[Federal Register Volume 70, Number 134 (Thursday, July 14, 2005)]
[Notices]
[Pages 40730-40731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13839]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-524]


In the Matter of Certain Point of Sale Terminals and Components 
Thereof; Notice of Commission Decision Not To Review an Order and an 
Initial Determination Terminating the Investigation Based on Withdrawal 
of the Complaint; Schedule for Filing an Appeal of a Sanctions Order; 
Stay of Enforcement of the Sanctions Order Pending Appeal to the 
Commission

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'') order (ALJ Order No. 40) denying the respondents' 
joint motion for sanctions and an initial determination (``ID'') (ALJ 
Order No. 49) terminating the above-captioned investigation. Notice is 
also hereby given that the Commission is setting a schedule for filing 
an appeal of the sanctions levied in ALJ Order No. 48.

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 based on a complaint filed by Verve, 
LLC (``Verve''), of Austin, Texas. 69 FR 53945 (September 3, 2004). The 
complainant 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 point of sale terminals and 
components thereof by reason of infringement of claims 1 and 2 of U.S. 
Patent No. 5,012,077. The complaint named Thales e-Transactions, Inc. 
of Atlanta, Georgia, Thales Group of Plaisir Cedex, France, CyberNet 
USA, Inc. of San Jose, California, CyberNet, Inc. of Seoul, Korea, 
Lipman USA, Inc. of Syosset, New York, Lipman Electronic Engineering, 
Ltd. of Rosh Haayin, Israel, Ingenico Corp. USA of Atlanta, Georgia, 
Ingenico of Puteaux Cedex, France, Trintech, Inc. of Addison, Texas, 
Trintech Group, PLC of Dublin, Ireland, Hypercom Corp. of Phoenix, 
Arizona and VeriFone, Inc. of Alpharetta, Georgia as respondents. Eight 
respondents remain in this investigation, as two respondents were 
terminated on summary determination of no violation and two respondents 
were terminated on the basis of a settlement agreement.
    On February 7, 2005, the ALJ issued Order No. 31 finding that Verve 
lacked sufficient standing by itself to maintain this investigation 
without joining Omron Tateisi Electronics Company (``Omron''). On 
February 11, 2005, Verve filed a motion for withdrawal of the complaint 
and termination of the investigation. On February 18, 2005, the 
remaining respondents filed a joint motion for sanctions for improper 
filing of the complaint, abuse of discovery and failure to make 
discovery, and attorneys' fees for the sanctionable conduct found to 
exist. Six of the remaining respondents also filed individual motions 
for sanctions. On March 10, 2005, Verve filed a joint response in 
opposition to all of the remaining respondents' motions for sanctions. 
On March 18, 2005, the Commission investigative attorney (``IA'') filed 
separate responses opposing the respondents'' motions for sanctions

[[Page 40731]]

while supporting sanctions by the ALJ sua sponte. On April 1, 2005, 
Verve filed a reply to the IA's response.
    On April 11, 2005, the ALJ issued Order No. 40 denying all of the 
respondents' motions for sanctions and ordering Verve to show cause why 
sanctions should not be imposed by the ALJ. On May 5, 2005, Verve filed 
a response to the show cause order. On May 16, 2005, the respondents 
filed a joint reply to Verve's response.
    On June 7, 2005, the ALJ issued Order No. 48 imposing, sua sponte, 
monetary sanctions on Verve, its principals, and its counsel. On June 
13, 2005, Verve filed a motion to stay the enforcement of Order No. 48, 
pending its appeal of the order to the Commission.
    Meanwhile, on June 8, 2005, the ALJ issued an ID (Order No. 49) 
granting Verve's motion for withdrawal of the complaint and termination 
of the investigation. On June 14, 2005, the respondents filed a joint 
petition for review of Order No. 40 and the ID. On June 21, 2005, the 
IA and Verve filed separate responses opposing the respondents' 
petition for review.
    Having examined Order No. 40, the ID, and the parties' submissions, 
the Commission determined not to review the order and the ID. The 
Commission also granted Verve's motion to stay enforcement of Order No. 
48, pending appeal to the Commission. Finally, the Commission 
determined to treat Order No. 48 and the ID as having been issued 
concurrently. Pursuant to Commission Rule 210.25(d), the Commission has 
set forth a briefing schedule for appeal of Order No. 48. Petitions for 
review of Order No. 48 must be filed no later than July 29, 2005. 
Responses to the petitions must be filed no later than August 12, 2005.
    The authority for the Commission's determinations are contained in 
section 337 of the Tariff Act of 1930, as amended 19 U.S.C. 1337, and 
in sections 210.42, 210.43, and 210.25(d) of the Commission's Rules of 
Practice and Procedure (19 CFR 210.42, 210.43, and 210.25(d)).

    By order of the Commission.

    Issued: July 8, 2005.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 05-13839 Filed 7-13-05; 8:45 am]
BILLING CODE 7020-02-P