[Federal Register Volume 88, Number 149 (Friday, August 4, 2023)]
[Notices]
[Pages 51857-51858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16635]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1293]


Certain Automated Put Walls and Automated Storage and Retrieval 
Systems, Associated Vehicles, Associated Control Software, and 
Component Parts Thereof; Notice of Final Determination Finding a 
Violation of Section 337; Issuance of a Limited Exclusion Order and 
Cease and Desist Orders; Termination of Investigation

AGENCY: International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined that respondents HC Robotics (a.k.a. Huicang 
Information Technology Co., Ltd.) and Invata, LLC (d/b/a Invata 
Intralogistics) (collectively, ``Respondents'') have violated section 
337 of the Tariff Act of 1930, as amended, by importing, selling for 
importation, or selling within the United States after importation 
certain automated put walls and automated storage and retrieval 
systems, associated vehicles, associated control software, and 
component parts thereof that infringe one or more claims of U.S. Patent 
Nos. 8,622,194 and 10,576,505. The Commission has determined that the 
appropriate remedies are a limited exclusion order (``LEO'') and cease 
and desist orders (``CDOs'') against each of Respondents. The 
Commission has also determined to set a bond in the amount of 100 
percent of the entered value of the excluded articles imported during 
the period of Presidential review. This investigation is hereby 
terminated.

FOR FURTHER INFORMATION CONTACT: Richard P. Hadorn, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-3179. 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: The Commission instituted this investigation 
on January 27, 2022, based on a complaint filed by OPEX Corporation 
(``OPEX'') of Moorestown, New Jersey. 87 FR 4290-91 (Jan. 27, 2022). 
The complaint, as supplemented, alleges violations of section 337 of 
the Tariff Act of 1930, as amended, 19 U.S.C. 1337 (``section 337''), 
based on the importation into the United States, the sale for 
importation, and the sale within the United States after importation of 
certain automated put walls and automated storage and retrieval 
systems, associated vehicles, associated control software, and 
component parts thereof by reason of infringement of certain claims of 
U.S. Patent Nos. 8,104,601 (``the '601 patent''), 8,276,740 (``the '740 
patent''), 8,622,194 (``the '194 patent''), and 10,576,505 (``the '505 
patent''). Id. at 4291. The complaint further alleges that a domestic 
industry exists. Id. The notice of investigation named two respondents: 
(1) HC Robotics (a.k.a. Huicang Information Technology Co., Ltd.) of 
Hangzhou City, Zheijang Province, China; and (2) Invata, LLC (d/b/a 
Invata Intralogistics) of Conshohocken, Pennsylvania. Id. The Office of 
Unfair Import Investigations is not named as a party. Id.
    On September 13, 2022, the Commission terminated the investigation 
as to the OmniSort Generation 1 products based on a consent order. 
Order No. 10 (Aug. 12, 2022), unreviewed by Comm'n Notice (Sept. 13, 
2022). On October 11, 2022, the Commission terminated the investigation 
as to (i) the '601 patent, (ii) the '740 patent, (iii) asserted claims 
2-4, 6, 10, 12-17, 19, and 20 of the '194 patent, and (iv) asserted 
claims 14, 17, and 21 of the '505 patent based on OPEX's partial 
withdrawal of the complaint. Order No. 12 (Sept. 23, 2022), unreviewed 
by Comm'n Notice (Oct. 11, 2022). On December 19, 2022, the Commission 
determined that the technical prong of the domestic industry 
requirement is satisfied in this investigation as to the remaining 
asserted patents--i.e., the '194 and '505 patents. See Order No. 17 
(Nov. 23, 2022), unreviewed by Comm'n Notice (Dec. 19, 2022).
    On March 31, 2023, the chief administrative law judge issued a 
final initial determination (``ID'') on violation, which included a 
recommended determination (``RD'') on remedy and bonding. The ID finds 
violations of section 337 with respect to asserted claims 1 and 5 of 
the '194 patent and asserted claims 1-5, 7-9, 11-13, 15-16, and 18-20 
of the '505 patent. Specifically, the ID finds that: (i) OPEX has 
standing to assert both the '194 and '505 patents; (ii) the asserted 
claims listed above are directly infringed by Respondents; (iii) 
Respondents both induced and contributed to the infringement of each of 
the asserted claims listed above; (iv) no asserted claim is invalid; 
and (v) OPEX has satisfied the domestic industry requirement as to both 
patents. The RD recommends that, should the Commission determine that 
violations of section 337 occurred, the Commission should: (i) issue an 
LEO against the Respondents' infringing products; (ii) issue CDOs 
against each of Respondents; and (iii) set a 100 percent bond for 
importations of infringing products during the period of Presidential 
review.
    On June 1, 2023, the Commission determined to review in part the 
final ID with respect to the ID's finding that OPEX has satisfied the 
economic prong of the DI requirement. 88 FR 37271-73 (June 7, 2023). 
The Commission also determined to correct typographical/clerical errors 
on pages 8, 35, and 38 of the ID. Id. The Commission further determined 
not to review the remaining findings in the ID. Id. The Commission's 
notice requested written submissions on remedy, the public interest, 
and bonding. See id. The Commission did not request briefing on any 
issue under review. Id.
    The Commission did not receive submissions on the public interest 
from the parties pursuant to Commission Rule 210.50(a)(4) (19 CFR 
210.50(a)(4)). The Commission also did not receive any submissions on 
the public interest from members of the public in response to the 
Commission's Federal Register notice. See 88 FR 23689 (Apr. 18, 2023).
    On June 15, 2023, OPEX and Respondents each filed initial briefs on 
remedy, the public interest, and bonding. On June 22, 2023, OPEX and 
Respondents each filed reply briefs.
    The Commission, having reviewed the record in this investigation, 
including the final ID, the parties' petitions and

[[Page 51858]]

responses thereto, and the parties' briefs on remedy, the public 
interest, and bonding, has determined that Respondents have violated 
section 337 by importing, selling for importation, or selling within 
the United States after importation certain automated put walls and 
automated storage and retrieval systems, associated vehicles, 
associated control software, and component parts thereof that infringe 
one or more claims of claims 1 and 5 of the '194 patent and claims 1-5, 
7-9, 11-13, 15-16, and 18-20 of the '505 patent.
    The Commission has determined that the appropriate remedy is: (i) 
an LEO prohibiting the importation of certain automated put walls and 
automated storage and retrieval systems, associated vehicles, 
associated control software, and component parts thereof that infringe 
one or more claims of claims 1 and 5 of the '194 patent and claims 1-5, 
7-9, 11-13, 15-16, and 18-20 of the '505 patent; and (ii) CDOs against 
each of Respondents. The Commission has also determined that the public 
interest factors do not preclude issuance of the remedial orders. The 
Commission has further determined to set a bond in the amount of 100 
percent of the entered value of the excluded articles imported during 
the period of Presidential review (19 U.S.C. 1337(j)).
    The Commission issues its opinion herewith setting forth its 
determinations on certain issues. This investigation is hereby 
terminated.
    The Commission's orders and opinion were delivered to the President 
and United States Trade Representative on the day of their issuance.
    The Commission vote for this determination took place on July 31, 
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: July 31, 2023.
Sharon Bellamy,
Acting Supervisory Hearings and Information Officer.
[FR Doc. 2023-16635 Filed 8-3-23; 8:45 am]
BILLING CODE 7020-02-P