81 FR 49264 - Certain Three-Dimensional Cinema Systems and Components Thereof Commission's Final Determination Finding a Violation of Section 337; Issuance of a Limited Exclusion Order and Cease and Desist Orders; Termination of the Investigation

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 81, Issue 144 (July 27, 2016)

Page Range		49264-49265
FR Document		2016-17711

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, 19 U.S.C. 1337, in this investigation. The Commission has issued a limited exclusion order prohibiting the importation of certain three-dimensional cinema systems, and components thereof, that infringe certain claims of the patents at issue. The Commission has also issued cease and desist orders directed to the two respondents. The remedial orders are suspended as to certain patent claims pending final resolution of a validity issue. The investigation is terminated.

Federal Register, Volume 81 Issue 144 (Wednesday, July 27, 2016)

[Federal Register Volume 81, Number 144 (Wednesday, July 27, 2016)]
[Notices]
[Pages 49264-49265]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-17711]

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

INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-939]

Certain Three-Dimensional Cinema Systems and Components Thereof
Commission's Final Determination Finding a Violation of Section 337;
Issuance of a Limited Exclusion Order and Cease and Desist Orders;
Termination of the Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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

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, 19 U.S.C. 1337, in this investigation. The Commission
has issued a limited exclusion order prohibiting the importation of
certain three-dimensional cinema systems, and components thereof, that
infringe certain claims of the patents at issue. The Commission has
also issued cease and desist orders directed to the two respondents.
The remedial orders are suspended as to certain patent claims pending
final resolution of a validity issue. The investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Lucy Grace D. Noyola, Office of the
General Counsel, U.S. International Trade Commission, 500 E Street SW.,
Washington, DC 20436, telephone 202-205-3438. Copies of non-
confidential documents filed in connection with this investigation are
or will be available for inspection during official business hours
(8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S.
International Trade Commission, 500 E Street SW., Washington, DC 20436,
telephone 202-205-2000. General information concerning the Commission
may also be obtained by accessing its Internet server (http://www.usitc.gov). The public record for this investigation may be viewed
on the Commission's electronic docket (EDIS) at http://edis.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 12, 2014, based on a complaint filed by RealD, Inc. of
Beverly Hills, California (``RealD''). 79 FR 73902-03 (Dec. 12, 2014).
The complaint alleges 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, and the sale within the United States
after importation of certain three-dimensional cinema systems, and
components thereof, that infringe certain claims of U.S. Patent Nos.
7,905,602 (``the '602 patent''); 8,220,934 (``the '934 patent'');
7,857,455 (``the '455 patent''); and 7,959,296 (``the '296 patent'').
Id. at 73902. The notice of investigation named as respondents
MasterImage 3D, Inc. of Sherman Oaks, California, and MasterImage 3D
Asia, LLC of Seoul, Republic of Korea (collectively, ``MasterImage'').
Id. at 73903. The Office of Unfair Import Investigations was not named
as a party to the investigation. Id.
On July 23, 2015, the Commission terminated the investigation as to
various of the asserted claims and the '602 patent in its entirety.
Notice (July 23, 2015) (determining not to review Order No. 6 (July 2,
2015)); Notice (Aug. 20, 2015) (determining not to review Order No. 7
(Aug. 3, 2015)).
On September 25, 2015, the Commission determined on summary
determination that RealD satisfied the economic prong of the domestic
industry requirement through its significant investment in plant,
significant investment in labor, and substantial investment in
engineering, research, and development. Notice (Sept. 25, 2015)
(determining to review in part Order No. 9 (Aug. 20, 2015)). The
Commission, however, reversed the summary determination with respect to
RealD's investment in equipment. Id.
On December 16, 2015, the presiding administrative law judge
(``ALJ'') issued a final initial determination (``ID'') finding a
violation of section 337 with respect to the three remaining asserted
patents. The ALJ found that the asserted claims of the '455, '296, and
'934 patents are infringed and not invalid or unenforceable. The ALJ
found that the technical prong of the domestic industry requirement was
satisfied for the '455, '296, and '934 patents. The ALJ also issued a
Recommended Determination on Remedy and Bonding (``RD''), recommending
that a limited exclusion order and cease and desist orders should issue
and that a bond of 100 percent should be imposed during the period of
Presidential review.
On December 29, 2015, MasterImage filed a petition for review
challenging various findings in the final ID. On January 6, 2016, RealD
filed a response to MasterImage's petition. On January 15, 2016, and
January 19, 2016, MasterImage and RealD respectively filed post-RD
statements on the public interest under Commission Rule 210.50(a)(4).
The Commission did not receive any post-RD public interest comments
from the public in response to the Commission notice issued on December
22, 2015. 80 FR 80795 (Dec. 28, 2015).
On February 16, 2016, the Commission determined to review the final
ID in part and requested additional briefing from the parties on
certain issues. 81 FR at 8744-45. Specifically, the Commission
determined to review (1) the ID's construction of the ``uniformly
modulate'' limitation recited in claims 1 and 17 of the '455 patent;
(2) the ID's infringement findings with respect to the asserted claims
of the '455 patent; (3) the ID's findings on validity of the asserted
claims of the '455 patent; (4) the ID's finding of proper inventorship
of the '296 patent; (5) the ID's findings on validity of the asserted
claims of the '934 patent; and (6) the ID's finding regarding the
technical prong of the domestic industry requirement with respect to
the '455 patent. Id. at 8745. The Commission also solicited briefing
from the parties and the public on the issues of remedy, the public
interest, and bonding. Id.
On March 1, 2016, the parties filed initial written submissions
addressing the Commission's questions and the issues of remedy, the
public interest, and bonding. On March 11, 2016, the parties filed
response briefs. No comments were received from the public. On April
18, 2016, the Commission requested additional briefing on the effect of
a Final Written Decision issued by the Patent Trial and

