[Federal Register Volume 86, Number 149 (Friday, August 6, 2021)]
[Notices]
[Pages 43270-43272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16792]


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INTERNATIONAL TRADE COMMISSION

Certain Balanced Armature Devices, Products Containing Same, and 
Components Thereof

[Investigation No. 337-TA-1186]


Notice of a Commission Determination To Review in Part a Summary 
Determination Finding a Violation of Section 337; Request for Written 
Submissions on the Issues Under Review and on Remedy, the Public 
Interest, and Bonding

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 to review in part a summary determination 
(``ID'') (Order No. 50) of the presiding administrative law judge 
(``ALJ''), finding a violation of section 337. The Commission requests 
written submissions from the parties on the issues under review and 
submissions from the parties, interested government agencies, and other 
interested persons on the issues of remedy, the public interest, and 
bonding, under the schedule set forth below.

FOR FURTHER INFORMATION CONTACT: Amanda Pitcher Fisherow, Esq., Office 
of the General Counsel, U.S. International Trade Commission, 500 E 
Street SW, Washington, DC 20436, telephone (202) 205-2737. Copies of 
non-confidential documents filed in connection with this investigation 
may be viewed on the Commission's electronic docket (EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email 
<a href="/cdn-cgi/l/email-protection#3b7e7f726808735e574b7b4e48524f58155c544d"><span class="__cf_email__" data-cfemail="febbbab7adcdb69b928ebe8b8d978a9dd0999188">[email protected]</span></a>. 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 
on (202) 205-1810.

SUPPLEMENTARY INFORMATION: On November 29, 2019, the Commission 
instituted this investigation based on a complaint filed by Knowles 
Corporation and Knowles Electronics, LLC of Itasca, Illinois, and 
Knowles Electronics (Suzhou) Co., Ltd. of Suzhou, China (collectively, 
``Knowles''). 84 FR 65840 (Nov. 29, 2019). The complaint, as 
supplemented, alleged violations of section 337 of the Tariff Act of 
1930, as amended, 19 U.S.C. 1337, due to the importation into the 
United States, sale for importation, or sale in the United States after 
importation of certain balanced armature devices, products containing 
same, and components thereof by reason of misappropriation of trade 
secrets, the threat or effect of which is to destroy or substantially 
injure a domestic industry. Id. The notice of investigation named 
twelve (12) respondents, including Shenzhen Bellsing Acoustic 
Technology Co. Ltd. of Shenzhen, China, Suzhou Bellsing Acoustic 
Technology Co. Ltd. of Suzhou, China, Dongguan Bellsing Precision 
Device Co., Ltd. of Dongguan, China, and Bellsing Corporation of Lisle, 
Illinois (collectively, ``Bellsing''); Liang Li (a/k/a Ryan Li) of 
Suzhou City, China (``Mr. Li''); Dongguan Xinyao Electronics Industrial 
Co., Ltd. of Dongguan, China (``Xinyao''); Soundlink Co., Ltd. of 
Suzhou, China (``Soundlink''); Magnatone Hearing Aid Corporation d/b/a 
Persona Medical and lnEarz Audio of Casselberry, Florida (``Persona''); 
Jerry Harvey Audio LLC of Orlando, Florida (``Harvey''); Magic 
Dynamics, LLC d/b/a MagicEar of Clearwater, Florida (``MagicEar''); 
Campfire Audio, LLC of Portland, Oregon (``Campfire''); and Clear Tune 
Monitors, Inc. of Orlando, Florida (``Clear Tune''). Id. The Office of 
Unfair Import Investigations (``OUII'') is also a party in this 
investigation. Id.
    Xinyao, Soundlink, MagicEar, CampFire, Persona, Clear Tune, and 
Harvey were all terminated from the investigation based on the issuance 
of consent orders. See Order Nos. 37-40, unreviewed by Comm'n Notice 
(Nov. 23, 2020); Order Nos. 34-35, unreviewed by Comm'n Notice (Nov. 
19, 2020); and Order No. 28, unreviewed by Comm'n Notice (Sept. 20, 
2020).
    On June 1, 2021, the ALJ issued the subject ID. On June 11, 2021, 
Bellsing and Mr. Li filed a joint petition for review. On June 21, 
2021, OUII and Knowles filed responses.
    Having reviewed the record of the investigation, the ID, and the 
parties' submissions to the ALJ and the Commission, the Commission has 
determined to review the ID in part. Specifically, the Commission has 
determined to review (1) whether Bellsing can participate in briefing 
on remedy and bonding before the ALJ (ID at 4) and in briefing on 
remedy, the public interest, and bonding before the Commission; (2) 
importation; (3) use by Mr. Li of Representative Trade Secret Nos. 
(``RTS'') 1-10 (ID at 35-36, 41-42, 49, 56-57, 61, 72-73, and 84-85); 
(4) all findings related to RTS No. 6; and (5) domestic industry. The 
Commission also reviews the issues raised in the

