[Federal Register Volume 83, Number 57 (Friday, March 23, 2018)]
[Notices]
[Pages 12812-12814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05906]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1056]


Certain Collapsible Sockets for Mobile Electronic Devices and 
Components Thereof; Commission Determination To Review an Initial 
Determination in Part; Schedule for Filing Written Submissions on the 
Issues Under Review and 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 to review-in-part the presiding 
administrative law judge's initial determination (Order No. 11) 
granting summary determination that the defaulting respondents have 
violated section 337 in the above-captioned investigation. The 
Commission requests certain briefing from the parties on the issues 
under review, as indicated in this notice. The Commission also requests 
briefing from the parties and interested persons on the issues of 
remedy, the public interest, and bonding.

FOR FURTHER INFORMATION CONTACT: Lucy Grace D. Noyola, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone 202-205-3438. 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 May 15, 2017, based on a complaint filed on behalf of PopSockets LLC 
of Boulder, Colorado (``PopSockets'' or ``Complainant''). 82 FR 22348-
49 (May 15, 2017). The complaint alleges 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 collapsible 
sockets for mobile electronic devices and components thereof by reason 
of infringement of U.S. Patent No. 8,560,031 (``the '031 patent''). Id. 
The notice of investigation named as respondents Agomax Group Ltd. of 
Kowloon, Hong Kong; Hangzhou Hangkai Technology Co., Ltd. of Zhejiang, 
China; Yiwu Wentou Import & Export Co., Ltd. of Zhejiang, China; 
Shenzhen Enruize Technology Co., Ltd. of Shenzhen, China; and Guangzhou 
Xi Xun Electronics Co., Ltd.; Shenzhen Chuanghui Industry Co., Ltd. of 
Guangdong, China; Shenzhen VVI Electronic Limited; Shenzhen Yright 
Technology Co., Ltd.; Shenzhen Kinsen Technology Co., Limited; Shenzhen 
Showerstar Industrial Co., Ltd.; Shenzhen Lamye Technology Co., Ltd.; 
Jiangmen Besnovo Electronics Co., Ltd.; Shenzhen Belking Electronic 
Co., Ltd.; Shenzhen CEX Electronic Co., Limited, all of Guangdong, 
China. Id. The Office of Unfair Import Investigations (``OUII'') also 
was named as a party in the investigation.
    On August 22, 2017, the Commission found the following thirteen 
respondents in default: Agomax Group Ltd.; Yiwu Wentou Import & Export 
Co., Ltd.; Hangzhou Hangkai Technology Co., Ltd.; Shenzhen Enruize 
Technology Co., Ltd.; Guangzhou Xi Xun Electronics Co., Ltd.; Shenzhen 
VVI Electronic Limited; Shenzhen Yright Technology Co., Ltd.; Shenzhen 
Kinsen Technology Co., Limited; Shenzhen Showerstar Industrial Co., 
Ltd.; Shenzhen Lamye Technology Co., Ltd.; Jiangmen Besnovo Electronics 
Co., Ltd.; Shenzhen Belking Electronic Co., Ltd.; and Shenzhen CEX 
Electronic Co., Limited (collectively, ``defaulting respondents''). 
Notice (Aug. 22, 2017) (determining not to review Order No. 9 (Aug. 4, 
2017)).
    On September 18, 2017, the Commission terminated Shenzhen Chuanghui 
Industry Co., Ltd. based on withdrawal of the complaint as to that 
respondent. Notice (Sept. 18, 2017) (determining not to review Order 
No. 10 (Aug. 28, 2017)).
    On August 8, 2017, PopSockets filed a motion for summary 
determination that (1) the defaulting respondents have sold for 
importation into the United States, imported into the United States, or 
sold after importation certain collapsible sockets for mobile 
electronic devices and components thereof that allegedly infringe 
certain claims of the '031 patent in violation of section 337; (2) the 
accused products infringe the asserted claims of the '031 patent; and 
(3) a domestic industry with respect to the '031 patent exists. The 
motion also requested a recommendation for entry of a general exclusion 
order and a bonding requirement pending Presidential review. On August 
31, 2017, OUII filed a response supporting the motion in substantial 
part and supporting the requested remedy of a general exclusion order.
    On February 1, 2018, the administrative law judge (``ALJ'') issued 
an initial determination (``ID'') (Order No. 11), granting PopSockets' 
motion for summary determination of a section 337 violation. The ID 
found that the defaulting respondents' accused products infringe one or 
more of claims 9-12 of the '031 patent, but found no infringement of 
claims 16 and 17 of the '031 patent. The ID found that the defaulting 
respondents' accused products have been imported into the United States 
and that a domestic

