[Federal Register Volume 83, Number 235 (Friday, December 7, 2018)]
[Notices]
[Pages 63186-63187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26522]


-----------------------------------------------------------------------

INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1057]


Certain Robotic Vacuum Cleaning Devices and Components Thereof 
Such as Spare Parts; Notice of the Commission's Final Determination 
Finding a Violation of Section 337; Issuance of a Limited Exclusion 
Order and Cease and Desist Orders; Termination of the Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has found a violation of section 337 of the Tariff Act of 
1930, in this investigation. The Commission has issued a limited 
exclusion order prohibiting the unlicensed entry of certain vacuum 
cleaning devices and components thereof, such as spare parts, that 
infringe certain claims of U.S. Patent No. 9,038,233. The Commission 
has also issued cease and desist orders prohibiting the sale and 
distribution within the United States of articles that infringe certain 
claims of that patent against Hoover, Inc. of Glenwillow, Ohio; Royal 
Appliance Manufacturing Co., Inc. d/b/a TTI Floor Care North America, 
Inc. of Glenwillow, Ohio; bObsweep, Inc. of Toronto, Canada; and 
bObsweep USA of Henderson, Nevada. The investigation is terminated.

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 
under section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 
1337, on May 23, 2017, based on a complaint filed by iRobot Corporation 
of Bedford, Massachusetts (``iRobot''). 82 FR 23592 (May 23, 2017). The 
complaint alleges a violation of section 337 based upon the importation 
into the United States, the sale for importation, and the sale within 
the United States after importation of certain vacuum cleaning devices 
and components thereof, such as spare parts, by reason of infringement 
of certain claims of U.S. Patent Nos. 6,809,490 (``the '490 patent''), 
7,155,308 (``the '308 patent''), 8,474,090 (``the '090 patent''), 
8,600,553 (``the '553 patent''), 9,038,233 (``the '233 patent''), and 
9,486,924 (``the '924 patent''). The Notice of Investigation names as 
respondents Bissell Homecare, Inc. of Grand Rapids, Michigan 
(``Bissell''); Hoover, Inc. of Glenwillow, Ohio and Royal Appliance 
Manufacturing Co., Inc. d/b/a TTI Floor Care North America, Inc. of 
Glenwillow, Ohio (collectively, ``Hoover''); bObsweep, Inc. of Toronto, 
Canada and bObsweep USA of Henderson, Nevada (collectively, 
``bObsweep''); The Black & Decker Corporation of Towson, Maryland and 
Black & Decker (U.S.) Inc. of Towson, Maryland (collectively, ``Black & 
Decker''); Shenzhen ZhiYi Technology Co., Ltd., d/b/a iLife of 
Shenzhen, China (``iLife''); Matsutek Enterprises Co., Ltd. of Taipei 
City, Taiwan (``Matsutek''); Suzhou Real Power Electric Appliance Co., 
Ltd. of Suzhou, China (``Suzhou''); and Shenzhen Silver Star 
Intelligent Technology Co., Ltd. of Shenzhen, China (``SSSIT''). The 
Office of Unfair Import Investigations is not a party in this 
investigation.
    The investigation has been terminated with respect to respondents 
Suzhou, Black & Decker, Bissell, and Matsutek. Notice (Oct. 18, 2017) 
(determining not to review Order No. 23 (Sept. 26, 2017)); Notice (Jan. 
31, 2018) (determining not to review Order No. 31 (Jan. 9, 2018)); 
Notice (Feb. 16, 2018) (determining not to review Order No. 34 (Jan. 
25, 2018)). The investigation has also been terminated with respect to 
the '924 and the '308 patents. Notice (Jan. 16, 2018) (determining not 
to review Order No. 29 (Dec. 14, 2017)); Notice (Mar. 15, 2018) 
(determining not to review Order No. 40 (Feb. 21, 2018)).
    On June 25, 2018, the presiding administrative law judge (``ALJ'') 
issued a final initial determination (``ID''), finding a violation of 
section 337 with respect to the '553 and '233 patents and no violation 
with respect to the '490 and '090 patents. Specifically, with respect 
to the '553 patent, the ID found that: (1) iLife directly infringes 
claims 1 and 4, but not claims 11, 12, 13, and 22; (2) iLife has not 
induced or contributed to infringement of the patent; (3) iRobot has 
satisfied the technical prong of the domestic industry requirement; (4) 
claim 1, but not claims 11 and 12, is invalid for anticipation; and (5) 
claims 4, 12, 13, and 22 are not invalid for obviousness. With respect 
to the '490 patent, the ID found that: (1) iLife and bObsweep directly 
infringe claim 42, but not claims 1 and 12, and Hoover directly 
infringes claim 42; (2) iLife, Hoover, bObsweep, and SSSIT have not 
induced or contributed to infringement of the patent; (3) iRobot has 
satisfied the technical prong of the domestic industry requirement; (4) 
claim 1, but not claim 12, is invalid for anticipation: (5) claims 12 
and 42 are invalid for obviousness; and (6) claims 1 and 42 are not 
invalid for indefiniteness. With respect to the '090 patent, the ID 
found that: (1) iLife, Hoover, SSSIT, and bObsweep directly infringe 
claims 1, 2, 3, 5, 7, and 10, but not claim 17; (2) iLife, Hoover, 
bObsweep, and SSSIT have not induced or contributed to infringement of 
the patent; (3) iRobot has satisfied the technical prong of the 
domestic industry requirement; (4) claims 1, 5, 7, 10, and 17 are not 
invalid for anticipation; and (5) claims 1, 2, 3, 4, 5, 7, 10, and 17 
are invalid for obviousness in view of certain prior art combinations, 
but not others. With respect to the '233 patent,

