[Federal Register Volume 89, Number 100 (Wednesday, May 22, 2024)]
[Notices]
[Pages 45010-45012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11186]


=======================================================================
-----------------------------------------------------------------------

INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1355]


Certain Compact Wallets and Components Thereof; Notice of a 
Commission Determination To Review in Part a Final Initial 
Determination Finding a Violation of Section 337; Request for Written 
Submissions on the Issues Under Review and on Remedy, the Public 
Interest, and Bonding

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined to review in part the presiding 
administrative law judge's (``ALJ'') final initial determination 
(``ID'') finding a violation of section 337 in the above-captioned 
investigation. The Commission requests written submissions from the 
parties on the issues under review and submissions from the parties, 
interested government agencies, and interested persons on the issues of 
remedy, the public interest, and bonding under the schedule set forth 
below.

FOR FURTHER INFORMATION CONTACT: Cathy Chen, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-2392. 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 
on March 15, 2023, based on a complaint filed by The Ridge Wallet, LLC 
of Santa Monica, California (``Ridge'' or ``Complainant''). 88 FR 
16030-031 (Mar. 15, 2023). The 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 compact wallets and components thereof by reason of trade dress 
infringement and infringement of claims 1-4, 9, and 12-17 of U.S. 
Patent No. 10,791,808 (``the '808 patent''). Id. The Commission's 
notice of investigation named Rosemar Enterprises LLC d/b/a RossM 
Wallet of Palm Springs, California (``RossM''); INSGG of Hangzhou City, 
Zhejiang Province, China; Mosaic Brands, Inc. of Alamo, California 
(``Mosaic''); Shenzhen Swztech Co., Ltd. d/b/a SWZA (``SWZA'') of 
Shenzhen, Guangdong, China; and Shenzhen Pincan Technology Co., Ltd. d/
b/a ARW-Wallet (``ARW'') of Shenzhen, Guangdong, China as respondents. 
The Office of Unfair Import Investigations (``OUII'') also participated 
in this investigation.
    After institution, Respondents RossM and INSGG were found in 
default (collectively, the ``Defaulting Respondents''). See Order No. 
12 (Jul. 11, 2023), unreviewed by Comm'n Notice (Jul. 28, 2023). In 
addition, Respondent Mosaic was terminated from the investigation based 
on settlement. See Order No. 16 (Sept. 6, 2023), unreviewed by Comm'n 
Notice (Sept. 22, 2023).
    Before the evidentiary hearing, the investigation was terminated as 
to Ridge's trade dress allegations and as to Ridge's infringement 
allegations with respect to claims 3, 4, 9, 12, 13, 15, 16, and 17 of 
the '808 patent. See Order No. 25 (Oct. 6, 2023), unreviewed by Comm'n 
Notice (Nov. 6, 2023).
    Only Respondents SWZA and ARW (collectively, the ``Participating 
Respondents'') participated at the evidentiary hearing held on November 
6-7, 2023. After the hearing, counsel for the Participating Respondents 
withdrew after being ``discharged'' by the Participating Respondents. 
ID at 2 (citing Order No. 30 (Dec. 13, 2023)). The Participating 
Respondents did not file post-hearing briefs. Id. at 3.
    On March 15, 2024, the ALJ issued a combined final ID and 
recommended

[[Page 45011]]

