[Federal Register Volume 62, Number 191 (Thursday, October 2, 1997)]
[Notices]
[Pages 51682-51683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26163]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-372 (Enforcement Proceeding)]
Notice of Commission Determination Concerning Remedy, the Public
Interest, and Bonding
In the Matter of: Certain Neodymium-Iron-Boron Magnets, Magnet
Alloys, and Articles Containing Same.
AGENCY: U.S. International Trade Commission.
ACTION: Notice.
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SUMMARY: Notice is hereby given that the U.S. International Trade
Commission (``the Commission'') determined to impose a civil penalty of
$ 1,550,000 on respondents San Huan New Materials High Tech, Inc.,
Ningbo Konit Industries, Inc., and Tridus International, Inc. for
violation of a previously-issued consent order. The Commission also
determined to revoke the aforementioned consent order effective upon
approval of the President of a newly-issued permanent limited exclusion
order and a newly-issued permanent cease and desist order to Tridus
International, Inc.
FOR FURTHER INFORMATION CONTACT: Jay H. Reiziss, Esq., Office of the
General Counsel, U.S. International Trade Commission, telephone 202-
205-3116.
SUPPLEMENTARY INFORMATION: The patent-based section 337 investigation
that preceded this enforcement proceeding was instituted on March 9,
[[Page 51683]]
1995, based on a complaint filed by Crucible Materials Corporation
(``Crucible''), alleging infringement of claims 1-3 of Crucible's U.S.
Letters Patent 4,588,439 (``the 439 patent''). On October 11, 1995, the
investigation was terminated as to respondents San Huan New Materials
High Tech, Inc. (``San Huan''), Ningbo Konit Industries, Inc.
(``Ningbo''), and Tridus International, Inc. (``Tridus'') (collectively
``respondents'') based on the Commission's grant of respondents
unilateral motion for issuance of a consent order wherein those
respondents agreed not to sell for importation, import, or sell after
importation magnets ``which infringe any of claims 1-3 of the 439
Patent.'' On May 16, 1996, the Commission instituted a formal
enforcement proceeding based on an enforcement complaint filed by
Crucible alleging that respondents had violated that consent order by
importing or selling magnets that infringed the claims in issue of the
439 patent. On December 24, 1996, following an evidentiary hearing, the
presiding administrative law judge (``ALJ'') issued a recommended
determination (``RD'') finding that respondents had violated the
consent order on 33 different days and recommending that the Commission
impose a civil penalty of $1,625,000 on respondents. The Commission
adopted the bulk of the RD's findings on violation on April 8, 1997,
and issued an opinion explaining that determination on April 15, 1997,
finding that respondents had violated the consent order on 31 days
between October 11, 1995, and October 10, 1996.
The Commission invited the parties to submit briefs on the
appropriate remedy, public interest, and the amount of bond to be
imposed during any Presidential review period required, and directed
Crucible and the Commission investigative attorney (``IA'') to submit
proposed remedial orders.
Having considered the RD, the exceptions thereto, and proposed
alternative findings of fact and conclusions of law, as well as the
entire record in this proceeding, the Commission determined to impose a
civil penalty of $ 1,550,000 on respondents San Huan, Ningbo, and
Tridus. The Commission also has determined to revoke the consent order
effective upon approval by the President of a permanent limited
exclusion order directed to foreign respondents San Huan and Ningbo and
a permanent cease and desist order directed to domestic respondent
Tridus. The Commission determined that the statutory public interest
factors enumerated in 19 U.S.C. Sec. 1337(d) and (f) do not preclude
issuance of the aforementioned remedial orders. Since revocation of the
consent order is contingent on Presidential approval of the alternative
remedial measures, respondents were not required to post a bond for
importations or sales of infringing products during the Presidential
review period. The Commission also denied Crucible's request for
attorneys' fees and its request that the Commission reconsider its
determination regarding the effect of the U.S. Court of Appeals for the
Federal Circuit's decision in Maxwell v. J. Baker, Inc. 86 F.3d 1098,
29 U.S.P.Q.2d 1001 (Fed. Cir.), reh'g denied, suggestion of reh'g in
banc declined (1996), cert. denied, 117 S. Ct. 1244 (1997), on the
Commission's doctrine of equivalents infringement analysis. Finally,
the Commission denied respondents' request to have Crucible file
periodic reports concerning its status as a domestic industry.
This action is taken under the authority of section 337 of the
Tariff Act of 1930, as amended (19 U.S.C. Sec. 1337), and section
210.75 of the Commission's Rules of Practice and Procedure (19 CFR
Sec. 210.75).
Issued: September 26, 1997.
By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-26163 Filed 10-01-97; 8:45 am]
BILLING CODE 7020-02-P
