[Federal Register Volume 70, Number 40 (Wednesday, March 2, 2005)]
[Notices]
[Pages 10112-10114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3970]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-503]


In the Matter of Certain Automated Mechanical Transmission 
Systems for Medium-Duty and Heavy-Duty Trucks and Components Thereof; 
Notice of Commission Decision Not To Review a Final Initial 
Determination Finding a Violation of Section 337 of the Tariff Act of 
1930; Request for Written 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 the presiding administrative 
law judge's (ALJ) initial determination (``ID'') in the above-captioned 
investigation finding a violation of section 337 of the Tariff Act of 
1930. Notice is also hereby given that the Commission is requesting 
briefing on the issues of remedy, the public interest, and bonding.

FOR FURTHER INFORMATION CONTACT: Rodney Maze, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
SW., Washington, DC 20436, telephone (202) 205-3065. 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 on January 7, 2004, based on a 
complaint filed by Eaton Corporation (``Eaton'') of Cleveland, Ohio. 69 
FR 937 (January 7, 2004). The complainant, as supplemented, alleged 
violations of section 337 of the Tariff Act of 1930 in the importation 
into the United States, the sale for importation, and the sale within 
the United States after

[[Page 10113]]

importation of certain automated mechanical transmission systems for 
medium-duty and heavy-duty trucks, and components thereof, by reason of 
infringement of claim 15 of U.S. Patent No. 4,899,279 (``the `279 
patent''); claims 1-20 of U.S. Patent No. 5,335,566 (``the `566 
patent''); claims 2-4 and 6-16 of U.S. Patent No. 5,272,939 (``the `939 
patent''); claims 1-13 of U.S. Patent No. 5,624,350 (``the `350 
patent''); claims 1, 3, 4, 6-9, 11, 13, 14, 16 and 17 of U.S. Patent 
No. 6,149,545 (``the `545 patent''); and claims 1-16 of U.S. Patent No. 
6,066,071 (``the `071 patent'').
    The complaint and notice of investigation named three respondents 
ZF Meritor, LLC (``ZF Meritor) of Maxton, North Carolina, ZF 
Friedrichshafen AG (``ZFAG'') of Freidrichshafen, Germany, and 
ArvinMeritor, Inc. of Troy, Michigan.
    On July 21, 2004, the Commission issued a notice indicating that it 
had determined not to review the ALJ's initial determination (``ID'') 
(Order No. 20) terminating the investigation as to the `071 patent and 
as to claims 2, 3, and 5-20 of the `566 patent, claims 4, 7, and 12 of 
the `350 patent, and claims 4, 8-9, and 14 of the `545 patent.
    On August 11, 2004, the Commission issued a notice (indicating that 
it had determined not to review the ALJ's ID (Order No. 31) terminating 
the investigation as to the `939 patent and as to claims 10, 11, and 13 
of the `350 patent.
    On August 16, 2004, the Commission issued a notice indicating that 
it had determined not to review the ALJ's ID (Order No. 28) that Eaton 
has satisfied the economic prong of the domestic industry requirement 
as to certain articles it alleges practice the patents at issue in this 
investigation.
    On August 23, 2004, the Commission issued a notice indicating that 
it had determined not to review the ALJ's ID (Order No. 30) that Eaton 
did not meet the technical prong of the domestic industry requirement 
as to the remaining claims, claims 1-3, 5, 6, 8, and 9, of the `350 
patent, thus terminating the investigation as to that patent.
    On September 17, 2004, the Commission issued a notice indicating 
that it had determined not to review the ALJ's ID (Order No. 38) 
granting Eaton's partial summary determination that the importation 
requirement has been met.
    On September 23, 2004, the Commission issued a notice indicating 
that it had determined not to review the ALJ's ID (Order No. 45) 
granting Eaton's motion for summary determination that it satisfies the 
economic prong of the domestic industry requirement of section 337 as 
to its medium-duty automated transmissions. The Commission also issued 
a notice on September 23, 2004, indicating that it had determined not 
to review ALJ's ID (Order No. 55) granting Eaton's motion for partial 
termination of the investigation as to claim 1 of the `566 patent.
    On January 7, 2005, the ALJ issued his final ID on violation and 
his recommended determination on remedy. The ALJ found a violation of 
section 337 by reason of infringement of claim 15 of the `279 patent by 
respondents. He found no violation of section 337 regarding the `566 
and the `545 patents. Petitions for review were filed by Eaton, the 
respondents, and the Commission investigative attorney on January 21, 
2005. All parties filed responses to the petitions on January 28, 2005.
    Having examined the record in this investigation, including the 
ALJ's final ID, the petitions for review, and the responses thereto, 
the Commission has determined not to review the ID, thereby finding a 
violation of section 337.
    In connection with the final disposition of this investigation, the 
Commission may issue an order that could result in the exclusion of 
respondents' FreedomLine transmissions from entry into the United 
States, and/or issue one or more cease and desist orders that could 
result in the respondents being required to cease and desist from 
engaging in unfair acts in the importation and sale of FreedomLine 
transmissions. Accordingly, the Commission is 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, 
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 Pub. No. 2843 (December 1994) (Commission 
Opinion).
    When 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 subject to investigation, and (4) U.S. 
consumers. The Commission is 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. 19 U.S.C. Sec.  
1337(j). During this period, the subject articles would be entitled to 
enter the United States under bond, in an amount determined by the 
Commission and prescribed by the Secretary of the Treasury. Id. The 
Commission is therefore interested in receiving submissions concerning 
the amount of the bond that should be imposed.
    Written Submissions: The parties to the investigation, interested 
government agencies, and any other interested parties are encouraged to 
file written submissions on the issues of remedy, the public interest, 
and bonding. Such submissions should address the January 7, 2005, 
recommended determinations by the ALJ on the issuance of remedy and 
bonding. Complainant and the Commission investigative attorney are also 
requested to submit proposed remedial orders for the Commission's 
consideration and to state the date on which the `279 patent will 
expire. The written submissions and proposed remedial orders must be 
filed no later than close of business on March 7, 2005. Reply 
submissions must be filed no later than the close of business on March 
14, 2005. No further submissions on these issues will be permitted 
unless otherwise ordered by the Commission.
    Persons filing written submissions must file the original document 
and 12 true copies thereof on or before the deadlines stated above with 
the Office of the Secretary. Any person desiring to submit a document 
(or portion thereof) to the Commission in confidence must request 
confidential treatment unless the information has already been granted 
such treatment during the proceedings. All such requests should be 
directed to the Secretary of the Commission and must include a full 
statement of the reasons why the Commission should grant such 
treatment. See section 201.6 of the Commission's Rules of Practice and 
Procedure, 19 CFR 201.6. Documents for which confidential treatment by 
the Commission is sought will be treated accordingly. All non-
confidential written submissions will be available for public 
inspection at the Office of the Secretary.
    The authority for the Commission's determination is contained in 
section

[[Page 10114]]

337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and in 
sections 210.42, 210.43, and 210.50 of the Commission's Rules of 
Practice and Procedure (19 CFR 210.42, 210.43, and 210.50).

    By order of the Commission.

    Issued: February 24, 2005.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 05-3970 Filed 3-1-05; 8:45 am]
BILLING CODE 7020-02-P