81 FR 95195 - Certain Woven Textile Fabrics and Products Containing Same; Commission Determination Not To Review an Initial Determination Finding a Violation of Section 337; Request for Written Submissions on Remedy, the Public Interest, and Bonding

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 81, Issue 248 (December 27, 2016)

Page Range		95195-95196
FR Document		2016-31085

Notice is hereby given that the U.S. International Trade Commission has determined not to review the initial determination (``ID'') (Order No. 21) issued by the presiding administrative law judge (``ALJ'') on November 10, 2016, granting summary determination that one defaulting respondent has violated section 337 of the Tariff Act of 1930, as amended. The Commission requests written submissions, under the schedule set forth below, on remedy, the public interest, and bonding.

Federal Register, Volume 81 Issue 248 (Tuesday, December 27, 2016)

[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Notices]
[Pages 95195-95196]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-31085]

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-976]

Certain Woven Textile Fabrics and Products Containing Same;
Commission Determination Not To Review an Initial Determination Finding
a Violation of Section 337; 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 has determined not to review the initial determination
(``ID'') (Order No. 21) issued by the presiding administrative law
judge (``ALJ'') on November 10, 2016, granting summary determination
that one defaulting respondent has violated section 337 of the Tariff
Act of 1930, as amended. The Commission requests written submissions,
under the schedule set forth below, on remedy, the public interest, and
bonding.

FOR FURTHER INFORMATION CONTACT: Sidney A. Rosenzweig, Esq., Office of
the General Counsel, U.S. International Trade Commission, 500 E Street
SW., Washington, DC 20436, telephone (202) 708-2532. 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 at https://www.usitc.gov. The public record for this investigation may be viewed
on the Commission's electronic docket (EDIS) at https://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 18, 2015, based on a supplemented and twice-amended
complaint filed by AAVN, Inc. of Richardson, Texas (``AAVN''). 80 FR
79094 (December 18, 2015). The complaint 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 woven
textile fabrics and products containing same, by reason of infringement
of claims 1-7 of U.S. Patent No. 9,131,790 (``the '790 patent'') and/or
by reason of false advertising. The notice of investigation named
fifteen respondents. In the course of the investigation, fourteen of
the respondents were terminated from the investigation based upon
settlement agreement or consent order. Remaining is Pradip Overseas
Ltd. of Ahmedabad, India (``Pradip'').
In the complaint, AAVN accused Pradip of false advertising,
specifically alleging that Pradip misrepresented the thread count of
sheets manufactured in India, imported into the United Sates, and sold
in United States department stores. Second Am. Compl. ]] 39-41, 80
(Nov. 12, 2015); id. at Ex. 46 (``800 Thread Count'' sheets measured at
252.7 threads). Pradip expressly defaulted. In particular, although
Pradip responded to the complaint, Pradip later terminated its
relationship with its attorneys and represented that it would not
participate in the remainder of the investigation. See Order No. 14 at
1 (Apr. 19, 2016).
On September 2, 2016, AAVN moved for leave to file a summary
determination motion. The summary determination motion that was
appended argued, inter alia, that Pradip had violated section 337 by
falsely advertising the thread count of its imported sheets, that the
false advertising was deceptive, material, and injurious to AAVN. AAVN
sought a general exclusion order and 100 percent bond during the
Presidential review period. See 19 U.S.C. 1337(d)(2), (j)(3). On
September 15, 2016, the Commission investigative attorney responded in
support of the motion for leave and the accompanying summary
determination motion including its proposed relief.
On November 10, 2016, the ALJ granted the motion for summary
determination as the subject ID (Order No. 21). The ALJ found that AAVN
had shown a violation of section 337 by reason of false advertising
under section 43 of the Lanham Act, 15 U.S.C. 1125(a)(1)(B). Order No.
21 at 7-9, 13-15. As to remedy, citing 19 U.S.C. 1337(d)(2), which sets
forth the test for issuance of a general exclusion order, id. at 16,
the ALJ found that ``the evidence shows a widespread pattern of
violation of Section 337,'' id. at 17. The ALJ also found that ``the
evidence shows that it is difficult to identify the source and
manufacturers of the falsely advertised products,'' because ``U.S.
retailers fail to identify the manufacturer, importer or seller of the
textile products at the point of sale.'' Id. at 18. Nor do import
records ``reveal the names of the original manufacturers of the
materials used to construct the imported products.'' Id. Accordingly,
the ALJ found ``that the evidence shows that it is difficult, if not
impossible, to identify the sources of the falsely advertised goods.''
Id. Based on these findings the ALJ recommended the issuance of a
general exclusion order. Id. In the alternative, the ALJ recommended
the issuance of a limited exclusion order. Id. at 19. The ALJ
recommended that bond be set at 100 percent of the entered value of the
falsely advertised products. Id.
No petitions for review of the ID were filed. The Commission has
determined not to review the ID.
In connection with the final disposition of this investigation, the
Commission may (1) issue an order that could result in the exclusion of
the subject articles from entry into the United States, and/or (2)
issue one or more cease and desist orders that could result in the
respondent(s) 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

