82_FR_8640 82 FR 8623 - Certain Air Mattress Systems, Components Thereof, and Methods of Using the Same Commission Determination To Review in Part a Final Initial Determination; Schedule for Filing Written Submissions on the Issues Under Review and on Remedy, the Public Interest, and Bonding

82 FR 8623 - Certain Air Mattress Systems, Components Thereof, and Methods of Using the Same Commission Determination To Review in Part a Final Initial Determination; Schedule for Filing Written Submissions on the Issues Under Review and on Remedy, the Public Interest, and Bonding

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 82, Issue 17 (January 27, 2017)

Page Range8623-8625
FR Document2017-01838

Notice is hereby given that the U.S. International Trade Commission (``the Commission'') has determined to review in part the final initial determination (``ID'') issued by the presiding administrative law judge (``ALJ'') finding no violation of section 337 of the Tariff Act of 1930, as amended (``section 337''), in the above- referenced investigation on November 18, 2016.

Federal Register, Volume 82 Issue 17 (Friday, January 27, 2017)
[Federal Register Volume 82, Number 17 (Friday, January 27, 2017)]
[Notices]
[Pages 8623-8625]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01838]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-971]


Certain Air Mattress Systems, Components Thereof, and Methods of 
Using the Same Commission Determination To Review in Part a Final 
Initial Determination; Schedule for Filing Written Submissions on the 
Issues Under Review and on Remedy, the Public Interest, and Bonding

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission (``the Commission'') has determined to review in part the 
final initial determination (``ID'') issued by the presiding 
administrative law judge (``ALJ'') finding no violation of section 337 
of the Tariff Act of 1930, as amended (``section 337''), in the above-
referenced investigation on November 18, 2016.

FOR FURTHER INFORMATION CONTACT: Michael Liberman, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone (202) 205-3115. 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 November 20, 2015, based on a complaint filed by Select Comfort 
Corporation of Minneapolis, Minnesota and Select Comfort SC Corporation 
of Greenville, South Carolina (collectively, ``Select Comfort,'' or 
``Complainants''). 80 FR 72738 (Nov. 20, 2015). 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 air mattress systems, components thereof, and methods of using 
the same by reason of infringement of certain claims of U.S. Patent 
Nos. 5,904,172 (``the `172 patent'') and 7,389,554 (``the `554 
patent''). Id. The notice of investigation names as respondents 
Sizewise Rentals LLC of Kansas City, Missouri; American National 
Manufacturing Inc. of Corona, California; and Dires LLC and Dires LLC 
d/b/a Personal Comfort Beds of Orlando, Florida (collectively, 
``Respondents''). Id. The Office of Unfair Import Investigations 
(``OUII'') was also named as a party to the investigation. Id.
    Pursuant to Commission Rule 210.50(b)(1), 19 CFR 210.50(b)(1), the 
Commission ordered that the presiding ALJ:

[S]hall take evidence or other information and hear arguments from 
the parties and other interested persons with respect to the public 
interest in this investigation, as appropriate, and provide the 
Commission with findings of fact and a recommended determination on 
this issue, which shall be limited to the statutory public interest 
factors set forth in 19 U.S.C. 1337(d)(1), (f)(1), (g)(1).

80 FR 72738 (Nov. 20, 2015).

    The evidentiary hearing on the question of violation of section 337 
was

[[Page 8624]]

held August 8-12, 2016. The final ID on violation was issued on 
November 18, 2016. The ALJ issued his recommended determination on 
remedy, the public interest and bonding on the same day. The ALJ found 
no violation of section 337 in this investigation. The ALJ recommended 
that if the Commission finds a violation of section 337 in the present 
investigation, the Commission issue a limited exclusion order (``LEO'') 
prohibiting the importation of Respondents' air controllers and air 
mattress systems found to infringe the asserted patents. The ALJ also 
recommended the inclusion of a provision for the `554 patent, whereby 
Respondents certify that certain imports are not covered by the LEO 
because they contain components for use in non-infringing products.
    The ALJ did not recommend that the Commission issue a cease and 
desist order in this investigation. The ALJ further recommended a zero 
bond during the period of Presidential review.
    All parties to this investigation filed timely petitions for review 
of various portions of the final ID, as well as timely responses to the 
petitions.
    On December 19, 2016, both Complainants and Respondents filed their 
respective Public Interest Statement pursuant to 19 CFR 210.50(a)(4). 
Responses from public were likewise received by the Commission pursuant 
to notice. See Notice of Request for Statements on the Public Interest 
(Nov. 29, 2016).
    Having examined the record in this investigation, including the 
final ID, the petitions for review, and the responses thereto, the 
Commission has determined to review the final ID in part. In 
particular, the Commission has determined as follows:

