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[Federal Register Volume 89, Number 229 (Wednesday, November 27, 2024)]
[Notices]
[Pages 93653-93654]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27783]

[[Page 93653]]

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1118 (Remand)]

Certain Movable Barrier Operator Systems and Components Thereof; 
Notice of a Final Determination Finding a Violation of Section 337 and 
Issuing a Limited Exclusion Order and Cease and Desist Orders; 
Termination of 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 (``Commission'') has determined that respondents Nortek 
Security & Control, LLC of Carlsbad, California (presently doing 
business as Nice North America LLC); Nortek, Inc. of Providence, Rhode 
Island; and GTO Access Systems, LLC of Tallahassee, Florida 
(collectively, ``Nortek'') have violated section 337 of the Tariff Act 
of 1930, as amended, by importing, selling for importation, or selling 
in the United States after importation certain movable barrier 
operators (including garage door operators) and components thereof that 
infringe claim 11 of U.S. Patent No. 8,587,404 (``the '404 patent''). 
The Commission has determined that the appropriate remedies are a 
limited exclusion order (``LEO'') and cease and desist orders 
(``CDOs'') against Nortek. The Commission has also determined to set a 
bond in the amount of zero percent (0%) of the entered value of the 
excluded products imported during the period of Presidential review. 
This investigation is hereby terminated.

FOR FURTHER INFORMATION CONTACT: Carl P. Bretscher, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-2382. Copies of non-
confidential documents filed in connection with this investigation may 
be viewed on the Commission's electronic docket system (``EDIS'') at 
https://edis.usitc.gov. For help accessing EDIS, please email 
[email protected]. General information concerning the Commission may 
also be obtained by accessing its internet server at https://www.usitc.gov. Hearing-impaired persons are advised that information on 
this matter can be obtained by contacting the Commission's TDD 
terminal, telephone (202) 205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on June 11, 2018, based on a complaint, as supplemented, filed by The 
Chamberlain Group, Inc. (``Chamberlain'') of Oak Brook, Illinois. 83 FR 
27020-21 (June 11, 2018). The complaint accuses Nortek of violating 
section 337 of the Tariff Act, as amended, 19 U.S.C. 1337 (``section 
337'') by importing, selling for importation, or selling in the United 
States after importation certain movable barrier operator systems that 
infringe one or more of the asserted claims of the '404 patent and U.S. 
Patent Nos. 7,755,223 (``the '223 patent'') and 6,741,052 (``the '052 
patent''). Id. The complaint also alleges the existence of a domestic 
industry. The Office of Unfair Import Investigations is not a party to 
the investigation.
    On November 25, 2019, the presiding administrative law judge 
(``ALJ'') issued two initial determinations (``IDs''). First, the ALJ 
issued Order No. 38, granting Chamberlain's motion for summary 
determination that it satisfied the economic prong of the domestic 
industry requirement (``DI economic prong''). Order No. 38 (Nov. 25, 
2019). Second, the ALJ issued a final ID on violation, as well as a 
recommended determination (``RD'') on remedy and bond. The final ID 
finds no violation of section 337 because: (i) Nortek did not infringe 
claim 11 of the '404 patent; (ii) Nortek did not infringe the '223 
patent and Chamberlain did not satisfy the technical prong of the 
domestic industry requirement (``DI technical prong'') for that patent; 
and (iii) asserted claim 1 of the '052 patent is invalid as obvious. 
The RD recommends issuing an LEO and CDOs against Nortek and setting 
the bond of 100 percent during the period of Presidential review.
    On April 22, 2020, the Commission determined to review and, on 
review, to adopt the final ID's no-violation finding for the '404 
patent, which was based on a narrow construction of the limitation 
``movable barrier operator'' that excluded the wall station. Comm'n 
Notice at 3 (Apr. 22, 2020). The Commission took no position on the 
final ID's finding that Nortek failed to prove that claim 11 of the 
'404 patent is patent ineligible under 35 U.S.C. 101. The Commission 
also adopted the final ID's finding that there was no violation with 
respect to the '052 patent because the asserted claim is obvious. At 
the same time, the Commission vacated Order No. 38 and remanded the 
economic prong issue to the ALJ for further proceedings with respect to 
the '223 patent. Id.; Order Vacating and Remanding Order No. 38 (Apr. 
22, 2020) (``First Remand Order'').
    The ALJ, after re-analyzing the domestic industry per the 
Commission's instructions, issued a Remand Initial Determination 
(``First RID'') on July 10, 2020. The First RID finds that Chamberlain 
made significant investments in plant and equipment as well as labor 
and capital, which satisfied the DI economic prong for the '223 patent 
under sections 337(a)(3)(A) and (B), respectively.
    On September 9, 2020, the Commission determined to review the First 
RID and requested additional briefing by the parties on issues relating 
to the DI economic prong and remedy, bond, and the public interest. 85 
FR 57249-50 (Sept. 14, 2020).
    On December 3, 2020, the Commission determined to adopt the First 
RID's findings that Chamberlain had satisfied the DI economic prong 
under subsections 337(a)(3)(A) and (B). 85 FR 79217-18 (Dec. 9, 2020). 
The Commission reversed the final ID's non-infringement finding for the 
'223 patent, finding instead that Nortek violated section 337 by 
infringing the '223 patent. Id. Finding that the public interest did 
not preclude relief, the Commission issued an LEO and CDOs against 
Nortek and set the bond at 100 percent of entered value. Comm'n Op. at 
34-39, 41.
    On June 16, 2020, Chamberlain appealed the Commission's no-
violation determinations for the '404 patent and '052 patent (which 
expired while the appeal was pending). On April 1, 2021, Nortek cross-
appealed the Commission's violation determination for the '223 patent.
    On April 27, 2023, the Federal Circuit issued its decision, in 
which it: (i) affirmed the Commission's violation determination for the 
'223 patent; (ii) for the '404 patent, reversed the Commission's 
construction of the term ``movable barrier operator,'' vacated its non-
infringement, waiver, and no-violation determinations, and remanded 
with instructions to the Commission to re-evaluate infringement of the 
'404 patent using a proper claim construction; and (iii) vacated the 
Commission's determinations for the expired '052 patent and remanded 
with instructions to dismiss the infringement claim as moot. The 
Chamberlain Group, Inc. v. ITC, Appeal Nos. 20-1965, 21-1829, 2023 WL 
3115579 at *1, *4-7 (Fed. Cir. Apr. 27, 2023).
    On August 4, 2023, the Commission issued a notice asking the 
parties which issues needed to be resolved in view of the Federal 
Circuit's remand and whether additional proceedings were necessary. 
Comm'n Notice (Aug. 4, 2023). The parties filed responses identifying 
infringement of the '404 patent, patent-ineligibility of claim 11 of 
the '404 patent under section 101, and

