[Federal Register Volume 64, Number 209 (Friday, October 29, 1999)]
[Notices]
[Pages 58443-58444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28365]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-413]


Certain Rare-Earth Magnets and Magnetic Materials and Articles 
Containing Same; Notice of Commission Determinatin Not To Review an 
Initial Determination Finding a Violation of Section 337; and Request 
for Submissions on Remedy, the Public Interest, and Bonding

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 a final initial determination 
(ID) issued by the presiding administrative law judge (ALJ) in the 
above-captioned investigation finding a violation of section 337 of the 
Tariff Act of 1930.

FOR FURTHER INFORMATION CONTACT: Cynthia Johnson, Esq., Office of the 
General Counsel, U.S. International Trade Commission, telephone 202-
205-3098. Hearing-impaired individuals 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).

SUPPLEMENTARY INFORMATION: On September 4, 1998, the Commission 
instituted an investigation based on a complaint filed by Magnequench 
International, Inc. (Magnequench) and Sumitomo Special Metals Co., Ltd. 
(SSMC). 63 Fed. Reg. 47319. The complaint alleged violations of 
subsection (a)(1)(B) of section 337 in the importation into the United 
States, the sale for importation, or the sale within the United States 
after importation of certain rare-earth magnets or magnetic materials, 
or articles containing the same, that infringe claims 1, 4, 5, 8, 9, or 
11 of U.S. Letters Patent 4,851,058, (the '058 patent); claims 1-6, 10, 
14-16, or 18-20 of U.S. Letters Patent 4,802,931 (the '931 patent); 
claims 13-18 of U.S. Letters Patent 4,496,395 (the `395 patent); claims 
1-9, 12-20, 23-27, or 29-34 of U.S. Letters Patent 4,770,723 (the '723 
patent); claims 1-6, 8-10, 13-19, 21-24, 27-35, or 37-39 of U.S. 
Letters Patent 4,792,368 (the `368 patent); or claims 1-3, 5, 15, 18, 
19, 21, or 22 of U.S. Patent Letters 5,645,651 (the '651 patent).
    On September 22, 1999, the Commission determined not review an ID 
granting complainants motion to withdraw from the investigation claims 
1, 12, 23, 29, 30, and 32 of the '723 patent and claims 1, 13, 14, 22, 
27, 32, 33, 34, and 39 of the '368 patent. Hence the claims in issue of 
the '723 patent and `368 patent are claims 2-9, 13-20, 24-27, 31, 33, 
and 34 of the '723 patent and claims 2-6, 8-10, 15-19, 21, 23, 24, 28-
31, 35, 37, and 38 of the '368 patent.
    The following respondents were named in the notice of 
investigation: Houghes International, Inc. (Houghes) of New York; 
International Magna Products, Inc. (IMI) of Indiana; Multi-Trend 
International Corp. a/k/a MTI-Modern Technology Inc. (Multi-Trend) of 
California; American Union Group, Inc. (AUG) of Maryland; High End 
Metals Corp. (High End) of Taiwan; Harvard Industrial America Inc. 
(Harvard) of California; H.T.I.E., Inc. (H.T.I.E.) of Pennsylvania; and 
CYNNY Magnets (CYNNY) of New Jersey.
    On January 11, 1999, the Commission determined not to review an ID 
granting complainants' motion to amend the complaint and notice of 
investigation to add A.R.E., Inc. (A.R.E.) of Pennsylvania; NEOCO, L.C. 
(NEOCO) of Michigan; Beijing Jing Ma Permanent Magnets Materials 
Factory (Jing Ma) of China; and Xin Huan Technology Development Co., 
Ltd. (Xin Huan) of China as respondents.
    On February 1, 1999, the Commission determined not to review an ID 
terminating the investigation as to respondent IMI on the basis of a 
consent order. On February 9, 1999, the Commission determined not to 
review IDs terminating the investigation as to respondents AUG, CYNNY, 
H.T.I.E., and Houghes on the basis of consent orders.
    On May 25, 1999, the Commission determined not to review an ID 
granting complainants' motion for partial summary determination on the 
importation issue. On May 28, 1999, the Commission determined not to 
review an ID granting complainants' motion for summary determination on 
the domestic industry issue.
    On August 6, 1999, the Commission determined not to review an ID 
finding respondents A.R.E., Jing Ma, and Xin Huan in default. On 
September 27, 1999, the Commission determined not to review an ID 
finding respondent Multi-Trend in default.
    The prehearing conference and evidentiary hearing were conducted on 
June 9 to 18, 1999. Complainants, respondent NEOCO, and the Commission 
investigative attorneys (IAs) participated at the hearing. Following 
the filing of post-hearing submissions, closing arguments were heard on 
July 27, 1999.
    On September 7, 1999, the ALJ issued his final ID finding a 
violation of section 337. His determination is based on his findings 
that the patents in issue are valid and enforceable, and that the 
accused imported magnets infringed all of the asserted claims, with the 
exception of claims 13-20, 25-27 and 33 of the `723 patent and claims 
15-19, 21, 23, 24, 28, 30, 31, and 35 of the `368 patent.
    At final disposition of this investigation, the Commission may 
issue (1) an order that could result in 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 action in the importation and sale of 
such articles. The Commission is therefore 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, 
entry for consumption from a foreign trade zone, or withdrawal from 
warehouse for consumption, the party should so indicate and provide 
information establishing that activities involving other types of entry 
either are adversely affecting it or are likely to do so. For 
background, see In the Matter of: Certain Devices for Connecting 
Computers Via Telephone Lines, Inv. No. 337-TA-360, USITC Publication 
No. 2843 (December 1994) (Commission Opinion).
    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, (3) U.S. production of articles that are like or directly 
competitive with those that are the subject of this investigation, and 
(4) U.S. consumers. The Commission is

