[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Pages 16495-16496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06122]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1230]


Certain Electric Shavers and Components and Accessories Thereof 
Commission Decision Finding a Violation of Section 337; Issuing a 
General Exclusion Order and Cease and Desist Orders; Terminating 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 (``Commission'') has determined to affirm the presiding 
administrative law judge (``ALJ's'') initial determination (``ID'') 
(Order No. 33) finding a violation of section 337 of the Tariff Act of 
1930, as amended, in this investigation and has issued a general 
exclusion order and cease and desist orders prohibiting the importation 
of certain electric shavers and components and accessories thereof. The 
investigation is hereby terminated.

FOR FURTHER INFORMATION CONTACT: Sidney A. Rosenzweig, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 708-2532. 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 November 18, 2020, the Commission 
instituted this investigation based on a complaint filed by Complainant 
Skull Shaver (``Skull Shaver'') of Moorestown, New Jersey. 85 FR 73510-
11 (Nov. 18, 2020). The complaint alleged violations of section 337 of 
the Tariff Act of 1930, as amended, 19 U.S.C. 1337, based on the 
importation into the United States, the sale for importation, or the 
sale within the United States after importation of certain electric 
shavers and components and accessories thereof by reason of 
infringement of certain claims of U.S. Patent Nos. 8,726,528 (``the 
'528 patent'') and D672,504 (``the '504 design patent''). Id. The 
Commission's notice of investigation named the following eleven 
entities as respondents: Rayenbarny Inc. (``Rayenbarny'') of New York, 
New York; Bald Shaver Inc. (``Bald Shaver'') of Toronto, Canada; Suzhou 
Kaidiya Garments Trading Co., Ltd. (``Suzhou'') d.b.a. ``Digimator'' of 
Suzhou, China; Shenzhen Aiweilai Trading Co., Ltd. (``Aiweilei'') 
d.b.a. ``Teamyo'' of Shenzhen, China; Wenzhou Wending Electric 
Appliance Co., Ltd. of Yueqing City, China; Shenzhen Nukun Technology 
Co., Ltd. (``Nukun'') d.b.a. ``OriHea'' of Shenzhen, China; Yiwu Xingye 
Network Technology Co. Ltd. (``Yiwu Xingye'') d.b.a. ``Roziapro'' of 
Yiwu, China; Magicfly LLC (``Magicfly'') of Hong Kong; Yiwu City Qiaoyu 
Trading Co., Ltd. (``Yiwu City'') of Yiwu, China; Shenzhen Wantong 
Information Technology Co., Ltd. (``Wantong'') d.b.a. ``WTONG'' of 
Shenzhen, China; and Shenzhen Junmao International Technology Co., Ltd. 
(``Junmao'') d.b.a. ``Homeas'' of Shenzhen, China. The notice of 
investigation also named the Office of Unfair Import Investigations 
(``OUII'') as a party. Id.
    The Commission terminated Rayenbarny from the investigation because 
its accused product was actually imported by Benepuri LLC 
(``Benepuri'') of Menands, New York; the Commission allowed Benepuri to 
intervene as a respondent. Notice, 85 FR 82514, 82515 (Dec. 18, 2020). 
The Commission later granted Skull Shaver's motion to amend the 
Complaint and the notice of investigation to correct the name of 
Wenzhou Wending Electric Appliance Co., Ltd. d.b.a. ``Paitree'' as 
Wenzhou Wending Electric Appliance Co., Ltd. (``Wenzhou''), and to 
correct the addresses of several respondents. Notice, 86 FR 14645, 
14645 (Mar. 17, 2021). The Commission terminated Magicfly from the 
investigation on the basis of settlement. Notice at 2 (May 19, 2021). 
The Commission terminated Nukun and Benepuri from the investigation on 
the basis of withdrawal of the complaint. Notice at 2 (June 21, 2021) 
(Nukun); Notice at 2 (Oct. 28, 2021) (Benepuri). All of the remaining 
respondents (i.e., all respondents other than Magicfly, Nukun, Benepuri 
and Rayenbarny) defaulted. See Notice at 3 (May 21, 2021) (seven 
defaulting respondents); Notice at 2 (Dec. 9, 2021) (Bald Shaver 
defaulting). Taken together, the eight defaulting respondents are: 
Suzhou; Yiwu City; Wenzhou; Aiweilai; Junmao; Wantong; Yiwu Xingye; and 
Bald Shaver.
    On May 26, 2021, Skull Shaver filed a motion for summary 
determination of