[[Page 93654]]

the economic prong of domestic industry with respect to the '404 patent 
as the violation issues that needed to be resolved. The parties agreed 
there was no need to reopen the evidentiary record, as it has already 
been fully developed.
    On October 4, 2023, the Commission issued a second notice directing 
the parties to brief: (i) which, if any, of the accused products 
infringe claim 11 of the '404 patent under the Court's new construction 
of ``movable barrier operator'' and (ii) whether the ID properly finds 
that claim 11 is not patent-ineligible under 35 U.S.C. 101. Comm'n 
Notice at 3 (Oct. 4, 2023). The Commission determined not to reopen the 
evidentiary record. The Commission also remanded the investigation to 
the ALJ for the sole purpose of determining whether Chamberlain 
satisfied the DI economic prong for the '404 patent. See Remand Order 
(Oct. 4, 2023) (``Second Remand Order'').
    On January 11, 2024, the presiding ALJ issued Order No. 46 
directing the parties to provide supplemental information regarding the 
covered products allegedly protected by the '404 patent, the extent to 
which domestic investments relating to products covered by the '223 
patent were applicable to products covered by the '404 patent, the 
domestic inventories of products covered by the '404 patent, and other 
issues relating to the DI economic prong analysis. See Order No. 46 
(Jan. 11, 2024).
    On May 8, 2024, the ALJ issued the Recommended [sic, Remand] 
Initial Determination on Second Remand Order (``Second RID'') presently 
at issue. Order No. 50 (May 8, 2024). The Second RID finds that 
Chamberlain has satisfied the DI economic prong for the '404 patent 
under subsections 337(a)(3)(A), (B), and (C). The Second RID also makes 
subsidiary findings regarding infringement and the accused Nortek 
products. The Second RID also notes that the Commission previously 
found that Chamberlain's domestic industry products (the ``'404 DI 
Products'') practice the '404 patent and Chamberlain thus satisfied the 
DI technical prong.
    On May 20, 2024, Nortek filed a petition for review of the Second 
RID. On May 28, 2024, Chamberlain filed its opposition to Nortek's 
petition for review.
    On June 28, 2024, the Commission determined to review the Second 
RID. 89 FR 54038 (June 28, 2024). The Commission also requested 
briefing on remedy, bond, and the public interest. Id.
    Upon review of the final ID, the Second RID, the Federal Circuit's 
decision on appeal, the parties' submissions, and the evidence of 
record, the Commission finds that Nortek has violated section 337 by 
importing into the United States, selling for importation, or selling 
in the United States after importation certain movable barrier 
operators and components thereof that infringe claim 11 of the '404 
patent. As set forth in the accompanying Opinion, the Commission finds 
that Nortek has infringed claim 11 of the '404 patent, and that claim 
11 is not abstract or patent-ineligible under 35 U.S.C. 101. The 
Commission also finds that Chamberlain has satisfied the DI economic 
prong per 19 U.S.C. 1337(a)(3)(A), (B), but takes no position on 
whether it has also satisfied the DI economic prong under section 
337(a)(3)(C).
    The Commission has determined that the appropriate remedy is: (i) 
an LEO prohibiting the importation of certain movable barrier operator 
systems, including garage door operators, and components thereof that 
infringe claim 11 of the '404 patent; and (ii) a CDO against each 
Nortek respondents. The Commission has determined that the public 
interest factors do not preclude issuance of a remedy. The Commission 
has determined to set a bond in the amount of zero percent (0%) of the 
entered value of the infringing products imported during the period of 
Presidential review (19 U.S.C. 1337(j)).
    The Commission issues its opinion herewith setting forth its 
determinations on certain issues. This investigation is hereby 
terminated.
    The Commission's orders and opinion were delivered to the President 
and United States Trade Representative on the day of their issuance.
    The Commission vote for this determination took place on November 
21, 2024.
    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: November 21, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-27783 Filed 11-26-24; 8:45 am]
BILLING CODE 7020-02-P
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