    (1) To review the ID's findings that the P5000, P6000, and Arco 
products do not meet ``guides and stops'' limitation in claim 2 of 
the `172 patent, and that these products do not meet the same claim 
limitation in claim 12 of the `172 patent and for that reason do not 
infringe that claim;
    (2) to review the ID's finding that the `172 Accused Products do 
not meet claim limitation ``pressure monitor means being operably 
coupled to the processor and being in fluid communications with the 
at least one bladder for continuously monitoring the pressure in the 
at least one bladder'' in claims 2, 6, 20, 22, and 24 of the `172 
patent;
    (3) to review the ID's finding that the `172 Accused Products do 
not infringe claim 9 of the `172 patent;
    (4) to review, in part, the ID's analysis regarding whether the 
`172 Accused Products infringe claim 2 of the `172 patent for the 
limited purpose of taking no position on the ALJ's discussion in the 
last paragraph of page 20 and in the first paragraph of page 21 of 
the ID;
    (5) to review the ID's finding that claim 16 of the `554 patent 
is not infringed because Complainants did not establish that the 
accused products practice the ``air posturizing sleep surface'' 
limitation;
    (6) to review the ID's finding that the `554 Domestic Industry 
Products do not practice the `554 patent;
    (7) to review the ID's finding that Complainants did not satisfy 
the economic prong of the domestic industry requirement with respect 
to both the `172 and `554 patents.
    The Commission has determined not to review the remainder of the 
ID.

    The parties are requested to brief their positions on only the 
following issues, with reference to the applicable law and the 
evidentiary record:
    1. The ID finds that: ``Because Select Comfort asserts that guides 
and stops of the P5000, P6000, and Arco products are screws and screw 
bores, the undersigned finds that Select Comfort has failed to 
establish that these products meet this limitation.'' ID at 27.
    a. Does the record support a finding that ``Select Comfort asserts 
that guides and stops of the P5000, P6000, and Arco products are screws 
and screw bores?''
    b. Does the record show that P5000, P6000, and Arco products meet 
the guides and stops limitation in claims 2 and 12 of the `172 patent?
    2. The ID finds that because Complainants did not establish that 
the `172 Accused Products continuously monitor pressure using a 
processor in conjunction with the transducer, the `172 Accused Products 
do not meet claim limitation ``and pressure monitor means being 
operably coupled to the processor and being in fluid communications 
with the at least one bladder for continuously monitoring the pressure 
in the at least one bladder.'' ID at 32; see id. at 29-32.
    a. To the extent not already briefed to the Commission, please 
discuss whether the record supports the ID's finding (with supporting 
citations to the record evidence).
    3. The ID finds that: ``Claim 9, like claim 2, includes the term 
`continuously monitoring.' For the reasons stated above in the 
discussion of claim 2, claim 9 is not infringed because Select Comfort 
did not establish that the `172 Accused Products `continuously monitor' 
pressure.'' ID at 32.
    a. Does the record show that claim 9 of the `172 patent is not 
infringed because Select Comfort did not establish that the `172 
Accused Products ``continuously monitor'' pressure?
    4. The ID finds that: ``Claim 16, like claim 1, includes the term 
`air posturizing sleep surface.' For the reasons stated above in the 
discussion of claim 1, claim 16 is not infringed because Select Comfort 
did not establish that the accused products practice the `air 
posturizing sleep surface' limitation.'' ID at 70.
    a. Does the record show that the accused products infringe the 
``air posturizing sleep surface'' limitation of claim 16 of the `554 
patent?
    5. Does the record show that the `554 Domestic Industry Products 
practice the `554 patent?
    6. The ID finds that: ``Claim 16, like claim 1, includes the term 
`air posturizing sleep surface.' For the reasons stated above in the 
discussion of claim 1, the `554 DI products do not practice claim 16 
because they do not meet the `air posturizing sleep surface' 
limitation.'' ID at 75.
    a. Does the record show that the `554 DI products practice the 
``air posturizing sleep surface'' limitation of claim 16 of the `554 
patent?
    7. With respect to Complainants' investment in plant and equipment 
alleged under 19 U.S.C. 1337(a)(3)(A) the ID finds that:

While the Commission has stated that a precise allocation of 
expenses among various DI products is not necessary, that precedent 
cannot mean that Select Comfort's proposed allocation is acceptable; 
i.e., allocating 100% of the rental expenses to the `172 patent, and 
then a portion of those same expenses to the `554 patent DI 
products. Accordingly, Select Comfort has not shown a domestic 
industry for either the `172 patent or the `554 patent based upon 19 
U.S.C. 1337(a)(3)(A).

