83 FR 28659 - Certain Collapsible Sockets for Mobile Electronic Devices and Components Thereof; Commission's Final Determination Finding a Violation of Section 337; Issuance of a General Exclusion Order; Termination of the Investigation

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 83, Issue 119 (June 20, 2018)

Notice is hereby given that the U.S. International Trade Commission has found a violation of section 337 of the Tariff Act of 1930, as amended, in this investigation. The Commission has issued a general exclusion order prohibiting the unlicensed importation of certain collapsible sockets that infringe certain claims of the asserted patent. The investigation is terminated.

[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Notices]
[Pages 28659-28660]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13192]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1056]


Certain Collapsible Sockets for Mobile Electronic Devices and 
Components Thereof; Commission's Final Determination Finding a 
Violation of Section 337; Issuance of a General Exclusion Order; 
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 found a violation of section 337 of the Tariff Act of 
1930, as amended, in this investigation. The Commission has issued a 
general exclusion order prohibiting the unlicensed importation of 
certain collapsible sockets that infringe certain claims of the 
asserted patent. The investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Lucy Grace D. Noyola, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone 202-205-3438. Copies of non-
confidential documents filed in connection with this investigation are 
or will be available for inspection during official business hours 
(8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. 
International Trade Commission, 500 E Street SW, Washington, DC 20436, 
telephone 202-205-2000. General information concerning the Commission 
may also be obtained by accessing its internet server (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 May 15, 2017, based on a complaint filed on April 10, 2017 on behalf 
of PopSockets LLC of Boulder, Colorado (``PopSockets''). 82 FR 22348-49 
(May 15, 2017). The complaint alleges violations of section 337 of the 
Tariff Act of 1930, as amended, 19 U.S.C. 1337, based upon the 
importation into the United States, the sale for importation, and the 
sale within the United States after importation of certain collapsible 
sockets for mobile electronic devices and components thereof by reason 
of infringement of U.S. Patent No. 8,560,031 (``the '031 patent''). Id. 
The notice of investigation named as respondents Agomax Group Ltd. of 
Kowloon, Hong Kong; Hangzhou Hangkai Technology Co., Ltd. of Zhejiang, 
China; Yiwu Wentou Import & Export Co., Ltd. of Zhejiang, China; 
Shenzhen Enruize Technology Co., Ltd. of Shenzhen, China; and Guangzhou 
Xi Xun Electronics Co., Ltd.; Shenzhen Chuanghui Industry Co., Ltd. of 
Guangdong, China; Shenzhen VVI Electronic Limited; Shenzhen Yright 
Technology Co., Ltd.; Shenzhen Kinsen Technology Co., Limited; Shenzhen 
Showerstar Industrial Co., Ltd.; Shenzhen Lamye Technology Co., Ltd.; 
Jiangmen Besnovo Electronics Co., Ltd.; Shenzhen Belking Electronic 
Co., Ltd.; Shenzhen CEX Electronic Co., Limited, all of Guangdong, 
China. Id. The Office of Unfair Import Investigations (``OUII'') also 
was named as a party in the investigation.
    On August 22, 2017, 13 out of 14 respondents were found in default. 
Notice (Aug. 22, 2017) (determining not to review Order No. 9 (Aug. 4, 
2017)).
    On September 18, 2017, the Commission terminated the last remaining 
respondent, Shenzhen Chuanghui Industry Co., Ltd., based on withdrawal 
of the complaint as to that respondent. Notice (Sept. 18, 2017) 
(determining not to review Order No. 10 (Aug. 28, 2017)).
    On August 8, 2017, PopSockets filed a motion for summary 
determination that: (1) The defaulting respondents have sold for 
importation into the United States, imported into the United States, or 
sold after importation certain collapsible sockets for mobile 
electronic devices and components thereof that allegedly infringe 
certain claims of the '031 patent in violation of section 337; (2) the 
accused products infringe the asserted claims of the '031 patent; and 
(3) a domestic industry with respect to the '031 patent exists. The 
motion also requested a recommendation for entry of a general exclusion 
order and a bonding requirement pending Presidential review. On August 
31, 2017, OUII filed a response supporting the motion in substantial 
part and supporting the requested remedy of a general exclusion order.
    On February 1, 2018, the administrative law judge (``ALJ'') issued 
the subject initial determination (``ID'') (Order No. 11), granting 
PopSockets' motion for summary determination of a section 337 
violation. The ID found that the defaulting respondents' accused 
products infringe one or more of claims 9-12 of the '031 patent, but 
found no infringement of claims 16 and 17 of the '031 patent. The ID 
found that the