determination (``RD''), finding a violation of section 337 by the 
Defaulting Respondents and the Participating Respondents. Specifically, 
the final ID found, inter alia, that the importation requirement is 
satisfied as to the accused products; that the accused products 
infringe claims 1, 2, and 14 of the '808 patent; that Ridge has 
satisfied the domestic industry requirement with respect to the '808 
patent; and that claims 1, 2, and 14 have not been shown to be invalid. 
In addition, the RD recommended that the Commission issue a general 
exclusion order and a cease and desist order directed to each of the 
respondents. The RD also recommended that the Commission impose a one-
hundred percent (100%) bond during the period of Presidential review.
    On April 15, 2024, Ridge filed a statement on public interest 
pursuant to Commission Rule 210.50(a)(4), 19 CFR 210.50(a)(4).
    No petitions for review were filed, which means each party has 
abandoned all issues decided adversely to that party. See 19 CFR 
210.43(b)(4).
    Having reviewed the record of the investigation, including the 
final ID, the parties' submissions to the ALJ, and the record evidence, 
the Commission has determined to review the ID in part on its own 
initiative. 19 CFR 210.44. Specifically, the Commission has determined 
to review the ID's findings with respect to jurisdiction and the 
economic prong.
    In connection with its review, the Commission requests responses to 
the following questions. The parties are requested to brief their 
positions with reference to the applicable law and the existing 
evidentiary record.
    1. Explain the basis for considering investments prior to the 
issuance of a patent (pre-issuance investments) for purposes of a 
domestic industry under 19 U.S.C. 1337(a)(3)(A) and (B). How do the 
Federal Circuit's cases holding that there is an ``articles'' 
requirement for all subparagraphs (A)-(C) of section 337(a)(3) affect 
the Commission's reasoning in Video Game Systems crediting engineering 
and research and development investments that predate the issuance of a 
patent under certain circumstances? See Certain Video Game Systems and 
Controllers, Inv. No. 337-TA-743, Comm'n Op., 2011 WL 1523774, at *4 
(Apr. 14, 2011); Motiva, LLC v. ITC, 716 F.3d 596, 600-601 (Fed. Cir. 
2013) (citing Interdigital Commc'ns, LLC v. ITC, 707 F.3d 1295, 1297-98 
(Fed. Cir. 2013) (``[J]ust as the ``plant or equipment'' referred to in 
subparagraph (A) must exist with respect to articles protected by the 
patent, such as by producing protected goods, the research and 
development or licensing activities referred to in subparagraph (C) 
must also exist with respect to articles protected by the patent, such 
as by licensing protected products.'')).
    2. Regardless of pre- or post-issuance status of investments, how 
far back in time should the Commission look to in determining whether a 
domestic industry exists in a section 337 investigation? What factors 
should the Commission consider in determining the timeframe over which 
investments may be counted towards a domestic industry analysis?
    3. As of the filing of the complaint, how many full-time equivalent 
(FTE) employees were employed by Complainant in the ``design and 
development team'' working on product research, design, development, 
and/or engineering work related to the domestic industry products?
    4. Provide any information in the record about foreign labor 
expenditures associated with the manufacturing of the domestic industry 
products for the time period Aug. 2016-Feb. 2023, and also for the 
narrower post-issuance time period Oct. 2020-Feb. 2023.
    5. Provide any information in the record about foreign capital 
expenditures associated with the manufacturing of the domestic industry 
products for the time period Aug. 2016-Feb. 2023, and also for the 
narrower post-issuance time period Oct. 2020-Feb. 2023.
    6. Provide any information in the record about foreign plant and 
equipment expenditures associated with the manufacturing of the 
domestic industry products for the time period Aug. 2016-Feb. 2023, and 
also for the narrower post-issuance time period Oct. 2020-Feb. 2023.
    In connection with the final disposition of this investigation, the 
statute authorizes issuance of, inter alia, (1) an exclusion order that 
could result in the exclusion of the subject articles from entry into 
the United States; and/or (2) cease and desist orders that could result 
in the respondents being required to cease and desist from engaging in 
unfair acts in the importation and sale of such articles. Accordingly, 
the Commission is interested in receiving written submissions that 
address the form of remedy, if any, that should be ordered. If a party 
seeks exclusion of an article from entry into the United States for 
purposes other than entry for consumption, the party should so indicate 
and provide information establishing that activities involving other 
types of entry either are adversely affecting it or likely to do so. 
For background, see Certain Devices for Connecting Computers via 
Telephone Lines, Inv. No. 337-TA-360, USITC Pub. No. 2843, Comm'n Op. 
at 7-10 (Dec. 1994).
    The statute requires the Commission to consider the effects of that 
remedy upon the public interest. The public interest factors the 
Commission will consider include the effect that an exclusion order and 
cease and desist orders would have on: (1) the public health and 
welfare, (2) competitive conditions in the U.S. economy, (3) U.S. 
production of articles that are like or directly competitive with those 
that are subject to investigation, and (4) U.S. consumers. The 
Commission is therefore interested in receiving written submissions 
that address the aforementioned public interest factors in the context 
of this investigation.
    If the Commission orders some form of remedy, the U.S. Trade 
Representative, as delegated by the President, has 60 days to approve, 
disapprove, or take no action on the Commission's determination. See 
Presidential Memorandum of July 21, 2005, 70 FR 43251 (July 26, 2005). 
During this period, the subject articles would be entitled to enter the 
United States under bond, in an amount determined by the Commission and 
prescribed by the Secretary of the Treasury. The Commission is 
therefore interested in receiving submissions concerning the amount of 
the bond that should be imposed if a remedy is ordered.
    Written Submissions: The parties to the investigation are requested 
to file written submissions on the issues identified in this notice. 
Parties to the investigation, interested government agencies, and any 
other interested parties are encouraged to file written submissions on 
the issues of remedy, the public interest, and bonding. Such 
submissions should address the recommended determination by the ALJ on 
remedy and bonding.
    In its initial submission, Complainant is also requested to 
identify the remedy sought and Complainant and OUII are requested to 
submit proposed remedial orders for the Commission's consideration. 
Complainant is further requested to state the date that the Asserted 
Patent expires, to provide the HTSUS subheadings under which the 
accused products are imported, and to supply the identification 
information for all known importers of the products at issue in this 
investigation. The initial written submissions and proposed remedial 
orders must be filed no later than close of business on May 30, 2024. 
Reply submissions must be filed no later

