[Federal Register Volume 86, Number 193 (Friday, October 8, 2021)]
[Notices]
[Pages 56290-56291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21998]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1186]


Certain Balanced Armature Devices, Products Containing Same, and 
Components Thereof; Notice of a Commission Determination Finding a 
Violation of Section 337; 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 determined to affirm, on modified grounds, a summary 
determination (``ID'') (Order No. 50) of the presiding administrative 
law judge (``ALJ'') finding a violation of section 337. The Commission 
has determined that the appropriate remedy is a general exclusion order 
(``GEO'') and cease and desists orders (``CDO'') to certain 
respondents. The Commission terminates the investigation.

FOR FURTHER INFORMATION CONTACT: Amanda Pitcher Fisherow, Esq., Office 
of the General Counsel, U.S. International Trade Commission, 500 E 
Street SW, Washington, DC 20436, telephone (202) 205-2737. 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 November 29, 2019, the Commission 
instituted this investigation based on a complaint filed by Knowles 
Corporation and Knowles Electronics, LLC of Itasca, Illinois, and 
Knowles Electronics (Suzhou) Co., Ltd. of Suzhou, China (collectively, 
``Knowles''). 84 FR 65840 (Nov. 29, 2019). The complaint, as 
supplemented, alleged violations of section 337 of the Tariff Act of 
1930, as amended, 19 U.S.C. 1337, due to the importation into the 
United States, sale for importation, or sale in the United States after 
importation of certain balanced armature devices, products containing 
same, and components thereof by reason of misappropriation of trade 
secrets, the threat or effect of which is to destroy or substantially 
injure a domestic industry. Id. The notice of investigation named 
twelve (12) respondents, including Shenzhen Bellsing Acoustic 
Technology Co. Ltd. of Shenzhen, China, Suzhou Bellsing Acoustic 
Technology Co. Ltd. of Suzhou, China, Dongguan Bellsing Precision 
Device Co., Ltd. of Dongguan, China, and Bellsing Corporation of Lisle, 
Illinois (collectively, ``Bellsing''); Liang Li (a/k/a Ryan Li) of 
Suzhou City, China (``Mr. Li''); Dongguan Xinyao Electronics Industrial 
Co., Ltd. of Dongguan, China (``Xinyao''); Soundlink Co., Ltd. of 
Suzhou, China (``Soundlink''); Magnatone Hearing Aid Corporation d/b/a 
Persona Medical and lnEarz Audio of Casselberry, Florida (``Persona''); 
Jerry Harvey Audio LLC of Orlando, Florida (``Harvey''); Magic 
Dynamics, LLC d/b/a MagicEar of Clearwater, Florida (``MagicEar''); 
Campfire Audio, LLC of Portland, Oregon (``Campfire''); and Clear Tune 
Monitors, Inc. of Orlando, Florida (``Clear Tune''). Id. The Office of 
Unfair Import Investigations (``OUII'') is also a party in this 
investigation. Id.
    Xinyao, Soundlink, MagicEar, CampFire, Persona, Clear Tune, and 
Harvey were all terminated from the investigation based on the issuance 
of consent orders. See Order Nos. 37-40, unreviewed by Comm'n Notice 
(Nov. 23, 2020); Order Nos. 34-35, unreviewed by Comm'n Notice (Nov. 
19, 2020); and Order No. 28, unreviewed by Comm'n Notice (Sept. 20, 
2020).
    On January 14, 2021, the presiding ALJ issued an ID (Order No. 46), 
granting-in-part and denying-in-part Knowles' motion for sanctions 
(``Sanctions ID''). As to Bellsing, the Sanctions ID found that 
Bellsing failed to disclose spoliation of evidence, that its failure to 
do so was in bad faith, and that the appropriate sanction was default. 
Sanctions ID at 18-46. The Sanctions ID denied Knowles' motion as to 
Mr. Li, and denied Knowles' request for monetary sanctions. Id. at 17-
18, 46-47. No one petitioned for review of the Sanctions ID. 
Nevertheless, on February 16, 2021, the Commission determined to review 
the Sanctions ID in its entirety. Comm'n Notice (Feb. 16, 2021). On 
March 17, 2021, the Commission issued its final determination on the 
Sanctions ID, affirming the Sanctions ID, with modification, finding 
Bellsing in default. Sanctions ID at 47 (Jan. 14, 2021), aff'd with 
modification, Comm'n Notice (Mar. 17, 2020).
    On June 1, 2021, the ALJ issued the subject ID. On June 11, 2021, 
Bellsing and Mr. Li filed a joint petition for review. On June 21, 
2021, OUII and Knowles filed responses.
    On August 2, 2021, the Commission determined to review the ID in 
part. Specifically, the Commission determined to review (1) whether 
Bellsing can participate in briefing on remedy and bonding before the 
ALJ (ID at 4) and in briefing on remedy, the public interest, and 
bonding before the Commission notwithstanding its default; (2) 
importation; (3) use by Mr. Li of Representative Trade Secret Nos. 
(``RTS'') 1-10 (ID at 35-36, 41-42, 49, 56-57, 61, 72-73, and 84-85); 
(4) all findings related to RTS No. 6; and (5) domestic industry. 86 FR 
43270 (Aug 6, 2021). The Commission also reviewed the issues raised in 
the parties' arguments relating to due process, comity, and collateral 
estoppel. Id. at 43270-71. The Commission requested briefing on the 
issues under review, remedy, bonding, and the public interest. Id. at 
43271. On August 16, 2021, Respondents, Knowles, and OUII each filed 
their initial responses to the Commission's notice of review. On August 
23, 2021, Respondents, Knowles, and OUII each filed their replies.
    Having considered the record, including the ID, the ALJ's 
recommended determination on remedy and bonding, and the parties' 
submissions, the Commission has