[[Page 28660]]

defaulting respondents' accused products have been imported into the 
United States and that a domestic industry exists in the United States 
with respect to the '031 patent. No petitions for review of the ID were 
filed. The ALJ also issued a Recommended Determination on Remedy and 
Bonding, recommending that, if the Commission finds a section 337 
violation, the Commission issue a general exclusion order and impose a 
bond of 100 percent during the period of Presidential review.
    On March 19, 2018, the Commission determined to review in part the 
ID. 83 FR 12812 (Mar. 23, 2018). Specifically, the Commission 
determined to review (1) the ID's findings on the technical prong of 
the domestic industry requirement to correct a typographical error and 
(2) the ID's findings on the economic prong of the domestic industry 
requirement. The Commission determined not to review the remaining 
issues decided in the ID. The Commission requested additional briefing 
from the parties on the issues under review and also invited the 
parties, interested government agencies, and any other interested 
parties to file written submissions on the issues of remedy, the public 
interest, and bonding.
    On April 2, 2018, PopSockets and OUII filed initial written 
submissions in response to the Commission's notice. On April 4, 2018, 
non-party Quest USA Corporation (``Quest'') filed a written submission. 
On April 11, 2018, PopSockets filed a reply to Quest's submission. Also 
on that day, OUII filed a reply to the submissions of PopSockets and 
Quest.
    Having examined the record of this investigation, including the ID 
and the various submissions, the Commission has determined to affirm, 
on modified grounds, the ID's finding of a section 337 violation. The 
Commission affirms the ID's finding that the complainant satisfied the 
technical prong of the domestic industry requirement with the 
modification of a citation to ``Mem. Ex. 2 (Kemnitzer Decl.) at ] 77 
(Infringement Analysis and Chart)'' at page 107 of the ID to ``Mem. Ex. 
2 (Kemnitzer Decl.) at ] 61 (Analysis and Chart).'' The Commission 
affirms, with modified reasoning set forth in the opinion issued 
concurrently herewith, the ID's finding with respect to the economic 
prong of the domestic industry requirement under section 337(a)(3)(B), 
but takes no position with respect to subsections (A) and (C) (19 
U.S.C. 1337(a)(3)(A), (B), (C)). The Commission finds that the 
statutory requirements for relief under section 337(g)(2) (19 U.S.C. 
1337(g)(2)) are satisfied with respect to the defaulting respondents. 
In addition, the Commission finds that the public interest factors 
enumerated in section 337(g)(1) (19 U.S.C. 1337(g)(1)) do not preclude 
issuance of the statutory relief.
    The Commission has determined the appropriate remedy is a general 
exclusion order prohibiting the unlicensed importation of certain 
collapsible sockets that infringe one or more of claims 9-12 of the 
'031 patent. The Commission has also determined to set a bond in the 
amount of 100 percent of the entered value of the infringing products 
imported during the period of Presidential review (19 U.S.C. 1337(j)). 
The Commission's order and opinion were delivered to the President and 
to the United States Trade Representative on the day of their issuance.
    The authority for the Commission's determination is contained in 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
in part 210 of the Commission's Rules of Practice and Procedure (19 CFR 
part 210).

    By order of the Commission.

    Issued: June 14, 2018.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2018-13192 Filed 6-19-18; 8:45 am]
 BILLING CODE 7020-02-P