[Federal Register Volume 64, Number 240 (Wednesday, December 15, 1999)]
[Notices]
[Pages 70052-70053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32497]


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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 Issuance of General Exclusion Order and 
Cease and Desist Orders; Termination of the Investigation

AGENCY: International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that, having found violations of 
section 337 of the Tariff Act of 1930, 19 U.S.C. 1337, the Commission 
issued a general exclusion order and cease and desist orders directed 
to three domestic respondents, and terminated the investigation.

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

[[Page 70053]]

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 FR 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 to review an 
initial determination (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. On October 
25, 1999, the Commission determined not to review the ID, thereby 
finding a violation of section 337.
    The remaining issues for the Commission to decide were (1) the 
appropriate remedy for the aforesaid violations, (2) whether the 
statutory public interest factors precluded such relief, and (3) the 
amount of the bond during the Presidential review period under 337(j). 
In making those determinations, the Commission took into account the 
presiding ALJ's recommended determination (RD) on permanent relief and 
bonding under 19 CFR 210.42(a)(2), as well as any written submissions 
from parties, the public, and other Federal agencies. The Commission 
solicited but did not receive submissions from other agencies or 
members of the public. The Commission received written submissions from 
complainants and the IAs that addressed the form of remedy, if any, 
that should be ordered, the effect of a remedy on the public interest, 
and the amount of bond that should be imposed during the 60-day 
Presidential review period. Complainants also filed a motion to file a 
sur-reply to the IAs' reply submission. That motion is hereby denied.
    After considering the RD and the parties' submissions, the 
Commission determined that a general exclusion order is the appropriate 
remedy for the violations found in the subject investigation. The 
Commission also determined to issue three cease and desist orders 
directed to domestic respondents Multi-Trend, Harvard, and A.R.E.
    The Commission also determined that the public interest factors 
enumerated in subsections (d) and (f) of section 337 do not preclude 
the issuance of the aforementioned general exclusion order and cease 
and desist orders, and that the bond during the Presidential review 
period shall be in the amount of 100 percent of the entered value of 
the articles in question.
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930, (19 U.S.C. Sec. 1337), the Administrative Procedure 
Act, 5 U.S.C. 551 et seq., and sections 210.45-210.51 of the 
Commission's rules of practice and procedure, 19 CFR 210.45-210.51.
    Nonconfidential versions of Commission's Order and its Opinion on 
Remedy, the Public Interest, and Bonding, 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, DC 20436, telephone 202-205-1802.

    Issued: December 9, 1999.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 99-32497 Filed 12-14-99; 8:45 am]
BILLING CODE 7020-02-P