[[Page 56291]]

determined that a violation has occurred as to Mr. Li. Bellsing had 
previously been found in default, and the Commission finds a violation 
has occurred as to Bellsing. Specifically, the Commission finds that 
(1) Mr. Li has met the importation requirement on modified grounds, and 
affirms the ID's remaining findings on importation; (2) Mr. Li has used 
and/or disclosed each of RTS Nos. 1-10; (3) RTS No. 6 has been 
misappropriated; and (4) affirms the IDs findings on domestic industry. 
All findings in the ID that are not inconsistent with the Commission's 
determination are affirmed.
    Accordingly, the Commission finds that there is a violation of 
section 337. The Commission has determined that the appropriate remedy 
is a GEO and CDOs directed to each of the Bellsing respondents and Mr. 
Li. These orders bar Bellsing and Mr. Li's unfair acts for a duration 
of twenty-six (26) years. The Commission has also determined that the 
public interest factors enumerated in subsections 337(d)(1) and (f)(1) 
(19 U.S.C. 1337(d)(1), (f)(1)) do not preclude the issuance of the GEO 
and CDOs. The GEO is directed to covered products that are made by, 
for, or on behalf of Bellsing and/or Mr. Li. The GEO reaches downstream 
products incorporating the covered products. The GEO includes a 
provision requiring any importer seeking to import the covered products 
(or products containing them or the components thereof) manufactured by 
or for Bellsing and/or Mr. Li or their affiliates or successors, to 
obtain a ruling from the Commission prior to the importation of the 
articles, finding that they are not subject to the GEO. The Commission 
has set the bond at one hundred percent (100%) of the value of the 
entered products imported by or on behalf of Bellsing and/or Mr. Li and 
sets a zero percent (0%) bond (i.e., no bond) for downstream products 
or components thereof. The investigation is terminated.
    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 Commission vote for this determination took place on October 4, 
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: October 4, 2021.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2021-21998 Filed 10-7-21; 8:45 am]
BILLING CODE 7020-02-P