument indefinitely while it considered the joint 
motion to terminate. 62 FR 63193 (Nov. 26, 1997).
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930, 19 U.S.C. 1337.
    Hearing-impaired persons are advised that information on this 
matter can be obtained by contacting the Commission's TDD terminal on 
202-205-1810. General information concerning the Commission may also be 
obtained by accessing its Internet server (http://www.usitc.gov or 
ftp://ftp.usitc.gov).

    Issued: February 18, 1998

    By order of the Commission.

Donna R. Koehnke,

    Secretary.
[FR Doc. 98-4789 Filed 2-24-98; 8:45 am]
BILLING CODE 7020-02-P