[Federal Register Volume 87, Number 87 (Thursday, May 5, 2022)]
[Notices]
[Pages 26783-26785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09601]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1259]


Certain Toner Supply Containers and Components Thereof (I); 
Notice of Commission Determination To Review in Part an Initial 
Determination Granting Complainants' Motion for Summary Determination 
of Violations of Section 337; Schedule for Filing Written Submissions 
on Remedy, Public Interest, and Bonding

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 review in part an initial determination 
(``ID'') issued by the presiding chief administrative law judge 
(``ALJ'') granting summary determination of violations of section 337. 
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: 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 April 13, 2021, the Commission instituted 
this investigation under section 337 of the Tariff Act of 1930, as 
amended, 19 U.S.C. 1337 (``section 337''), based on a complaint filed 
by Canon Inc. of Tokyo, Japan; Canon U.S.A., Inc. of Melville, New 
York; and Canon Virginia, Inc. of Newport News, Virginia (collectively, 
``Complainants''). See 86 FR 19284-86. The complaint, as supplemented, 
alleges a violation of section 337 based upon the importation into the 
United States, sale for importation, or sale after importation into the 
United States of certain toner supply containers and components thereof 
by reason of infringement of certain claims of U.S. Patent Nos. 
10,209,667 (``the '667 patent''); 10,289,060 (``the '060 patent''); 
10,289,061 (``the '061 patent''); 10,295,957 (``the '957 patent''); 
10,488,814 (``the '814 patent''); 10,496,032 (``the '032 patent''); 
10,496,033 (``the '033 patent''); 10,514,654 (``the '654 patent''); 
10,520,881 (``the '881 patent''); 10,520,882 (``the '882 patent''); 
8,565,649; 9,354,551; and 9,753,402. Id. The complaint further alleges 
that a domestic industry exists. Id.
    The Commission instituted two separate investigations based on the 
complaint and defined the scope of the present investigation as whether 
there is a violation of section 337 in the importation, sale for 
importation, or sale within the United States after importation of 
toner supply containers and components thereof by reason of 
infringement of certain claims the '667 patent, the '060 patent, the 
'061 patent, the '957 patent, the '814 patent, the '032 patent, the 
'033 patent, the '654 patent, the '881 patent, and the '882 patent 
(collective, ``the Asserted Patents''). Id.
    The notice of investigation (``NOI'') names twenty-six respondents,

[[Page 26784]]

