82 FR 24143 - Certain Automated Teller Machines, ATM Modules, Components Thereof, and Products Containing the Same; 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 82, Issue 100 (May 25, 2017)
Federal Register Volume 82, Issue 100 (May 25, 2017)
| Page Range | 24143-24144 | |
| FR Document | 2017-10709 |
[Federal Register Volume 82, Number 100 (Thursday, May 25, 2017)] [Notices] [Pages 24143-24144] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-10709] ----------------------------------------------------------------------- INTERNATIONAL TRADE COMMISSION [Investigation No. 337-TA-972] Certain Automated Teller Machines, ATM Modules, Components Thereof, and Products Containing the Same; 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 in this investigation and has issued a limited exclusion order and cease and desist orders prohibiting importation of infringing automated teller machines (``ATMs''), ATM modules, components thereof, and products containing the same. FOR FURTHER INFORMATION CONTACT: Sidney A. Rosenzweig, 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 (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. [[Page 24144]] SUPPLEMENTARY INFORMATION: The Commission instituted this investigation on November 20, 2015, based on a complaint filed by Diebold Incorporated and Diebold Self-Service Systems (collectively, ``Diebold''). 80 FR 72735-36 (Nov. 20, 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, and the sale within the United States after importation of certain automated teller machines, ATM modules, components thereof, and products containing the same by reason of infringement of certain claims of six United States Patents: 7,121,461 (``the '461 patent''); 7,249,761 (``the '761 patent''); 7,314,163 (``the '163 patent''); 6,082,616 (``the '616 patent''); 7,229,010 (``the '010 patent''); and 7,832,631 (``the '631 patent''). Id. The notice of investigation named as respondents Nautilus Hyosung Inc. of Seoul, Republic of Korea; Nautilus Hyosung America Inc. of Irving, Texas; and HS Global, Inc. of Brea, California (collectively, ``Nautilus''). Id. at 72736. The Office of Unfair Import Investigations was not named as a party. Id. The '461 patent, '761 patent, and '163 patent were previously terminated from the investigation. See Order No. 12 (Apr. 28, 2016), not reviewed, Notice (May 11, 2016); Order No. 21 (June 28, 2016), not reviewed, Notice (July 28, 2016). The presiding administrative law judge (``ALJ'') conducted an evidentiary hearing from August 29, 2016 through September 1, 2016. On November 30, 2016, the ALJ issued the final Initial Determination (``final ID'' or ``ID''). The final ID found a violation of section 337 with respect to the '616 and '631 patents, and no violation with respect to the '010 patent. ID at 207- 09. The ALJ recommended that a limited exclusion order and cease and desist orders issue against Nautilus. Diebold and Nautilus each filed petitions for review concerning certain findings with respect to the '616 and '631 patents. On December 30, 2016, the parties submitted statements on the public interest. Diebold contends that the investigation does not raise any public interest concerns. Nautilus asserts that a Commission exclusion order should include a certification provision and that any Commission remedial orders be tailored to allow repair of existing Nautilus ATMs in the United States. In addition, the Commission received submissions from United States Representative James B. Renacci, United States Senator Sherrod Brown, and certain Nautilus customers. On January 30, 2017, the Commission determined to review and modify two claim constructions for the '616 patent. Notice at 2-3 (Jan. 30, 2017). The Commission's reasoning in support of its claim construction determinations for the '616 patent was set forth more fully in the Commission Claim Construction Opinion, which also issued on January 30, 2017. In view of the Commission's determination to review and modify the construction of these two claim limitations, the Commission also determined to review for the asserted claims of the '616 patent: (1) Infringement; (2) obviousness in view of Diebold's 1064i ATM; and (3) the technical prong of the domestic industry requirement. Id. at 3. The Commission solicited further briefing from the parties on these issues, and briefing from the parties and the public on remedy, the public interest, and bonding. Id. at 4. The Commission determined not to review the final ID's finding of a section 337 violation as to the '631 patent. Id. at 2. On February 10, 2017, Diebold and Nautilus filed their opening submissions on the issues under review and on remedy, the public interest, and bonding. On February 17, 2017, Diebold and Nautilus filed responses to each other's opening submission. Nautilus also submitted letters to the Commission concerning the public interest from Nautilus's customers. Having reviewed the record of investigation, the Commission has determined that there is a violation of section 337 by reason of the infringement of claims 1, 6, 10, 16, 26, and 27 of the '616 patent and claims 1-7 and 18-20 of the '631 patent. The