[Federal Register Volume 86, Number 177 (Thursday, September 16, 2021)]
[Notices]
[Pages 51676-51677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19977]



[[Page 51676]]

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1133 (Rescission)]


Certain Unmanned Aerial Vehicles and Components Thereof; 
Commission Determination To Institute a Rescission Proceeding and 
Rescind Permanently a Limited Exclusion Order and Cease and Desist 
Orders; Termination of Rescission Proceeding

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission (the ``Commission'') has determined to institute a 
rescission proceeding and rescind the remedial orders issued in the 
underlying investigation. This rescission proceeding is hereby 
terminated.

FOR FURTHER INFORMATION CONTACT: Carl P. Bretscher, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-2382. Copies of non-
confidential documents filed in connection with this investigation may 
be viewed on the Commission's electronic docket system (``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: The Commission instituted this investigation 
on October 2, 2018, based on a complaint filed by Autel Robotics USA, 
Inc. (``Autel'') of Bothell, Washington. 83 FR 49575-76 (Oct. 2, 2018). 
The complaint accuses respondents of violating 19 U.S.C. 1337 of the 
Tariff Act of 1930, as amended (``Section 337'') by importing into the 
United States, selling for importation, or selling in the United States 
after importation certain unmanned aerial vehicles (``UAVs'') and 
components thereof that infringe one or more of the asserted claims of 
U.S. Patent Nos. 9,260,184 (``the '184 patent''); 7,979,174 (``the '174 
patent''); and 10,044,013 (``the '013 patent''). Id. The complaint also 
alleges the existence of a domestic industry. Id. The notice of 
investigation named the following respondents: SZ DJI Technology Co. 
Ltd. of Shenzhen, China; DJI Europe B.V. of Barendrecht, Netherlands; 
DJI Technology Inc. of Burbank, California; iFlight Technology Co., 
Ltd. (``iFlight'') of Hong Kong; DJI Baiwang Technology Co. Ltd. of 
Shenzhen, China; DJI Research LLC of Palo Alto, California; DJI Service 
LLC (``DJI Service'') of Cerritos, California; and DJI Creative Studio 
LLC of Burbank, California (collectively, ``DJI''). Id. The Office of 
Unfair Import Investigations is not a party to this investigation. Id.
    On March 2, 2020, the presiding Chief Administrative Law Judge 
(``CALJ'') issued a combined Initial Determination on Violation of 
Section 337 (``ID'') and Recommended Determination (``RD'') on Remedy 
and Bonding, finding a violation of Section 337 by way of infringement 
of the '184 patent but no violation with respect to the '174 patent or 
'013 patent.
    On May 29, 2020, while the parties' petitions for review were still 
pending before the Commission, respondents' counsel filed a letter with 
the Commission attaching four recent Final Written Decisions by the 
Patent Trial and Appeal Board (``PTAB'') of the U.S. Patent and 
Trademark Office, finding the challenged claims of the '184, '174, and 
'013 patents, including the claims asserted in this investigation, to 
be unpatentable. See, e.g., SZ DJI Technology Co. v. Autel Robotics USA 
LLC, Case IPR2019-00343, Final Written Decision Finding All Challenged 
Claims Unpatentable (PTAB May 21, 2020), on appeal sub. nom., Autel 
Robotics USA LLC v. SZ DJI Technology Co., Appeal No. 20-1987 (Fed. 
Cir.) (``Appeal No. 20-1987'').
    On June 8, 2020, the Commission issued a notice stating that it had 
determined to partially review certain findings relating to the '184 
patent, including the impact, if any, of the PTAB's Final Written 
Decision finding the '184 patent claims unpatentable. Comm'n Notice at 
2-3 (June 9, 2020). The Commission determined not to review the ID's 
findings that there is no violation with respect to the '174 patent 
or'013 patent. Id.
    On August 20, 2020, the Commission affirmed that DJI violated 
Section 337 by way of infringing claims 1 and 2 of the '184 patent. 
Comm'n Notice at 3 (Aug. 20, 2020) (``Comm'n Notice''); Comm'n Op. at 
8-21 (Aug. 20, 2020) (``Comm'n Op.''). Having found a violation of 
Section 337, the Commission determined that the appropriate remedy is: 
(a) A limited exclusion order prohibiting the importation of UAVs and 
components thereof that are covered by claims 1 or 2 of the '184 
patent; (b) cease and desist orders against respondents iFlight and DJI 
Service; and (c) set a bond in the amount of 11.5 percent of the 
entered value of the excluded products imported during the period of 
Presidential review (19 U.S.C. 1337(j)). See Comm'n Notice at 3; Comm'n 
Op. at 26-34. The Commission determined that 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. Id. 
The Commission, however, determined to suspend enforcement of the 
limited exclusion order, cease and desist orders, and bond provision 
pending final resolution of the PTAB's Final Written Decision regarding 
the '184 patent. See Comm'n Notice at 4; Comm'n Op. at 35-38.
    On October 16, 2020, Autel filed a notice of appeal of the 
Commission's final determination, including its determination to 
suspend enforcement of its remedial orders. See Robotics USA, LLC v. 
ITC, Appeal No. 21-1082 (``Appeal No. 21-1082''). On November 25, 2020, 
DJI filed a notice of a cross-appeal of the Commission's final 
determination. See SZ DJI Technology Co. Ltd. v. ITC, Appeal No. 21-
1363 (``Appeal No. 21-1363''). On December 16, 2020, the Federal 
Circuit consolidated the appeals, designating Appeal No. 21-1082 as the 
lead case.
    On August 16, 2021, Autel and DJI filed a joint motion to 
voluntarily dismiss their appeal and cross-appeal. See Autel Robotics 
USA LLC v. Int'l Trade Comm'n LLC, Appeal Nos. 2021-1082, -1363, Joint 
Stipulation to Dismiss Appeals (Aug. 16, 2021). The Federal Circuit 
granted the motion and dismissed the appeals the following day. See 
Autel Robotics USA LLC v. Int'l Trade Comm'n, Appeal Nos. 21-1082, -
1363, Order (Fed. Cir. Aug. 17, 2021).
    On August 16, 2021, Autel and DJI filed a Joint Petition to Rescind 
the Limited Exclusion Order and Cease and Desist Orders (``Joint 
Petition'') that the Commission issued in this investigation, pursuant 
to 19 U.S.C. 1337(k) and Commission Rule 210.76(a) (19 CFR 210.76(a)). 
The parties filed both confidential and public versions of the 
settlement agreements.
    Upon consideration of the parties' joint petition, the Commission 
has determined that the petition complies with Commission rules, see 19 
CFR 210.76(a)(3), and that there are no extraordinary reasons to deny 
rescission of the remedial orders. Accordingly, the Commission has 
determined to institute a rescission proceeding and to permanently 
rescind the LEO and the CDOs. This rescission proceeding is hereby 
terminated.

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    The Commission voted to approve these determinations on September 
10, 2021.
    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 10, 2021.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2021-19977 Filed 9-15-21; 8:45 am]
BILLING CODE 7020-02-P