including twenty-two later found in default: (1) Sichuan XingDian 
Technology Co., Ltd. (``Sichuan XingDian'') of Sichuan, China; (2) 
Sichuan Wiztoner Technology Co., Ltd. (``Sichuan Wiztoner'') of 
Sichuan, China; (3) Copier Repair Specialists, Inc. (``Copier Repair 
Specialists'') of Lewisville, Texas; (4) Digital Marketing Corporation 
d/b/a Digital Buyer Marketing Company (``Digital Buyer'') of Los 
Angeles, California; (5) Ink Technologies Printer Supplies, LLC (``Ink 
Tech'') of Dayton, Ohio; (6) Kuhlmann Enterprises, Inc. d/b/a Precision 
Roller (``Precision Roller'') of Phoenix, Arizona; (7) NAR Cartridges 
of Burlingame, California; (8) Zhuhai Henyun Image Co., Ltd. (``Zhuhai 
Henyun'') of Zhuhai, China; (9) Zinyaw LLC d/b/a TonerPirate.com and 
Supply District (``Zinyaw'') of Houston, Texas; (10) Do It Wiser, Inc. 
d/b/a Image Toner (``Do It Wiser'') of Wilmington, Delaware; (11) 
MITOCOLOR INC. (``MITOCOLOR'') of Rowland Heights, California; (12) 
Anhuiyatengshangmaoyouxiangongsi (``Yatengshang'') of Ganyuqu, China; 
(13) ChengDuXiangChangNanShiYouSheBeiYouXianGongSi (``ChengDuXiang'') 
of SiChuanSheng, China; (14) Hefeierlandianzishangwuyouxiangongsi 
(``Erlandianzishang'') of Chengdushi, China; (15) Xianshi yanliangqu 
canqiubaihuodianshanghang (``CJ-us'') of Shanxisheng, China; (16) 
Ninestar Corporation of Guangdong, China; (17) Ninestar Image Tech 
Limited (``Ninestar Image'') of Guangdong, China; (18) Ninestar 
Technology Company, Ltd. (``Ninestar Tech'') of Chino, California 
(where Ninestar Corporation, Ninestar Image, and Ninestar Tech are 
collectively, ``Ninestar Respondents''); (19) Static Control 
Components, Inc. (``Static Control'') of Sanford, North Carolina; (20) 
Easy Group, LLC (``Easy Group'') of Irwindale, California, LD Products, 
Inc. (``LD Products'') of Long Beach, California; and (22) The Supplies 
Guys, Inc. (``Supplies Guys'') of Lancaster, Pennsylvania; 
(collectively, ``Defaulting Respondents''). Id. The NOI also includes 
the following respondents who were previously terminated from the 
investigation: General Plastic Industrial Co. Ltd. (``General 
Plastic'') of Taichung, Taiwan; Katun Corporation (``Katun'') of 
Minneapolis, Minnesota; Sun Data Supply, Inc. (``Sun Data Supply'') of 
Los Angeles, California; and Shenzhenshi Keluodeng Kejiyouxiangognsi 
(``KenoGen'') of Guangdong, China. Id. The Office of Unfair Import 
Investigations (``OUII'') is also a party to the investigation. Id.
    The complaint and NOI were later amended to correct the name of 
originally-identified respondent, Do It Wiser, LLC d/b/a Image Toner, 
to Do It Wiser, Inc. d/b/a Image Toner. Order No. 5 (May 13, 2021), 
unreviewed by 86 FR 29292-93 (June 1, 2021).
    Respondents Ninestar Respondents, Static Control, Easy Group, LD 
Products, and Supplies Guys were previously found in default. Order No. 
7 (June 22, 2021), unreviewed by Notice (July 6, 2021). In addition, 
respondents Sichuan XingDian, Sichuan Wiztoner, Copier Repair 
Specialists, Digital Buyer, Ink Tech, Precision Roller, NAR Cartridges, 
Zhuhai Henyun, Zinyaw, Do It Wiser, MITOCOLOR, Yatengshang, 
ChengDuXiang, Erlandianzishang, and CJ-us were previously found in 
default. Order No. 18 (Sept. 28, 2021), unreviewed by Notice (Oct. 27, 
2021).
    Respondents General Plastic, Katun, and Sun Data Supply were 
previously terminated from the investigation pursuant to consent order 
stipulations. Order No. 10 (July 1, 2021), unreviewed by Notice (July 
19, 2021). Respondent KenoGen was previously terminated from the 
investigation based on partial withdrawal of the complaint. Order No. 
13, unreviewed by Notice (Aug. 25, 2021).
    The investigation was previously terminated as to certain claims of 
the Asserted Patents. Order No. 11, unreviewed by Notice (Aug. 25, 
2021).
    On October 1, 2021, Canon filed a motion seeking summary 
determination that the Defaulting Respondents have violated section 337 
and requesting that the ALJ recommend that the Commission issue a 
general exclusion order (``GEO'') and cease and desist orders 
(``CDOs'') against certain respondents, and set a 100 percent bond for 
any importations of infringing goods during the period of Presidential 
review. On October 12, 2021, OUII filed a response supporting Canon's 
motion and requested remedial relief. None of the Defaulting 
Respondents filed a response to Canon's motion.
    On February 11, 2022, the ALJ issued the subject ID granting 
Canon's motion and finding violations of section 337 by the Defaulting 
Respondents. Specifically, the ID finds that: (i) The Commission has 
subject matter, personal, and in rem jurisdiction in this 
investigation, ID at 26-27; (ii) Canon has standing to assert the 
Asserted Patents, id. at 27; (iii) Canon has satisfied the importation 
requirement as to all Defaulting Respondents, id. at 28-51; (iv) the 
accused products practice claim 1 of the '667 patent; claim 1 of the 
'060 patent; claim 1 of the '061 patent; claim 1 of the '957 patent; 
claims 1 and 12 of the '814 patent; claims 50, 58, and 61 of the '032 
patent; claims 1 and 13 of the '033 patent; claims 46 and 50 of the 
'654 patent; claims 1, 10, and 13 of the '881 patent; and claims 1 and 
8 of the '882 patent, id. at 54-61; (v) Canon has satisfied the 
technical prong of the DI requirement with respect to the Asserted 
Patents, id. at 61-69; (vi) Canon has satisfied the economic prong of 
the DI requirement with respect to the Asserted Patents, id. at 69-81; 
and (vii) no claim of the Asserted Patents has been shown invalid, id. 
at 82. The ALJ recommended that the Commission: (i) Issue a GEO, (ii) 
issue CDOs against respondents Ninestar Tech, Static Control, Copier 
Repair Specialists, Digital Buyer, Do It Wiser, Easy Group, Ink Tech, 
Precision Roller, LD Products, NAR Cartridges, Supplies Guys, 
MITOCOLOR, Zinyaw, Ninestar Corporation, Ninestar Image, Sichuan 
XingDian, Sichuan Wiztoner, Yatengshang, ChengDuXiang, and 
Erlandianzishang, and (iii) set a 100 percent bond for any importations 
of infringing products during the period of Presidential review. Id. at 
84-102.
    No party petitioned for review of the ID.
    The Commission did not receive any submissions on the public 
interest from the parties pursuant to Commission Rule 210.50(a)(4) (19 
CFR 210.50(a)(4)). The Commission received one submission on the public 
interest from a member of the public in response to the Commission's 
Federal Register notice. 87 FR 16230-31 (March 22, 2022).
    Having reviewed the record in this investigation, including the 
subject ID, the Commission has determined to review the subject ID in 
part. Specifically, the Commission has determined to review the ID's 
findings with respect to whether terminated respondent Sun Data Supply 
has satisfied the importation requirement. The Commission has also 
determined to review the ID's analysis of the economic prong of the 
domestic industry requirement. The Commission has determined not to 
review the remainder of the ID.
    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) cease and desist orders that could result in 
the 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

