[Federal Register Volume 85, Number 184 (Tuesday, September 22, 2020)]
[Notices]
[Pages 59548-59549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20843]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1155]


Certain Luxury Vinyl Tile and Components Thereof; Issuance of a 
General Exclusion Order and Cease and Desist Orders; 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 affirmed a summary determination of violation of section 
337 with respect to certain defaulting respondents and has determined 
to issue a general exclusion order (``GEO'') denying entry of certain 
infringing luxury vinyl tile and components thereof as well as cease 
and desist orders (``CDOs'') against certain of the defaulting 
respondents. The investigation is terminated.

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 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 
on (202) 205-1810.

SUPPLEMENTARY INFORMATION: On May 16, 2019, the Commission instituted 
this investigation based on a complaint filed by Mohawk Industries, 
Inc. of Calhoun, Georgia; Flooring Industries Ltd. Sarl of Bertrange, 
Luxembourg; and IVC US Inc. of Dalton, Georgia (collectively, 
``Complainants''). 84 FR 22161 (May 16, 2019). The complaint, as 
supplemented, alleges 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, or the sale within 
the United States after importation of certain luxury vinyl tiles by 
reason of infringement of certain claims of U.S. Patent Nos. 9,200,460 
(``the '460 patent''); 10,208,490 (``the '490 patent''); and 10,233,655 
(``the '655 patent'') (collectively, ``the Asserted Patents''). Id. The 
complaint further alleges that a domestic industry exists. Id. The 
Commission's notice of investigation names forty-five respondents, 
including: ABK Trading Corp. of Katy, Texas (``ABK''); Aurora Flooring 
LLC of Kennesaw, Georgia (``Aurora''); Changzhou Runchang Wood Co., 
Ltd. of Jiangsu, China (``Runchang''); Go-Higher Trading (Jiangsu) Co., 
Ltd. of Jiangsu, China (``Go-Higher''); Jiangsu Divine Building 
Technology Development Co. Ltd. Jiangsu, China (``Divine''); Jiangsu 
Lejia Plastic Co. Ltd. of Jiangsu, China (``Lejia''); JiangSu Licheer 
Wood Co., Ltd. of Jiangsu, China (``Licheer''); Maxwell Flooring 
Distribution LLC of Houston, Texas (``Maxwell Flooring''); Mr. Hardwood 
Inc. of Acworth, Georgia (``Mr. Hardwood''); and Sam Houston Hardwood 
Inc. of Houston, Texas (``Sam Houston'') (collectively, ``Defaulting 
Respondents''). Id. The Office of Unfair Import Investigations 
(``OUII'') is also participating in the investigation. Id.
    The Commission previously terminated the investigation as to 
thirty-five respondents based on settlement, consent order, or partial 
withdrawal of the complaint. See Order No. 14 (Sept. 26, 2019), 
unreviewed by, Notice (Oct. 17, 2019); Order Nos. 15-21 (Sept. 27, 2019 
for all), unreviewed by, Notice (Oct. 17, 2019); Order Nos. 23-25 (Oct. 
2, 2019 for all), unreviewed by, Notice (Oct. 23, 2019); Order No. 27 
(Oct. 9, 2019), unreviewed by, Notice (Nov. 6, 2019); Order No. 26 
(Oct. 9, 2019)), unreviewed by, Notice (Nov. 8, 2019); Order No. 30 
(Oct. 25, 2019), unreviewed by, Notice (Nov. 21, 2019); Order No. 34 
(Nov. 7, 2019), unreviewed by, Notice (Dec. 11, 2019); Order No. 35 
(Jan. 24, 2020), unreviewed by, Notice (Feb. 25, 2020).
    On November 21, 2019, the Commission found respondent Go-Higher in 
default. See Order No. 31 (Oct. 25, 2019), unreviewed by, Notice (Nov. 
21, 2019). On November 22, 2019, the Commission found an additional 
eight respondents in default: ABK; Aurora; Divine; Lejia; Licheer; 
Maxwell Flooring; Mr. Hardwood; and Sam Houston. See Order No. 32 (Oct. 
30, 2019), unreviewed by, Notice (Nov. 22, 2019). On November 25, 2019, 
the Commission found respondent Runchang in default. See Order No. 33 
(Oct. 30, 2019), unreviewed by, Notice (Nov. 25, 2019).

