[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Notices]
[Pages 95195-95196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31085]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-976]


Certain Woven Textile Fabrics and Products Containing Same; 
Commission Determination Not To Review an Initial Determination Finding 
a Violation of Section 337; 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 the initial determination 
(``ID'') (Order No. 21) issued by the presiding administrative law 
judge (``ALJ'') on November 10, 2016, granting summary determination 
that one defaulting respondent has violated section 337 of the Tariff 
Act of 1930, as amended. The Commission requests written submissions, 
under the schedule set forth below, on remedy, the public interest, and 
bonding.

FOR FURTHER INFORMATION CONTACT: Sidney A. Rosenzweig, Esq., Office of 
the General Counsel, U.S. International Trade Commission, 500 E Street 
SW., Washington, DC 20436, telephone (202) 708-2532. 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 https://www.usitc.gov. The public record for this investigation may be viewed 
on the Commission's electronic docket (EDIS) at https://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 December 18, 2015, based on a supplemented and twice-amended 
complaint filed by AAVN, Inc. of Richardson, Texas (``AAVN''). 80 FR 
79094 (December 18, 2015). The complaint alleged 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, or the 
sale within the United States after importation of certain woven 
textile fabrics and products containing same, by reason of infringement 
of claims 1-7 of U.S. Patent No. 9,131,790 (``the '790 patent'') and/or 
by reason of false advertising. The notice of investigation named 
fifteen respondents. In the course of the investigation, fourteen of 
the respondents were terminated from the investigation based upon 
settlement agreement or consent order. Remaining is Pradip Overseas 
Ltd. of Ahmedabad, India (``Pradip'').
    In the complaint, AAVN accused Pradip of false advertising, 
specifically alleging that Pradip misrepresented the thread count of 
sheets manufactured in India, imported into the United Sates, and sold 
in United States department stores. Second Am. Compl. ]] 39-41, 80 
(Nov. 12, 2015); id. at Ex. 46 (``800 Thread Count'' sheets measured at 
252.7 threads). Pradip expressly defaulted. In particular, although 
Pradip responded to the complaint, Pradip later terminated its 
relationship with its attorneys and represented that it would not 
participate in the remainder of the investigation. See Order No. 14 at 
1 (Apr. 19, 2016).
    On September 2, 2016, AAVN moved for leave to file a summary 
determination motion. The summary determination motion that was 
appended argued, inter alia, that Pradip had violated section 337 by 
falsely advertising the thread count of its imported sheets, that the 
false advertising was deceptive, material, and injurious to AAVN. AAVN 
sought a general exclusion order and 100 percent bond during the 
Presidential review period. See 19 U.S.C. 1337(d)(2), (j)(3). On 
September 15, 2016, the Commission investigative attorney responded in 
support of the motion for leave and the accompanying summary 
determination motion including its proposed relief.
    On November 10, 2016, the ALJ granted the motion for summary 
determination as the subject ID (Order No. 21). The ALJ found that AAVN 
had shown a violation of section 337 by reason of false advertising 
under section 43 of the Lanham Act, 15 U.S.C. 1125(a)(1)(B). Order No. 
21 at 7-9, 13-15. As to remedy, citing 19 U.S.C. 1337(d)(2), which sets 
forth the test for issuance of a general exclusion order, id. at 16, 
the ALJ found that ``the evidence shows a widespread pattern of 
violation of Section 337,'' id. at 17. The ALJ also found that ``the 
evidence shows that it is difficult to identify the source and 
manufacturers of the falsely advertised products,'' because ``U.S. 
retailers fail to identify the manufacturer, importer or seller of the 
textile products at the point of sale.'' Id. at 18. Nor do import 
records ``reveal the names of the original manufacturers of the 
materials used to construct the imported products.'' Id. Accordingly, 
the ALJ found ``that the evidence shows that it is difficult, if not 
impossible, to identify the sources of the falsely advertised goods.'' 
Id. Based on these findings the ALJ recommended the issuance of a 
general exclusion order. Id. In the alternative, the ALJ recommended 
the issuance of a limited exclusion order. Id. at 19. The ALJ 
recommended that bond be set at 100 percent of the entered value of the 
falsely advertised products. Id.
    No petitions for review of the ID were filed. The Commission has 
determined not to review the ID.
    In connection with the final disposition of this investigation, 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(s) 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

[[Page 95196]]

purposes other than entry for consumption, the party should so indicate 
and provide information establishing that activities involving other 
types of entry either are adversely affecting it or likely to do so. 
For background, see 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 orders 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 would 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: 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. Complainant and the IA are also requested to submit 
proposed remedial orders for the Commission's consideration. 
Complainant is further requested to state the HTSUS subheadings under 
which the accused products are imported, and provide identification 
information for all known importers of the subject articles.
    Written submissions and proposed remedial orders must be filed no 
later than close of business on January 6, 2017. Reply submissions, if 
any, must be filed no later than the close of business on January 13, 
2017. Such submissions should address the ALJ's recommended 
determinations on remedy and bonding which were made in Order No. 21. 
No further submissions on any of these issues will be permitted unless 
otherwise ordered by the Commission.
    Persons filing written submissions must file the original document 
electronically on or before the deadlines stated above and submit 8 
true paper copies to the Office of the Secretary by noon the next day 
pursuant to section 210.4(f) of the Commission's Rules of Practice and 
Procedure (19 CFR 210.4(f)). Submissions should refer to the 
investigation number (``Inv. No. 337-TA 976'') in a prominent place on 
the cover page and/or the first page. (See Handbook for Electronic 
Filing Procedures, https://www.usitc.gov/secretary/fed_reg_notices/rules/handbook_on_electronic_filing.pdf). Persons with questions 
regarding filing should contact the Secretary ((202) 205-2000).
    Any person desiring to submit a document to the Commission in 
confidence must request confidential treatment. All such requests 
should be directed to the Secretary to the Commission and must include 
a full statement of the reasons why the Commission should grant such 
treatment. See 19 CFR 201.6. Documents for which confidential treatment 
by the Commission is properly sought will be treated accordingly. All 
information, including confidential business information and documents 
for which confidential treatment is properly sought, submitted to the 
Commission for purposes of this Investigation may be disclosed to and 
used: (i) By the Commission, its employees and Offices, and contract 
personnel (a) for developing or maintaining the records of this or a 
related proceeding, or (b) in internal investigations, audits, reviews, 
and evaluations relating to the programs, personnel, and operations of 
the Commission including under 5 U.S.C. appendix 3; or (ii) by U.S. 
government employees and contract personnel, solely for cybersecurity 
purposes (all contract personnel will sign appropriate nondisclosure 
agreements). All nonconfidential written submissions will be available 
for public inspection at the Office of the Secretary and on EDIS.
    The authority for the Commission's determinations is contained in 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
in Part 210 of the Commission's Rules of Practice and Procedure (19 CFR 
part 210).

    By order of the Commission.

    Issued: December 20, 2016.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2016-31085 Filed 12-23-16; 8:45 am]
 BILLING CODE 7020-02-P