[Federal Register Volume 85, Number 178 (Monday, September 14, 2020)]
[Notices]
[Pages 56628-56631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20122]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1174]


Certain Toner Cartridges, Components Thereof, and Systems 
Containing Same; Commission Determination Not To Review an Initial 
Determination Granting Complainants' Motion for Summary Determination 
of a Violation of Section 337; Schedule for Filing Written Submissions 
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, on July 23, 2020, the presiding 
administrative law judge (``ALJ'') issued an initial determination 
(``ID'') (Order No. 40) in the above-captioned investigation, granting 
summary determination on violation of section 337 and including a 
recommended determination (``RD'') on remedy and bonding. The 
Commission has determined not to review the ID. The Commission requests 
briefing from the parties, interested government agencies, and 
interested persons on the issues of remedy, the public interest, and 
bonding.

FOR FURTHER INFORMATION CONTACT: Panyin A. Hughes, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-3179. Copies of non-
confidential documents filed in connection with this investigation may 
be viewed on the Commission's electronic docket (EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email 
[email protected]. General information concerning the Commission may 
also be obtained by accessing its internet server at https://www.usitc.gov. Hearing-impaired persons are advised that information on 
this matter can be obtained by contacting the Commission's TDD 
terminal, telephone (202) 205-1810.

SUPPLEMENTARY INFORMATION: On September 17, 2019, the Commission 
instituted this investigation based on a complaint filed by Brother 
Industries, Ltd. of Nagoya Japan; Brother International Corp. (U.S.A.) 
of Bridgewater, New Jersey; and Brother Industries (U.S.A.), Inc. of 
Bartlett, Tennessee (collectively, ``Brother''). 84 FR 49762-63 (Sept. 
23, 2019). The complaint alleged violations of section 337 based on the 
importation into the United States, the sale for importation, or the 
sale within the United States after importation of certain toner 
cartridges, components thereof, and systems containing same by reason 
of infringement of certain claims of U.S. Patent Nos. 9,568,856; 
9,575,460; 9,632,456; 9,785,093; and 9,846,387 (collectively, ``the 
Asserted Patents''). Id. The Commission's notice of investigation named 
the following 32 respondents: AMI Brothers, Inc. of San Bruno, 
California (``AMI''); An An Beauty Limited of Kowloon, Hong Kong (``An 
An Beauty''); Aster Graphics, Inc. of Riverside, California 
(``Aster''); Aztech Enterprises Limited of Kowloon, Hong Kong 
(``Aztech''); Billiontree Technology USA Inc. of City of Industry, 
California (``Billiontree''); Carlos Imaging Supplies, Inc. of Hacienda 
Heights, California (``Carlos''); Cartridge Evolution, Inc. of 
Brooklyn, New York (``Cartridge Evolution''); Do it Wiser, LLC of 
Wilmington, Delaware (``Do it Wiser''); Eco Imaging Inc. of Irvine, 
California (``Eco Imaging''); Ecoolsmart Co. of Rowland Heights, 
California (``Ecoolsmart''); EPrinter Solution LLC of Pomona, 
California (``EPS''); E-Z Ink Inc. of Brooklyn, New York (``E-Z Ink''); 
Globest Trading Inc. of Ontario, California (``Globest''); Greencycle 
Tech, Inc. of South El Monte, California (``Greencycle''); Hongkong 
Boze Co., Ltd. of Kowloon, Hong Kong (``Hongkong Boze''); I8 
International, Inc. of City of Industry, California (``I8''); IFree E-
Commerce Co. of Kowloon, Hong Kong (``IFree''); Ikong E-Commerce of 
Walnut, California (``Ikong''); Intercon International Corp. of Brea, 
California (``Intercon''); IPrint Enterprise Limited of Kowloon, Hong 
Kong (``IPrint''); LD Products, Inc. of Long Beach, California (``LD 
Products''); Linkyo Corp. of La Puente, California (``Linkyo''); 
