[Federal Register Volume 63, Number 37 (Wednesday, February 25, 1998)]
[Notices]
[Page 9577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4789]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-370 Sanctions Proceeding]
Certain Salinomycin Biomass and Preparations Containing Same;
Termination of Sanctions Proceeding; Vacatur of Recommended
Determination; Cancellation of Commission Hearing
AGENCY: U.S. International Trade Commission.
ACTION: Notice.
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SUMMARY: The Commission determined to grant a joint motion to terminate
the sanctions proceedings and vacate the presiding administrative law
judge's (ALJ) recommended determination (RD) on monetary sanctions. The
Commission reserved its authority, in an appropriate case, to pursue
sanctions on its own initiative under rule 210.4(d)(1)(ii) without
regard to whether there has been a private settlement agreement.
FOR FURTHER INFORMATION CONTACT: Jean H. Jackson, Esq., Office of the
General Counsel, U.S. International Trade Commission, 500 E Street,
S.W., Washington, D.C. 20436, telephone 202-205-3104.
SUPPLEMENTARY INFORMATION: The Commission instituted this investigation
on February 6, 1995, based on a complaint filed by Kaken Pharmaceutical
Co. Inc. (Kaken). On November 6, 1995, the ALJ issued his final initial
determination (ID) in this investigation, finding no violation of
section 337 of the Tariff Act of 1930, 19 U.S.C. Sec. 1337, by
respondents Hoechst Aktiengesellschaft, Hoechst Veterinar GmbH, and
Hoechst-Roussel Agri-Vet Co. (collectively, Hoechst). His determination
was based on his findings that the patent at issue was invalid for
failure to disclose the best mode of operation and unenforceable due to
inequitable conduct during prosecution of the patent before the U.S.
Patent and Trademark Office. The ALJ's ID was not reviewed by the
Commission and was ultimately upheld on appeal to the U.S. Court of
Appeals for the Federal Circuit, Kaken Pharmaceutical Co. v. USITC,
Appeal Nos. 96-1300,-1302, nonprecedential opinion dated March 31,
1997.
On January 19, 1996, Hoechst filed a motion for sanctions against
Kaken, which the Commission referred to the presiding ALJ for issuance
of an RD. Hoechst's motion alleged, inter alia, that Kaken committed
sanctionable conduct by filing a complaint totally lacking in merit. On
May 14, 1997, the ALJ issued his RD in which he recommended that the
Commission impose on Kaken and its attorneys joint and several
liability for an amount of money equal to double the entire attorneys
fees and costs of the Hoechst respondents incurred in both the section
337 investigation on the merits and in the proceeding on sanctions. All
parties filed comments on the RD. On August 8, 1997, Kaken and its
attorneys requested an opportunity to present oral argument before the
Commission and leave to reply to Hoechst's comments. On October 24,
1997, the Commission granted the motion for oral argument and issued
notice of a hearing date of December 10, 1997. 62 FR 58746 (Oct. 30,
1997).
On November 5, 1997, Hoechst, Kaken, and Kaken's attorneys filed a
joint motion for termination of the sanctions proceedings based on
Hoechst's withdrawal of its motion for sanctions. The parties also
moved that the RD be vacated. They stated that Hoechst and Kaken have
entered into a worldwide settlement agreement with respect to
salinomycin that includes the reissue patent that formed the basis of
Kaken complaint at the Commission. They stated that, as a result, all
issues between Hoechst and Kaken have been fully resolved. On November
17, 1997, the Commission investigative attorney (IA) supported the
motion to terminate. On November 21, 1997, the Commission determined to
postpone the oral argument indefinitely while it considered the joint
motion to terminate. 62 FR 63193 (Nov. 26, 1997).
This action is taken under the authority of section 337 of the
Tariff Act of 1930, 19 U.S.C. 1337.
Hearing-impaired persons are advised that information on this
matter can be obtained by contacting the Commission's TDD terminal on
202-205-1810. General information concerning the Commission may also be
obtained by accessing its Internet server (http://www.usitc.gov or
ftp://ftp.usitc.gov).
Issued: February 18, 1998
By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 98-4789 Filed 2-24-98; 8:45 am]
BILLING CODE 7020-02-P