ID at 89-90.

    a. Do Commission and judicial precedents and the record in the 
present investigation support the ID's finding?
    b. Please explain with citation to the record what portion of the 
asserted domestic investment in plant and equipment, in terms of the 
dollar amount and percentage, can be allocated to the articles that 
practice the `172 patent.
    c. Does the record show that Complainants' investment in plant and 
equipment under 19 U.S.C. 1337(a)(3)(A) is significant with respect to 
the articles that practice the `172 patent?
    d. Please explain with citation to the record what portion of the 
asserted domestic investment in plant and equipment, in terms of the 
dollar amount and percentage, can be allocated to the articles that 
practice the `554 patent.
    e. Does the record show that Complainants' investment in plant and 
equipment under 19 U.S.C. 1337(a)(3)(A) is significant with respect to 
the articles that practice the `554 patent?

[[Page 8625]]

    8. With respect to Complainants' employment of labor or capital 
alleged under 19 U.S.C. 1337(a)(3)(B) the ID finds that:

As with the plant and equipment issue in the previous section, 
Select Comfort has again allocated 100% of the relevant expense (in 
this section, employee compensation) to the `172 patent DI products 
and then allocated a portion of those same expenses to the `554 DI 
products. (CX-0445 at Q/A 59, 62; CX-0449C at Q/A 52; CIB at 92-93.) 
For the reasons set forth in the previous section, this argument is 
not persuasive. Accordingly, Select Comfort has not shown a domestic 
industry for either the `172 patent or the `554 patent based upon 19 
U.S.C. 1337(a)(3)(B).

ID at 91.
    a. Do Commission and judicial precedents and the record in the 
present investigation support the ID's finding?
    b. Please explain with citation to the record what portion of the 
asserted domestic employment of labor or capital, in terms of the 
dollar amount and percentage, can be allocated to the articles that 
practice the `172 patent.
    c. Does the record show that Complainants' employment of labor or 
capital under 19 U.S.C. 1337(a)(3)(B) is significant with respect to 
the articles that practice the `172 patent?
    d. Please explain with citation to the record what portion of the 
asserted domestic employment of labor or capital, in terms of the 
dollar amount and percentage, can be allocated to the articles that 
practice the `554 patent.
    e. Does the record show that Complainants' employment of labor or 
capital under 19 U.S.C. 1337(a)(3)(B) is significant with respect to 
the articles that practice the `554 patent?
    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 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 are 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).
    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.
    Written Submissions: The parties to the investigation are requested 
to file written submissions on the issues under review. The submissions 
should be concise and thoroughly referenced to the record in this 
investigation. 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 
on remedy, the public interest and bonding issued on December 1, 2016, 
by the ALJ. Complainants and the Commission investigative attorney 
(``IA'') are also requested to submit proposed remedial orders for the 
Commission's consideration.
    Complainants are further requested to provide the expiration date 
of the `172 and `554 patents, the HTSUS numbers under which the accused 
articles are imported, and any known importers of the accused products. 
The written submissions and proposed remedial orders must be filed no 
later than the close of business on February 6, 2017. Reply submissions 
must be filed no later than the close of business on February 13, 2017. 
No further submissions on 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-971'') in a prominent place on 
the cover page and/or the first page. (See Handbook for Electronic 
Filing Procedures, http://www.usitc.gov/secretary/fed_reg_notices/rules/handbook_on_electronicfiling.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 non-confidential written submissions will be available 
for public inspection at the Office of the Secretary and on EDIS.
    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: January 23, 2017.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2017-01838 Filed 1-26-17; 8:45 am]
 BILLING CODE 7020-02-P



                                                                                 Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices                                                    8623