[[Page 49265]]

Appeal Board of the U.S. Patent and Trademark Office (``PTAB'') on
April 14, 2016, finding certain claims of the '934 patent unpatentable,
on the Commission's final determination. 81 FR 23749-50 (Apr. 22,
2016). On April 26, 2016, the parties filed initial written submissions
addressing the Commission's question. On May 3, 2016, the parties filed
response briefs.
Having examined the record of this investigation, including the
final ID and the parties' submissions, the Commission has determined
that RealD has proven a violation of section 337 based on infringement
of claims 1-3, 9-11, 13, 15, 17-19, and 21 of the '455 patent; claims
1, 2, 7, 8, 11, and 12 of the '296 patent; and claims 1, 6, and 11 of
the '934 patent. The Commission has determined to modify the ALJ's
construction of the ``uniformly modulate'' limitation recited in claims
1 and 17 of the '455 patent. Under the modified construction, the
Commission has determined that RealD has proven that the accused
MasterImage Horizon 3D, 3D S, M, Rv1, and Rv2 products infringe the
asserted claims of the '455 patent and that the technical prong of the
domestic industry requirement is satisfied with respect to that patent.
The Commission has determined that the asserted claims of the '455
patent are not invalid under 35 U.S.C. 102(e), 102(g), 103, and 112, ]]
1 and 2. The Commission has determined that the asserted claims of the
'296 patent are not invalid under 35 U.S.C. 116 for improper
inventorship. The Commission has also determined that the asserted
claims of the '934 patent are not invalid under 35 U.S.C. 102(g) and
103.
The Commission has determined the appropriate remedy is a limited
exclusion order prohibiting the importation of certain three-
dimensional cinema systems, and components thereof, that infringe the
asserted claims of the '455, '296, and '934 patents and cease and
desist orders directed against MasterImage. The Commission has
determined the public interest factors enumerated in section 337(d)(1)
and (f)(1) do not preclude issuance of the limited exclusion order or
cease and desist orders.
In view of the PTAB's Final Written Decision finding certain claims
of the '934 patent unpatentable, the Commission has determined to
suspend the enforcement of the limited exclusion order and cease and
desist orders as to claims 1, 6, and 11 of the '934 patent pending
final resolution of the PTAB's Final Written Decision. See 35 U.S.C.
318(b). The Commission has also determined to set a bond in the amount
of 100 percent of the entered value of excluded products imported
during the period of Presidential review (19 U.S.C. 1337(j)). The
Commission's orders and opinion were delivered to the President and to
the United States Trade Representative on the day of their issuance.
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 21, 2016.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2016-17711 Filed 7-26-16; 8:45 am]
BILLING CODE 7020-02-P