[[Page 95196]]

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 (December
1994) (Commission Opinion).
If the Commission contemplates some form of remedy, it must
consider the effects of that remedy upon the public interest. The
factors the Commission will consider include the effect that an
exclusion order and/or 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
or disapprove the Commission's action. 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. Complainant and the IA are also requested to submit
proposed remedial orders for the Commission's consideration.
Complainant is further requested to state the HTSUS subheadings under
which the accused products are imported, and provide identification
information for all known importers of the subject articles.
Written submissions and proposed remedial orders must be filed no
later than close of business on January 6, 2017. Reply submissions, if
any, must be filed no later than the close of business on January 13,
2017. Such submissions should address the ALJ's recommended
determinations on remedy and bonding which were made in Order No. 21.
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 and submit 8
true paper copies to the Office of the Secretary by noon the next day
pursuant to section 210.4(f) of the Commission's Rules of Practice and
Procedure (19 CFR 210.4(f)). Submissions should refer to the
investigation number (``Inv. No. 337-TA 976'') in a prominent place on
the cover page and/or the first page. (See Handbook for Electronic
Filing Procedures, https://www.usitc.gov/secretary/fed_reg_notices/rules/handbook_on_electronic_filing.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. All such requests
should be directed to the Secretary to the Commission and must include
a full statement of the reasons why the Commission should grant such
treatment. See 19 CFR 201.6. Documents for which confidential treatment
by the Commission is properly sought will be treated accordingly. 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 at the Office of the Secretary and on EDIS.
The authority for the Commission's determinations 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: December 20, 2016.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2016-31085 Filed 12-23-16; 8:45 am]
BILLING CODE 7020-02-P

Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices 95195

and contract personnel (a) for investigation are or will be available for imported sheets, that the false
developing or maintaining the records inspection during official business advertising was deceptive, material, and
of this or a related proceeding, or (b) in hours (8:45 a.m. to 5:15 p.m.) in the injurious to AAVN. AAVN sought a
internal investigations, audits, reviews, Office of the Secretary, U.S. general exclusion order and 100 percent
and evaluations relating to the International Trade Commission, 500 E bond during the Presidential review
programs, personnel, and operations of Street SW., Washington, DC 20436, period. See 19 U.S.C. 1337(d)(2), (j)(3).
the Commission including under 5 telephone (202) 205–2000. General On September 15, 2016, the
U.S.C. Appendix 3; or (ii) by U.S. information concerning the Commission Commission investigative attorney
government employees and contract may also be obtained by accessing its responded in support of the motion for
personnel,1 solely for cybersecurity Internet server at https://www.usitc.gov. leave and the accompanying summary
purposes. All nonconfidential written The public record for this investigation determination motion including its
submissions will be available for public may be viewed on the Commission’s proposed relief.
inspection at the Office of the Secretary electronic docket (EDIS) at https:// On November 10, 2016, the ALJ
and on EDIS. edis.usitc.gov. Hearing-impaired granted the motion for summary
This action is taken under the persons are advised that information on determination as the subject ID (Order
authority of section 337 of the Tariff Act this matter can be obtained by No. 21). The ALJ found that AAVN had
of 1930, as amended (19 U.S.C. 1337), contacting the Commission’s TDD shown a violation of section 337 by
and Part 210 of the Commission’s Rules terminal on (202) 205–1810. reason of false advertising under section
of Practice and Procedure (19 CFR part 43 of the Lanham Act, 15 U.S.C.
SUPPLEMENTARY INFORMATION: The
210). 1125(a)(1)(B). Order No. 21 at 7–9, 13–
Commission instituted this investigation 15. As to remedy, citing 19 U.S.C.
By order of the Commission. on December 18, 2015, based on a 1337(d)(2), which sets forth the test for
Issued: December 20, 2016. supplemented and twice-amended issuance of a general exclusion order,
Lisa R. Barton, complaint filed by AAVN, Inc. of id. at 16, the ALJ found that ‘‘the
Secretary to the Commission. Richardson, Texas (‘‘AAVN’’). 80 FR evidence shows a widespread pattern of
[FR Doc. 2016–31086 Filed 12–23–16; 8:45 am] 79094 (December 18, 2015). The violation of Section 337,’’ id. at 17. The
BILLING CODE 7020–02–P
complaint alleged violations of section ALJ also found that ‘‘the evidence
337 of the Tariff Act of 1930, as shows that it is difficult to identify the
amended (19 U.S.C. 1337), in the source and manufacturers of the falsely
INTERNATIONAL TRADE importation into the United States, the advertised products,’’ because ‘‘U.S.
COMMISSION sale for importation, or the sale within retailers fail to identify the
the United States after importation of manufacturer, importer or seller of the
[Investigation No. 337–TA–976] certain woven textile fabrics and textile products at the point of sale.’’ Id.
products containing same, by reason of at 18. Nor do import records ‘‘reveal the
Certain Woven Textile Fabrics and
infringement of claims 1–7 of U.S. names of the original manufacturers of
Products Containing Same;
Patent No. 9,131,790 (‘‘the ’790 patent’’) the materials used to construct the
Commission Determination Not To
and/or by reason of false advertising. imported products.’’ Id. Accordingly,
Review an Initial Determination Finding
The notice of investigation named the ALJ found ‘‘that the evidence shows
a Violation of Section 337; Request for
fifteen respondents. In the course of the that it is difficult, if not impossible, to
Written Submissions on Remedy, the
investigation, fourteen of the identify the sources of the falsely
Public Interest, and Bonding
respondents were terminated from the advertised goods.’’ Id. Based on these
AGENCY: U.S. International Trade investigation based upon settlement findings the ALJ recommended the
Commission. agreement or consent order. Remaining issuance of a general exclusion order.
ACTION: Notice. is Pradip Overseas Ltd. of Ahmedabad, Id. In the alternative, the ALJ
India (‘‘Pradip’’). recommended the issuance of a limited
SUMMARY: Notice is hereby given that In the complaint, AAVN accused exclusion order. Id. at 19. The ALJ
the U.S. International Trade Pradip of false advertising, specifically recommended that bond be set at 100
Commission has determined not to alleging that Pradip misrepresented the percent of the entered value of the
review the initial determination (‘‘ID’’) thread count of sheets manufactured in falsely advertised products. Id.
(Order No. 21) issued by the presiding India, imported into the United Sates, No petitions for review of the ID were
administrative law judge (‘‘ALJ’’) on and sold in United States department filed. The Commission has determined
November 10, 2016, granting summary stores. Second Am. Compl. ¶¶ 39–41, not to review the ID.
determination that one defaulting 80 (Nov. 12, 2015); id. at Ex. 46 (‘‘800 In connection with the final
respondent has violated section 337 of Thread Count’’ sheets measured at 252.7 disposition of this investigation, the
the Tariff Act of 1930, as amended. The threads). Pradip expressly defaulted. In Commission may (1) issue an order that
Commission requests written particular, although Pradip responded could result in the exclusion of the
submissions, under the schedule set to the complaint, Pradip later subject articles from entry into the
forth below, on remedy, the public terminated its relationship with its United States, and/or (2) issue one or
interest, and bonding. attorneys and represented that it would more cease and desist orders that could
FOR FURTHER INFORMATION CONTACT: not participate in the remainder of the result in the respondent(s) being
investigation. See Order No. 14 at 1 required to cease and desist from
asabaliauskas on DSK3SPTVN1PROD with NOTICES

Sidney A. Rosenzweig, Esq., Office of
the General Counsel, U.S. International (Apr. 19, 2016). engaging in unfair acts in the
Trade Commission, 500 E Street SW., On September 2, 2016, AAVN moved importation and sale of such articles.
Washington, DC 20436, telephone (202) for leave to file a summary Accordingly, the Commission is
708–2532. Copies of non-confidential determination motion. The summary interested in receiving written
documents filed in connection with this determination motion that was submissions that address the form of
appended argued, inter alia, that Pradip remedy, if any, that should be ordered.
1 All contract personnel will sign appropriate had violated section 337 by falsely If a party seeks exclusion of an article
nondisclosure agreements. advertising the thread count of its from entry into the United States for

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Document Created: 2018-02-14 09:14:04
Document Modified: 2018-02-14 09:14:04

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		Sidney A. Rosenzweig, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 708-2532. 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 at https:// www.usitc.gov. The public record for this investigation may be viewed on the Commission's electronic docket (EDIS) at https://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 95195