                                                  Comments: 55± Yrs. old; old admin. bldg.;               Landholding Agency: Navy                               Washington, DC 20436, telephone (202)
                                                    3,320 sq. ft.; old processing bldg.; 3,485 sq.        Property Number: 77201710004                           205–3115. Copies of non-confidential
                                                    ft.; vacant 24 mos.; sits on .39 fee acres;           Status: Unutilized                                     documents filed in connection with this
                                                    contact GSA for more information.                     Comments: Public access denied and no
                                                                                                                                                                 investigation are or will be available for
                                                                                                            alternative method to gain access without
                                                  Land
                                                                                                            compromising national security.                      inspection during official business
                                                  Montana                                                 Reasons: Secured Area                                  hours (8:45 a.m. to 5:15 p.m.) in the
                                                  Canyon Ferry Reservoir Townsend                                                                                Office of the Secretary, U.S.
                                                                                                          Minnesota
                                                  Parcel III                                                                                                     International Trade Commission, 500 E
                                                                                                          Facility 206- Base Exchange                            Street SW., Washington, DC 20436,
                                                  99 Delger Road
                                                                                                          4970 Airport Road
                                                  Townsend MT 59644                                                                                              telephone (202) 205–2000. General
                                                                                                          FMKM Duluth Air National Guard Base
                                                  Landholding Agency: GSA                                                                                        information concerning the Commission
                                                  Property Number: 54201710003                            Duluth MN 55811
                                                                                                          Landholding Agency: Air Force                          may also be obtained by accessing its
                                                  Status: Surplus                                                                                                Internet server at https://www.usitc.gov.
                                                  GSA Number: 7–D–MT–06377–AA                             Property Number: 18201710001
                                                                                                          Status: Excess                                         The public record for this investigation
                                                  Directions: Disposal Agency: GSA;
                                                    Landholding Agency: Interior                          Comments: Property within 2,000 ft. of                 may be viewed on the Commission’s
                                                  Comments: 59.01 acres; contact GSA for more               flammable or explosive materials that are            electronic docket (EDIS) at https://
                                                    information.                                            located on Federal facility.                         edis.usitc.gov. Hearing-impaired
                                                                                                          Reasons: Within 2000 ft. of flammable or               persons are advised that information on
                                                  Canyon Ferry Reservoir                                    explosive material
                                                  Townsend Parcel I                                                                                              this matter can be obtained by
                                                  Southwest Corner of Centerville Rd. & Mill              Texas                                                  contacting the Commission’s TDD
                                                    Rd                                                    Geothermal Well & Electrical                           terminal on (202) 205–1810.
                                                  Townsend MT 59644                                       Power Generation Site                                  SUPPLEMENTARY INFORMATION: The
                                                  Landholding Agency: GSA                                 Naval Air Station
                                                  Property Number: 54201710004                                                                                   Commission instituted this investigation
                                                                                                          Corpus Christi TX
                                                  Status: Surplus                                         Landholding Agency: Navy
                                                                                                                                                                 on November 20, 2015, based on a
                                                  GSA Number: 7–D–MT–06377–AA                             Property Number: 77201710003                           complaint filed by Select Comfort
                                                  Directions: Disposal Agency: GSA;                       Status: Excess                                         Corporation of Minneapolis, Minnesota
                                                    Landholding Agency: Interior                          Comments: Public access denied and no                  and Select Comfort SC Corporation of
                                                  Comments: 10.54 acres; contact GSA for more               alternative method to gain access without            Greenville, South Carolina (collectively,
                                                    information.                                            compromising national security; property             ‘‘Select Comfort,’’ or ‘‘Complainants’’).
                                                  Canyon Ferry Reservoir Townsend                           located within floodway which has not                80 FR 72738 (Nov. 20, 2015). The
                                                  Parcel II                                                 been correct of contained.
                                                  96 Canton Lane
                                                                                                                                                                 complaint alleges violations of section
                                                                                                          Reasons: Secured Area; Floodway                        337 of the Tariff Act of 1930, as
                                                  Townsend MT 59644