[[Page 26785]]

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 cease and desist orders 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: The parties, 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 CALJ on remedy and bonding.
    In their initial written submissions, Canon and OUII are requested 
to submit proposed remedial orders for the Commission's consideration. 
Canon 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 May 13, 2022. Reply 
submissions must be filed no later than the close of business on May 
20, 2022. 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-1259) 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 by marking each document 
with a header indicating that the document contains confidential 
information. This marking will be deemed to satisfy the request 
procedure set forth in Rules 201.6(b) and 210.5(e)(2) (19 CFR 201.6(b) 
& 210.5(e)(2)). Documents for which confidential treatment by the 
Commission is properly sought will be treated accordingly. Any non-
party wishing to submit comments containing confidential information 
must serve those comments on the parties to the investigation pursuant 
to the applicable Administrative Protective Order. A redacted non-
confidential version of the document must also be filed with the 
Commission and served on any parties to the investigation within two 
business days of 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 agreements. 
All nonconfidential written submissions will be available for public 
inspection on EDIS.
    The Commission vote for this determination took place on April 29, 
2022.
    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/
parties 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 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: April 29, 2022.
Katherine Hiner,
Acting Secretary to the Commission.
[FR Doc. 2022-09601 Filed 5-4-22; 8:45 am]
BILLING CODE 7020-02-P