[Federal Register Volume 78, Number 88 (Tuesday, May 7, 2013)]
[Notices]
[Pages 26653-26654]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-10739]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-791/826 (Consolidated)]


Certain Electric Fireplaces, Components Thereof, Manuals for 
Same, Certain Process for Manufacturing or Relating to Same and Certain 
Products Containing Same Issuance of a Limited Exclusion Order; 
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 determined to modify-in-part and reverse-in-part a final 
initial determination (``ID'') (Order No. 20) of the presiding 
administrative law judge (``ALJ'') finding the remaining respondents, 
Shenzhen Reliap Industrial Co. (``Reliap'') and Yue Qiu Sheng 
(``Yue''), both of Shenzhen, China, in default and in violation of 
section 337. The Commission has also determined to affirm Order No. 19 
denying Yue's motion for summary determination. The Commission has 
issued a limited exclusion order directed against covered products of 
Reliap and Yue.

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 Investigation No. 
337-TA-791 (``the 791 investigation'') on July 20, 2011, based on a 
complaint filed by Twin-Star International, Inc. of Delray Beach, 
Florida and TS Investment Holding Corp. of Miami, Florida 
(collectively, ``Twin-Star''). 76 FR 43345-46 (July 20, 2011). The 
Commission instituted Investigation No. 337-TA-826 on January 19, 2012, 
based on another complaint filed by Twin-Star, and consolidated it with 
the 791 investigation. 77 FR 2757-58 (Jan. 19, 2012). The complaints 
allege a violation 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 electric fireplaces, components thereof, manuals 
for same, certain processes for manufacturing or relating to same and 
certain products containing same by reason of infringement of U.S. 
Copyright Nos. TX0007350474; TX0007350476; VA0001772660; and 
VA0001772661; and by reason of misappropriation of trade secrets, 
breach of contract, and tortious inference with contract, the threat or 
effect of which is to destroy or substantially injure an industry in 
the United States.
    The Commission's notice of investigation named Reliap, Yue, and 
Whalen Furniture Manufacturing, Inc. (``Whalen'') of San Diego, 
California as respondents. On July 3, 2012, the Commission issued 
notice of its determination not to review the ALJ's ID terminating the 
investigation as to Whalen based on a consent order and settlement 
agreement.
    On June 20, 2012, Twin-Star moved for an ID finding the remaining 
respondents, Reliap and Yue, in default and in violation of section 337 
pursuant to Commission Rule 210.17, 19 CFR 210.17. The Commission 
investigative attorney filed a response in support of the motion.
    On July 13, 2012, the ALJ granted Twin-Star's motion and issued the 
final ID in this investigation finding the remaining respondents in 
default and in violation of section 337 pursuant to 19 CFR 210.17 for 
failure to participate in the investigation following withdrawal of 
their counsel on March 12, 2012. The ID also contained the ALJ's 
recommended determination on remedy. Specifically, the ALJ recommended 
issuance of a limited exclusion order with respect to the covered 
products of the defaulting respondents.
    Also on July 13, 2012, the ALJ issued Order No. 19, denying a 
motion filed by Yue on December 11, 2011, for summary determination 
that Twin-Star's breach of contract claim is outside the scope of the 
investigation. On July 20, 2012, the Commission investigative attorney 
(``IA'') petitioned for review of Order No. 19 and the ALJ's final ID. 
Twin-Star filed a response in opposition on July 30, 2012.
    On September 14, 2012, the Commission determined to review Order 
No. 19 and to review-in-part the final ID to the extent that it finds a 
violation of section 337 based on the breach of contract allegation. 
The determinations made in the final ID that were not reviewed became 
final determinations of the Commission by operation of rule. See 19 
U.S.C. 210.42(h).
    The Commission requested briefing from the parties and interested 
non-parties regarding a question concerning the issue under review and 
on the issues of remedy, the public interest, and

[[Page 26654]]

bonding. 77 FR 58407-09 (Sept. 20, 2012).
    On October 12, 2012, Twin-Star and the IA each filed a brief on the 
issues for which the Commission requested written submissions. The 
International Trade Commission Trial Lawyers Association filed a brief 
concerning the issue under review on the same date. The IA filed a 
reply brief on November 9, 2012.
    Having reviewed the record in this investigation, including the 
final ID, Order No. 19, and the parties' written submissions, the 
Commission has determined to modify-in-part and reverse-in-part the 
final ID as follows: (1) Vacating as moot the final ID to the extent 
that it finds a violation of section 337 based on the breach of 
contract and tortious interference with contract allegations with 
respect to the non-competition and non-solicitation provisions of the 
asserted contract; and (2) reversing the final ID to the extent it 
finds a violation based on the non-disclosure provision of the asserted 
contract. The Commission also affirms Order No. 19.
    The Commission has made its determination on the issues of remedy, 
the public interest, and bonding. The Commission has determined that 
the appropriate form of relief is a limited exclusion order prohibiting 
the unlicensed entry for consumption of electric fireplaces, components 
thereof, manuals for same, and products containing same that are 
manufactured abroad by or for, or imported by or for, Yue or Reliap, or 
any of their affiliated companies, parents, subsidiaries, licensees, 
contractors, or other related business entities, or successors or 
assigns: (1) Using misappropriated trade secrets asserted in this 
investigation; and/or (2) that infringe one or more of U.S. Copyright 
Nos. TX0007350474, TX0007350476, VA0001772660, or VA0001772661.
    The Commission determined that the public interest factors 
enumerated in section 337(d)(1) (19 U.S.C. 1337(d)(1)) do not preclude 
issuance of the limited exclusion order. Finally, the Commission 
determined that a bond in the amount of 145 percent of the entered 
value of the covered products that are entered for consumption is 
required to permit temporary importation during the period of 
Presidential review (19 U.S.C. 1337(j)). The Commission's order and 
opinion were delivered to the President and to the United States Trade 
Representative on the day of their issuance.
    The Commission has terminated this investigation. 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 
210.17, 210.42, 210.45, and 210.50 of the Commission's Rules of 
Practice and Procedure (19 CFR 210.17, 210.42, 210.45, 210.50).

    By order of the Commission.

    Issued: May 1, 2013.
Lisa R. Barton,
Acting Secretary to the Commission.
[FR Doc. 2013-10739 Filed 5-6-13; 8:45 am]
BILLING CODE 7020-02-P