[Federal Register Volume 70, Number 69 (Tuesday, April 12, 2005)]
[Notices]
[Pages 19094-19095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7298]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-503]


Certain Automated Mechanical Transmission Systems for Medium-Duty 
and Heavy-Duty Trucks and Components Thereof; Termination of 
Investigation; Issuance of a Limited Exclusion Order and a 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 terminated the above-captioned investigation in which it 
has found a violation of section 337 of the Tariff Act of 1930 and has 
issued a limited exclusion order and a cease and desist order.

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

[[Page 19095]]

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 complaint, 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 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 of Maxton, North Carolina, ZF Friedrichshafen AG of 
Freidrichshafen, Germany, and ArvinMeritor, Inc. (``ArvinMeritor'') of 
Troy, Michigan.
    On July 21, 2004, the Commission issued a notice 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 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 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 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 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 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, 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 and bonding. 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.
    On February 24, 2005, the Commission issued a notice indicating 
that it had determined not to review the ALJ's final ID on violation, 
thereby finding a violation of section 337. The Commission also invited 
the parties to file written submissions regarding the issues of remedy, 
the public interest and bonding, and provided a schedule for filing 
such submissions.
    Having reviewed the record in this investigation, including the 
parties' written submissions and responses thereto, the Commission 
determined that the appropriate form of relief in this investigation is 
a limited exclusion order prohibiting the unlicensed entry of automated 
mechanical transmission systems for medium-duty and heavy-duty trucks, 
and components thereof covered by claim 15 of the '279 patent. The 
order covers automated mechanical transmission systems for medium-duty 
and heavy-duty trucks, and components thereof that are manufactured 
abroad by or on behalf of, or imported by or on behalf of the 
respondents, or any of their affiliated companies, parents, 
subsidiaries, or other related business entities, or their successors 
or assigns. The limited exclusion order does not cover parts necessary 
to service infringing automated mechanical transmission systems 
installed on trucks prior to the issuance of the order.
    The Commission also determined to issue a cease and desist order 
prohibiting ArvinMeritor from importing, selling, marketing, 
advertising, distributing, offering for sale, transferring (except for 
exportation), and soliciting U.S. agents or distributors for automated 
mechanical transmission systems for medium-duty and heavy-duty trucks, 
and components thereof covered by claim 15 of the '279 patent.
    The Commission further determined that the public interest factors 
enumerated in sections 337(d)(1) and (f)(1), 19 U.S.C. 1337(d)(1) and 
(f)(1), do not preclude issuance of either the limited exclusion order 
or the cease and desist order. In addition, the Commission determined 
that the amount of bond to permit temporary importation during the 
Presidential review period shall be in the amount of 100 percent of the 
entered value of the imported articles. Finally, the Commission 
determined to deny both the complainant's motion to strike and the 
respondents' motion for leave to file a surreply. The Commission's 
orders and opinion in support thereof 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 210.50 of the Commission's Rules of Practice and Procedure 
(19 CFR 210.50).

    Issued: April 7, 2005.

    By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 05-7298 Filed 4-11-05; 8:45 am]
BILLING CODE 7020-02-P