[Federal Register Volume 70, Number 26 (Wednesday, February 9, 2005)]
[Notices]
[Pages 6909-6910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2459]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-505]


Certain Gun Barrels Used in Firearms Training Systems; Notice of 
Commission Issuance of a Limited Exclusion Order and a Cease and Desist 
Order Against a Respondent Found in Default

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 against a respondent found in default in the above-captioned 
investigation.

FOR FURTHER INFORMATION CONTACT: Michael K. Haldenstein, Esq., Office 
of the General Counsel, U.S. International Trade Commission, 500 E 
Street, SW., Washington, DC 20436, telephone (202) 205-3041. Copies of 
non-confidential 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) at http://edis.usitc.gov. Hearing-impaired persons are advised that information 
on this matter can be obtained by contacting the Commission's TDD 
terminal on (202) 205-1810.

SUPPLEMENTARY INFORMATION: This patent-based section 337 investigation 
was instituted by the Commission based on a complaint filed by Beamhit, 
LLC, and Safeshot, LLC, both of Columbia, Maryland, and Safeshot, Inc., 
of New York, New York. 69 FR 12346 (March 16, 2004). The complainants 
alleged violations of section 337 in the importation into the United 
States, the sale for importation, and the sale within the United States 
after importation of certain gun barrels used in firearms training 
systems by reason of infringement of claims 1, 2, 4, 5, 8, 15, 21, 22, 
and 26 of U.S. Patent No. 5,829,180 (``180 patent'') and claims 1-3, 7, 
9, 14-18, 20, 24, 27, 32, 33, 37-40, 44, 45, 49-51, and 54 of U.S. 
Patent No. 6,322,365 (``the `365 patent''). The complaint named Widec 
S.A. D[eacute]colletage (``Widec''), of Moutier, Switzerland, AMI Corp. 
SA (``AMI''), of Moutier, Switzerland, Crown AirMunition Holding, of 
Hilversum, The Netherlands, AirMunition International Corp. of 
Hilversum, The Netherlands, AirMunition Industries S.A., of Belprahon-
Moutier, Switzerland, and AirMunition North America, Inc., of Norcross, 
Georgia as respondents.
    On April 27, 2004, complainants filed a motion, pursuant to 
Commission Rule 210.16, for an order to show cause and entry of a 
default judgement against Crown AirMunition Holding, AirMunition 
International Corp., AMI Corp. SA, and AirMunition North America Inc. 
(collectively ``the AirMunition respondents''). The Commission 
investigative attorney (``IA'') supported the motion. None of the 
respondents responded to the motion. On May 12, 2004, the 
administrative law judge (``ALJ'') issued Order No. 6, requiring the 
AirMunition respondents to show cause why they should not be held in 
default, having not responded to either the complaint or the notice of 
investigation. The respondents did not respond to the show cause order. 
On August 16, 2004, complainants filed a motion for an order finding 
the AirMunition respondents in default due to the respondents' failure 
to respond to the ALJ's show cause order.
    On September 21, 2004, the ALJ issued an ID finding the AirMunition 
respondents in default. Pursuant to Commission Rule 210.16(b)(3), the 
ALJ also found that the AirMunition respondents had waived their right 
to appear, be served with documents or contest the allegations in the 
complaint. No petitions for review of this ID were filed. On October 
12, 2004, the ALJ's ID became the Commission's final determination 
after the Commission issued a notice indicating that it would not 
review the ID. On October 12, 2004, pursuant to Commission Rule of 
Practice and Procedure 210.16(c)(1), 19 CFR 210.16(c)(1), complainants 
filed a declaration seeking immediate entry of relief against the 
AirMunition respondents.
    The complainants and the non-defaulting respondents, Widec and AMI, 
filed a joint motion to terminate the investigation as to Widec and AMI 
on September 2, 2004. The joint motion was based on a proposed consent 
order, filed pursuant to a settlement agreement and a limited license. 
The IA filed a response in support of the motion on September 13, 2004. 
The ALJ issued an initial determination (``ID'') on September 21, 2004, 
terminating the investigation as to Widec and AMI. No petitions for 
review of this ID were filed. On October 12, 2004, the Commission 
issued a notice indicating that it would not review the ID, thereby 
adopting the ALJ's ID as the Commission's final determination.
    On November 10, 2004, the Commission requested that the parties 
brief the isssues of remedy, the public interest, and bonding with 
respect to the defaulting AirMunition respondents. On November 22, 
2004, complainants and the IA submitted their main briefs, and on 
December 1, 2004, the complainants and the IA submitted reply briefs. 
Complainants and the IA both maintained that the appropriate remedy is 
a limited exclusion order and a cease and desist order.
    The Commission found that each of the statutory requirements of 
section 337(g)(1)(A)-(E), 19 U.S.C. 1337(g)(1)(A)-(E), has been met 
with respect to the defaulting AirMunition respondents. Accordingly, 
pursuant to section 337(g)(1), 19 U.S.C. 1337(g)(1), and Commission 
rule 210.16(c) 19 CFR 210.16(c), the Commission presumed the facts 
alleged in the amended complaint to be true.
    The Commission determined that the appropriate form of relief in 
this investigation is a limited exclusion order prohibiting the 
unlicensed entry of certain gun barrels used in firearms training 
systems by reason of infringement of one or more of the following 
claims: claims 1, 2, 4, 5, 8, 15, 21, 22, or 26 of the `180 patent or 
claims 1-3, 7, 9, 14-18, 20, 24, 27, 32, 33, 37-40, 44, 45, 49-51, or 
54 of the `365 patent. The order covers certain gun barrels used in 
firearms training systems that are manufactured abroad by or on behalf 
of, or imported by or on behalf of the AirMunition respondents or any 
of their affiliated companies, parents, subsidiaries, or other related 
business entities, or their successors or assigns. The Commission also 
determined to issue a cease and desist order prohibiting AirMunition 
North America Inc. from importing, selling, marketing, advertising, 
distributing, offering for sale, transferring (except for exportation), 
and soliciting U.S. agents or distributors for certain gun barrels 
covered by the above-mentioned claims of the `180 patent and `365 
patent. The Commission further determined that the public interest 
factors enumerated in section 337(g)(1), 19 U.S.C. 1337(g)(1), do not 
preclude issuance of the limited exclusion order and cease and desist

[[Page 6910]]

order. Finally, the Commission determined that the bond under the 
limited exclusion order during the Presidential review period shall be 
in the amount of 100 percent of the entered value of the imported 
articles. [The Commission's orders were delivered to the President on 
the day of their issuance.]
    The authority for the Commission's determination is contained in 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
in section 210.16(c) of the Commission's Rules of Practice and 
Procedure (19 CFR 210.16(c)).

    Issued: February 3, 2005.

    By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 05-2459 Filed 2-8-05; 8:45 am]
BILLING CODE 7020-02-P