[Federal Register Volume 90, Number 173 (Wednesday, September 10, 2025)]
[Notices]
[Pages 43629-43630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-17417]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1428]
Certain Women's Flats With Colored Outsoles Thereof; Notice of a
Commission Determination To Review in Part an Initial Determination
Granting Complainant's Motion for Summary Determination of Violation;
Request for Written Submissions on Remedy, the Public Interest, and
Bonding
AGENCY: U.S. International Trade Commission.
ACTION: Notice.
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SUMMARY: Notice is hereby given that the U.S. International Trade
Commission (``Commission'') has determined (1) to review in part an
initial determination (``ID'') (Order No. 10) of the presiding
administrative law judge (``ALJ'') granting Complainant's motion for
summary determination of violation, and (2) to request written
submissions from the parties, interested government agencies, and
interested persons, under the schedule set forth below, on remedy,
public interest, and bonding.
FOR FURTHER INFORMATION CONTACT: Jonathan D. Link, Esq., Office of the
General Counsel, U.S. International Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202) 205-3103. 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 December 18, 2024, based on a complaint filed by Gavrieli Brands LLC
(``Complainant'') of Culver City, California. 89 FR 102951-53 (Dec. 18,
2024). The complaint, as supplemented, alleges violations of section
337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337 (``section
337''), in the importation into the United States, the sale for
importation, or the sale within the United States after importation of
certain women's flats with colored outsoles thereof by reason of
infringement of the claim of one or more of U.S. Design Patent Nos.
D681,928 (``D'928 patent''), D844,950 (D'950 patent''), D844,951
(``D'951 patent''), D681,927 (``D'927 patent''), D781,035 (``D'035
patent''), D781,032 (``D'032 patent''), D686,812 (``D'812 patent''),
and D688,853 (``D'853 patent''). Id. The complaint also alleges
violations of section 337 based upon the importation into the United
States, or in the sale of certain women's flats with colored outsoles
thereof by reason of trade dress infringement, the threat or effect of
which is to destroy or substantially injure an industry in the United
States. Id. at 102952. The complaint further alleges that a domestic
industry exists. Id. The Commission's notice of investigation named as
respondents Kijera's OneDrop LLC (``OneDrop'') of New York, New York;
Craze of Essel Park, Philippines; Pierjeda Information Technology Co.,
Ltd. d/b/a ``Piergitar'' (``Piergitar''), and Guangzhou Shun Cheng
Trading Co., Ltd. (``Guangzhou Shun Cheng'') of Guangzhou, China;
Shengze Trading Company of Zhangshou City, China; Kunming Ouxiang
Trading Co., Ltd. (``Kunming Ouxiang'') of Kunming City, China; Huihui
Bianan of Beijing, China; Bingxin Qingfeng (``Bingxin Qingfeng'') of
Zhongshan City, China; Baiqiuju1983, tb249835650 (``tb249835650''),
Yuyoufang Foreign Trade Store (``Yuyongfang''), and Xu Wengping 123 of
Zhongshan City, China; and Ynwll of Huilongguan, China (collectively,
``Respondents''). Id. The Office of Unfair Import Investigations
(``OUII'') is also a party to this investigation. Id.
On April 23, 2025, Complainant moved to show cause why the
Respondents should not be found in default for their failure to respond
the complaint and notice of investigation as required by Commission
Rule 210.13 (19 CFR 210.13). On April 25, 2025, OUII filed a response
in support of Complainant's motion.
On May 5, 2025, the ALJ issued an order (Order No. 7) granting
Complainant's motion and directing the Respondents to show cause why
they should not be found in default, no later than May 12, 2025. Order
No. 7 at 3. The ALJ found that Respondent OneDrop was served with a
copy of notice of investigation, the complaint, and all public exhibits
and appendices to the complaint by express delivery (Federal Express)
on March 4, 2025; all other Respondents were served with these
documents by hand delivery no later than March 25, 2025. Id. at 2. The
ALJ found that the latest date any of the Respondents would have been
required to respond to the complaint and notice of investigation was
April 14, 2025, but as of the date of the order to show cause, i.e.,
May 5, 2025, no Respondent had filed such a response or otherwise
participated in the investigation. Id. at 3. The ALJ thus directed the
Respondents to show cause, no later than May 12, 2025, as to why they
should not be held in default. Id. No response to the show cause order
was filed.
On June 3, 2025, the Commission determined not to review Order No.
8, finding all Respondents in default after they failed to respond to
the order to show cause. See Order No. 8 (May 13, 2025), unreviewed by
Comm'n Notice (Jun. 3, 2025).
On June 20, 2025, Complainant moved for summary determination on
violation of section 337 by the Respondents, seeking a limited
exclusion order (``LEO'') under section 337(g)(1) against the
Respondents' articles that infringe each asserted patent and trade
dress, and a general exclusion order (``GEO'') under section 337(g)(2)
against any articles that infringe the asserted patents. Complainant
also requested that the bond be set at 100 percent (100%) of the
entered value of the infringing articles imported during the period of
Presidential review. On July 10, 2025, Complainant filed a Notice of
Withdrawal in which it withdrew its request for a GEO for the D'950,
D'035, and D'032 patents. On July 11, 2025, OUII filed a response
supporting Complainant's motion for summary determination of violation
and requests for a GEO with respect to certain asserted patents and an
LEO with respect to Respondents' articles that infringe the asserted
design patents and trade dress. On July 14, 2025, Complainant filed a
second Notice of Withdrawal in which it withdrew those portions of its
motion requesting a GEO and a finding of a violation under section
337(g)(2) based on the accused products of Respondents OneDrop,
Guangzhou Shun Cheng, Kunming Ouxiang, and Yuyoufang. Complainant
reiterates its request for an LEO under section 337(g)(1) against
infringing articles imported by or on behalf of all of the Respondents.
On July 23, 2025, the ALJ issued the subject ID (Order No. 10),
granting Complainant's motion for summary determination of violation of
section 337. Specifically, the ID found a violation of section 337 by
Piergitar, Bingxin Qingfeng, and tb249835650 based on the importation
of products infringing the claims of the D'928, D'951, D'927, D'812,
and D'853 patents. The ID also found that the domestic industry
requirement is satisfied and the
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evidence supporting its violation findings to be substantial, reliable,
and probative. No party disputed the validity of the asserted patents
and thus, they are presumed valid. The ALJ recommended a GEO based on
the claims of the D'928, D'951, D'927, D'812, and D'853 patents under
section 337(g)(2), as well as to a bond of one hundred percent (100%)
of the entered value of the infringing articles imported during the
period of Presidential review. The ALJ did not rule on Complainant's
request for an LEO under section 337(g)(1) against Respondents'
infringing articles. The ID also terminated the investigation before
the ALJ. No party filed a petition for review of the subject ID.
The Commission has determined to review the subject ID's findings
regarding the economic prong of the domestic industry and affirms the
remainder of the ID.
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
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: 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 dates that the Asserted
Patents expire, 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. All initial written submissions, from the parties and/or
third parties/interested government agencies, and proposed remedial
orders from the parties must be filed no later than close of business
on September 22, 2025. All reply submissions must be filed no later
than the close of business on September 29, 2025. All submissions from
third parties and/or interested government agencies are limited to 10
pages. No further submissions on any of 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 pursuant to 19
CFR 210.4(f). Submissions should refer to the investigation number
(Inv. No. 337-TA-1428) 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 September
8, 2025.
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: September 8, 2025.
Susan D. Orndoff,
Supervisory Attorney.
[FR Doc. 2025-17417 Filed 9-9-25; 8:45 am]
BILLING CODE 7020-02-P