                                                                                                          [FR Doc. 2017–01545 Filed 1–26–17; 8:45 am]            amended, 19 U.S.C. 1337, in the
                                                  Landholding Agency: GSA
                                                  Property Number: 54201710005                            BILLING CODE 4210–67–P                                 importation into the United States, the
                                                  Status: Surplus                                                                                                sale for importation, and the sale within
                                                  GSA Number: 7–D–MT–0637–AA                                                                                     the United States after importation of
                                                  Directions: Disposal Agency: GSA;                       INTERNATIONAL TRADE                                    certain air mattress systems,
                                                    Landholding Agency: Interior                          COMMISSION                                             components thereof, and methods of
                                                  Comments: 89.1 acres; contact GSA for more                                                                     using the same by reason of
                                                    information.                                          [Investigation No. 337–TA–971]
                                                                                                                                                                 infringement of certain claims of U.S.
                                                  Virginia                                                                                                       Patent Nos. 5,904,172 (‘‘the ‘172
                                                                                                          Certain Air Mattress Systems,
                                                  IAD Centreville Outer Marker                            Components Thereof, and Methods of                     patent’’) and 7,389,554 (‘‘the ‘554
                                                  14201 Braddock Road                                                                                            patent’’). Id. The notice of investigation
                                                  Centreville VA 20120
                                                                                                          Using the Same Commission
                                                                                                          Determination To Review in Part a                      names as respondents Sizewise Rentals
                                                  Landholding Agency: GSA                                                                                        LLC of Kansas City, Missouri; American
                                                  Property Number: 54201710007                            Final Initial Determination; Schedule
                                                  Status: Excess                                          for Filing Written Submissions on the                  National Manufacturing Inc. of Corona,
                                                  GSA Number: VA–1166–AA                                  Issues Under Review and on Remedy,                     California; and Dires LLC and Dires LLC
                                                  Comments: .26 acres/11,325.60 sq. ft.; contact          the Public Interest, and Bonding                       d/b/a Personal Comfort Beds of Orlando,
                                                    GSA for more information.                                                                                    Florida (collectively, ‘‘Respondents’’).
                                                                                                          AGENCY: U.S. International Trade                       Id. The Office of Unfair Import
                                                  Unsuitable Properties                                   Commission.                                            Investigations (‘‘OUII’’) was also named
                                                  Building                                                ACTION: Notice.                                        as a party to the investigation. Id.
                                                  Hawaii                                                                                                            Pursuant to Commission Rule
                                                                                                          SUMMARY:    Notice is hereby given that                210.50(b)(1), 19 CFR 210.50(b)(1), the
                                                  2 Buildings
                                                  Marine Corps Base Hawaii, Kaneohe Bay                   the U.S. International Trade                           Commission ordered that the presiding
                                                  Kaneohe Bay HI 96863                                    Commission (‘‘the Commission’’) has                    ALJ:
                                                  Landholding Agency: Navy                                determined to review in part the final                 [S]hall take evidence or other information
                                                  Property Number: 77201710002                            initial determination (‘‘ID’’) issued by               and hear arguments from the parties and
                                                  Status: Excess                                          the presiding administrative law judge                 other interested persons with respect to the
                                                  Directions:                                             (‘‘ALJ’’) finding no violation of section              public interest in this investigation, as
                                                  Building 3026 & 3027                                    337 of the Tariff Act of 1930, as                      appropriate, and provide the Commission
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                  Comments: Public access denied and no                   amended (‘‘section 337’’), in the above-               with findings of fact and a recommended
                                                    alternative method to gain access without                                                                    determination on this issue, which shall be
                                                                                                          referenced investigation on November
                                                    compromising national security.                                                                              limited to the statutory public interest factors
                                                  Reasons: Secured Area                                   18, 2016.
                                                                                                                                                                 set forth in 19 U.S.C. 1337(d)(1), (f)(1), (g)(1).
                                                  Pacific Missile Range Facility                          FOR FURTHER INFORMATION CONTACT:
                                                  Barking Sands                                           Michael Liberman, Esq., Office of the                  80 FR 72738 (Nov. 20, 2015).
                                                  South of Tarter Dr. & E of Nohili Road                  General Counsel, U.S. International                      The evidentiary hearing on the
                                                  Kauai HI                                                Trade Commission, 500 E Street SW.,                    question of violation of section 337 was