[[Page 59549]]

    On January 15, 2020, Complainants filed a motion for summary 
determination that Complainants have satisfied the domestic industry 
requirement and of a violation of section 337 by the Defaulting 
Respondents. Complainants filed supplements to their summary 
determination motion on January 23, 2020, February 11, 2020, and 
February 19, 2020. On February 12, 2020, OUII filed a response to 
Complainants' motion. On May 14, 2020, OUII filed a supplemental 
response.
    On May 15, 2020, the ALJ issued Order No. 36 granting the motion 
for summary determination and finding a violation of section 337 by the 
Defaulting Respondents. The ALJ recommended that the Commission issue a 
GEO prohibiting entry of luxury vinyl tiles that infringe the asserted 
claims of the Asserted Patents and CDOs against the five domestic 
Defaulting Respondents: ABK, Aurora, Maxwell Flooring, Mr. Hardwood, 
and Sam Houston. The ALJ also recommended setting a bond of $0.08 per 
square foot of luxury vinyl tile product and components thereof 
imported during the period of Presidential review. Id. No party 
petitioned for review of the ID.
    On June 30, 2020, the Commission determined to review the ID in 
part. 85 FR 40683 (July 7, 2020). On review, the Commission affirmed 
the finding of violation of section 337 by the Defaulting Respondents' 
importation of luxury vinyl tile and components thereof that infringe 
one or more claims of the Asserted Patents. Id. Further, the Commission 
determined to review and, on review, to take no position on the ID's 
findings regarding the economic prong of the domestic industry 
requirement under subsection 337(a)(3)(B) (19 U.S.C. 1337(a)(3)(B)) 
with respect to the '460 patent. Id. The Commission also determined to 
review the ID's findings regarding a domestic industry for the '490 and 
'655 patents, and on review, to clarify that the Commission did not 
intend to imply that the investments already made with respect to those 
patents are not significant or could not be used to show the existence 
of a domestic industry under section 337(a)(3). Id. The Commission 
further determined to review the ID's findings as to two products from 
non-parties, i.e., the Quickstyle and Uniflor Aqua products. Id. The 
Notice also requested written submissions on remedy, public interest, 
and bonding. See id.
    On July 15, 2020, Complainants and OUII submitted briefs on remedy, 
public interest, and bonding supporting the ALJ's recommendations. On 
July 22, 2020, OUII submitted a reply to Complainants' response. No 
other submissions were filed in response to the Notice.
    As noted above, the Commission affirms the ID's finding that there 
is a violation of section 337 with respect to Defaulting Respondents. 
Moreover, the Commission finds that the statutory requirements for 
issuance of a GEO under section 337(d)(2) are met with respect to the 
Defaulting Respondents. See 19 U.S.C. 1337(d)(2). The Commission also 
finds that issuance of CDOs against the five domestic Defaulting 
Respondents is appropriate under 337(f)(1). See 19 U.S.C. 1337(f)(1). 
In addition, the Commission finds that the public interest factors do 
not preclude issuance of the requested relief. See 19 U.S.C. 
1337(d)(1), (f)(1).
    The Commission therefore has determined that the appropriate remedy 
in this investigation is: (1) A GEO prohibiting the unlicensed entry of 
certain luxury vinyl tile and components thereof that infringe one or 
more of claims 7-8, 13, 15-17, 20-23, and 30 of the '460 patent, claims 
1-6, 8, 10-11, 13-16, and 18 of the '490 patent, and claims 1-4, 6-16, 
18, and 20-26 of the '655 patent; and (2) CDOs against ABK, Aurora, 
Maxwell Flooring, Mr. Hardwood, and Sam Houston. The Commission has 
also determined that the bond during the period of Presidential review 
shall be in the amount of $0.08 per square foot of imported luxury 
vinyl tile and components thereof that are subject to the GEO and CDOs. 
See 19 U.S.C. 1337(j). The Commission has further determined to vacate 
the findings under review to the extent the ID adjudicates infringement 
of the Asserted Patents as to non-respondents.
    The Commission's orders were delivered to the President and to the 
United States Trade Representative on the day of their issuance. The 
investigation is terminated.
    While temporary remote operating procedures are in place in 
response to COVID-19, the Office of the Secretary is not able to serve 
parties that have not retained counsel or otherwise provided a point of 
contact for electronic service. Accordingly, pursuant to Commission 
Rules 201.16(a) and 210.7(a)(1) (19 CFR 201.16(a), 210.7(a)(1)), the 
Commission orders that the Complainant complete service for any party 
without a method of electronic service noted on the attached 
Certificate of Service and shall file proof of service on the 
Electronic Document Information System (EDIS).
    The Commission vote for this determination took place on September 
16, 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 16, 2020.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2020-20843 Filed 9-21-20; 8:45 am]
BILLING CODE 7020-02-P