[Federal Register Volume 63, Number 166 (Thursday, August 27, 1998)]
[Notices]
[Page 45862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22985]



[[Page 45862]]

=======================================================================
-----------------------------------------------------------------------

INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-383; Sanctions Proceeding and Bond Forfeiture/Return 
Proceedings]


In the Matter of Certain Hardware Logic Emulation Systems and 
Components Thereof; Notice of Commission Determination Not to Review an 
Initial Determination Terminating Sanctions Proceeding and Bond 
Forfeiture/Return Proceeding

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined not to review an initial determination (Order 
No. 106) issued by the presiding administrative law judge terminating 
the sanctions proceeding and the bond forfeiture/return proceeding in 
the above-captioned investigation.

FOR FURTHER INFORMATION CONTACT: Peter L. Sultan, Esq., Office of the 
General Counsel, U.S. International Trade Commission, telephone 202-
205-3152.

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''). On July 8, 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.
    On September 24, 1997, the Commission determined to modify 
respondents' temporary relief bond in the investigation. Respondents' 
temporary relief bond remained at 43 percent of the entered value of 
the subject imported articles if the entered value equals transaction 
value as defined in applicable U.S. Customs Service regulations. 
Respondents' temporary relief bond increased to 180 percent of the 
entered value of the subject imported articles if the entered value is 
not based on transaction value.
    On July 31, 1997, the ALJ issued an initial determination (``Final 
ID''), finding that respondents had violated section 337 of the Tariff 
Act of 1930, as amended (19 U.S.C. 1337), by infringing claims of all 
five of Quickturn's asserted patents. The ALJ recommended issuance of a 
permanent exclusion order and a cease and desist order.
    On October 2, 1997, the Commission determined not to review the 
Final ID, thereby finding that respondents violated section 337. On 
December 3, 1997, the Commission issued a limited exclusion order 
directed to Meta and a cease and desist order against domestic 
respondent Mentor. These final relief orders were referred to the 
President on December 4, 1997, and the 60-day Presidential review 
period expired on February 2, 1998, without the President taking action 
to disapprove them.
    On July 31, 1997, the ALJ also issued Order No. 96 in the 
investigation finding that respondents and certain of their counsel 
have engaged in discovery abuses and abuse of process justifying the 
imposition of evidentiary and monetary sanctions. Respondents 
petitioned for review of Order No. 96. On March 6, 1998, the Commission 
denied most aspects of respondents' petition and determined to adopt 
Order No. 96. The Commission ordered the ALJ to issue an ID within six 
months ruling on the precise dollar amount of sanctions to be awarded 
pursuant to those portions of Order No. 96 adopted by the Commission.
    On February 26, 1998, Quickturn filed a motion pursuant to 
Commission rule 210.50(d) for forfeiture of the full amount of the 
bonds posted by respondents in connection with their activities during 
the temporary relief period and Presidential review period. On March 
13, 1998, respondents filed an opposition to Quickturn's motion and a 
motion for return of their bonds. The Commission referred these motions 
to the ALJ for issuance of an ID within nine months.
    While the monetary sanctions and bond forfeiture/return proceedings 
were pending before the ALJ, Quickturn and the respondents submitted a 
joint motion for determinations concerning the amount of monetary 
sanctions and the amount of respondents' bond forfeiture, based on a 
stipulation agreement between the parties. Based on this joint motion, 
on July 21, 1998, the ALJ issued Order No. 106, in which he approved 
the stipulated amounts and determined to terminate the monetary 
sanctions and bond forfeiture/return proceedings. None of the parties 
filed a petition for review of Order No. 106.
    The Commission has determined not to review Order No. 106. In 
accordance with the stipulation agreement between the parties, the 
Commission will instruct the U.S. Customs Service to release 
respondents' bonds after the Commission has received written 
notification from Quickturn that the amount stipulated for forfeiture 
of respondents' bonds has been paid to Quickturn.
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930 (19 U.S.C. 1337) and section 210.42 of the 
Commission's Rules of Practice and Procedure (19 CFR 210.42).
    Copies of the public versions of Order No. 106 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, DC 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. General information concerning the Commission may also 
be obtained by accessing its Internet server (http://www.usitc.gov).

    Issued: August 21, 1998.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 98-22985 Filed 8-26-98; 8:45 am]
BILLING CODE 7020-02-P