[Federal Register Volume 67, Number 94 (Wednesday, May 15, 2002)]
[Notices]
[Pages 34728-34729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12157]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-449]


Certain Abrasive Products Made Using a Process for Powder 
Preforms, and Products Containing Same; Notice of Issuance of Limited 
Exclusion Order and Cease and Desist Order

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 a cease and desist 
order in the above-captioned investigation.

FOR FURTHER INFORMATION CONTACT: Michael K. Haldenstein, Esq., Office 
of the General Counsel, U.S. International Trade Commission, telephone 
202-205-3041. Copies of the limited exclusion order, the cease and 
desist order, the public version of the Commission's opinion, 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). Hearing-
impaired persons are advised that information on the matter can be 
obtained by contacting the Commission's TDD terminal on 202-205-1810. 
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.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on February 5, 2001, based upon a complaint filed on January 5, 2001, 
by Minnesota Mining & Manufacturing Co. (``3M'') of St. Paul, Minnesota 
and Ultimate Abrasive Systems, LLC (``UAS'') of Atlanta, Georgia. 66 FR 
9720 (Feb. 9, 2001). Their complaint named Kinik Company (``Kinik'') of 
Taipei, Taiwan and Kinik Corporation (``Kinik Corp.'') of Anaheim, 
California as respondents.
    Complainants alleged that respondents had violated section 337 of 
the Tariff Act of 1930 by importing into the United States, selling for 
importation, and selling within the United States after importation 
certain abrasive products that are made using a

[[Page 34729]]

process for making powder preforms that is covered by claims 1, 4, 5, 
and 8 of U.S. Letters Patent 5,620,489 (``the ``489 patent''), owned by 
UAS and exclusively licensed to 3M. The complaint further alleged that 
an industry in the United States exists as required by subsection 
(a)(2) of section 337.
    Complainants moved to terminate the investigation with respect to 
Kinik Corp. after they concluded that Kinik Corp was not manufacturing 
or importing products that infringed the '489 patent. The ALJ granted 
this motion on June 19, 2001, in an initial determination (``ID'') 
(Order No. 15) and the Commission determined not to review that ID. On 
August 8, 2001, the ALJ issued an ID (Order No. 19) that the economic 
prong of the domestic industry requirement was satisfied with respect 
to the claims at issue of the '489 patent, and the Commission 
determined not to review that ID.
    An evidentiary hearing was held on October 10-17, 27, and 30, 2001. 
On February 8, 2002, the ALJ issued his final ID, in which he 
determined that respondent Kinik's accused DiaGrid abrasive products 
infringed claims 1, 4, 5, and 8 of the '489 patent and that the '489 
patent was valid and enforceable. Based upon these findings, he found a 
violation of section 337.
    The ALJ recommended issuance of a limited exclusion order barring 
importation of all Kinik abrasive products that infringe the '489 
patent, which includes products produced using Kinik's DiaGrid process. 
He also recommended issuance of a cease and desist order against Kinik, 
and a bond during the Presidential review period in the amount of five 
percent of the entered value of the infringing Kinik products.
    On February 21, 2002, Kinik petitioned for review of the ALJ's 
final ID. Kinik also appealed Order No. 40, issued by the ALJ on 
October 12, 2001. That order precluded Kinik from asserting 35 U.S.C. 
271(g) as a non-infringement defense. On February 28, 2002, 3M and the 
Commission investigative attorney (``IA'') filed oppositions to Kinik's 
petition for review and its appeal of Order No. 40.
    On March 29, 2002, the Commission determined to affirm Order No. 40 
and not to review the ALJ's final ID, and issued a notice to that 
effect. 67 FR 16116 (Apr. 4, 2002). The Commission also issued an 
opinion explaining its reasons for affirming Order No. 40.
    Having determined that a violation of section 337 has occurred in 
this investigation, the Commission sought comments on and considered 
the issues of the appropriate form of relief, whether the public 
interest precludes issuance of such relief, and the bond during the 60-
day Presidential review period.
    The Commission determined that the appropriate remedy consists of a 
limited exclusion order prohibiting the importation of the infringing 
abrasive products manufactured abroad by Kinik Company of Taipei, 
Taiwan, and a cease and desist order directed to Kinik prohibiting that 
company from selling or engaging in various other commercial activities 
relating to such products within the United States. The Commission 
further determined that the statutory public interest factors do not 
preclude the issuance of such relief. Finally, the Commission 
determined that during the Presidential review period importation and 
sales within the United States should be permitted pursuant to a bond 
requirement in the amount of five percent of the entered value of the 
infringing abrasive products.
    This action is taken under the authority of section 337 of the 
Tariff Act of 1930 (19 U.S.C. 1337) and section 210.50 of the 
Commission's Rules of Practice and Procedure (19 CFR 210.50).

    Issued: May 9, 2002.

    By order of the Commission.
Marilyn R. Abbott,
Secretary.
[FR Doc. 02-12157 Filed 5-14-02; 8:45 am]
BILLING CODE 7020-02-P