[Federal Register Volume 87, Number 150 (Friday, August 5, 2022)]
[Notices]
[Pages 48039-48041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16788]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1259]


Certain Toner Supply Containers and Components Thereof (I); 
Notice of Commission Final 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 (``Commission'') has found a violation of section 337 of the 
Tariff Act of 1930, as amended, in this investigation and has issued a 
general exclusion order (``GEO'') prohibiting the importation of 
certain infringing toner supply containers and components thereof, as 
well as cease and desist orders (``CDOs'') against certain 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

[[Page 48040]]

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 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, 
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; (21) 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 names 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).
    The Commission previously found the Ninestar Respondents, Static 
Control, Easy Group, LD Products, and Supplies Guys in default. Order 
No. 7 (June 22, 2021), unreviewed by Notice (July 6, 2021). The 
Commission also previously found 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 in default. 
Order No. 18 (Sept. 28, 2021), unreviewed by Notice (Oct. 27, 2021).
    The Commission previously terminated respondents General Plastic, 
Katun, and Sun Data Supply from the investigation pursuant to consent 
order stipulations. Order No. 10 (July 1, 2021), unreviewed by Notice 
(July 19, 2021). The Commission further terminated respondent KenoGen 
from the investigation based on partial withdrawal of the complaint. 
Order No. 13, unreviewed by Notice (Aug. 25, 2021).
    The Commission also previously terminated investigation 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 GEO 
and 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 May 15, 2022, the presiding Chief Administrative Law Judge 
(``CALJ'') issued an initial determination (``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; (ii) Canon has standing to assert the Asserted Patents; 
(iii) Canon has satisfied the importation requirement as to all 
Defaulting Respondents; (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; (v) Canon has 
satisfied the technical prong of the DI requirement with respect to the 
Asserted Patents; (vi) Canon has satisfied the economic prong of the DI 
requirement with respect to the Asserted Patents; and (vii) no claim of

[[Page 48041]]

the Asserted Patents has been shown invalid. The CALJ's recommended 
determination on remedy and bonding 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. No 
party petitioned for review of the subject 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).
    On April 29, 2022, the Commission determined to review the ID in 
part. 87 FR 26783-85 (May 5, 2022). Specifically, the Commission 
determined to review the ID's findings with respect to whether 
terminated respondent Sun Data Supply has satisfied the importation 
requirement and the ID's analysis of the economic prong of domestic 
industry requirement. Id. The Commission further requested briefing on 
remedy, bonding, and the public interest. Id.
    On May 13, 2022, Canon and OUII filed initial written responses to 
the Commission's request for briefing. On May 19, 2022, OUII filed its 
reply submission. On May 20, 2022, Canon filed its reply submission.
    Having reviewed the record of the investigation, including the ID 
and Canon's and OUII's submissions, the Commission has found a 
violation of section 337 with respect to Defaulting Respondents. The 
Commission vacates the ID's findings with respect to whether terminated 
respondent Sun Data Supply has satisfied the importation requirement. 
The Commission affirms, with modified analysis, the ID's findings that 
the economic prong of the domestic industry requirement has been 
satisfied under section 337(a)(3)(A) and (B). See 19 U.S.C. 
1337(a)(3)(A), (B). (Commissioner Kearns finds the economic prong 
satisfied under section 337(a)(3)(A) and takes no position with respect 
to section 337(a)(3)(B)). (Commissioner Stayin does not join the 
Commission's analysis, but joins the Commission's determination that 
Canon has satisfied the economic prong of the domestic industry 
requirement.) The Commission also corrects two typographical errors on 
pages 71 and 80 of the ID, as explained in the Commission's opinion.
    The Commission has determined that the appropriate remedy in this 
investigation is: (1) a GEO prohibiting the unlicensed entry of certain 
toner supply containers and components thereof that infringe one or 
more of 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; or claims 1 and 8 of the '882 patent; and 
(2) CDOs against 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. 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), (g)(1). The Commission has also determined that the 
bond during the period of Presidential review shall be in the amount of 
100 percent of the entered value of the Accused Products that are 
subject to the GEO and CDOs. See 19 U.S.C. 1337(j).
    The Commission's reasoning in support of its determinations is set 
forth more fully in its opinion. The Commission's opinion and 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 August 1, 
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: August 1, 2022.
Katherine Hiner,
Acting Secretary to the Commission.
[FR Doc. 2022-16788 Filed 8-4-22; 8:45 am]
BILLING CODE 7020-02-P