[[Page 58444]]

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. Therefore, the Commission 
is interested in receiving written submissions concerning the amount of 
the bond that should be imposed.

Written Submissions

    The parties to the investigation, interested Government agencies, 
and other interested persons or entities are encouraged to file written 
submissions on remedy, the public interest, and bonding.
    The ALJ's final ID also contains the ALJ's recommended 
determination (RD) concerning remedy and bonding. The ALJ has 
recommended that the Commission issue a general exclusion order as well 
as cease and desist orders against domestic respondents A.R.E., Multi-
Trend, and Harvard, and has further recommended that the Commission set 
the bond at 100 percent of the entered value of the infringing imports 
during the Presidential review period. The parties' written submissions 
on remedy, the public interest, and bonding should address the ALJ's 
RD. Complainants and the Commission investigative attorneys are 
requested to submit proposed remedial orders for the Commission's 
consideration.
    All written submissions and proposed remedial orders must be filed 
with the Office of the Secretary no later than 5:15 p.m. on November 8, 
1999. Reply submissions must be filed no later than 5:15 p.m. on 
November 15, 1999. No further submissions on remedy, the public 
interest, and bonding will be permitted unless otherwise ordered by the 
Commission.
    Persons filing written submissions and proposed remedial orders 
must file the original document and 14 true copies with the Office of 
the Secretary on or before the deadlines stated above. Any person 
desiring to submit a document or portion thereof in confidence must 
request confidential treatment unless the information contained in the 
document or portion thereof has already been granted such treatment 
during the investigation. All requests for confidential treatment 
should be directed to the Secretary of the Commission and must include 
a full statement of the reasons that the Commission should grant such 
treatment. See 19 C.F.R. Sec. 201.6. All nonconfidential written 
submissions will be available for public inspection at the Office of 
the Secretary.
    Nonconfidential versions of the ID, including the RD on remedy and 
public interest, and all other nonconfidential documents filed in the 
investigation are or will be available for public inspection during 
official business hours (8:45 a.m. to 5:15 p.m.) in the Commission's 
Office of the Secretary, Dockets Branch, 500 E Street, SW., Room 112, 
Washington, D.C. 20436, telephone 202-205-1802.

    By order of the Commission.

    Issued: October 25, 1999.
Donna R. Koehnke,
Secretary.
[FR Doc. 99-28365 Filed 10-28-99; 8:45 am]
BILLING CODE 7020-02-P