Mangoket LLC of Alhambra, California (``Mangoket''); New Era Image LLC 
of Corona, California (``New Era''); OW Supplies Corp. of Corona, 
California (``OW Supplies''); Solong E-Commerce Co., LLC of Wan Chai, 
Hong Kong (``Solong''); Smartjet E-Commerce Co., LLC of Wan Chai, Hong 
Kong (``Smartjet''); Super Warehouse Inc. of Blaine, Washington 
(``Super Warehouse''); Theresa Meng of Brooklyn, New York (``Ms. 
Meng''); Triple Best LLC of San Diego, California (``Triple Best''); 
V4ink, Inc. of Diamond Bar, California (``V4ink''); and Zhuhai Xiaohui 
E-Commerce Co., Ltd. of Zhuhai, China (``Xiaohui''). Id. at 49762-63. 
The notice of investigation also names the Office of Unfair Import 
Investigations (``OUII'') as a party. Id. at 49763.
    Of the 32 respondents, only one, Aster, is participating at this 
stage. Aster, however, decided not to oppose the summary determination 
motion of violation as to the accused products, even though Aster's 
products are subject to the motion. See Joint Stipulation of Brother 
and Aster for Resolution as to Aster in the Investigation (Mar. 4, 
2020). EPS and IFree were terminated from the investigation based upon 
withdrawal of the complaint against them. See Order No. 32 (Jan. 28, 
2020), unreviewed by Comm'n Notice (Feb. 25, 2020). Cartridge 
Evolution, E-Z Ink, Linkyo, New Era, OW Supplies, Ms. Meng, Triple 
Best, and V4ink were terminated from the investigation based upon entry 
of consent orders. See Order No. 36 (Mar. 12, 2020), unreviewed by 
Comm'n Notice (Mar. 31, 2020); Order No 38 (Mar. 12, 2020), unreviewed 
by Comm'n Notice (Mar. 31, 2020); Order No. 37 (Mar. 12, 2020), 
unreviewed by Comm'n Notice (Mar. 31, 2020); Order No. 10 (Oct. 18, 
2019), unreviewed by Comm'n Notice (Nov. 6, 2019); Order No. 17 (Nov. 
21, 2019), unreviewed by Comm'n Notice (Dec. 18, 2019); Order No. 28 
(Dec. 30, 2019), unreviewed by Comm'n Notice (Jan. 29, 2020); Order No. 
18 (Nov. 27, 2019), unreviewed by Comm'n Notice (Dec. 18, 2019); Order 
No. 33 (Fe. 3, 2020), unreviewed by Comm'n Notice (Mar. 4, 2020). The 
following 21 respondents defaulted: AMI, Globest, An An Beauty, Aztech, 
Xiaohui, Ecoolmart, Greencycle, Intercon, Do it Wiser, I8, Solong, 
Billiontree, Carlos Imaging, Eco Imaging, Hongkong Boze, Ikong, IPrint, 
Mangoket, Smartjet, Super Warehouse, and LD Products (collectively, 
``Defaulting Respondents''). See Order No. 35 (Mar. 5, 2020), 
unreviewed by Comm'n Notice (Mar. 19, 2020); Order No. 31 (Jan. 22, 
2020), unreviewed by Comm'n Notice (Feb. 21, 2020); Order No. 26 (Dec. 
20, 2019), unreviewed by Comm'n Notice (Jan 16, 2020); Order No. 25 
(Dec. 18, 2019), unreviewed by Comm'n Notice (Jan. 16, 2020); Order No. 
24 (Dec. 18, 2019), unreviewed by Comm'n Notice (Jan. 16, 2020); Order 
No. 8 (Oct. 15, 2019), unreviewed by Comm'n Notice (Nov. 7, 2019).
    On March 12, 2020, Brother filed a motion for summary determination 
of violation of section 337 by Aster and the Defaulting Respondents and 
for a recommendation that the Commission issue a general exclusion 
order and cease and desist orders. See Complainants' Motion for Summary 
Determination of Violation and for Recommended Determination on Remedy 
and Bonding. On March 23, 2020, OUII filled a response in support of 
Brother's motion. See Commission Investigative Staff's Response to 
Brother's Motion for Summary Determination of Violation. No respondent 
filed a response to Brother's motion. Id.
    On July 23, 2020, the ALJ issued the subject ID granting summary 
determination of violation of section 337 by Aster and Defaulting 
Respondents. The ID finds that the Commission has subject matter 
jurisdiction over the investigation. ID at 34. The ID further finds 
that none of the respondents contest the Commission's personal 
jurisdiction over them or in rem jurisdiction as to the accused 
products. ID at 34-35. The ID finds that Brother: (1) Established the 
importation requirement as to Aster and Defaulting Respondents, ID at 
36-79; (2)

