[Federal Register Volume 88, Number 169 (Friday, September 1, 2023)]
[Notices]
[Pages 60494-60495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18953]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1288]


In the Matter of Certain Playards and Strollers; Notice of a 
Final Determination Finding No Violation of Section 337; 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 has determined to affirm in part, modify in part, reverse in 
part, and take no position on certain portions of the Administrative 
Law Judge's (``ALJ'') final initial determination (``ID''), issued on 
March 31, 2023, finding a violation of section 337 in the above-
referenced investigation as to two of the three asserted patents. The 
Commission has determined that no violation of section 337 has occurred 
as to any of the asserted patents based on the importation of certain 
playards and strollers. This investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Benjamin S. Richards, Esq., Office of 
the General Counsel, U.S. International Trade Commission, 500 E Street 
SW, Washington, DC 20436, telephone (202) 708-5453. 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: The Commission instituted this investigation 
by publication in the Federal Register on December 27, 2021. 86 FR 
73318 (Dec. 27, 2021). The complainants are Graco Children's Products 
Inc., of Atlanta, GA (``Graco'') and Wonderland Nurserygoods Co., Ltd. 
of Taipei, Taiwan (``Wonderland''). Graco and Wonderland's complaint, 
as supplemented, alleged violations of section 337 of the Tariff Act of 
1930, as amended, 19 U.S.C. 1337, in the importation into the United 
States, the sale for importation, or the sale within the United States 
after importation of certain playards and strollers by reason of 
infringement of certain claims of U.S. Patent Nos. 9,706,855 (``the 
'855 patent''); 9,414,694 (``the '694 patent''); RE43,919 (``the '919 
patent''); and 6,979,017 (``the '017 patent''). Id. The complaint 
further alleged that a domestic industry exists. Id. The Commission's 
notice of investigation named as respondents Baby Trend, Inc. of 
Fontana, CA (``Baby Trend''); Dongguan Golden Prosper Baby Products 
Co., Ltd., of Guangdong, China (``Golden Prosper''); Sichuan Hobbies 
Baby Products Co., Ltd., of Sichuan, China (``Sichuan Hobbies''); and 
Anhui Chile Baby Products Co., Ltd. of Anhui Province, China (``Anhui 
Chile''). Id. The Office of Unfair Import Investigations is not 
participating in the investigation. Id.
    On April 1, 2022, the Commission determined not to review an ID 
terminating the investigation as to the '017 patent. Order No. 7 (Mar. 
7, 2022), unreviewed by Comm'n Notice (Apr. 1, 2022). On April 12, 
2022, the Commission determined not to review an ID terminating the 
investigation as to respondent Golden Prosper based on withdrawal of 
the complaint. Order No. 8 (Mar. 23, 2022), unreviewed by Comm'n Notice 
(Apr. 12, 2022). And, on December 14, 2022, the Commission determined 
not to review an ID terminating the investigation as to claims 3-9, 11-
12, 14, and 16-20 of the '855 patent, claims 2, 4-9, 11-17, and 19-20 
of the '694 patent, and claims 8, 10-12, 14-19, and 27-28 of the '919 
patent as to all respondents, and terminating the investigation as to 
claim 20 of the '919 patent as to respondents Sichuan Hobbies and Anhui 
Chile (but not Baby Trend). Order No. 21 (Nov. 15, 2022), unreviewed by 
Comm'n Notice (Dec. 14, 2022).
    The ALJ held an evidentiary hearing from December 12-15, 2022, at 
which point, only claims 1, 2, 10, 13, and 15 of the '855 patent and 
claims 1, 10, and 18 of the '694 patent remained as to all respondents 
and claim 20 of the '919 patent remained as to respondent Baby Trend. 
At the time of the evidentiary hearing, there were three remaining 
respondents in this investigation: Baby Trend, Sichuan Hobbies, and 
Anhui Chile (``Respondents'').
    On March 31, 2023, the ALJ issued the final ID in this 
investigation. The ID found that a violation of section 337 had 
occurred based on the respondents' importation and sale of products 
that infringe certain claims of the '855 patent and the '694 patent. By 
contrast, the ID found that no violation had occurred in connection 
with the '919 patent. The ALJ issued his recommended determination 
(``RD'') on remedy and bond concurrently with the ID. The RD 
recommended issuance of a limited exclusion order directed to accused 
products that infringe the '855 or '694 patents. In addition, the RD 
recommended the issuance of a cease and desist order. As to bond, the 
RD recommended a bond rate of 4% for the product accused of infringing 
only the '919 patent and a bond rate of 59% for the remaining accused 
products.
    The parties filed petitions for review of the ID on April 14, 2023, 
and responses thereto on April 24, 2023.
    On July 6, 2023, the Commission determined to review the ID in 
part. Specifically, the Commission determined to review: (1) for the 
'855

[[Page 60495]]

patent, whether claim 15 is anticipated by Gabriella, and whether 
claims 1, 2, 10, and 13 are obvious based on Troutman and Song or Hsia 
and Song; (2) for the '694 patent, whether claim 18 is anticipated by 
Hsia and whether claims 1 and 10 are obvious based on Troutman and 
Tharalson; (3) the '919 patent in its entirety; and (4) whether the 
technical and economic prongs of the domestic industry requirement are 
met for all three patents. In connection with its review of the ID, the 
Commission sought briefing from the parties on several questions 
germane to the issues on review. The Commission also requested briefing 
from the parties, interested government agencies, and other interested 
persons on remedy, bonding, and the public interest.
    On July 20, 2023, the parties submitted briefs responding to the 
questions posed in the Commission's Notice of Review and on remedy, the 
public interest, and bond. Thereafter, on July 27, 2023, each submitted 
a reply to the other's brief on review. No additional submissions were 
received.
    Having considered the parties' submissions, the ID, and the record 
in this investigation, the Commission has determined that no violation 
of section 337 has occurred based on Respondents' importation into the 
United States, sale for importation, or sale within the United States 
after importation of certain playards and strollers. The Commission has 
further determined to affirm in part, modify in part, reverse in part, 
and take no position on certain portions of the ID, as explained in the 
Commission's opinion issued concurrently herewith. This investigation 
is terminated.
    The Commission vote for this determination took place on August 28, 
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: August 28, 2023.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2023-18953 Filed 8-31-23; 8:45 am]
BILLING CODE 7020-02-P