[Federal Register Volume 62, Number 194 (Tuesday, October 7, 1997)]
[Notices]
[Pages 52359-52360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26649]
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INTERNATIONAL TRADE COMMISSION
[Inv. No. 337-TA-383]
Commission Decision Not To Review a Final Initial Determination,
and Schedule For Filing of Written Submissions on the Issues of Remedy,
the Public Interest, and Bonding, and Appeals of ALJ Order No. 96
Certain Hardware Logic Emulation Systems and Components Thereof;
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 not to review the final initial determination
issued by the presiding administrative law judge on August 1, 1997,
finding a violation of section 337, 19 U.S.C. Sec. 1337, in the above-
captioned investigation.
FOR FURTHER INFORMATION CONTACT: Jay H. Reiziss, Esq., Office of the
General Counsel, U.S. International Trade Commission, telephone 202-
205-3116.
SUPPLEMENTARY INFORMATION: This patent-based section 337 investigation
was instituted on March 8, 1996, based upon a complaint and motion for
temporary relief filed on January 26, 1996, by Quickturn Design
Systems, Inc. (``Quickturn''). 61 FR 9486 (March 8, 1996). The
respondents are Mentor Graphics Corporation (``Mentor'') and Meta
Systems (``Meta'') (collectively ``respondents''). After an 11-day
evidentiary hearing, in April and May of 1996, the presiding
administrative law judge (``ALJ'') issued an initial determination
(``TEO ID'') granting Quickturn's motion for temporary relief.
On August 5, 1996, the Commission determined not to modify or
vacate the TEO ID and issued a temporary limited exclusion order and a
temporary cease and desist order against domestic respondent Mentor.
The Commission imposed a bond of 43 percent of entered value on
respondents' importations and sales of emulation systems and components
thereof during the remaining pendency of the investigation. The
Commission set complainant's bond at $200,000.
Beginning on April 7, 1997, the ALJ held a pre-hearing conference
and a 14-day evidentiary hearing concerning permanent relief issues and
several sanctions-related motions. Closing arguments were held on June
25 and 26, 1997. On August 1, 1997, the ALJ issued an initial
determination (``Final ID''), finding that respondents violated section
337 of the Tariff Act of 1930, as amended (19 U.S.C. Sec. 1337) by
infringing claims of all five of Quickturn's asserted patents. The ALJ
found: (1) There has been importation and sale of the accused products;
(2) Quickturn practices the patents in controversy and satisfies the
domestic industry requirements of section 337; (3) the claims in issue
are valid; (4) the accused products directly infringe the claims in
issue; (5) components of the accused products contributorily infringe
the claims in issue; and (6) respondents have induced infringement of
the claims in issue. Based on these findings, the ALJ concluded there
was a violation of section 337. The ALJ recommended issuance of a
permanent exclusion order and a cease and desist order.
Having examined the record in this investigation, including the
Final ID, the petition for review, and the responses thereto, the
Commission has determined not to review the Final ID; thus, the
Commission has found a violation of section 337.
In connection with the final disposition of this investigation, the
Commission may issue (1) an order that could result in the exclusion of
the subject articles from entry into the United States, and/or (2)
cease and desist orders that could result in respondents 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 likely to do so. For background, see the
Commission Opinion, In the Matter of Certain Devices for Connecting
Computers via Telephones Lines, Inv. No. 337-TA-360, USITC Pub. No.
2843 (December, 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, and (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 President has 60
days to approve or disapprove the Commission's action. During this
period, the subject articles would be entitled to enter the United
States under a bond, in an amount determined by the Commission and
prescribed by the Secretary of the Treasury. The Commission is
therefore interested in receiving submissions concerning the amount of
the bond that should be imposed.
On August 1, 1997, the ALJ also issued Order No. 96 in the
investigation finding that respondents have engaged in discovery abuses
and abuse of process justifying the imposition of evidentiary and
monetary sanctions. Pursuant to rule 210.25(d) of the Commission's
Rules of Practice and Procedure, 19 C.F.R. Sec. 210.25(d), the
Commission has specified below the schedule for the filing of petitions
appealing Order No. 96 and responses thereto.
Written Submissions
The 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 August 1, 1997, recommended
determination by the ALJ on remedy and bonding. Complainant and the
Commission investigative attorney are also requested to submit proposed
remedial orders for the Commission's consideration. The written
submissions and proposed remedial orders must be filed no later than
close of business on October 16, 1997. Reply submissions must be filed
no later than the close of business on October 23, 1997. No further
submissions on these issues will be
[[Page 52360]]
permitted unless otherwise ordered by the Commission.
Parties to the investigation also may file written submissions
concerning Order No. 96. Any written submissions appealing Order No. 96
must be filed no later than close of business on November 6, 1997.
Reply submissions must be filed no later than the close of business on
November 13, 1997.
Persons filing written submissions must file with the Office of the
Secretary the original document and 14 true copies thereof on or before
the deadlines stated above. Any person desiring to submit a document
(or portion thereof) to the Commission in confidence must request
confidential treatment unless the information has already been granted
such treatment during the proceedings. All such requests should be
directed to the Secretary of 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 will be treated accordingly. All nonconfidential
written submissions will be available for public inspection at the
Office of the Secretary.
This action is taken under the authority of section 337 of the
Tariff Act of 1930 (19 U.S.C. Sec. 1337) and sections 210.25 and
210.45-210.51 of the Commission's Rules of Practice and Procedure (19
CFR 210.25, 210.45-210.51).
Copies of the public versions of the Final ID, Order No. 96, and
all other nonconfidential 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, D.C.
20436, telephone 202-205-2000. Hearing-impaired persons are advised
that information can be obtained by contacting the Commission's TDD
terminal on 202-205-1810.
Issued: October 2, 1997.
By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-26649 Filed 10-6-97; 8:45 am]
BILLING CODE 7020-02-P
