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[Federal Register Volume 62, Number 237 (Wednesday, December 10, 1997)]
[Notices]
[Pages 65093-65094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32335]

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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-383]

Certain Hardware Logic Emulation Systems and Components Thereof; 
Notice of Issuance of a Permanent Limited Exclusion Order and a 
Permanent Cease and Desist Order

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Commission has issued a 
permanent limited exclusion order and a permanent cease and desist 
order 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. General information concerning the Commission may also be 
obtained by accessing the Commission's Internet server (http://www.usitc.gov or ftp://ftp.usitc.gov).

SUPPLEMENTARY INFORMATION: This action is taken under the authority of 
section 337 of the Tariff Act of 1930, 19 U.S.C. 1337, and Commission 
rule 210.50, 19 CFR 210.50.
    This investigation and temporary relief proceedings were 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''). The respondents are Mentor Graphics Corporation 
(``Mentor'') of Wilsonville, Oregon and Meta Systems (``Meta'') of 
Saclay, France (collectively ``respondents''). Meta is a wholly owned 
subsidiary of Mentor. The products at issue are hardware logic 
emulation systems, subassemblies thereof, and components thereof, 
including hardware logic emulation software, that are used in the 
semiconductor manufacturing industry to design and test the electronic 
circuits of semiconductor devices.
    After an 11-day evidentiary hearing in April-May 1996, the 
presiding administrative law judge (``ALJ'') issued an initial 
determination (``ID'') granting complainant Quickturn's motion for 
temporary relief. On August 5, 1996, the Commission determined not to 
modify or vacate the ID and issued a temporary limited exclusion order 
against Mentor and Meta and a temporary cease and desist order against 
Mentor, and determined that the amount of respondents' bond during the 
pendency of temporary relief should be forty-three (43) percent of the 
entered value of imported hardware logic emulation systems and 
components thereof.
    After a 14-day evidentiary hearing and two days of closing 
arguments, the ALJ, on July 31, 1997, issued a final ID finding that 
respondents had violated section 337 by infringing claims of all five 
of Quickturn's asserted patents. On that same date, the ALJ issued a 
recommended determination (``RD'') recommending the issuance of a 
permanent exclusion order and a cease and desist order. On October 2, 
1997, the Commission issued its notice of the decision not to review 
the ALJ's final ID, thereby finding that respondents are in violation 
of section 337. The Commission also requested briefs on the issues of 
remedy, the public interest, and bonding. On October 16, 1997, 
Quickturn, respondents, and the Commission investigative attorneys 
submitted comments on those issues, and on October 23, 1997, all 
parties submitted reply comments.
    The Commission, having determined that a violation of section 337 
has occurred in the importation, sale for importation, or sale in the 
United States of the accused hardware logic emulation systems and 
components thereof, including software, considered the issues of the 
appropriate form of such relief, whether the public interest precludes 
issuance of such relief, and respondents' bond during the 60-day 
Presidential review period.

[[Page 65094]]

    The Commission determined that a permanent limited exclusion order 
and a permanent cease and desist order directed to domestic respondent 
Mentor are the appropriate form of relief. The Commission further 
determined that the statutory public interest factors do not preclude 
the issuance of such relief, and that respondents' bond under the 
permanent limited exclusion order and the permanent cease and desist 
order shall be in the amount of 43 percent of the entered value of the 
imported articles if the entered value is based on transaction value as 
defined by the U.S. Customs Service, and 180 percent of the entered 
value of such articles if the entered value is based on other than 
transaction value.
    Copies of all nonconfidential documents filed in connection with 
this investigation are 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 on this matter can be obtained by contacting the 
Commission's TDD terminal on 202-205-1810.

    Issued: December 3, 1997.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-32335 Filed 12-9-97; 8:45 am]
BILLING CODE 7020-02-P
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