49264 Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Notices

time for submitting responses to the documents filed in connection with this On December 16, 2015, the presiding
complaint and the notice of investigation are or will be available for administrative law judge (‘‘ALJ’’) issued
investigation will not be granted unless inspection during official business a final initial determination (‘‘ID’’)
good cause therefor is shown. hours (8:45 a.m. to 5:15 p.m.) in the finding a violation of section 337 with
Failure of a respondent to file a timely Office of the Secretary, U.S. respect to the three remaining asserted
response to each allegation in the International Trade Commission, 500 E patents. The ALJ found that the asserted
complaint and in this notice may be Street SW., Washington, DC 20436, claims of the ’455, ’296, and ’934
deemed to constitute a waiver of the telephone 202–205–2000. General patents are infringed and not invalid or
right to appear and contest the information concerning the Commission unenforceable. The ALJ found that the
allegations of the complaint and this may also be obtained by accessing its technical prong of the domestic industry
notice, and to authorize the Internet server (http://www.usitc.gov). requirement was satisfied for the ’455,
administrative law judge and the The public record for this investigation ’296, and ’934 patents. The ALJ also
Commission, without further notice to may be viewed on the Commission’s issued a Recommended Determination
the respondent, to find the facts to be as electronic docket (EDIS) at http:// on Remedy and Bonding (‘‘RD’’),
alleged in the complaint and this notice edis.usitc.gov. Hearing-impaired recommending that a limited exclusion
and to enter an initial determination persons are advised that information on order and cease and desist orders
and a final determination containing this matter can be obtained by should issue and that a bond of 100
such findings, and may result in the contacting the Commission’s TDD percent should be imposed during the
issuance of an exclusion order or a cease terminal on 202–205–1810. period of Presidential review.
and desist order or both directed against On December 29, 2015, MasterImage
SUPPLEMENTARY INFORMATION: The
the respondent. filed a petition for review challenging
Commission instituted this investigation
various findings in the final ID. On
By order of the Commission. on December 12, 2014, based on a
January 6, 2016, RealD filed a response
Issued: July 21, 2016. complaint filed by RealD, Inc. of Beverly
to MasterImage’s petition. On January
Lisa R. Barton, Hills, California (‘‘RealD’’). 79 FR
15, 2016, and January 19, 2016,
Secretary to the Commission. 73902–03 (Dec. 12, 2014). The
MasterImage and RealD respectively
complaint alleges violations of section
[FR Doc. 2016–17712 Filed 7–26–16; 8:45 am] filed post-RD statements on the public
337 of the Tariff Act of 1930, as
BILLING CODE 7020–02–P interest under Commission Rule
amended, 19 U.S.C. 1337, in the 210.50(a)(4). The Commission did not
importation into the United States, the receive any post-RD public interest
INTERNATIONAL TRADE sale for importation, and the sale within comments from the public in response
COMMISSION the United States after importation of to the Commission notice issued on
certain three-dimensional cinema December 22, 2015. 80 FR 80795 (Dec.
[Investigation No. 337–TA–939] systems, and components thereof, that 28, 2015).
infringe certain claims of U.S. Patent On February 16, 2016, the
Certain Three-Dimensional Cinema Nos. 7,905,602 (‘‘the ’602 patent’’);
Systems and Components Thereof Commission determined to review the
8,220,934 (‘‘the ’934 patent’’); 7,857,455 final ID in part and requested additional
Commission’s Final Determination (‘‘the ’455 patent’’); and 7,959,296 (‘‘the
Finding a Violation of Section 337; briefing from the parties on certain
’296 patent’’). Id. at 73902. The notice issues. 81 FR at 8744–45. Specifically,
Issuance of a Limited Exclusion Order of investigation named as respondents
and Cease and Desist Orders; the Commission determined to review
MasterImage 3D, Inc. of Sherman Oaks, (1) the ID’s construction of the
Termination of the Investigation California, and MasterImage 3D Asia, ‘‘uniformly modulate’’ limitation recited
AGENCY: U.S. International Trade LLC of Seoul, Republic of Korea in claims 1 and 17 of the ’455 patent;
Commission. (collectively, ‘‘MasterImage’’). Id. at (2) the ID’s infringement findings with
ACTION: Notice. 73903. The Office of Unfair Import respect to the asserted claims of the ’455
Investigations was not named as a party patent; (3) the ID’s findings on validity
SUMMARY: Notice is hereby given that to the investigation. Id. of the asserted claims of the ’455 patent;
the U.S. International Trade On July 23, 2015, the Commission (4) the ID’s finding of proper
Commission has found a violation of terminated the investigation as to inventorship of the ’296 patent; (5) the
section 337 of the Tariff Act of 1930, as various of the asserted claims and the ID’s findings on validity of the asserted
amended, 19 U.S.C. 1337, in this ’602 patent in its entirety. Notice (July claims of the ’934 patent; and (6) the
investigation. The Commission has 23, 2015) (determining not to review ID’s finding regarding the technical
issued a limited exclusion order Order No. 6 (July 2, 2015)); Notice (Aug. prong of the domestic industry
prohibiting the importation of certain 20, 2015) (determining not to review requirement with respect to the ’455
three-dimensional cinema systems, and Order No. 7 (Aug. 3, 2015)). patent. Id. at 8745. The Commission
components thereof, that infringe On September 25, 2015, the also solicited briefing from the parties
certain claims of the patents at issue. Commission determined on summary and the public on the issues of remedy,
The Commission has also issued cease determination that RealD satisfied the the public interest, and bonding. Id.
and desist orders directed to the two economic prong of the domestic On March 1, 2016, the parties filed
respondents. The remedial orders are industry requirement through its initial written submissions addressing
suspended as to certain patent claims significant investment in plant, the Commission’s questions and the
pending final resolution of a validity significant investment in labor, and issues of remedy, the public interest,
sradovich on DSK3GMQ082PROD with NOTICES