[[Page 45012]]

than the close of business on June 6, 2024. No further submissions on 
these issues will be permitted unless otherwise ordered by the 
Commission.
    Persons filing written submissions must file the original document 
electronically on or before the deadlines stated above. The 
Commission's paper filing requirements in 19 CFR 210.4(f) are currently 
waived. 85 FR 15798 (March 19, 2020). Submissions should refer to the 
investigation number (Inv. No. 337-TA-1355) in a prominent place on the 
cover page and/or the first page. (See Handbook for Electronic Filing 
Procedures, https://www.usitc.gov/documents/handbook_on_filing_procedures.pdf). Persons with questions regarding 
filing should contact the Secretary, (202) 205-2000.
    Any person desiring to submit a document to the Commission in 
confidence must request confidential treatment by marking each document 
with a header indicating that the document contains confidential 
information. This marking will be deemed to satisfy the request 
procedure set forth in Rules 201.6(b) and 210.5(e)(2) (19 CFR 201.6(b) 
& 210.5(e)(2)). Documents for which confidential treatment by the 
Commission is properly sought will be treated accordingly. Any non-
party wishing to submit comments containing confidential information 
must serve those comments on the parties to the investigation pursuant 
to the applicable Administrative Protective Order. A redacted non-
confidential version of the document must also be filed with the 
Commission and served on any parties to the investigation within two 
business days of any confidential filing. All information, including 
confidential business information and documents for which confidential 
treatment is properly sought, submitted to the Commission for purposes 
of this investigation may be disclosed to and used: (i) by the 
Commission, its employees and Offices, and contract personnel (a) for 
developing or maintaining the records of this or a related proceeding, 
or (b) in internal investigations, audits, reviews, and evaluations 
relating to the programs, personnel, and operations of the Commission 
including under 5 U.S.C. Appendix 3; or (ii) by U.S. Government 
employees and contract personnel, solely for cybersecurity purposes. 
All contract personnel will sign appropriate nondisclosure agreements. 
All nonconfidential written submissions will be available for public 
inspection on EDIS.
    The Commission vote for this determination took place on May 16, 
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).
    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(s) complete service for any 
party/parties 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).

    By order of the Commission.
    Issued: May 16, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-11186 Filed 5-21-24; 8:45 am]
BILLING CODE 7020-02-P