[[Page 16496]]

violation of section 337 by the eight defaulting respondents and for a 
recommendation that the Commission issue a general exclusion order 
(``GEO'') and cease and desist orders (``CDOs''). See Complainants' 
Motion for Summary Determination of Violation and for Recommended 
Determination on Remedy and Bonding. Skull Shaver accused Yiwu Xingye 
and Yiwu City of infringing claims 1-3 of the '528 patent and the claim 
of the '504 design patent. Id. at 5. It accused the other respondents 
of infringing only claim 1 of the '528 patent. Id. On June 7, 2021, 
OUII filed a response in support of Skull Shaver's motion. See 
Commission Investigative Staff's Response to Skull Shaver's Motion for 
Summary Determination of Violation. No respondent filed a response to 
Skull Shaver's motion.
    On September 23, 2021, OUII filed a notice of supplemental 
authority concerning the domestic industry requirement. On September 
28, 2021, the ALJ issued an order (Order No. 31) ordering certain 
supplementation of Skull Shaver's domestic industry analysis. On 
October 14, 2021, Skull Shaver submitted its supplement in response to 
Order No. 31. No other responses to Order No. 31 were filed. On 
November 18, 2021, the ALJ granted-in-part Skull Shaver's motion for 
summary determination as the subject ID.
    The ID found that Skull Shaver owns the asserted patents, and that 
those patents are valid and enforceable. ID at 3. The ID further found 
that although all respondents imported, sold for importation, or sold 
within the United States after importation at least one accused 
article, the only respondents whose articles infringe the asserted 
patents are Yiwu Xingye and Yiwu City. Id. at 3-4. The ID found no 
infringement as to the other respondents, whose products lack a second 
recess, see ID at 51-52, in view of the ALJ's construction of 
``recesses'' as ``indentations that are substantially concave 
surfaces,'' id. at 16 (citation omitted), and Skull Shaver's forfeiture 
of an infringement theory under the doctrine of equivalents, id. at 50 
n.7. The ID found that personal jurisdiction is not necessary over each 
defaulting respondent, but that the defaulting respondents waived any 
opportunity to contest the allegation that personal jurisdiction 
exists. Id. The ID further found that Skull Shaver meets the technical 
prong and the economic prong of the domestic industry requirement. Id. 
at 4. As to remedy, the RD found that there is a widespread pattern of 
unauthorized use of the asserted patents and it is difficult to 
identify the source of these products; and that a GEO is necessary to 
prevent circumvention. Id. at 4. The RD also recommended issuance of 
CDOs against the two infringing respondents, who are presumed to 
maintain domestic inventories. RD at 80-81. The RD recommended a bond 
rate of one hundred percent (100%) because complete pricing information 
is not available. RD at 82.
    No petitions for review of the ID were filed. The Commission 
determined to review the ID's findings concerning the economic prong of 
the domestic industry requirement, and not to review the ID's findings 
on other issues. Notice, 87 FR 990, 991 (Jan. 7, 2022). The review 
notice solicited written submissions, including on remedy, the public 
interest, and bonding from the parties, interested government agencies, 
and the public. Id.
    In response to the Commission notice, Skull Shaver and OUII each 
filed an opening submission and a reply. No other parties filed 
submissions.
    On review, the Commission has determined to affirm the ID's finding 
that Skull Shaver has satisfied the economic prong of the domestic 
industry requirement, and the Commission thereby affirms the ID's 
finding of a violation of section 337.
    The Commission finds that the RD's recommended remedy is 
appropriate for the reasons set forth in the attached opinion. 
Accordingly, the Commission finds that the appropriate remedy is: (1) A 
general exclusion order prohibiting the entry of certain electric 
shavers and components and accessories thereof; and (2) cease and 
desist orders directed to Yiwu Xingye and Yiwu City. The Commission has 
determined that the public interest factors enumerated in section 
337(d), (f), and/or (g), 19 U.S.C. 1337(d), (f), (g), do not preclude 
the issuance of the GEO or the CDOs.
    The Commission has determined that a bond in the amount of one 
hundred percent (100%) of the entered value of the subject articles is 
required during the Presidential review period, 19 U.S.C. 1337(j) for 
the reasons set forth in the RD and the attached Commission Opinion. 
The investigation is hereby 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's orders and opinion were delivered to the President 
and the United States Trade Representative on the day of their 
issuance.
    The Commission vote for these determinations took place on March 
17, 2022.
    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: March 17, 2022.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2022-06122 Filed 3-22-22; 8:45 am]
BILLING CODE 7020-02-P