[[Page 63187]]

the ID found that: (1) iLife and bObsweep directly infringe claims 1, 
10, 11, 14, 15, and 16 and Hoover directly infringes the same claims 
with respect to the Hoover Quest 1000 products, but not the Hoover 
Rogue/Y1 and Hoover Y2 products; (2) iLife, Hoover, bObsweep, and SSSIT 
have not induced or contributed to infringement of the patent; (3) 
iRobot has satisfied the technical prong of the domestic industry 
requirement; and (4) claims 1, 10, 11, 14, 15, and 16 of the '233 
patent are not invalid for anticipation, obviousness, nor lack of 
written description. The ID found that iRobot has satisfied the 
economic prong of the domestic industry requirement under 19 U.S.C. 
1337(a)(3)(C) with respect to all asserted patents.
    The ALJ also issued a Recommended Determination on Remedy and Bond 
(``RD''), recommending, if the Commission finds a section 337 
violation, the issuance of (1) a limited exclusion order against 
certain robotic vacuum cleaning devices and components thereof that are 
imported, sold for importation, and/or sold after importation by 
Hoover, bObsweep, SSSIT, and iLife, (2) cease and desist orders against 
Hoover and iLife, and (3) imposition of a bond of 18.89 percent of the 
entered value for iLife products, 48.65 percent for bObsweep products, 
and 41.35 percent for Hoover products that are imported during the 
period of Presidential review.
    On July 9, 2018, iRobot and Respondents each filed a petition for 
review challenging various findings in the final ID. On July 17, 2018, 
iRobot and Respondents each filed responses to the petitions for 
review.
    On July 16, 2018, the Commission determined that iRobot satisfied 
the economic prong of the domestic industry requirement under 19 U.S.C. 
1337(a)(3)(B). Notice (July 16, 2018) (determining to affirm with 
modifications Order No. 39 (Feb. 13, 2018)).
    On July 25, 2018, iRobot filed post-RD statements on the public 
interest under Commission Rule 210.50(a)(4). The Commission did not 
receive any post-RD public interest comments from any respondent 
pursuant to Commission Rule 210.50(a)(4). The Commission did not 
receive comments from the public in response to the Commission notice 
issued on July 10, 2018 soliciting public interest comments. 83 FR 
31977 (July 10, 2018).
    On September 12, 2018, the Commission determined to review in part 
the final ID. 83 FR 47188 (Sept. 18, 2018). Specifically, the 
Commission determined to review the ID's findings on: (1) Induced and 
contributory infringement with respect to the '553, '490, '090, and 
'233 patents; (2) anticipation with respect to the asserted claims of 
the '553 patent; (3) obviousness with respect to the asserted claims of 
the '553 patent; (4) direct infringement of the '090 patent by iLife, 
Hoover, bObsweep, and SSSIT; (5) anticipation with respect to the 
asserted claims of the '090 patent; (6) obviousness with respect to the 
asserted claims of the '090 patent; (7) anticipation with respect to 
the asserted claims of the '233 patent; and (8) consideration of U.S. 
Patent No. 6,594,844 as prior art under 35 U.S.C. 102(a) and 35 U.S.C. 
103 with respect to the '233 patent. The Commission also requested 
briefing from the parties on certain issues under review and briefing 
from the parties, interested government agencies, and interested 
