[Federal Register Volume 88, Number 36 (Thursday, February 23, 2023)]
[Notices]
[Pages 11473-11474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03703]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1277]


Certain Smart Thermostats, Load Control Switches, and Components 
Thereof; Notice of a Commission Determination To Review in Part a Final 
Initial Determination Finding No Violation of Section 337, and on 
Review, To Affirm With Certain Modifications; 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 determined to review in part a final 
initial determination (``ID'') of the presiding administrative law 
judge (``ALJ''), finding no violation of section 337, and on review, to 
affirm with certain modifications set forth herein. The investigation 
is terminated.

FOR FURTHER INFORMATION CONTACT: Panyin A. Hughes, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-3042. 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 September 2, 2021, the Commission 
instituted this investigation based on a complaint filed by Causam 
Enterprises, Inc. (``Causam'') of Raleigh, North Carolina. 86 FR 49345-
46 (Sept. 2, 2021). The complaint alleged violations of section 337 
based on the importation into the United States, the sale for 
importation, or the sale within the United States after importation of 
certain smart thermostats, load control switches, and components 
thereof by reason of infringement of one or more of claims 1-9, 16, 19-
21, 23-28, and 30 of U.S. Patent No. 8,805,552 (``the '552 patent''); 
claims 1-8, 10, 13-17, 19-23, and 25-29 of U.S. Patent No. 9,678,522 
(``the '522 patent''); claims 1-11, 13-16, 18, and 19 of U.S. Patent 
No. 10,394,268

[[Page 11474]]

(``the '268 patent''); and claims 1, 2, 8, 9, 11, 13, 14, and 17 of 
U.S. Patent No. 10,396,592 (``the '592 patent'') (collectively, 
``Asserted Patents''). Id. The Commission's notice of investigation 
named the following nine entities as respondents: Alarm.com Holdings, 
Inc. of Tysons, Virginia; Alarm.com Inc. of Tysons, Virginia; Ecobee, 
Inc. of Toronto, Ontario, Canada; EnergyHub, Inc. of Brooklyn, New 
York; Itron, Inc. of Liberty Lake, Washington; Itron Distributed Energy 
Management, Inc. of Liberty Lake, Washington (``Itron Distributed''); 
Resideo Smart Homes Technology (Tianjin) of Tianjin, China; Resideo 
Technologies, Inc. of Austin, Texas (``Resideo Technologies''); and 
Xylem Inc., of Rye Brook, New York (``Xylem''). The Office of Unfair 
Import Investigations was not named as a party in this investigation. 
Id.
    On December 10, 2021, the ALJ issued an ID granting a motion to 
terminate the investigation as to Xylem based upon settlement. Order 
No. 7 (Dec. 10, 2021), unreviewed by Comm'n Notice (Jan. 10, 2022).
    On April 21, 2022, the ALJ issued an ID granting a motion (1) to 
amend the complaint and notice of investigation to substitute new 
respondent Ademco Inc. of Melville, New York for respondent Resideo 
Technologies and (2) to terminate the investigation as to respondent 
Itron Distributed; claim 21 of the '552 patent; claims 5, 14, and 17 of 
the '522 patent; claims 5, 13, and 16 of the '268 patent; and claims 8 
and 9 of the '592 patent based upon withdrawal of the allegations in 
the complaint. Order No. 12 (Apr. 21, 2022), unreviewed by Comm'n 
Notice (May 17, 2022).
    The Chief ALJ (``CALJ'') held an evidentiary hearing from June 28-
July 1, 2022 and received post-hearing briefs thereafter (this 
investigation was reassigned from ALJ Shaw to Chief ALJ Cheney on June 
17, 2022).
    On November 16, 2022, the CALJ issued the final ID finding no 
violation of section 337 as to the asserted patent claims. The ID found 
that by appearing and participating in the investigation and not 
contesting jurisdiction, the parties have consented to personal 
jurisdiction at the Commission. ID at 17. The ID also found that the 
Commission has in rem jurisdiction over the accused products. Id. The 
ID further found that the importation requirement under 19 U.S.C. 
1337(a)(1)(B) is satisfied. Id. at 16 (citing JX-0015C, JX-0016C, JX-
0017C, JX-0018C (stipulations between the parties as to importation)). 
The ID, however, found that Causam failed to demonstrate that it has 
standing to assert a claim of infringement for any of the Asserted 
Patents. Id. at 17-26. The ID also found that Causam failed to prove 
infringement of the asserted claims, and that Respondents failed to 
show that any of the asserted claims are invalid. Id. at 40-120, 177-
224. Finally, the ID found that Causam proved the existence of a 
domestic industry that practices the Asserted Patents as required by 19 
U.S.C. 1337(a)(2). Id. at 120-177. The ID included the CALJ's 
recommended determination on remedy and bonding (``RD''). The RD 
recommended that, should the Commission find a violation, issuance of a 
limited exclusion order and cease and desist orders would be 
appropriate. ID/RD at 225-230. The RD also recommended imposing a bond 
in the amount of one hundred percent (100%) of entered value for 
covered products imported during the period of Presidential review. Id. 
at 230-32.
    On November 28, 2022, Causam filed a petition for review of the ID 
and Respondents filed a contingent petition for review of the ID. On 
December 6, 2022, the parties filed responses to the petitions.
    Having reviewed the record of the investigation, including the 
final ID, the parties' submissions, the petitions for review, and the 
response thereto, the Commission has determined to review the final ID 
in part. Specifically, the Commission has determined to review (1) the 
final ID's findings as to Causam's standing to assert infringement of 
the asserted patents; (2) the final ID's findings on obviousness; and 
(3) the final ID's domestic industry findings.
    The Commission, upon review, takes no position on (1) whether 
Causam has standing to assert infringement of the asserted patents; (2) 
whether the asserted patent claims are invalid for obviousness; and (3) 
whether Causam satisfied the technical or economic prongs of the 
domestic industry requirement. The Commission adopts all findings in 
the final ID that are not inconsistent with the Commission's 
determination.

    The investigation is terminated with a finding of no violation 
of section 337.
    The Commission vote for this determination took place on 
February 16, 2023.

    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: February 16, 2023.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2023-03703 Filed 2-22-23; 8:45 am]
BILLING CODE 7020-02-P