Commission has further determined that the technical prong of the domestic industry requirement has been met as to the '616 patent. To the extent that Nautilus's arguments concerning obviousness of the asserted claims of the '616 patent in view of the Diebold 1064i ATM have not been waived, the Commission finds that Nautilus has failed to meet its burden to show invalidity by clear and convincing evidence. The Commission has further determined that the appropriate remedy is (1) a limited exclusion order prohibiting the entry of infringing automated teller machines, ATM modules, components thereof, and products containing the same, and (2) cease and desist orders directed to the respondents. The Commission has determined that the public interest factors enumerated in section 337(d) and (f), 19 U.S.C. 1337(d), (f), do not preclude the issuance of the limited exclusion order or the cease and desist orders. The Commission has determined that a bond in the amount of 100 percent of the entered value of the subject articles is required during the period of Presidential review. 19 U.S.C. 1337(j)(3). Notwithstanding the foregoing, the exclusion order and cease and desist orders permit Nautilus to import replacement parts for its customers who need such parts to repair automated teller machines that have been imported prior to the date of the orders. Commissioner Kieff has provided additional views dissenting from the Commission's exception from the remedial orders regarding replacement parts for service or repair. The orders do not permit Nautilus to import infringing ATMs (as opposed to replacement parts) for any purpose, including repair or replacement. 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 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: May 19, 2017. Lisa R. Barton, Secretary to the Commission. [FR Doc. 2017-10709 Filed 5-24-17; 8:45 am] BILLING CODE 7020-02-P
![Federal Register / Vol. 82, No. 100 / Thursday, May 25, 2017 / Notices 24143
article descriptions in Category VI web portal will not allow a person who the U.S. Department of Agriculture and
petitions, including the constituent has formally submitted a comment CBP for use in providing information for
materials in the intended merchandise during this filing period to amend that that report; or (4) U.S. government
or similar information that would help comment. Instead, that person must employees and contract personnel,
verify the classification of the goods in withdraw the original comment and file solely for cybersecurity purposes,
chapters 1–97 of the HTS. Similarly, the a new comment that incorporates the subject to the requirement that all
Commission seeks information that changes. The new comment must be contract personnel will sign appropriate
could clarify technical criteria, filed before 5:15 p.m. EST on June 21, nondisclosure agreements.
distinguish the intended merchandise in 2017. Comments may not be withdrawn By order of the Commission.
a petition from other goods in the same or amended after that time.
Issued: May 19, 2017.
rate line, or narrow the scope of an Comments containing confidential
business information. The portal will Lisa R. Barton,
article description to avoid covering
domestically produced goods. permit persons submitting comments to Secretary of the Commission.
claim that certain information should be [FR Doc. 2017–10667 Filed 5–24–17; 8:45 am]
Procedures for Filing a Comment treated either as confidential business BILLING CODE 7020–02–P
Who may file. Comments may be filed information or as information protected
by any member of the public, including from disclosure under the Privacy Act
the firm or its representative who filed (e.g., a home address). However, INTERNATIONAL TRADE
the petition. However, the Commission because of the portal’s design, the portal COMMISSION
will consider only comments that relate instructs that such information not be [Investigation No. 337–TA–972]
to petitions listed under category VI in included in attachments to comments.
the Commission’s preliminary report Persons who include confidential Certain Automated Teller Machines,
submitted to the Committees on June 9, business information and information ATM Modules, Components Thereof,
2017. The Commission will not consider protected under the Privacy Act in and Products Containing the Same;
comments that relate to petitions listed attachments to their comments will be Final Determination Finding a Violation
under categories I, II, III, IV, and V in presumed to have waived any privilege of Section 337; Issuance of a Limited
the preliminary report. and the information will be disclosed to Exclusion Order and Cease and Desist
Method for filing. Comments may the public when the comments and Orders; Termination of the
only be filed electronically via the attachments are posted on the Investigation
Commission’s designated secure MTBPS Commission’s Web site. See further
web portal and in the format designated information below on possible AGENCY: U.S. International Trade
by the Commission in that portal. The disclosure of confidential business Commission.
portal may be accessed through the information. ACTION: Notice.
