[Federal Register Volume 84, Number 167 (Wednesday, August 28, 2019)]
[Notices]
[Pages 45170-45171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18561]



[[Page 45170]]

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1126]


Certain Water Filters and Components Thereof; Notice of a 
Commission Determination To Review-in-Part an Initial Determination 
Granting Complainants' Motion for Summary Determination of Violation of 
Section 337 by the Defaulting Respondents, and, on Review, To Modify 
Certain Portions of the Initial Determination; Request for Written 
Submissions on Remedy, Bonding, and the Public Interest

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 an initial determination 
(``ID'') (Order No. 17) of the presiding administrative law judge 
(``ALJ'') granting summary determination of violation of section 337 by 
certain defaulting respondents. The limited purpose of the review is to 
correct an error in a citation on page 44 and two typos on page 31 of 
the ID. The Commission requests written submissions on remedy, bonding, 
and the public interest.

FOR FURTHER INFORMATION CONTACT: Lynde Herzbach, Office of the General 
Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone 202-205-3228. 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 August 1, 2018, based on a complaint, as amended, filed on behalf of 
Electrolux Home Products, Inc. of Charlotte, North Carolina, and KX 
Technologies, LLC of West Haven, Connecticut (collectively, 
``Complainants''). 83 FR 37514 (Aug. 1, 2018). The complaint alleges 
violations of section 337 of the Tariff Act of 1930, as amended, 19 
U.S.C. 1337 (``section 337'') based on the importation into the United 
States, the sale for importation, and the sale within the United States 
after importation of certain water filters and components thereof by 
reason of infringement of certain claims of U.S. Patent Nos. 8,673,146 
(``the '146 patent''), 8,137,551 (``the '551 patent''), 9,233,322 
(``the '322 patent''), and 9,901,852 (``the '852 patent'') 
(collectively, the ``Asserted Patents''). Id. The Commission's notice 
of investigation names eight respondents. Id. The Office of Unfair 
Import Investigations (``OUII'') is also a party to the investigation.
    On October 3, 2018, the ALJ issued an initial determination finding 
certain respondents in default, specifically, Shenzen Calux 
Purification Technology Co., Limited (``Calux''); JiangSu Angkua 
Environmental Technical Co., Ltd. (``Angkua Environmental''); and 
Shenzhen Dakon Purification Tech Co., Ltd. (collectively, ``the 
Defaulting Respondents''). See Order No. 9 (Oct. 3, 2018), not 
reviewed, Notice (Oct. 25, 2018). The remaining respondents, 
specifically, Ningbo Pureza Limited; HongKong Ecoaqua Co., Limited; 
Ecolife Technologies, Inc.; Ecopure Filter Co., Ltd.; and Crystala 
Filters LLC (``Settled Respondents''), were terminated from the 
investigation due to settlement. See Order Nos. 14, 15, 16, not 
reviewed, Notice (April 1, 2019).
    On February 12, 2019, Complainants filed a motion for summary 
determination of violation of section 337 by the Defaulting 
Respondents. Complainants requested a general exclusion order (``GEO'') 
and cease and desist orders (``CDOs'') against all three Defaulting 
Respondents. On March 8, 2019, OUII filed a response supporting a 
finding of a violation as well as the requested remedies of a GEO and 
CDOs for two of the Defaulting Respondents (Calux and Angkua 
Environmental).
    The ALJ issued the subject ID on July 11, 2019, granting the motion 
for summary determination and finding a violation of section 337 by the 
Defaulting Respondents. Specifically, the ID finds that Complainants 
established infringement of claims 1-3, 6, 7, and 15 of the '146 
patent, claim 49 of the '551 patent, claims 1-3, 7-9, and 12-15 of the 
'322 patent, and claims 1, 4-6, 9-11, 14-18, and 21-31 of the '852 
patent with respect to each Defaulting Respondents' accused product(s) 
by substantial, reliable, and probative evidence. The ALJ recommended 
that the Commission issue a GEO and CDOs against Calux and Angkua 
Environmental. The ALJ also recommended setting a bond during 
Presidential review of 100 percent. Id. No party petitioned for review 
of the subject ID.
    The Commission has determined to review the subject ID in part for 
the limited purpose of correcting an error in a citation on page 44 and 
two typos on page 31 of the ID. See ID at 44, 31. The ID's findings of 
section 337 violations as to the Defaulting Respondents are based on 
substantial, reliable, and probative evidence, and they do not require 
further substantive review. See 19 U.S.C. 1337(d)(2). The Commission 
has determined not to review the remainder of 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 
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, Comm'n Op. 
at 7-10 (December 1994). In addition, if Complainants seek a cease and 
desist order against a 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 
Complainants also rely 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

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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 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. Such submissions should address the recommended 
determination by the ALJ on remedy and bonding.
    Complainant and OUII are 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, to 
provide the HTSUS subheadings under which the accused products are 
imported, and to supply identification information for all known 
importers of the products at issue in this investigation.
    Written submissions and proposed remedial orders must be filed no 
later than close of business on September 6, 2019. Reply submissions 
must be filed no later than the close of business on September 13, 
2019. Such submissions should address the ALJ's recommended 
determinations on remedy and bonding made in Order No. 17. 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 eight 
true paper copies to the Office of the Secretary 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-1126'') in a prominent place on the cover page and/or the 
first page. (See Handbook on Filing Procedures, https://www.usitc.gov/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 treatment unless the information 
has already been granted such treatment during the proceedings. All 
such requests should be directed to the Secretary of the Commission and 
must include a full statement of the reasons why the Commission should 
grant such treatment. See 19 CFR 210.6. Documents for which 
confidential treatment by the Commission is sought will be treated 
accordingly. A redacted non-confidential version of the document must 
also be filed simultaneously with any confidential filing. 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 (all contract personnel 
will sign appropriate nondisclosure agreements), solely for 
cybersecurity purposes. All non-confidential written submissions will 
be available for public inspection at the Office of the Secretary and 
on EDIS.
    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: August 23, 2019.
William Bishop,
Supervisory Hearings and Information Officer.
[FR Doc. 2019-18561 Filed 8-27-19; 8:45 am]
BILLING CODE 7020-02-P