[Federal Register Volume 82, Number 116 (Monday, June 19, 2017)]
[Notices]
[Pages 27871-27872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12689]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1008]


Certain Carbon Spine Board, Cervical Collar, CPR Masks and 
Various Medical Training Manikin Devices, and Trademarks, Copyrights of 
Product Catalogues, Product Inserts and Components Thereof; Issuance of 
a Limited Exclusion Order Against Three Respondents Found in Default; 
Issuance of a Cease and Desist Order; 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 issued a limited exclusion order (``LEO'') against 
certain products of Medsource International Co., Ltd.; Medsource 
Factory, Inc.; and Basic Medical Supply, LLC. The Commission has also 
issued a cease and desist order (``CDO'') against respondent Basic 
Medical Supply, LLC. The investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Robert Needham, Office of the General 
Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone (202) 708-5468. 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 (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 June 24, 2016, based on an amended complaint, as supplemented, filed 
by Laerdal Medical Corp. of Wappingers Falls, New York, and Laerdal 
Medical AS of Stavanger, Norway (together, ``Laerdal''). 81 FR 41349-
50. The investigation was instituted to determine whether there is a 
violation of section 337 of the Tariff Act of 1930, as amended, 19 
U.S.C. 1337 (``section 337''), in the importation into the United 
States, the sale for importation, and the sale within the United States 
after importation of certain carbon spine board, cervical collar, CPR 
masks, various medical training manikin devices, trademarks, copyrights 
of product catalogues and products inserts, and components thereof by 
reason of one or more of: (1) Infringement of claim 1 of U.S. Patent 
No. 6,090,058 (``the '058 patent''); (2) infringement of U.S. Trademark 
Registration No. 3,476,656 (``the '656 mark''); (3) infringement of 
U.S. Copyright Registration Nos. VA 1-879-023 or VA 1-879-026 (``the 
'023 and '026 copyrights''); and (4) infringement and misappropriation 
of certain Laerdal trade dresses. Id. at 41349. The Commission's notice 
of investigation named as respondents Shanghai Evenk International 
Trading Co., Ltd., Shanghai Honglian Medical Instrument Development 
Co., Ltd., and Shanghai Jolly Medical Education Co., Ltd., all of 
Shanghai, China; Zhangjiagang Xiehe Medical Apparatus & Instruments 
Co., Ltd., Zhangjiagang New Fellow Med Co., Ltd., Jiangsu Yongxin 
Medical Equipment Co., Ltd., and Jiangsu Yongxin Medical-Use Facilities 
Making, Co., Ltd, all of Zhangjiagang City, China; Jiangyin Everise 
Medical Devices Co., Ltd., of Jiangyin City, China; Medsource 
International Co., Ltd. (``Medsource International'') and Medsource 
Factory, Inc. (``Medsource Factory''), both of PuDong, China; and Basic 
Medical Supply, LLC (``Basic Medical'') of Richmond, Texas 
(collectively, ``Respondents''). Id. at 41350. The Office of Unfair 
Import Investigations (``OUII'') was also named as a party. Id.
    On November 7, 2016, the presiding administrative law judge 
(``ALJ'') ordered all of the respondents to show cause why they should 
not be held in default for failing to respond to the amended complaint 
and Notice of Investigation, and set a response deadline of November 
14, 2016. Order No. 5. No responses were filed. On November 21, 2016, 
the ALJ issued an initial determination (Order No. 6) finding all 
respondents in default pursuant to Commission Rules 210.16 and 210.17. 
No petitions for review of the ID were filed. On December 20, 2016, the 
Commission determined not review the ID, and sought submission from the 
parties and the public on remedy, the public interest, and bonding.
    The Commission received responsive submissions from Laerdal and 
OUII on January 5, 2017, and reply submissions from Laerdal and OUII on 
January 10, 2017. The submissions agreed that the appropriate remedy is 
the entry of a

[[Page 27872]]

limited exclusion order against all respondents and the entry of a 
cease and desist order against Basic Medical, that the public interest 
factors do not weigh against granting these remedial orders, and that 
bonding should be set at 100 percent of the entered value of the 
infringing products.
    The Commission finds that the statutory requirements of section 
337(g)(1) (19 U.S.C. 1337(g)(1)) and Commission Rule 210.16(a)(1) (19 
CFR 210.16(a)(1)) are met with respect to all respondents. Pursuant to 
section 337(g)(1) (19 U.S.C. 1337(g)(1)) and Commission Rule 210.16(c) 
(19 CFR 210.16(c)), the Commission presumes the facts alleged in the 
complaint to be true. The Commission finds that Laerdal's amended 
complaint sufficiently alleged a violation of section 337 by Medsource 
International, Medsource Factory, and Basic Medical with respect to 
claim 1 of the '058 patent and the '656 mark. The Commission, however, 
finds that even when the factual allegations of Laerdal's amended 
complaint are presumed true, Laerdal has not shown a violation of 
section 337 with respect to the '023 copyright, the '026 copyright, the 
trade dresses, or any of the other respondents.
    The Commission has determined that the appropriate form of relief 
in this investigation is: (a) A limited exclusion order against 
Medsource International, Medsource Factory, and Basic Medical 
prohibiting the unlicensed entry of cervical collars that infringe 
claim 1 of the '058 patent and CPR masks that infringe the '656 mark; 
and (b) an order that Basic Medical cease and desist from importing, 
selling, offering for sale, marketing, advertising, distributing, 
offering for sale, transferring (except for exportation), or soliciting 
U.S. agents or distributors of imported cervical collars that infringe 
claim 1 of the '058 patent and CPR masks that infringe the '656 mark. 
The Commission has further determined that the public interest factors 
enumerated in section 337(g)(1) (19 U.S.C. 1337(g)(1)) do not preclude 
the issuance of the limited exclusion order and cease and desist order. 
Finally, the Commission has determined that the bond for importation 
during the period of Presidential review shall be in the amount of 100 
percent of the entered value of the imported subject articles of the 
respondents. The investigation is terminated.
    The Commission's orders and opinion were delivered to the President 
and the United States Trade Representative on the day of their 
issuance.
    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: June 14, 2017.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2017-12689 Filed 6-16-17; 8:45 am]
 BILLING CODE 7020-02-P