[Federal Register Volume 78, Number 120 (Friday, June 21, 2013)]
[Notices]
[Pages 37569-37570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-14811]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-823]


Certain Kinesiotherapy Devices and Components Thereof Final 
Commission Determination of Violation; Issuance of a General Exclusion 
Order and Cease and Desist Orders; and Termination of the 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 terminated the above-captioned investigation with a 
finding of violation of section 337, and has issued a general exclusion 
order directed against infringing kinesiotherapy devices and components 
thereof, and cease and desist orders directed against respondents LELO 
Inc. of San Jose, California; PHE, Inc. d/b/a Adam & Eve of 
Hillsborough, North Carolina; Nalpac Enterprises, Ltd. of Ferndale, 
Michigan; E.T.C. Inc. (d/b/a Eldorado Trading Company, Inc.) of 
Broomfield, Colorado; Williams Trading Co., Inc. of Pennsauken, New 
Jersey; Honey's Place Inc. of San Fernando, California; and Lover's 
Lane & Co. of Plymouth, Michigan. The investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Michael K. Haldenstein, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone (202) 205-3041. 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: The Commission instituted this investigation 
on January 10, 2012, based on a complaint filed by Standard Innovation 
Corporation of Ottawa, ON, Canada and Standard Innovation (US) Corp. of 
Wilmington, Delaware (collectively, ``Standard Innovation''). 77 FR 
1504 (Jan. 10, 2012). The complaint alleged violations of section 337 
of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, by reason of 
infringement of certain claims of United States Patent Nos. 7,931,605 
(``the `605 patent'') and D605,779 (``the D'779 patent''). The 
complaint named twenty-one business entities as respondents, several of 
which have since been terminated from the investigation based upon 
consent orders or withdrawal of the complaint. On July 25, 2012, the 
Commission determined not to review an ID (Order No. 25) granting 
Standard Innovation's motion to withdraw the D'779 patent from the 
investigation.
    An evidentiary hearing was held from August 21, 2012, to August 24, 
2012. On January 8, 2013, the ALJ issued a final initial determination 
(``ID'') finding no violation of section 337. The ALJ also issued a 
recommended determination on remedy and bonding on January 22, 2013. 
Specifically, the ALJ found that Standard Innovation had not satisfied 
the economic prong of the domestic industry requirement of section 337. 
The ALJ found, however, that the accused products infringe the asserted 
claims, that the asserted claims were not shown to be invalid, and that 
the technical prong of the domestic industry requirement was shown to 
be satisfied.
    On January 22, 2013, Standard Innovation and the Commission 
investigative attorney (``IA'') filed petitions for review of the final 
ID. Also on January 22, 2013, the respondents remaining in the 
investigation filed a joint contingent petition for review. On January 
30, 2013, the parties filed responses to the petitions.
    On March 25, 2013, the Commission determined to review the ID in 
its entirety and posed four questions to the parties concerning the 
economic prong of the domestic industry requirement of section 337. The 
parties and the IA submitted briefs on April 8, 2013, and briefs in 
reply on April 15, 2013 concerning the Commission's questions and 
remedy, the public interest, and bonding. The Commission extended the 
target date to June 7, 2013 and then to June 17, 2013.
    Having examined the record in this investigation, including the ID, 
the petitions for review, and the submissions on review and responses 
thereto, the Commission has determined that Standard Innovation has 
satisfied the domestic industry requirement and that there is a 
violation of section 337 with respect to claims 1-7, 9-21, 23, 24, 33-
40, 42-54, 56, 57, 66-73, 75-87, 89, and 90 of the `605 patent.
    The Commission has also made its determination on the issues of 
remedy, the public interest, and bonding. The Commission has determined 
that the appropriate form of relief is both: (1) A general exclusion 
order prohibiting the unlicensed entry of kinesiotherapy devices and 
components thereof that infringe claims 1-7, 9-21, 23, 24, 33-40, 42-
54, 56, 57, 66-73, 75-87, 89, or 90 of the `605 patent; and (2) cease 
and desist orders prohibiting LELO Inc. of San Jose, California; PHE, 
Inc. d/b/a Adam & Eve of Hillsborough, North Carolina; Nalpac 
Enterprises, Ltd. of Ferndale, Michigan; E.T.C. Inc. (d/b/a Eldorado 
Trading Company, Inc.) of Broomfield, Colorado; Williams Trading Co., 
Inc. of Pennsauken, New Jersey; Honey's Place Inc. of San Fernando, 
California; and Lover's Lane & Co. of Plymouth, Michigan from 
conducting any of the following activities in the United States: 
importing, selling, marketing, advertising, distributing, offering for 
sale, transferring (except for exportation), and soliciting U.S. agents 
or distributors for, kinesiotherapy devices and components with respect 
to the same claims.
    The Commission further determined that the public interest factors

[[Page 37570]]

enumerated in section 337(d)(1) and (f)(1) (19 U.S.C. 1337(d)(1), 
(f)(1)) do not preclude issuance of the general exclusion order or the 
cease and desist orders. Finally, the Commission determined that there 
shall be a bond in the amount of zero percent of entered value to 
permit temporary importation during the period of Presidential review 
(19 U.S.C. 1337(j)). The Commission's orders 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 section 210.50 
of the Commission's Rules of Practice and Procedure (19 CFR 210.50).

    Issued: June 17, 2013.

    By order of the Commission.
William R. Bishop,
Supervisory Hearings and Information Officer.
[FR Doc. 2013-14811 Filed 6-20-13; 8:45 am]
BILLING CODE 7020-02-P