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demonstrated that the accused products infringe the asserted claims, 
id. at 118-133; and (3) demonstrated that the domestic industry 
(``DI'') products practice at least one claim of each Asserted Patent 
and that a DI exists in the United States, id. at 84-118. The RD 
recommends issuance of a general exclusion order (``GEO'') (or, in the 
alternative, a limited exclusion order directed to Aster and each of 
the Defaulting Respondents). Id. at 134-44. The RD further recommends 
issuance of cease and desist orders (``CDOs'') directed to Aster and 
each defaulting respondent that has domestic operations. Id. at 144-46. 
The RD also recommends setting different bond rates for entry of the 
different products covered by the GEO during the period of Presidential 
review. Id. at 146-48 (recommended bond rate table at 147). No one 
petitioned for review of the ID.
    The Commission has determined not to review the ID.
    On August 24, 2020, Aster filed a public interest statement in 
response to the Commission's notice soliciting public interest comments 
pursuant to 19 CFR 210.50(a)(4)(i). In its submission, Aster argued 
that any Commission remedial orders issued in this investigation should 
not cover its new products pursuant to its stipulation with Brother. 
See Respondent Aster Graphics, Inc.'s Statement of Public Interest. On 
August 26, 2020, Brother filed a response. See Complainants' Motion to 
Strike Aster Graphics, Inc.'s Statement on the Public Interest for 
Failure to Comply with Commission Rule 210.15 Or, in the Alternative, 
for Leave to Respond. The Commission has determined to reject Aster's 
submission as improper under 19 CFR 210.50(a)(4)(i). 19 CFR 
210.50(a)(4)(i) provides that parties may file information with the 
Commission relating to the public interest. Aster's submission, 
however, concerns the scope of the remedy and therefore does not fall 
within the ambit of the public interest submissions provided for under 
19 CFR 210.50(a)(4)(i). Brother's response is thereby moot. The 
Commission notes that Aster will have an opportunity to raise its 
arguments regarding the scope of any remedial orders in a remedy 
submission before the Commission in response to the instant notice, 
which invites parties to file submissions addressing remedy, bonding 
and the public interest as noted below.
    In connection with the final disposition of this investigation, the 
statute authorizes issuance of: (1) An exclusion order that could 
result in the exclusion of the subject articles from entry into the 
United States, and/or (2) one or more cease and desist orders that 
could result in Aster and the Defaulting Respondents 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).
    The statute requires the Commission to consider the effects of any 
remedy upon the public interest. The public interest factors the 
Commission will consider include the effect that an exclusion order 
and/or CDO 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, 
disapprove, or take no action on the Commission's determination. 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 this investigation, interested 
government agencies, and any other interested parties are invited to 
file written submissions on the issues of remedy, the public interest, 
and bonding. Such submissions should include views on the recommended 
determination by the ALJ on remedy and bonding.
    In their initial written submissions, Brother is also requested to 
identify the remedy sought and Brother and OUII are also requested to 
submit proposed remedial orders for the Commission's consideration. 
Brother is further requested to identify the dates the Asserted Patents 
expire, to provide the HTSUS subheadings under which the subject 
articles are imported, and to supply identification information for all 
known importers of the subject articles.
    Initial written submissions, including proposed remedial orders, 
must be filed no later than close of business on September 22, 2020. 
Reply submissions must be filed no later than the close of business on 
September 29, 2020. No further submissions on any of 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. The 
Commission's paper filing requirements in 19 CFR 210.4(f) are currently 
waived. 85 FR 15798 (Mar. 19, 2020). Submissions should refer to the 
investigation number (Inv. No. 337-TA-1174) in a prominent place on the 
cover page and/or the first page. (See Handbook for Electronic Filing 
Procedures, https://www.usitc.gov/documents/handbook_on_filing_procedures.pdf). Persons with questions regarding 
filing should contact the Secretary (202-205-2000).
    Any person desiring to submit a document to the Commission in 
confidence must request confidential 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. 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, solely for cybersecurity purposes. 
All contract personnel will sign appropriate nondisclosure

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agreements. All non-confidential written submissions will be available 
for public inspection at the Office of the Secretary and on EDIS.
    The Commission vote for these determinations took place on 
September 8, 2020.
    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: September 8, 2020.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2020-20122 Filed 9-11-20; 8:45 am]
BILLING CODE 7020-02-P