[Federal Register Volume 76, Number 234 (Tuesday, December 6, 2011)]
[Notices]
[Pages 76181-76182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-31257]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-718]


Certain Electronic Paper Towel Dispensing Devices and Components 
Thereof; Issuance of General Exclusion Order and Cease and Desist 
Orders; Termination of Investigation

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 issued a general exclusion order and cease and desist 
orders in the above-captioned investigation under section 337 of the 
Tariff Act of 1930, as amended, 19 U.S.C. 337 (``section 337''), and 
has terminated the investigation.

FOR FURTHER INFORMATION CONTACT: James A. Worth, Office of the General 
Counsel, U.S. International Trade

[[Page 76182]]

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 investigation was instituted on May 21, 
2010, based upon a complaint filed on behalf of Georgia-Pacific 
Consumer Products LP of Atlanta, Georgia (``Georgia-Pacific'') on April 
19, 2010, and supplemented on May 10, 2010. 75 FR 28652 (May 21, 2010). 
The complaint alleged violations of Section 337 of the Tariff Act of 
1930 (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 electronic paper towel dispensing devices and 
components thereof by reason of infringement of certain claims of U.S. 
Patent Nos. 6,871,815 (``the '815 patent''); 7,017,856 (``the '856 
patent''); 7,182,289 (``the '289 patent''); and 7,387,274 (``the '274 
patent''). The complainant named as respondents Kruger Products LP of 
Mississauga, Canada; KTG USA LP of Memphis, Tennessee (``KTG USA''); 
Stefco Industries, Inc. of Haines City, Florida (``Stefco''); Cellynne 
Corporation of Haines City, Florida (``Cellynne''); Draco Hygienic 
Products Inc. of Ontario, California; NetPak Electronic Plastic and 
Cosmetic, Inc., d/b/a/Open for Business of Chicago, Illinois (``NetPak 
Chicago''); NetPak Electronik Plastik ve Kozmetik Sanayi, Ve Ticaret 
Ltd of Izmir, Turkey (``NetPak Turkey''); Paradigm Marketing 
Consortium, Inc. of Syosset, New York; United Sourcing Network Corp. of 
Syosset, New York; New Choice (H.K.) Ltd. of Shatin, Hong Kong; and 
Vida International Inc. of Taipei, Taiwan.
    On August 16, 2010, the Commission issued notice of its 
determination not to review an ID amending the complaint and notice of 
investigation: (1) To correct the corporate name of NetPak Chicago; (2) 
to redefine ``Kruger'' to ``Kruger Products and/or KTG USA''; (3) to 
indicate that Georgia-Pacific no longer alleges that NetPak Turkey is 
the source of Stefco's and Cellynne's accused product; (4) to add new 
respondents Jet Power International Limited; Winco Industries Co.; DWL 
Industries Co.; Ko-Am Corporation Inc. d/b/a Janitor's World; Natury, 
S.A. De C.V.; Franklin Financial Management, Inc. d/b/a Update 
International; and Alliance in Manufacturing LLC.
    Two respondents, Stefco and Cellynne, did not respond to the 
complaint and notice of investigation, and a third respondent, NetPak 
Turkey, did not participate in discovery. On October 12, 2010, the ALJ 
issued an order to show cause why Stefco and Cellynne should not be 
found in default, and on November 2, 2010, issued an order to show 
cause why NetPak Turkey should not be found in default. On December 30, 
2010, the ALJ issued an ID (Order No. 28) finding Stefco, Cellynne, and 
NetPak Turkey in default. On January 16, 2011, the Commission 
determined not to review this order. The other respondents to the 
investigation were terminated by consent order.
    On July 12, 2011, the ALJ issued an ID, Order No. 36, finding 
substantial, reliable, and probative evidence that the Stefco, 
Cellynne, and Netpak Turkey violated section 337 based on the 
importation, sale for importation, and/or sale after importation into 
the United States of electronic paper towel dispensing devices that 
infringe the asserted patent claims. The ALJ issued a recommended 
determination with the ID. The ALJ recommended that the Commission 
issue a general exclusion order and cease and desist orders, finding 
that such orders would not be contrary to the public interest, and 
recommended that the bond for importation during the presidential 
review period be set at 100 percent of the entered value of the 
infringing products for respondents and no bond be set for 
nonrespondents. On August 19, 2011, the Commission issued notice of its 
determination not to review the ID, and solicited submissions on 
remedy, the public interest, and bonding. 76 FR 53154 (Aug. 25, 2011). 
Georgia-Pacific and the Commission investigative attorney filed 
submissions and reply submissions with respect thereto.
    After reviewing the relevant portions of the record, the Commission 
has determined to issue a general exclusion order with respect to 
claims 4-7 of the '815 patent, claims 8-22 of the '856 patent, claims 
1-3 of the '289 patent, and claims 4-22 of the '274 patent, and cease 
and desist orders against Stefco and Cellynne with respect to the same 
claims. In this connection, the Commission has determined to set a bond 
of 100 percent of entered value during the period of Presidential 
review. The investigation is terminated.
    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 
Part 210 of the Commission's Rules of Practice and Procedure (19 CFR 
part 210).


    By order of the Commission.
     Issued: December 1, 2011.
James R. Holbein,
Secretary to the Commission.
[FR Doc. 2011-31257 Filed 12-5-11; 8:45 am]
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