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[Federal Register Volume 90, Number 13 (Wednesday, January 22, 2025)]
[Notices]
[Pages 7704-7705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01461]

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1431]

Certain Nanolaminate Alloy Coated Metal Parts and Products 
Containing Same; Notice of Institution of Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that a complaint was filed with the 
U.S. International Trade Commission on November 19, 2024, under section 
337 of the Tariff Act of 1930, as amended, on behalf of Modumetal, Inc. 
of Snohomish, Washington. A letter supplementing the complaint was 
filed on December 4, 2024. The complaint, as supplemented, alleges 
violations of section 337 based upon the importation into the United 
States, the sale for importation, and the sale within the United States 
after importation of certain nanolaminate alloy coated metal parts, 
components thereof, and products containing the same by reason of the 
infringement of certain claims of U.S. Patent No. 10,253,419 (``the 
'419 patent'') and U.S. Patent No. 11,242,613 (``the '613 patent''). 
The complaint further alleges that an industry in the United States 
exists as required by the applicable Federal Statute. The complainant 
requests that the Commission institute an investigation and, after the 
investigation, issue a limited exclusion order and cease and desist 
orders.

ADDRESSES: The complaint, except for any confidential information 
contained therein, may be viewed on the Commission's electronic docket 
(EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email 
[email protected]. Hearing impaired individuals are advised that 
information on this matter can be obtained by contacting the 
Commission's TDD terminal on (202) 205-1810. Persons with mobility 
impairments who will need special assistance in gaining access to the 
Commission should contact the Office of the Secretary at (202) 205-
2000. General information concerning the Commission may also be 
obtained by accessing its internet server at https://www.usitc.gov.

FOR FURTHER INFORMATION CONTACT: Susan Orndoff, The Office of Docket 
Services, U.S. International Trade Commission, telephone (202) 205-
1802.

SUPPLEMENTARY INFORMATION: 
     Authority:The authority for institution of this investigation is 
contained in section 337 of the Tariff Act of 1930, as amended, 19 
U.S.C. 1337, and in section 210.10 of the Commission's Rules of 
Practice and Procedure, 19 CFR 210.10 (2024).
    Scope of Investigation: Having considered the complaint, the U.S. 
International Trade Commission, on January 15, 2025, ordered that--
    (1) Pursuant to subsection (b) of section 337 of the Tariff Act of 
1930, as amended, an investigation be instituted to determine whether 
there is a violation of subsection (a)(1)(B) of section 337 in the 
importation into the United States, the sale for importation, or the 
sale within the United States after importation of certain products 
identified in paragraph (2) by reason of infringement of one or more of 
claims 1-3, 5, and 7 of the '419 patent and claims 1-3 and 5 of the 
'613 patent, and whether an industry in the United States exists as 
required by subsection (a)(2) of section 337;
    (2) Pursuant to section 210.10(b)(1) of the Commission's Rules of 
Practice and Procedure, 19 CFR 210.10(b)(1), the plain language 
description of the accused products or category of accused products, 
which defines the scope of the investigation, is ``metal parts coated 
with Parker Hannifin's ToughShield[supreg] Plus coating as well as 
bundles containing one or more parts with ToughShield[supreg] Plus 
coating''; 1 2 3
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    \1\ The Commission is not making a decision on the merits at 
this stage. Rather, the Commission has only assessed whether the 
complainant has satisfied the pleading requirements for purposes of 
institution. To that end, the scope of this investigation includes 
only those articles as to which the complaint states factual 
allegations of an alleged violation of section 337 as required by 
the statute and Commission regulations. The complaint as 
supplemented fails to contain any factual allegation that metal 
parts are being imported into the United States for domestic 
ToughShield Plus finishing in violation of section 337. For this 
reason, the Commission has determined to modify the plain language 
description of the accused products proposed by the complainant by 
deleting the phrase ``components that are metal parts imported into 
the United States for domestic ToughShield[supreg] Plus finishing.'' 
The complainant may move to amend the complaint and NOI to add 
components, including metal parts imported for finishing, to the 
scope of the investigation if complainant makes factual allegations 
in support thereof for example based on information received in 
discovery. Further, there is no requirement that ``components 
thereof'' must appear in the case caption in order for the 
Commission to take action against any attempts to circumvent a 
Commission remedial order. See also Certain Crafting Machines and 
Components Thereof, Inv. No. 337-TA-1426, Notice of Investigation, 
89 FR 99905 (Dec. 11, 2024).
    \2\ While Commissioner Schmidtlein agrees to institute this 
investigation and agrees with the modification of the plain language 
description of accused articles, she disagrees with her fellow 
Commissioners' decision to change the caption by deleting the phrase 
``components thereof.'' The Commission has routinely included 
``components thereof'' language in the caption when proposed by 
complainants, and she sees no reason to treat it differently here. 
In Commissioner Schmidtlein's view, the absence of such language 
raises the question of whether a later enforcement action could be 
brought to remedy circumvention of an order through the importation 
of components given that the Commission's practice has been to 
define the scope of remedial orders consistent with the notice of 
investigation. See Certain Automated Mech. Transmission Sys. for 
Medium-Duty and Heavy-Duty Trucks and Components Thereof, Inv. No. 
337-TA-503, Comm'n Op., 2007 WL 4473082, *10 (Aug. 1, 2007) (``[T]he 
scope of the remedy is dependent upon the scope of the 
investigation, which is determined by the notice of 
investigation.'').
    \3\ Commissioner Kearns agrees with the majority that 
Complainant has failed to provide any factual allegations that the 
only components identified in the Complaint, ``metal parts imported 
into the United States for ToughShield plus finishing,'' violate 
section 337 either based on direct or indirect infringement. He also 
agrees that the Commission may take action against attempts to 
circumvent a remedial order even if ``components thereof'' does not 
appear in the case caption. He notes, moreover, that if sufficient 
allegations were presented in the Complaint, the Commission does 
have the authority under appropriate circumstances to investigate a 
section 337 violation involving imported components that are used to 
directly infringe the patent only after importation. See Certain 
High-Density Fiber Optic Equipment and Components Thereof, Inv. No. 
337-TA-1194, Comm'n Op. at 98-104 (Additional Views of Chair Kearns 
Regarding ``Articles that Infringe'').
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    (3) For the purpose of the investigation so instituted, the 
following are hereby named as parties upon which this notice of 
investigation shall be served:
    (a) The complainant is:

