[Federal Register Volume 89, Number 51 (Thursday, March 14, 2024)]
[Notices]
[Pages 18668-18669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05455]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1199 (Rescission)]


Certain Tobacco Heating Articles and Components Thereof; Notice 
of Commission Decision To Institute a Rescission Proceeding and to; 
Termination of the Rescission Proceeding

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 institute a rescission proceeding and to 
rescind the limited exclusion order (``LEO'') and cease and desist 
orders (``CDOs'') issued in the underlying investigation. The 
rescission proceeding 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 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 May 15, 2020, 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 RAI Strategic Holdings, Inc., R.J. Reynolds Vapor Company, and R.J. 
Reynolds Tobacco Company, all of Winston-Salem, North Carolina 
(collectively, ``Complainants''). See 85 FR 29482-83. The complaint, as 
supplemented, alleges a violation of section 337 based upon the 
importation of certain tobacco heating articles and components thereof 
by reason of infringement of certain claims of U.S. Patent Nos. 
9,839,238 (``the '238 patent''); 9,930,915 (``the '915 patent''); 
9,901,123 (``the '123 patent). The complaint also alleges the existence 
of a domestic industry. The notice of investigation names the following 
respondents: Altria Client Services LLC (``ACS'') and Philip Morris 
USA, Inc. (``PM USA'') both of Richmond, Virginia, and Philip Morris 
Products S.A. (``PMPSA'') of Neuchatel, Switzerland (collectively, 
``Respondents''). See id. The Office of Unfair Import Investigations 
(``OUII'') is also a party to the investigation. See id.
    On September 29, 2021, the Commission issued a final determination 
finding a violation of section 337, based on Respondents' infringement 
of claims 1-3 and 5 of the '915 patent and claims 27-30 of the '123 
patent, but not the '238 patent. See 86 FR 54998-99 (Oct. 5, 2021). The 
Commission further determined to issue an LEO against Respondents' 
infringing products and CDOs against PM USA and ACS (collectively, 
``the remedial orders''). See id. The Commission determined not to 
impose a bond during the period of Presidential review. See id.
    On December 1, 2021, Respondents filed an appeal from the 
Commission's final determination with the U.S. Court of Appeals for the 
Federal Circuit. See Philip Morris Products S.A. v. ITC, Appeal No. 
2022-1227. On March 31, 2023, the Federal Circuit issued a precedential 
opinion affirming the Commission's decision in full. See Philip Morris 
Products S.A. v. ITC, 63 F.4th 1328 (Fed. Cir. 2023).
    On February 8, 2024, Complainants and Respondents filed a joint 
petition to rescind the remedial orders based on a settlement agreement 
between Complainants and PMPSA. Pursuant to Commission Rule 
210.76(a)(3), 19 CFR 210.76(a)(3), the petition asserts that it 
includes a confidential and public version of the underlying agreement. 
The petition also includes a statement that there are no other 
agreements, written or oral, express or implied between the parties 
concerning the subject matter of the investigation.
    On February 20, 2024, OUII filed a response stating that it did not 
support the joint petition as filed. Specifically, OUII argued the 
joint petition did not substantially comply with the requirements of 
Commission Rule 210.76(a)(3) because: (1) the attached Schedule 3.1 
Patent License Agreement is not signed, and (2) respondents ACS and PM 
USA are not parties to the agreement. OUII further argued that only 
PMPSA should be rescinded from the remedial orders.
    On February 22, 2024, Complainants and Respondents filed a joint 
supplement to their petition. The joint supplement attaches the fully 
executed Patent License Agreement as set forth in Schedule 3.1 of the 
Settlement Agreement. The joint supplement also includes a discussion 
as to the scope of the settlement agreement. OUII did not file a 
further response to the joint supplement to the petition.
    Having reviewed the joint petition, OUII's response thereto, the 
joint supplement to the petition, and the record of the investigation, 
the Commission has determined that the joint petition, as supplemented 
with the fully executed Patent License Agreement, complies with the 
Commission's rules and therefore granting the petition is warranted 
under 19 U.S.C. 1337(k) and 19 CFR 210.76. The Commission has also 
determined that the scope of the settlement agreement does not preclude 
rescission of all of the remedial orders issued. See 86 FR 13731-33 
(Mar. 10, 2021)

[[Page 18669]]

(Commission rescinded remedial orders based on petition to rescind 
filed solely by complainant).
    Accordingly, the Commission has determined to institute a 
rescission proceeding and to rescind the remedial orders. The 
rescission proceeding is terminated.
    The Commission's vote on this determination took place on March 11, 
2024.
    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: March 11, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-05455 Filed 3-13-24; 8:45 am]
BILLING CODE 7020-02-P