83 FR 13780 - Certain Magnetic Tape Cartridges and Components Thereof: Commission Determination To Review in Part the Final Initial Determination; and, on Review, To Find No Violation of Section 337; Termination of the Investigation

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 83, Issue 62 (March 30, 2018)

Notice is hereby given that the U.S. International Trade Commission has determined to review in part the Chief Administrative Law Judge's (``ALJ'') final initial determination (``ID''), issued on January 25, 2018, finding no violation of section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337) (``section 337''), in the above- captioned investigation. On review, the Commission has determined to find no violation of section 337. The investigation is terminated in its entirety.

[Federal Register Volume 83, Number 62 (Friday, March 30, 2018)]
[Notices]
[Pages 13780-13781]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06416]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1036]


Certain Magnetic Tape Cartridges and Components Thereof: 
Commission Determination To Review in Part the Final Initial 
Determination; and, on Review, To Find No Violation of Section 337; 
Termination of the Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined to review in part the Chief Administrative 
Law Judge's (``ALJ'') final initial determination (``ID''), issued on 
January 25, 2018, finding no violation of section 337 of the Tariff Act 
of 1930, as amended (19 U.S.C. 1337) (``section 337''), in the above-
captioned investigation. On review, the Commission has determined to 
find no violation of section 337. The investigation is terminated in 
its entirety.

FOR FURTHER INFORMATION CONTACT: Cathy Chen, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-2392. 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 the above-
captioned investigation on January 24, 2017, based on a complaint filed 
by Sony Corporation of Tokyo, Japan; Sony Storage Media and Devices 
Corporation of Miyagi, Japan; Sony DADC US Inc. of Terre Haute, 
Indiana; and Sony Latin America Inc. of Miami, Florida (collectively, 
``Sony''). See 82 FR 8209-10 (Jan. 24, 2017). The complaint, as

[[Page 13781]]

supplemented, alleges violations of section 337 based upon the 
importation into the United States, the sale for importation, and the 
sale within the United States after importation of certain magnetic 
tape cartridges and components thereof by reason of infringement of 
certain claims of U.S. Patent No. 6,345,779 (``the '779 patent''); U.S. 
Patent No. 7,115,331 (``the '331 patent''); U.S. Patent No. 6,896,959 
(``the '959 patent''); and U.S. Patent No. 7,016,137 (``the '137 
patent''). Id. The notice of investigation named Fujifilm Holdings 
Corporation of Tokyo, Japan; Fujifilm Corporation of Tokyo, Japan; 
Fujifilm Holdings America Corporation of Valhalla, New York; and 
Fujifilm Recording Media U.S.A., Inc. of Bedford, Massachusetts 
(collectively, ``Fujifilm'') as respondents in this investigation. Id. 
The Office of Unfair Import Investigations is also a party to this 
investigation. Id.
    All asserted claims of the '959 patent and the '137 patent and one 
asserted claim of the '331 patent have been terminated from the 
investigation. See Order Nos. 20 and 21; Comm'n Notices (Sep. 25, 
2017). The evidentiary hearing was held on September 25-28, 2017.
    On January 25, 2018, the Chief ALJ issued his final ID and his 
recommended determination (``RD'') on remedy and bonding in this 
investigation. The ID finds no violation of section 337 by Fujifilm in 
connection with claims 1-6 of the '779 patent and claims 1-3, 9-11, 13-
14, and 16-17 of the '331 patent (collectively, ``the Asserted 
Patents''). Specifically, the ID finds that Fujifilm does not infringe 
the asserted claims of the Asserted Patents. The ID also finds that the 
asserted claims of the '331 patent have not been proven invalid but 
that the asserted claims of the '779 patent are anticipated and/or 
obvious. The ID further finds that the technical prong of the domestic 
industry requirement has not been satisfied for the '779 patent but has 
been satisfied for the '331 patent. And, finally, the ID finds the 
economic prong of the domestic industry requirement has not been 
satisfied for the Asserted Patents.
    On February 7, 2018, Sony and the Commission's Investigative 
Attorney each filed a timely petition for review of the ID and Fujifilm 
filed a contingent petition for review of the ID. On February 15, 2018, 
the parties filed timely responses to the petitions for review. No 
public interest comments were filed by the public in this 
investigation.
    Having examined the record of this investigation, including the ID, 
the petitions for review, and the responses thereto, the Commission has 
determined to review the ID in part. First, the Commission has 
determined to correct three typographical errors on page 51 of the ID. 
In line 16 of the ID, ``securing the leader pin spring in the tape 
cartridge'' is replaced with ``securing the leader pin in the tape 
cartridge.'' In line 18 of the ID, ``claim'' is replaced with ``claim 
1'' and ``leader pin sits loosely'' is replaced with ``leader pin 
spring sits loosely.''
    Second, with respect to the '779 patent, the Commission has 
determined to review the ID's finding that the 15th embodiment in U.S. 
Patent No. 6,236,539 (``Morita'') does not anticipate the asserted 
claims, and the ID's finding that claims 5 and 6 are rendered obvious 
by a combination of Morita's 6th and 15th embodiments.
    Third, with respect to the '331 patent, the Commission has 
determined to review the ID's finding that the Fujifilm's accused 
products do not infringe and that IBM's domestic industry products do 
not practice the asserted claims of the '331 patent; the ID's 
construction of the claim term ``metallic magnetic particulate 
pigment;'' the ID's finding that JP 2002-074641 (``Mori'') does not 
anticipate the asserted claims; and the ID's finding that JP 2003-
123226 (``Naoe'') does not anticipate the asserted claims.
    Finally, the Commission has determined to review the ID's finding 
that the economic prong of the domestic industry requirement has not 
been satisfied for the Asserted Patents.
    On review, the Commission has determined to construe the ``magnetic 
metallic particulate pigment'' limitation in claims 1 and 16 of the 
'331 patent to mean the ``magnetic metal particle pigments have a 
composition including, but not limited to, metallic iron and/or alloys 
of iron with cobalt and/or nickel, and magnetic or non-magnetic oxides 
of iron, other elements, or mixtures thereof.'' JX-0004 at 4:36-39.
    The Commission has also determined to affirm the ID's finding that 
Fujifilm's accused products do not infringe and that IBM's domestic 
industry products do not practice the asserted claims of the '331 
patent. The Commission adopts the ID's analysis on pages 99-120 and 
125-128, and further relies on Dr. Wang's coercivity measurements for 
Fujifilm's accused products and IBM's domestic industry products as a 
basis for finding Sony's expert's conclusions unreliable. See RX-0010C 
(Wang RWS) Q/A 282, 296, 303. Dr. Wang's coercivity measurements 
demonstrate that these products do not meet the ``coercivity of at 
least about [2300/2500] Oe'' limitation as required by claims 1 and 16 
of the '331 patent.
    The Commission has determined to take no position on the other 
issues under review.
    The Commission has further determined not to review the remainder 
of the ID, including the ID's findings that Fujifilm does not infringe 
the asserted claims of the '779 patent; that claims 1-4 of the '779 
patent are anticipated by Morita's 6th embodiment; and that the 
technical prong of the domestic industry requirement has not been 
satisfied for the '779 patent. Accordingly, the Commission has 
determined to affirm with modifications the ID's finding of no 
violation of section 337. The investigation is terminated in its 
entirety.
    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: March 26, 2018.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2018-06416 Filed 3-29-18; 8:45 am]
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