Commission’s Web site at https:// Confidential Business Information:
usitc.gov under ‘‘Miscellaneous Tariff The Commission will not release SUMMARY: Notice is hereby given that
Bill Information.’’ The portal contains a information which the Commission the U.S. International Trade
series of prompts and links that will considers to be confidential business Commission has found a violation of
assist persons in providing the required information within the meaning of section 337 in this investigation and has
information. The Commission will not § 201.6(a) of its Rules of Practice and issued a limited exclusion order and
accept or consider comments submitted Procedure (19 CFR 201.6) unless the cease and desist orders prohibiting
in paper or in any other form or format. party submitting the confidential importation of infringing automated
Comments must contain all information business information had notice, at the teller machines (‘‘ATMs’’), ATM
required in the portal in order to be time of submission, that such modules, components thereof, and
considered properly filed. Comments, information would be released by the products containing the same.
including any attachments thereto, must Commission, or such party subsequently FOR FURTHER INFORMATION CONTACT:
otherwise comply with the consents to the release of the Sidney A. Rosenzweig, Office of the
Commission’s rules and Handbook on information. General Counsel, U.S. International
MTB Filing Procedures. Persons seeking Confidential business information Trade Commission, 500 E Street SW.,
to comment on more than one petition submitted to the Commission in Washington, DC 20436, telephone 202–
must submit a separate comment for comments may be disclosed to and/or 708–2532. Copies of non-confidential
each petition. used by (1) the Commission in documents filed in connection with this
Persons filing comments should be calculating the estimated revenue loss investigation are or will be available for
aware that they must be prepared to required under the Act, which may be inspection during official business
complete their entire comment when based in whole or in part on the hours (8:45 a.m. to 5:15 p.m.) in the
they enter the portal. The portal will not estimated values of imports submitted Office of the Secretary, U.S.
allow them to edit, amend, or complete in comments (as well as by petitioners International Trade Commission, 500 E
the comment at a later time. in their petitions); (2) the Commission, Street SW., Washington, DC 20436,
Accordingly, they will need to complete its employees, and contract personnel telephone 202–205–2000. General
their comment at the time they enter the (a) in processing petitions and information concerning the Commission
portal. comments and preparing reports under may also be obtained by accessing its
Time for filing. To be considered, the American Manufacturing Internet server (https://www.usitc.gov).
comments must be filed no earlier than Competitiveness Act of 2016 or (b) in The public record for this investigation
June 12, 2017 at 8:45 a.m. and no later internal investigations, audits, reviews, may be viewed on the Commission’s
than the close of business (5:15 p.m. and evaluations relating to the electronic docket (EDIS) at https://
EST) on June 21, 2017. The Commission programs, personnel, and operations of edis.usitc.gov. Hearing-impaired
will not accept comments filed before or the Commission including under 5 persons are advised that information on
after these times and dates. U.S.C. Appendix 3; (3) Commerce for this matter can be obtained by
Amendment and withdrawal of use in preparing its report to the contacting the Commission’s TDD
comments. The Commission’s secure Commission and the Committees, and terminal on 202–205–1810.
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![24144 Federal Register / Vol. 82, No. 100 / Thursday, May 25, 2017 / Notices
SUPPLEMENTARY INFORMATION: The On January 30, 2017, the Commission exclusion order or the cease and desist
Commission instituted this investigation determined to review and modify two orders. The Commission has determined
on November 20, 2015, based on a claim constructions for the ’616 patent. that a bond in the amount of 100
complaint filed by Diebold Incorporated Notice at 2–3 (Jan. 30, 2017). The percent of the entered value of the
and Diebold Self-Service Systems Commission’s reasoning in support of subject articles is required during the
(collectively, ‘‘Diebold’’). 80 FR 72735– its claim construction determinations period of Presidential review. 19 U.S.C.
36 (Nov. 20, 2015). The complaint for the ’616 patent was set forth more 1337(j)(3). Notwithstanding the
alleged violations of section 337 of the fully in the Commission Claim foregoing, the exclusion order and cease
Tariff Act of 1930, as amended, 19 Construction Opinion, which also and desist orders permit Nautilus to
U.S.C. 1337, in the importation into the issued on January 30, 2017. In view of import replacement parts for its
United States, the sale for importation, the Commission’s determination to customers who need such parts to repair
and the sale within the United States review and modify the construction of automated teller machines that have
after importation of certain automated these two claim limitations, the been imported prior to the date of the
teller machines, ATM modules, Commission also determined to review orders. Commissioner Kieff has
components thereof, and products for the asserted claims of the ’616 provided additional views dissenting
containing the same by reason of patent: (1) Infringement; (2) obviousness from the Commission’s exception from
infringement of certain claims of six in view of Diebold’s 1064i ATM; and (3) the remedial orders regarding
United States Patents: 7,121,461 (‘‘the the technical prong of the domestic replacement parts for service or repair.
’461 patent’’); 7,249,761 (‘‘the ’761 industry requirement. Id. at 3. The The orders do not permit Nautilus to
patent’’); 7,314,163 (‘‘the ’163 patent’’); Commission solicited further briefing import infringing ATMs (as opposed to
6,082,616 (‘‘the ’616 patent’’); 7,229,010 from the parties on these issues, and replacement parts) for any purpose,
(‘‘the ’010 patent’’); and 7,832,631 (‘‘the briefing from the parties and the public including repair or replacement.