                                             VerDate Sep<11>2014   13:58 Jan 26, 2017   Jkt 241001   PO 00000   Frm 00025   Fmt 4703   Sfmt 4703   E:\FR\FM\27JAN1.SGM   27JAN1


                                                  8624                           Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices

                                                  held August 8–12, 2016. The final ID on                   (5) to review the ID’s finding that claim 16         because Select Comfort did not establish
                                                  violation was issued on November 18,                    of the ‘554 patent is not infringed because            that the accused products practice the
                                                  2016. The ALJ issued his recommended                    Complainants did not establish that the                ‘air posturizing sleep surface’
                                                                                                          accused products practice the ‘‘air                    limitation.’’ ID at 70.
                                                  determination on remedy, the public
                                                                                                          posturizing sleep surface’’ limitation;
                                                  interest and bonding on the same day.                     (6) to review the ID’s finding that the ‘554            a. Does the record show that the
                                                  The ALJ found no violation of section                   Domestic Industry Products do not practice             accused products infringe the ‘‘air
                                                  337 in this investigation. The ALJ                      the ‘554 patent;                                       posturizing sleep surface’’ limitation of
                                                  recommended that if the Commission                        (7) to review the ID’s finding that                  claim 16 of the ‘554 patent?
                                                  finds a violation of section 337 in the                 Complainants did not satisfy the economic                 5. Does the record show that the ‘554
                                                  present investigation, the Commission                   prong of the domestic industry requirement             Domestic Industry Products practice the
                                                  issue a limited exclusion order (‘‘LEO’’)               with respect to both the ‘172 and ‘554                 ‘554 patent?
                                                  prohibiting the importation of                          patents.                                                  6. The ID finds that: ‘‘Claim 16, like
                                                                                                            The Commission has determined not to
                                                  Respondents’ air controllers and air                                                                           claim 1, includes the term ‘air
                                                                                                          review the remainder of the ID.
                                                  mattress systems found to infringe the                                                                         posturizing sleep surface.’ For the
                                                  asserted patents. The ALJ also                             The parties are requested to brief their            reasons stated above in the discussion of
                                                  recommended the inclusion of a                          positions on only the following issues,                claim 1, the ‘554 DI products do not
                                                  provision for the ‘554 patent, whereby                  with reference to the applicable law and               practice claim 16 because they do not
                                                  Respondents certify that certain imports                the evidentiary record:                                meet the ‘air posturizing sleep surface’
                                                  are not covered by the LEO because they                    1. The ID finds that: ‘‘Because Select              limitation.’’ ID at 75.
                                                  contain components for use in non-                      Comfort asserts that guides and stops of                  a. Does the record show that the ‘554
                                                  infringing products.                                    the P5000, P6000, and Arco products                    DI products practice the ‘‘air posturizing
                                                     The ALJ did not recommend that the                   are screws and screw bores, the                        sleep surface’’ limitation of claim 16 of
                                                  Commission issue a cease and desist                     undersigned finds that Select Comfort                  the ‘554 patent?
                                                  order in this investigation. The ALJ                    has failed to establish that these                        7. With respect to Complainants’
                                                  further recommended a zero bond                         products meet this limitation.’’ ID at 27.             investment in plant and equipment
                                                  during the period of Presidential review.                  a. Does the record support a finding
                                                                                                                                                                 alleged under 19 U.S.C. 1337(a)(3)(A)
                                                     All parties to this investigation filed              that ‘‘Select Comfort asserts that guides
                                                                                                                                                                 the ID finds that:
                                                  timely petitions for review of various                  and stops of the P5000, P6000, and Arco
                                                  portions of the final ID, as well as timely             products are screws and screw bores?’’                 While the Commission has stated that a
                                                                                                             b. Does the record show that P5000,                 precise allocation of expenses among various
                                                  responses to the petitions.                                                                                    DI products is not necessary, that precedent
                                                     On December 19, 2016, both                           P6000, and Arco products meet the
                                                                                                                                                                 cannot mean that Select Comfort’s proposed
                                                  Complainants and Respondents filed                      guides and stops limitation in claims 2
                                                                                                                                                                 allocation is acceptable; i.e., allocating 100%
                                                  their respective Public Interest                        and 12 of the ‘172 patent?                             of the rental expenses to the ‘172 patent, and
                                                  Statement pursuant to 19 CFR                               2. The ID finds that because                        then a portion of those same expenses to the
