[Federal Register Volume 76, Number 110 (Wednesday, June 8, 2011)]
[Notices]
[Pages 33362-33363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14077]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-763]


In the Matter of Certain Radio Control Hobby Transmitters and 
Receivers and Products Containing Same; Notice of a Commission 
Determination Not To Review Initial Determinations Finding Both 
Respondents in Default and Terminating the Investigation; 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 initial determinations 
(``IDs'') (Order Nos. 6, 7) of the presiding administrative law judge 
(``ALJ'') finding both respondents in the above-captioned 
investigation, Koko Technology, Ltd. (``Koko'') and Cyclone Toy & Hobby 
(``Cyclone'') of China, in default, and terminating the investigation. 
The Commission is also requesting briefing on remedy, the public 
interest, and bonding.

FOR FURTHER INFORMATION CONTACT: Clint Gerdine, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
SW., Washington, DC 20436, telephone (202) 708-2310. 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 at 
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: The Commission instituted this investigation 
on March 9, 2011, based on a complaint filed by Horizon Hobby, Inc. 
(``Horizon'') of Champaign, Illinois. 76 FR 12995-96 (March 9, 2011). 
The complaint, as amended, alleges violations of section 337 of the 
Tariff Act of 1930, as amended, 19 U.S.C. 1337, in the importation into 
the United States, the sale for importation, and the sale within the 
United States after importation of certain radio control hobby 
transmitters and receivers and products containing same by reason of 
infringement of certain claims of U.S. Patent No. 7,391,320, U.S. 
Copyright Reg. No. TX-7-226-001, and U.S. Trademark Reg. No. 3,080,770. 
The complaint further alleges the existence of a domestic industry. The 
Commission's notice of investigation named Koko and Cyclone as the only 
respondents. The complaint and notice of investigation were served on 
respondents on March 3, 2011. No responses were received.
    On April 11, 2011, Horizon moved, pursuant to 19 CFR 210.16, for 
the following: (1) An order directing respondents Koko and Cyclone to 
show cause why they should not be found in default for failure to 
respond to the complaint and notice of investigation as required by 
Sec.  210.13; and (2) the issuance of an ID finding Koko and Cyclone in 
default upon their failure to show cause. Koko and Cyclone did not 
respond to the motion.
    On April 22, 2011, the ALJ issued Order No. 5 which required Koko 
and Cyclone to show cause no later than May 12, 2011, as to why they 
should not be held in default and judgment rendered against them 
pursuant to Sec.  210.16. No response was received from

[[Page 33363]]

either Koko or Cyclone to the show cause order.
    The ALJ issued Order No. 6 on May 16, 2011, finding both Koko and 
Cyclone in default, pursuant to Sec.  210.13, 210.16, because neither 
respondent responded to the complaint and notice of investigation, or 
to Order No. 5 to show cause. On May 17, 2011, the ALJ issued Order No. 
7 terminating the investigation because Koko and Cyclone are the only 
respondents in the investigation. No party petitioned for review of the 
IDs pursuant to 19 CFR 210.43(a), and the Commission found no basis for 
ordering a review on its own initiative pursuant to 19 CFR 210.44. The 
Commission has determined not to review the IDs.
    Section 337(g)(1) (19 U.S.C. 1337(g)(1)) and Commission Rule 
210.16(c) (19 CFR 210.16(c)) authorize the Commission to order limited 
relief against a respondent found in default, unless after 
consideration of the public interest factors in Section 337(g)(1)(E), 
it finds that such relief should not issue. The Commission may (1) 
issue an order that could result in the exclusion of the subject 
articles from entry into the United States, and/or (2) issue one or 
more cease and desist orders that could result in the respondent being 
required to cease and desist from engaging in unfair acts in the 
importation and sale of such articles. 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 
are either adversely affecting it or 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).
    If 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 order 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 U.S. Trade 
Representative, as delegated by the President, has 60 days to approve 
or disapprove the Commission's action. See Presidential Memorandum of 
July 21, 2005, 70 FR 43251 (July 26, 2005). During this period, the 
subject articles may be entitled to enter the United States under bond, 
in an amount determined by the Commission and prescribed by the 
Secretary of the Treasury. The Commission is therefore interested in 
receiving submissions concerning the amount of the bond that should be 
imposed if a remedy is ordered.
    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. The Commission requests submitters to file a response to 
the following question:

    Does section 337(j)(3) (19 U.S.C. 1337(j)(3)) or any other 
statutory authority authorize the Commission to permit default 
respondents subject to an exclusion order under section 337(g)(1) to 
import infringing products under bond during the sixty (60) day 
Presidential period of review? Please cite any relevant statutory 
language and legislative history.

Complainant and the Commission investigative attorney are requested to 
submit proposed remedial orders for the Commission's consideration. 
Complainant is requested to state the date that the patent at issue 
expires and the HTSUS numbers under which the accused products are 
imported. The written submissions and proposed remedial orders must be 
filed no later than close of business on June 24, 2011. Reply 
submissions must be filed no later than the close of business on July 
1, 2011. 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 19 CFR 210.6. Documents for which confidential treatment 
by the Commission is sought will be treated accordingly. All 
nonconfidential 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 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
in sections 210.16, 210.42(h), and 210.50 of the Commission's Rules of 
Practice and Procedure (19 CFR 210.16, 210.42(h), and 210.50).

    By order of the Commission.

    Issued: June 3, 2011.
James R. Holbein,
Secretary to the Commission.
[FR Doc. 2011-14077 Filed 6-7-11; 8:45 am]
BILLING CODE 7020-02-P