[Federal Register Volume 89, Number 149 (Friday, August 2, 2024)]
[Notices]
[Pages 63223-63224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17038]



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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1355]


Certain Compact Wallets and Components Thereof; Notice of the 
Commission's Final Determination Finding a Violation of Section 337; 
Issuance of a General Exclusion Order and Cease and Desist Orders; 
Termination of the Investigation

AGENCY: International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has found a violation of section 337 of the Tariff Act of 
1930, as amended, in this investigation and has issued a general 
exclusion order prohibiting the importation of infringing compact 
wallets and components thereof and cease and desist orders directed 
against Respondents Rosemar Enterprises LLC d/b/a RossM Wallet 
(``RossM''); INSGG; Shenzhen Swztech Co., Ltd. d/b/a SWZA (``SWZA''); 
and Shenzhen Pincan Technology Co., Ltd. d/b/a ARW-Wallet (``ARW'').

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 as respondents RossM of Palm Springs, 
California; INSGG of Hangzhou City, Zhejiang Province, China; Mosaic 
Brands, Inc. of Alamo, California (``Mosaic''); SWZA of Shenzhen, 
Guangdong, China; and ARW of Shenzhen, Guangdong, China. 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. 
Final Initial Determination (``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 ID and recommended 
determination (``RD''), finding a violation of section 337 by the 
Defaulting Respondents and the Participating Respondents. Specifically, 
the ID found, inter alia, that the ``Commission has subject matter, 
personal, and in rem jurisdiction in this investigation,'' id. at 72; 
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 under sections 337(a)(3)(A) and (B); 
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). No public interest submissions were filed in response to 
the Federal Register notice seeking such submissions, 89 FR 20248 (Mar. 
21, 2024).
    On May 16, 2024, the Commission issued a notice determining to 
review the ID in part on its own initiative. 89 FR 45010 (May 22, 
2024); 19 CFR 210.44. Specifically, the Commission determined to review 
the ID's findings with respect to jurisdiction and the economic prong 
of domestic industry. The Commission also requested briefing related to 
the economic prong of domestic industry and briefing on remedy, 
bonding, and the public interest.
    On May 30, 2024, Ridge and OUII filed their respective initial 
submissions on the issues under review, and on remedy, bonding, and the 
public interest. On June 6, 2024, Ridge and OUII filed their respective 
response submissions. No other party filed a submission before the 
Commission.
    Having reviewed the record of the investigation, including the ID 
and the parties' submissions, the Commission has found a violation of 
section 337 as claims 1, 2, and 14 of the '808 patent. Specifically, 
the Commission has determined to vacate the ID's use of the language 
``subject matter jurisdiction'' and clarifies that this term, along 
with ``in rem jurisdiction'' and ``personal jurisdiction,'' are merely 
shorthand for the Commission's statutory authority over the present 
investigation. The Commission has also determined to affirm, with 
modifications, the ID's finding that Ridge has satisfied the economic 
prong of the domestic industry requirement under section 337(a)(3)(B).
    The Commission has determined that the appropriate remedy is: (1) a 
general exclusion order prohibiting the entry of infringing compact 
wallets and components thereof; and (2) cease and desist orders 
directed to Respondents RossM, SWZA, ARW, and INSGG. The Commission has 
determined that the public interest factors do not preclude issuance of 
the general exclusion order or the cease and desist orders. The 
Commission has determined that a bond is required during the period of 
Presidential review and sets the bond in the amount of one hundred 
percent

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(100%) of the imported articles. 19 U.S.C. 1337(j)(3).
    The investigation is terminated. The Commission's reasoning in 
support of its determinations is set forth more fully in its opinion. 
The Commission's orders and opinion were delivered to the President and 
the United States Trade Representative on the day of their issuance.
    The Commission vote for this determination took place on July 29, 
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: July 29, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-17038 Filed 8-1-24; 8:45 am]
BILLING CODE 7020-02-P