issue. The investigation is terminated. substantial investment in engineering, and bonding. On March 11, 2016, the
FOR FURTHER INFORMATION CONTACT: research, and development. Notice parties filed response briefs. No
Lucy Grace D. Noyola, Office of the (Sept. 25, 2015) (determining to review comments were received from the
General Counsel, U.S. International in part Order No. 9 (Aug. 20, 2015)). The public. On April 18, 2016, the
Trade Commission, 500 E Street SW., Commission, however, reversed the Commission requested additional
Washington, DC 20436, telephone 202– summary determination with respect to briefing on the effect of a Final Written
205–3438. Copies of non-confidential RealD’s investment in equipment. Id. Decision issued by the Patent Trial and

VerDate Sep<11>2014 17:01 Jul 26, 2016 Jkt 238001 PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 E:\FR\FM\27JYN1.SGM 27JYN1

Federal Register / Vol. 81, No. 144 / Wednesday, July 27, 2016 / Notices 49265

Appeal Board of the U.S. Patent and of 100 percent of the entered value of contacting the Commission’s TDD
Trademark Office (‘‘PTAB’’) on April 14, excluded products imported during the terminal on (202) 205–1810. Persons
2016, finding certain claims of the ’934 period of Presidential review (19 U.S.C. with mobility impairments who will
patent unpatentable, on the 1337(j)). The Commission’s orders and need special assistance in gaining access
Commission’s final determination. 81 opinion were delivered to the President to the Commission should contact the
FR 23749–50 (Apr. 22, 2016). On April and to the United States Trade Office of the Secretary at (202) 205–
26, 2016, the parties filed initial written Representative on the day of their 2000. General information concerning
submissions addressing the issuance. the Commission may also be obtained
Commission’s question. On May 3, The authority for the Commission’s by accessing its internet server at http://
2016, the parties filed response briefs. determination is contained in section www.usitc.gov. The public record for
Having examined the record of this 337 of the Tariff Act of 1930, as this investigation may be viewed on the
investigation, including the final ID and amended (19 U.S.C. 1337), and in part Commission’s electronic docket (EDIS)
the parties’ submissions, the 210 of the Commission’s Rules of at http://edis.usitc.gov.
Commission has determined that RealD Practice and Procedure (19 CFR part FOR FURTHER INFORMATION CONTACT: The
has proven a violation of section 337 210). Office of Unfair Import Investigations,
based on infringement of claims 1–3, 9– U.S. International Trade Commission,
By order of the Commission.
11, 13, 15, 17–19, and 21 of the ’455 telephone (202) 205–2560.
Issued: July 21, 2016.
patent; claims 1, 2, 7, 8, 11, and 12 of
Lisa R. Barton, SUPPLEMENTARY INFORMATION:
the ’296 patent; and claims 1, 6, and 11
of the ’934 patent. The Commission has Secretary to the Commission. Scope of Investigation: Having
determined to modify the ALJ’s [FR Doc. 2016–17711 Filed 7–26–16; 8:45 am] considered the complaint, the U.S.
construction of the ‘‘uniformly BILLING CODE 7020–02–P
International Trade Commission, on
modulate’’ limitation recited in claims 1 July 21, 2016, ordered that—
and 17 of the ’455 patent. Under the (1) Pursuant to subsection (b) of
modified construction, the Commission INTERNATIONAL TRADE section 337 of the Tariff Act of 1930, as
has determined that RealD has proven COMMISSION amended, an investigation be instituted
that the accused MasterImage Horizon to determine whether there is a
[Investigation No. 337–TA–1014] violation of subsection (a)(1)(A) of
3D, 3D S, M, Rv1, and Rv2 products
infringe the asserted claims of the ’455 section 337 in the importation into the
Certain Intermediate Bulk Containers;
patent and that the technical prong of United States or sale of certain
Institution of Investigation
the domestic industry requirement is composite intermediate bulk containers,
satisfied with respect to that patent. The AGENCY: U.S. International Trade the threat or effect of which is to
Commission has determined that the Commission. substantially destroy or injure a
asserted claims of the ’455 patent are ACTION: Notice. domestic industry;
not invalid under 35 U.S.C. 102(e), (2) For the purpose of the
SUMMARY: Notice is hereby given that a investigation so instituted, the following
102(g), 103, and 112, ¶¶ 1 and 2. The