                                                  210.50(a)(4). Responses from public                     Complainants did not establish that the                ‘554 patent DI products. Accordingly, Select
                                                  were likewise received by the                           ‘172 Accused Products continuously                     Comfort has not shown a domestic industry
                                                  Commission pursuant to notice. See                      monitor pressure using a processor in                  for either the ‘172 patent or the ‘554 patent
                                                  Notice of Request for Statements on the                 conjunction with the transducer, the                   based upon 19 U.S.C. 1337(a)(3)(A).
                                                  Public Interest (Nov. 29, 2016).                        ‘172 Accused Products do not meet                      ID at 89–90.
                                                     Having examined the record in this                   claim limitation ‘‘and pressure monitor
                                                                                                          means being operably coupled to the                      a. Do Commission and judicial
                                                  investigation, including the final ID, the                                                                     precedents and the record in the present
                                                  petitions for review, and the responses                 processor and being in fluid
                                                                                                          communications with the at least one                   investigation support the ID’s finding?
                                                  thereto, the Commission has determined
                                                                                                          bladder for continuously monitoring the                  b. Please explain with citation to the
                                                  to review the final ID in part. In
                                                                                                          pressure in the at least one bladder.’’ ID             record what portion of the asserted
                                                  particular, the Commission has
                                                                                                          at 32; see id. at 29–32.                               domestic investment in plant and
                                                  determined as follows:
                                                                                                             a. To the extent not already briefed to             equipment, in terms of the dollar
                                                    (1) To review the ID’s findings that the                                                                     amount and percentage, can be allocated
                                                  P5000, P6000, and Arco products do not
                                                                                                          the Commission, please discuss whether
                                                                                                          the record supports the ID’s finding                   to the articles that practice the ‘172
                                                  meet ‘‘guides and stops’’ limitation in claim
                                                                                                          (with supporting citations to the record               patent.
                                                  2 of the ‘172 patent, and that these products
                                                  do not meet the same claim limitation in                evidence).                                               c. Does the record show that
                                                  claim 12 of the ‘172 patent and for that                   3. The ID finds that: ‘‘Claim 9, like               Complainants’ investment in plant and
                                                  reason do not infringe that claim;                      claim 2, includes the term ‘continuously               equipment under 19 U.S.C.
                                                    (2) to review the ID’s finding that the ‘172          monitoring.’ For the reasons stated                    1337(a)(3)(A) is significant with respect
                                                  Accused Products do not meet claim                      above in the discussion of claim 2,                    to the articles that practice the ‘172
                                                  limitation ‘‘pressure monitor means being                                                                      patent?
                                                  operably coupled to the processor and being
                                                                                                          claim 9 is not infringed because Select
                                                                                                          Comfort did not establish that the ‘172                  d. Please explain with citation to the
                                                  in fluid communications with the at least one
                                                  bladder for continuously monitoring the                 Accused Products ‘continuously                         record what portion of the asserted
                                                  pressure in the at least one bladder’’ in               monitor’ pressure.’’ ID at 32.                         domestic investment in plant and
                                                  claims 2, 6, 20, 22, and 24 of the ‘172 patent;            a. Does the record show that claim 9                equipment, in terms of the dollar
                                                    (3) to review the ID’s finding that the ‘172          of the ‘172 patent is not infringed                    amount and percentage, can be allocated
                                                  Accused Products do not infringe claim 9 of                                                                    to the articles that practice the ‘554
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                          because Select Comfort did not establish
                                                  the ‘172 patent;                                        that the ‘172 Accused Products                         patent.
                                                    (4) to review, in part, the ID’s analysis                                                                      e. Does the record show that
                                                                                                          ‘‘continuously monitor’’ pressure?
                                                  regarding whether the ‘172 Accused Products
                                                  infringe claim 2 of the ‘172 patent for the
                                                                                                             4. The ID finds that: ‘‘Claim 16, like              Complainants’ investment in plant and
                                                  limited purpose of taking no position on the            claim 1, includes the term ‘air                        equipment under 19 U.S.C.
                                                  ALJ’s discussion in the last paragraph of page          posturizing sleep surface.’ For the                    1337(a)(3)(A) is significant with respect
                                                  20 and in the first paragraph of page 21 of             reasons stated above in the discussion of              to the articles that practice the ‘554
                                                  the ID;                                                 claim 1, claim 16 is not infringed                     patent?


