[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Notices]
[Pages 17689-17690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07321]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-977]


Certain Arrowheads With Deploying Blades and Components Thereof 
and Packaging Therefor; Final Commission Determination of Violation; 
Issuance of a General Exclusion Order and a Cease and Desist Order; 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 arrowheads with deploying blades and 
components thereof and packaging therefor, and a cease and desist order 
directed against respondent Shenzhen Zowaysoon Trading Company Ltd. 
(``Zowaysoon Trading'') of Shenzhen, China. The Commission has 
terminated the investigation.

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 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 22, 2015, based on a complaint filed on behalf of FeraDyne 
Outdoors LLC and Out RAGE LLC, both of Cartersville, Georgia. 80 FR 
79612-13. The complaint, as supplemented, alleged violations of section 
337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, based upon 
the importation into the United States, the sale for importation, and 
the sale within the United States after importation of certain 
arrowheads with deploying blades and components thereof and packaging 
therefor by reason of infringement of certain claims of U.S. Patent 
Nos. RE44,144 (``the '144 patent''); 6,517,454 (``the '454 patent''); 
8,758,176 (``the '176 patent''); 8,986,141 (``the '141 patent''); 
9,068,806 (``the '806 patent''); 7,771,298 (``the '298 patent''); 
D710,962 (``the D'962 patent''); D711,489 (``the D'489 patent''); and 
of U.S. Trademark Registration No. 4,812,058 (``the RAGE mark''). The 
complaint further alleged the existence of a domestic industry. The 
Commission's notice of investigation named the following nine 
respondents: Zowaysoon Trading; Linyi Junxing Sports Equipment Co., 
Ltd. (``Junxing Sports'') of Shandong, China; Ningbo Forever Best 
Import & Export Co., Ltd. (``Forever Best'') of Jiangsu, China; Ningbo 
Linkboy Outdoor Sports Co., Ltd. (``Linkboy Outdoor'') of Zhejiang, 
China; Xiamen Xinhongyou Industrial Trade Co. Ltd. (``Xinhongyou 
Industrial'') and Xiamen Zhongxinyuan Industry & Trade Ltd. 
(``Zhongxinyuan Industry''), both of Fujian, China; and Zhengzhou IRQ 
Trading Limited Company (``IRQ Trading'') and Zhengzhou Paiao Trade 
Co., Ltd. (``Paiao Trade''), both of Henan, China. The Office of Unfair 
Import Investigations (``OUII'') is also a party to the investigation.
    On April 28, 2016, complainants filed a motion for summary 
determination of a violation of section 337 pursuant to section 
337(g)(2) and Commission Rule 210.16(c)(2) to support its request for 
entry of a general exclusion order with respect to all asserted 
intellectual property. OUII filed a response in support of the motion.
    On May 10, 2016, the Commission issued notice of its determination 
not to review the ALJ's ID (Order No. 6) finding the following seven 
respondents in default: Junxing Sports, Forever Best, Linkboy Outdoor, 
Zowaysoon Trading, Zhongxinyuan Industry, IRQ Trading, and Paiao Trade. 
On June 23, 2016, the Commission issued notice of its determination not 
to review the ALJ's ID (Order No. 8) finding Xinhongyou Industrial in 
default. On June 28, 2016, the Commission issued notice of its 
determination not to review the ALJ's ID (Order No. 9) terminating the 
investigation as to (1) Faith Sports based on withdrawal of the 
complaint as to Faith Sports; and (2) claims 2-3, 5, and 8 of the '545 
patent; claims 5 and 10 of the '298 patent; claim 3 of the '176 patent; 
claim 8 of the '141 patent; and claim 3 of the '806 patent based on 
withdrawal of these patent claims against all named respondents.
    The ALJ issued the subject ID on August 22, 2016, granting 
complainants' motion for summary determination. The ALJ found that all 
eight defaulting respondents met the importation requirement and that 
complainants satisfied the domestic industry requirement. See 19 U.S.C. 
1337(a)(1)(B), (a)(2). The ID finds that a violation of section 337 has 
occurred based on its finding that each of the defaulting respondents' 
accused products infringe one or more of the asserted claims of the 
patents at issue and infringe the trademark at issue as established by 
substantial, reliable, and probative evidence in accordance with 
Commission Rule 210.16(c)(2). No petitions for review of the ID were 
filed. The ID also contained the ALJ's recommended determination on 
remedy and bonding. The ALJ recommended issuance of a general exclusion 
order with respect to the asserted intellectual property, but did not 
recommend issuance of cease and desist orders directed against the 
defaulting respondents.
    On October 6, 2016, the Commission issued notice of its 
determination to review in part the ALJ's ID. On review, the Commission 
(1) corrected typographical errors on pages 14, 18, and 24 of the ID; 
(2) modified page 8 of the ID; and (3) determined to take no position 
on the ID's finding that complainants satisfy the economic prong of the 
domestic industry

[[Page 17690]]

requirement under section 337(a)(3)(C) with respect to all asserted 
patents and the asserted trademark. See 81 FR 70702-04 (Oct. 13, 2016). 
The Commission determined not to review the remainder of the ID. The 
Commission also requested written submissions on the issues of remedy, 
the public interest, and bonding from the parties and interested non-
parties including specific questions directed to the parties regarding 
any request for cease and desist orders directed against one or more 
defaulting respondents. Id. On October 20 and 27, 2016, respectively, 
complainants and OUII each filed a brief and a reply brief regarding 
remedy, the public interest, and bonding.
    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 both: (1) A general exclusion order 
prohibiting the unlicensed entry of arrowheads with deploying blades 
and components thereof and packaging therefor that infringe one or more 
of: Claims 38, 42, 48, 68, and 75 of the '144 patent; claim 1 of the 
'454 patent; claim 1 the '176 patent; claim 1 the '141 patent; claim 1 
of the '806 patent; claim 1 of the '298 patent; the D'962 patent; the 
D'489 patent; and the RAGE mark; and (2) a cease and desist order 
prohibiting Zowaysoon Trading from conducting any of the following 
activities in the United States: Importing, selling, marketing 
(including via the internet or electronic mail), advertising (including 
via the internet or electronic mail), distributing, offering for sale 
(including via the internet or electronic mail), transferring (except 
for exportation), and soliciting U.S. agents or distributors for, 
arrowheads with deploying blades and components thereof and packaging 
therefor that infringe one or more of claims 38, 42, 48, 68, and 75 of 
the '144 patent; claim 1 of the '454 patent; claim 1 of the '298 
patent; and the RAGE mark. Chairman Schmidtlein and Commissioner Kieff 
disagree with the Commission's decision not to issue cease and desist 
orders against all of the defaulting respondents under section 
337(g)(1), and Chairman Schmidtlein has filed a dissenting opinion 
explaining her views.
    The Commission further determined that the public interest factors 
enumerated in sections 337(d)(1) and (g)(1) (19 U.S.C. 1337(d)(1), 
(g)(1)) do not preclude issuance of the general exclusion order or the 
cease and desist order. Finally, the Commission determined that there 
shall be a bond in the amount of 100 percent of the entered value of 
the covered products 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 the 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 part 210 of the Commission's Rules of Practice and Procedure, 19 CFR 
part 210.

    By order of the Commission.

    Issued: April 6, 2017.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2017-07321 Filed 4-11-17; 8:45 am]
 BILLING CODE 7020-02-P