[[Page 12813]]

industry exists in the United States with respect to the '031 patent. 
The ALJ also issued a Recommended Determination on Remedy and Bonding, 
recommending that, if the Commission finds a section 337 violation, the 
Commission issue a general exclusion order and impose a bond of 100 
percent during the period of Presidential review. No petitions for 
review of the ID were filed.
    Having examined the record of this investigation, including the ID, 
the Commission has determined to review in part the ALJ's determination 
of a section 337 violation. Specifically, the Commission has determined 
to review (1) the ID's findings on the technical prong of the domestic 
industry requirement to correct a typographical error, namely, to 
modify a citation to ``Mem. Ex. 2 (Kemnitzer Decl.) at ] 77 
(Infringement Analysis and Chart)'' at page 107 of the ID to ``Mem. Ex. 
2 (Kemnitzer Decl.) at ] 61 (Analysis and Chart)'' and (2) the ID's 
findings on the economic prong of the domestic industry requirement. 
The Commission has determined not to review the remaining issues 
decided in the ID.
    In connection with its review, the Commission requests responses to 
the following questions. The parties are requested to brief their 
positions with reference to the applicable law and the record.
    1. Please describe the nature and significance of PopSockets' 
alleged domestic industry investments, i.e., in the context of 
PopSockets' operations, marketplace, or industry, and whether 
PopSockets' activities have a direct bearing on the practice of the 
'031 patent. As part of your response, please describe in detail 
PopSockets' activities in engineering, research, development, 
operations, marketing, sales, service, and assembly and what amount or 
portion of the total alleged investment under each of 19 U.S.C. 
1337(a)(3)(A), (B), and (C) is allocable to each activity.
    2. Please provide a basis for crediting any investments that 
occurred after the filing date of the complaint towards the domestic 
industry requirement.
    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 a cease and desist order that could result in the respondent 
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 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 
(Dec. 1994), Comm'n Opinion. In particular, the written submissions 
should address any request for a cease and desist order in the context 
of recent Commission opinions, including those in Certain Arrowheads 
with Deploying Blades and Components Thereof and Packaging Therefor, 
Inv. No. 337-TA-977, Comm'n Op. (Apr. 28, 2017) and Certain Electric 
Skin Care Devices, Brushes and Chargers Therefor, and Kits Containing 
the Same, Inv. No. 337-TA-959, Comm'n Op. (Feb. 13, 2017). 
Specifically, if Complainant seeks a cease and desist order against a 
defaulting respondent, the written submissions should respond to the 
following requests:
    1. Please identify with citations to the record any information 
regarding commercially significant inventory in the United States as to 
each respondent against whom a cease and desist order is sought. If 
Complainant also relies on other significant domestic operations that 
could undercut the remedy provided by an exclusion order, please 
identify with citations to the record such information as to each 
respondent against whom a cease and desist order is sought.
    2. In relation to the infringing products, please identify any 
information in the record, including allegations in the pleadings, that 
addresses the existence of any domestic inventory, any domestic 
operations, or any sales-related activity directed at the United States 
for each respondent against whom a cease and desist order is sought.
    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 order 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: The parties to the investigation are requested 
to file written submissions on all of the issues identified in this 
notice. 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. 
Such submissions should address the recommended determination by the 
ALJ on remedy and bonding. Complainant is also requested to submit 
proposed remedial orders for the Commission's consideration. 
Complainant is also requested to state the date that the asserted 
patents expire and the HTSUS numbers under which the accused products 
are imported, and provide identification information for all known 
importers of the subject articles. Initial written submissions and 
proposed remedial orders must be filed no later than close of business 
on Monday, April 2, 2018. Reply submissions must be filed no later than 
the close of business on Monday, April 9, 2018. No further submissions 
on 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-1056) in a prominent place on 
the cover page and/or the first page. (See Handbook for Electronic 
Filing Procedures, https://www.usitc.gov/secretary/documents/handbook_on_filing_procedures.pdf). Persons with questions regarding 
filing should contact the Secretary at (202) 205-2000.
    Any person desiring to submit a document to the Commission in 
confidence must request confidential

[[Page 12814]]

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,\1\ solely for cybersecurity purposes. All 
nonconfidential written submissions will be available for public 
inspection at the Office of the Secretary and on EDIS.
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    \1\ All contract personnel will sign appropriate nondisclosure 
agreements.
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    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: March 19, 2018.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2018-05906 Filed 3-22-18; 8:45 am]
 BILLING CODE 7020-02-P