Modumetal, Inc., 20124 Broadway Ave., Building A, Snohomish, WA 98296

    (b) The respondents are the following entities alleged to be in 
violation of section 337, and are the parties upon which the complaint 
is to be served:

Parker Hannifin Corporation, 6035 Parkland Boulevard, Cleveland, OH 
44124
Lu Chu Shin Yee Works Co., Ltd., 46, Shin Ming Road, Luchu District, 
Kaohsiung City, Taiwan 82146

    (4) For the investigation so instituted, the Chief Administrative 
Law Judge, U.S. International Trade Commission, shall designate the 
presiding Administrative Law Judge. The Office of Unfair Import 
Investigations will not participate as a party in this investigation.

[[Page 7705]]

    Responses to the complaint and the notice of investigation must be 
submitted by the named respondents in accordance with section 210.13 of 
the Commission's Rules of Practice and Procedure, 19 CFR 210.13. 
Pursuant to 19 CFR 201.16(e) and 210.13(a), as amended in 85 FR 15798 
(March 19, 2020), such responses will be considered by the Commission 
if received not later than 20 days after the date of service by the 
complainant of the complaint, as supplemented, and the notice of 
investigation. Extensions of time for submitting responses to the 
complaint and the notice of investigation will not be granted unless 
good cause therefor is shown.
    Failure of a respondent to file a timely response to each 
allegation in the complaint and in this notice may be deemed to 
constitute a waiver of the right to appear and contest the allegations 
of the complaint, as supplemented, and this notice, and to authorize 
the administrative law judge and the Commission, without further notice 
to the respondent, to find the facts to be as alleged in the complaint, 
as supplemented, and this notice and to enter an initial determination 
and a final determination containing such findings, and may result in 
the issuance of an exclusion order or a cease and desist order or both 
directed against the respondent.

    By order of the Commission.

    Issued: January 16, 2025.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2025-01461 Filed 1-21-25; 8:45 am]
BILLING CODE 7020-02-P
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