’631 patent’’). Id. The notice of on remedy, the public interest, and The investigation is terminated. The
investigation named as respondents bonding. Id. at 4. The Commission Commission’s reasoning in support of
Nautilus Hyosung Inc. of Seoul, determined not to review the final ID’s its determinations is set forth more fully
Republic of Korea; Nautilus Hyosung finding of a section 337 violation as to in its opinion. The Commission’s orders
America Inc. of Irving, Texas; and HS the ’631 patent. Id. at 2. and opinion were delivered to the
Global, Inc. of Brea, California On February 10, 2017, Diebold and President and the United States Trade
(collectively, ‘‘Nautilus’’). Id. at 72736. Nautilus filed their opening Representative on the day of their
The Office of Unfair Import submissions on the issues under review issuance.
Investigations was not named as a party. and on remedy, the public interest, and The authority for the Commission’s
Id. bonding. On February 17, 2017, Diebold determination is contained in section
The ’461 patent, ’761 patent, and ’163 and Nautilus filed responses to each 337 of the Tariff Act of 1930, as
patent were previously terminated from other’s opening submission. Nautilus amended (19 U.S.C. 1337), and in Part
the investigation. See Order No. 12 also submitted letters to the 210 of the Commission’s Rules of
(Apr. 28, 2016), not reviewed, Notice Commission concerning the public Practice and Procedure (19 CFR part
(May 11, 2016); Order No. 21 (June 28, interest from Nautilus’s customers. 210).
2016), not reviewed, Notice (July 28, Having reviewed the record of
2016). The presiding administrative law investigation, the Commission has By order of the Commission.
judge (‘‘ALJ’’) conducted an evidentiary determined that there is a violation of Issued: May 19, 2017.
hearing from August 29, 2016 through section 337 by reason of the Lisa R. Barton,
September 1, 2016. On November 30, infringement of claims 1, 6, 10, 16, 26, Secretary to the Commission.
2016, the ALJ issued the final Initial and 27 of the ’616 patent and claims 1–
[FR Doc. 2017–10709 Filed 5–24–17; 8:45 am]
Determination (‘‘final ID’’ or ‘‘ID’’). The 7 and 18–20 of the ’631 patent. The
BILLING CODE 7020–02–P
final ID found a violation of section 337 Commission has further determined that
with respect to the ’616 and ’631 the technical prong of the domestic
patents, and no violation with respect to industry requirement has been met as to INTERNATIONAL TRADE
the ’010 patent. ID at 207–09. The ALJ the ’616 patent. To the extent that COMMISSION
recommended that a limited exclusion Nautilus’s arguments concerning
order and cease and desist orders issue obviousness of the asserted claims of the [Investigation Nos. 731–TA–1063–1064 and
against Nautilus. ’616 patent in view of the Diebold 1064i 1066–1068 (Second Review)]
Diebold and Nautilus each filed ATM have not been waived, the
petitions for review concerning certain Commission finds that Nautilus has Frozen Warmwater Shrimp From
findings with respect to the ’616 and failed to meet its burden to show Brazil, China, India, Thailand, and
’631 patents. On December 30, 2016, the invalidity by clear and convincing Vietnam; Determinations
parties submitted statements on the evidence. On the basis of the record 1 developed
public interest. Diebold contends that The Commission has further in the subject five-year reviews, the
the investigation does not raise any determined that the appropriate remedy United States International Trade
public interest concerns. Nautilus is (1) a limited exclusion order Commission (‘‘Commission’’)
asserts that a Commission exclusion prohibiting the entry of infringing
determines, pursuant to the Tariff Act of
order should include a certification automated teller machines, ATM
1930 (‘‘the Act’’), that revocation of the
provision and that any Commission modules, components thereof, and
antidumping duty orders on frozen
remedial orders be tailored to allow products containing the same, and (2)
warmwater shrimp from China, India,
repair of existing Nautilus ATMs in the cease and desist orders directed to the
Thailand, and Vietnam would be likely
United States. In addition, the respondents. The Commission has
to lead to continuation or recurrence of
Commission received submissions from determined that the public interest
United States Representative James B. factors enumerated in section 337(d) 1 The record is defined in sec. 207.2(f) of the
Renacci, United States Senator Sherrod and (f), 19 U.S.C. 1337(d), (f), do not Commission’s Rules of Practice and Procedure (19
Brown, and certain Nautilus customers. preclude the issuance of the limited CFR 207.2(f)).
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Document Created: 2018-11-08 08:52:38
Document Modified: 2018-11-08 08:52:38
| 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, 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 (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 | 82 FR 24143 |
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