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                                                                                 Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Notices                                                  8625

                                                     8. With respect to Complainants’                        If the Commission contemplates some                 copies to the Office of the Secretary by
                                                  employment of labor or capital alleged                  form of remedy, it must consider the                   noon the next day pursuant to section
                                                  under 19 U.S.C. 1337(a)(3)(B) the ID                    effects of that remedy upon the public                 210.4(f) of the Commission’s Rules of
                                                  finds that:                                             interest. The factors the Commission                   Practice and Procedure (19 CFR
                                                  As with the plant and equipment issue in the            will consider include the effect that an               210.4(f)). Submissions should refer to
                                                  previous section, Select Comfort has again              exclusion order and/or cease and desist                the investigation number (‘‘Inv. No.
                                                  allocated 100% of the relevant expense (in              orders would have on (1) the public                    337–TA–971’’) in a prominent place on
                                                  this section, employee compensation) to the             health and welfare, (2) competitive                    the cover page and/or the first page. (See
                                                  ‘172 patent DI products and then allocated a            conditions in the U.S. economy, (3) U.S.
                                                  portion of those same expenses to the ‘554 DI                                                                  Handbook for Electronic Filing
                                                                                                          production of articles that are like or
                                                  products. (CX–0445 at Q/A 59, 62; CX–0449C                                                                     Procedures, http://www.usitc.gov/
                                                                                                          directly competitive with those that are
                                                  at Q/A 52; CIB at 92–93.) For the reasons set                                                                  secretary/fed_reg_notices/rules/
                                                  forth in the previous section, this argument
                                                                                                          subject to investigation, and (4) U.S.
                                                                                                          consumers. The Commission is                           handbook_on_electronicfiling.pdf) .
                                                  is not persuasive. Accordingly, Select                                                                         Persons with questions regarding filing
                                                  Comfort has not shown a domestic industry               therefore interested in receiving written
                                                  for either the ‘172 patent or the ‘554 patent           submissions that address the                           should contact the Secretary (202–205–
                                                  based upon 19 U.S.C. 1337(a)(3)(B).                     aforementioned public interest factors                 2000).
                                                  ID at 91.                                               in the context of this investigation.                     Any person desiring to submit a
                                                     a. Do Commission and judicial                           If the Commission orders some form                  document to the Commission in
                                                  precedents and the record in the present                of remedy, the U.S. Trade                              confidence must request confidential
                                                  investigation support the ID’s finding?                 Representative, as delegated by the                    treatment. All such requests should be
                                                     b. Please explain with citation to the               President, has 60 days to approve or                   directed to the Secretary to the
                                                  record what portion of the asserted                     disapprove the Commission’s action.                    Commission and must include a full
                                                  domestic employment of labor or                         See Presidential Memorandum of July                    statement of the reasons why the
                                                  capital, in terms of the dollar amount                  21, 2005, 70 FR 43251 (July 26, 2005).
                                                                                                                                                                 Commission should grant such
                                                  and percentage, can be allocated to the                 During this period, the subject articles
                                                                                                                                                                 treatment. See 19 CFR 201.6. Documents
                                                  articles that practice the ‘172 patent.                 would be entitled to enter the United
                                                                                                          States under bond, in an amount                        for which confidential treatment by the
                                                     c. Does the record show that
                                                                                                          determined by the Commission and                       Commission is properly sought will be
                                                  Complainants’ employment of labor or
                                                                                                          prescribed by the Secretary of the                     treated accordingly. All information,
                                                  capital under 19 U.S.C. 1337(a)(3)(B) is
                                                  significant with respect to the articles                Treasury.                                              including confidential business
                                                  that practice the ‘172 patent?                             Written Submissions: The parties to                 information and documents for which
                                                     d. Please explain with citation to the               the investigation are requested to file                confidential treatment is properly
                                                  record what portion of the asserted                     written submissions on the issues under                sought, submitted to the Commission for
                                                  domestic employment of labor or                         review. The submissions should be                      purposes of this Investigation may be
                                                  capital, in terms of the dollar amount                  concise and thoroughly referenced to                   disclosed to and used: (i) By the
                                                  and percentage, can be allocated to the                 the record in this investigation. Parties              Commission, its employees and Offices,
                                                  articles that practice the ‘554 patent.                 to the investigation, interested                       and contract personnel (a) for
                                                     e. Does the record show that                         government agencies, and any other                     developing or maintaining the records
                                                  Complainants’ employment of labor or                    interested parties are encouraged to file              of this or a related proceeding, or (b) in
                                                  capital under 19 U.S.C. 1337(a)(3)(B) is                written submissions on the issues of                   internal investigations, audits, reviews,
                                                  significant with respect to the articles                remedy, the public interest and                        and evaluations relating to the
                                                  that practice the ‘554 patent?                          bonding. Such submissions should                       programs, personnel, and operations of
                                                     In connection with the final                         address the recommended
                                                                                                                                                                 the Commission including under 5
                                                  disposition of this investigation, the                  determination on remedy, the public
                                                                                                                                                                 U.S.C. Appendix 3; or (ii) by U.S.
                                                  Commission may (1) issue an order that                  interest and bonding issued on
                                                  could result in the exclusion of the                    December 1, 2016, by the ALJ.                          government employees and contract
                                                  subject articles from entry into the                    Complainants and the Commission                        personnel, solely for cybersecurity
                                                  United States, and/or (2) issue one or                  investigative attorney (‘‘IA’’) are also               purposes. All contract personnel will
                                                  more cease and desist orders that could                 requested to submit proposed remedial                  sign appropriate nondisclosure
                                                  result in the respondent being required                 orders for the Commission’s                            agreements. All non-confidential
                                                  to cease and desist from engaging in                    consideration.                                         written submissions will be available for
                                                  unfair acts in the importation and sale                    Complainants are further requested to               public inspection at the Office of the
                                                  of such articles. Accordingly, the                      provide the expiration date of the ‘172                Secretary and on EDIS.
                                                  Commission is interested in receiving                   and ‘554 patents, the HTSUS numbers                       The authority for the Commission’s
                                                  written submissions that address the                    under which the accused articles are                   determination is contained in section
                                                  form of remedy, if any, that should be                  imported, and any known importers of                   337 of the Tariff Act of 1930, as
                                                  ordered. If a party seeks exclusion of an               the accused products. The written                      amended, 19 U.S.C. 1337, and in Part
                                                  article from entry into the United States               submissions and proposed remedial
                                                                                                                                                                 210 of the Commission’s Rules of
                                                  for purposes other than entry for                       orders must be filed no later than the
                                                                                                                                                                 Practice and Procedure, 19 CFR part
                                                  consumption, the party should so                        close of business on February 6, 2017.
                                                                                                                                                                 210.
                                                  indicate and provide information                        Reply submissions must be filed no later
                                                                                                                                                                   By Order of the Commission.
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                  establishing that activities involving                  than the close of business on February
                                                  other types of entry either are adversely               13, 2017. No further submissions on                      Issued: January 23, 2017.
                                                  affecting it or are likely to do so. For                these issues will be permitted unless                  Lisa R. Barton,
                                                  background, see Certain Devices for                     otherwise ordered by the Commission.                   Secretary to the Commission.
                                                  Connecting Computers via Telephone                         Persons filing written submissions
                                                                                                                                                                 [FR Doc. 2017–01838 Filed 1–26–17; 8:45 am]
                                                  Lines, Inv. No. 337–TA–360, USITC                       must file the original document
                                                  Pub. No. 2843, Comm’n Op. at 7–10                       electronically on or before the deadlines              BILLING CODE 7020–02–P
                                                  (Dec. 1994).                                            stated above and submit 8 true paper


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Document Created: 2017-01-27 00:11:23
Document Modified: 2017-01-27 00:11:23
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactMichael Liberman, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 205-3115. 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 Citation82 FR 8623 

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