persons on the issues of remedy, the public interest, and bonding.
    On September 19, 2018, iRobot filed an unopposed motion to 
terminate the investigation as to iLife based on a settlement agreement 
and, because the '553 patent is asserted against iLife only, all claims 
asserted under the '553 patent for mootness. On October 2, 2018, the 
Commission determined to grant that motion. Notice (Oct. 2, 2018). 
Thus, the respondents remaining in this investigation are Hoover, 
bObsweep, and SSSIT, and the remaining asserted patents are the '490, 
'090, and '233 patents.
    On September 24, 2018, iRobot and the remaining respondents filed 
initial written submissions addressing the Commission's questions and 
the issues of remedy, the public interest, and bonding. On October 1, 
2018, the parties filed response briefs. No comments were received from 
the public.
    Having examined the record of this investigation, including the ID 
and the parties' submissions, the Commission has determined to affirm, 
on modified grounds, the ID's finding of a violation as to the '233 
patent and no violation as to the '490 and '090 patents. Specifically, 
the Commission has determined that Hoover, bObsweep, and SSSIT have not 
induced or contributed to infringement of the '490, '090, and '233 
patents. With respect to the '090 patent, the Commission has determined 
that the Hoover, SSSIT, and bObsweep bObi products meet all limitations 
of claims 1, 2, 3, 5, 7, 10, and 17, and that the asserted claims are 
invalid for obviousness, but not invalid for anticipation. With respect 
to the '233 patent, the Commission has determined that claims 1, 10, 
11, 14, 15, and 16 are not invalid for anticipation nor obviousness. 
The Commission has determined to adopt all findings and conclusions in 
the final ID that are not inconsistent with the Commission's opinion 
issued herewith.
    The Commission has determined the appropriate remedy is a limited 
exclusion order prohibiting Hoover, bObsweep, and SSSIT from importing 
certain vacuum cleaning devices and components thereof, such as spare 
parts, that infringe one or more of claims 1, 10, 11, 14, 15, and 16 of 
the '233 patent, as well as cease and desist orders against Hoover and 
bObsweep prohibiting them from, inter alia, selling or distributing 
within the United States such products. The Commission has determined 
the public interest factors enumerated in section 337(d)(1) and (f)(1) 
do not preclude issuance of the limited exclusion order or cease and 
desist orders.
    The Commission has also determined to set a bond in the following 
percentages of the entered value of the respondents' infringing 
products during the period of Presidential review (19 U.S.C. 1337(j)): 
48.65 percent for products that are manufactured by or on behalf of 
bObsweep; 41.35 percent for products that are manufactured by or on 
behalf of Hoover; and zero percent (no bond) for products that are 
manufactured by SSSIT on behalf of entities other than Hoover and 
bObsweep, as well as products that are manufactured on behalf of SSSIT. 
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 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: November 30, 2018.
Jessica Mullan,
Attorney Advisor.
[FR Doc. 2018-26522 Filed 12-6-18; 8:45 am]
BILLING CODE 7020-02-P