[Federal Register Volume 67, Number 46 (Friday, March 8, 2002)]
[Notices]
[Pages 10755-10756]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5512]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-448]


In the Matter of: Certain Oscillating Sprinklers, Sprinkler 
Components, and Nozzles; Notice of Commission Issuance of Limited 
Exclusion Order and Termination of Investigation

AGENCY: International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has issued a limited exclusion order and terminated the 
above-captioned investigation.

FOR FURTHER INFORMATION CONTACT: Laurent de Winter, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
SW., Washington, DC 20436, telephone 202-708-5452. Copies of the 
limited exclusion order 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. General 
information concerning the Commission may also be obtained by accessing 
its Internet server (http://www.usitc.gov). The public record for this 
investigation may be viewed on the Commission's electronic docket 
(EDIS-ON-LINE) at http://dockets.usitc.gov/eol.public. Hearing-impaired 
persons are advised that information on the matter can be obtained by 
contacting the Commission's TDD terminal on 202-205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this 
investigation, which concerns allegations of unfair acts in violation 
of section 337 of the Tariff Act of 1930 in the importation and sale of 
certain oscillating sprinklers, sprinkler components, and nozzles, on 
February 9, 2001. 66 FR 9721. In its complaint, filed on January 8, 
2001, and amended on January 31, 2001, complainant L.R. Nelson Corp. 
(``Nelson'') alleged that Naan Sprinkler and Irrigation Systems, Inc., 
Watex International Co., Ltd., Lego Irrigation Equipment, Inc., Rain 
Bird Manufacturing Corporation, Gardena Krest + Kastner GmbH and 
Gardena's subsidiary Melnor, Inc., Ruey Ryh Enterprises Co,. Ltd., Yuan 
Mei Corp., Amagine Garden Inc., Aqua Star Industries Inc., Le Yuan 
Industrial Co. Ltd., Shin Da Spurt Water of Garden Tool Co. Ltd., and 
Orbit Irrigation Products, Inc. violated section 337 through the 
importation, sale for importation, and/or sale within the United States 
after importation of certain oscillating sprinklers, sprinkler 
components, and nozzles by reason of infringement of certain claims of 
U.S. Letters Patent Nos. 6,036,117 (``the '117 patent''), 5,645,218 
(``the '218 patent''), and 5,511,727 (``the '727 patent'').
    On May 3, 2001, complainant Nelson moved, pursuant to 19 U.S.C. 
1337(g)(1) and Commission rule 210.16, for an order to show cause why 
respondent Watex International Co., Ltd. (``Watex'') should not be 
found in default for failing to respond adequately and properly to the 
amended complaint and notice of investigation, as required by 
Commission rule 210.13. The Commission investigative attorney (``IA'') 
supported complainant's motion to the extent that it requested an order 
to show cause against Watex. The presiding administrative law judge 
(``ALJ'') issued an ID (Order No. 4) on March 30, 2001, directing Watex 
to show cause why it should not be found in default. Watex did not 
respond to the show cause order.
    On May 22, 2001, the ALJ issued an ID (Order No. 7) finding Watex 
in default pursuant to Commission rule 210.16, and ruling that it had 
waived its rights to appear, to be served with documents, and to 
contest the allegations at issue in the investigation. No petitions for 
review of the ID were filed. On June 12, 2001, the Commission 
determined not to review the ID, thereby allowing it to become the 
Commission's final determination.
    On September 13, 2001,Nelson moved to withdraw all allegations 
related to the '117 patent from the investigation. No party responded 
to Nelson's motion and the IA supported the motion. On September 25, 
2001, the ALJ issued an ID (Order No. 26) granting the motion to 
withdraw the allegations relating to the '117 patent, and on October 
26, 2001, the Commission determined not to review that ID. This 
withdrawal terminated the investigation with respect to all respondents 
except Watex.
    On October 1, 2001, Nelson filed a declaration seeking, pursuant to 
section 337(g)(1) and Commission rule 210.16(c)(1), entry of a limited 
exclusion order against Watex barring importation into the United 
States of Watex sprinklers infringing the claims in issue of the '218 
and '727 patents. In its declaration, Nelson did not seek issuance of a 
cease and desist order against Watex. On December 11, 2001, the 
Commission issued a notice requesting briefing on the issues of remedy, 
public interest, and bonding. On January 10, 2002, Nelson, the IA, and 
Tekni-Plex, Inc., a purchaser of Watex sprinklers, submitted briefing 
on the issues of the public interest and bonding and proposed limited 
exclusion orders. No briefs were filed by any other person or 
government agency. Only the IA filed a reply brief.
    Section 337(g)(1) of the Tariff Act of 1930 provides that the 
Commission shall presume the facts alleged in a complaint to be true, 
and upon request issue a limited exclusion order and/or cease and 
desist order if: (1) A complaint is filed against a person under 
section 337, (2) the complaint and

[[Page 10756]]

a notice of investigation are served on the person, (3) the person 
fails to respond to the complaint and notice or otherwise fails to 
appear to answer the complaint and notice, (4) the person fails to show 
good cause why it should not be found in default, and (5) the 
complainant seeks relief limited to that person. Such an order shall be 
issued unless, after considering the effect of such exclusion, the 
Commission finds that such exclusion should not be issued.
    The Commission found that each of the statutory requirements for 
the issuance of a limited exclusion order was met with respect to 
defaulting respondent Watex. The Commission further determined that the 
public interest factors enumerated in section 337(g)(1) did not 
preclude the issuance of such relief. Finally, the Commission 
determined that bond under the limited exclusion order during the 
Presidential review period shall be in the amount of one hundred (100) 
percent of the entered value of the imported articles.
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930, 19 U.S.C. 1337, and Sec. 210.16 of the Commission's 
rules of practice and procedure, 19 CFR 210.16.

    By order of the Commission.

    Issued: March 4, 2002.
Marilyn R. Abbott,
Secretary.
[FR Doc. 02-5512 Filed 3-7-02; 8:45 am]
BILLING CODE 7020-02-P