Commission has determined that the complaint was filed with the U.S. are hereby named as parties upon which
asserted claims of the ’296 patent are International Trade Commission on June this notice of investigation shall be
not invalid under 35 U.S.C. 116 for 22, 2016, under section 337 of the Tariff served:
improper inventorship. The Act of 1930, as amended, 19 U.S.C. (a) The complainant is: Schütz
Commission has also determined that 1337, on behalf of Schütz Container Container Systems Inc., 200 Aspen Hill
the asserted claims of the ’934 patent are Systems Inc. of North Branch, New Road, North Branch, NJ 08876–5950.
not invalid under 35 U.S.C. 102(g) and Jersey. The complaint was (b) The respondent is the following
103. supplemented on June 29 and July 7, entity alleged to be in violation of
The Commission has determined the 2016. The complaint, as supplemented, section 337, and is the party upon
appropriate remedy is a limited alleges violations of section 337 based which the complaint is to be served:
exclusion order prohibiting the upon the importation into the United Zhenjiang Runzhou Jinshan Packaging
importation of certain three- States or sale of certain composite Factory, Road Dantu City Industrial
dimensional cinema systems, and intermediate bulk containers by reason Park, Hengshun Zhenjiang, China.
components thereof, that infringe the of infringement of certain trade dress, (c) The Office of Unfair Import
asserted claims of the ’455, ’296, and the threat or effect of which is to Investigations, U.S. International Trade
’934 patents and cease and desist orders substantially destroy or injure a Commission, 500 E Street SW., Suite
directed against MasterImage. The domestic industry. 401, Washington, DC 20436; and
Commission has determined the public The complainant requests that the (3) For the investigation so instituted,
interest factors enumerated in section Commission institute an investigation the Chief Administrative Law Judge,
337(d)(1) and (f)(1) do not preclude and, after the investigation, issue a U.S. International Trade Commission,
issuance of the limited exclusion order limited exclusion order and a cease and shall designate the presiding
or cease and desist orders. desist order. Administrative Law Judge.
In view of the PTAB’s Final Written ADDRESSES: The complaint, except for Responses to the complaint and the
Decision finding certain claims of the any confidential information contained notice of investigation must be
’934 patent unpatentable, the therein, is available for inspection submitted by the named respondent in
Commission has determined to suspend during official business hours (8:45 a.m. accordance with section 210.13 of the
sradovich on DSK3GMQ082PROD with NOTICES

the enforcement of the limited exclusion to 5:15 p.m.) in the Office of the Commission’s Rules of Practice and
order and cease and desist orders as to Secretary, U.S. International Trade Procedure, 19 CFR 210.13. Pursuant to
claims 1, 6, and 11 of the ’934 patent Commission, 500 E Street SW., Room 19 CFR 201.16(e) and 210.13(a), such
pending final resolution of the PTAB’s 112, Washington, DC 20436, telephone responses will be considered by the
Final Written Decision. See 35 U.S.C. (202) 205–2000. Hearing impaired Commission if received not later than 20
318(b). The Commission has also individuals are advised that information days after the date of service by the
determined to set a bond in the amount on this matter can be obtained by Commission of the complaint and the

VerDate Sep<11>2014 17:01 Jul 26, 2016 Jkt 238001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 E:\FR\FM\27JYN1.SGM 27JYN1

Document Created: 2018-02-08 08:02:26
Document Modified: 2018-02-08 08:02:26

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Contact		Lucy Grace D. Noyola, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone 202-205-3438. Copies of non- confidential documents filed in connection with this investigation are or will be available for inspection during official business hours (8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone 202-205-2000. General information concerning the Commission may also be obtained by accessing its Internet server (http:// www.usitc.gov). The public record for this investigation may be viewed on the Commission's electronic docket (EDIS) at http://edis.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.
FR Citation		81 FR 49264