[[Page 43271]]

parties' arguments relating to due process, comity, and collateral 
estoppel.
    In connection with its review, the Commission requests responses to 
the following questions. The parties are requested to brief their 
positions with reference to the applicable law and the existing 
evidentiary record. The response to each question should include 
citations to the record and identify when the issue/evidence was 
previously raised before the ALJ.
    (1) Should briefing on remedy, bonding, and the public interest be 
considered from a defaulting party (assuming that the briefing 
presented by the defaulting party is not related to issues concerning a 
finding of violation)? Are there any policy considerations that the 
Commission should take into account?
    (2) Did Mr. Li waive the issue of whether the importation 
requirement has been met by Mr. Li? When was the issue first raised?
    (3) Please discuss whether the importation requirement has been met 
with respect to Mr. Li. Can Bellsing's actions be imputed to Mr. Li, 
and if so, under what theory? Please address the record evidence and 
applicable case law.
    (4) Has Mr. Li used or disclosed each of the RTS Nos. 1-10? Can 
Bellsing's actions be imputed to Mr. Li, and if so, under what theory? 
Please address the record evidence and applicable case law.
    The parties are invited to brief only the discrete issues requested 
above (in their briefs, the parties should also address remedy, 
bonding, and the public interest, as requested below). The parties are 
not to brief other issues, which are adequately presented in the 
parties' existing filings.
    In connection with the final disposition of this investigation, the 
statute authorizes issuance of, inter alia, (1) an exclusion 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 the 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 Certain Devices for Connecting Computers via 
Telephone Lines, Inv. No. 337-TA-360, USITC Pub. No. 2843, Comm'n Op. 
at 7-10 (Dec. 1994). In particular, the written submissions regarding 
cease and desist orders should address the request for a cease and 
desist order in the context of recent Commission opinions. The 
Commission asks that any submissions on remedy address the following:
    (1) General exclusion order questions:
    (a) Can the Commission issue a general exclusion order covering 
downstream products of non-respondents that incorporate articles found 
to be in violation of section 337? If so, under what circumstances can 
downstream products be covered by a GEO?
    (b) Should the Commission consider whether non-respondents are 
likely to circumvent the GEO in determining whether to cover downstream 
products in its order?
    (c) Should the Commission consider the approach and factors set 
forth in Certain Erasable Programmable Read Only Memories (EPROMs), 
Inv. No. 337-TA-276, Comm'n Op. (May 1989), aff'd sub nom., Hyundai 
Elec. Indus. Co. v. U.S. Int'l Trade Comm'n, 899 F.2d 1204 (Fed. Cir. 
1990)? Please discuss the relevant evidence in the record of this 
investigation and how that evidence supports the approach and factors 
that the Commission should use. Please also discuss the relevant 
statutory provisions of Section 337 and case law, including Kyocera 
Wireless Corp. v. Int'l Trade Comm'n, 545 F.3d 1340, 1357-58 (Fed. Cir. 
2008).
    (2) In relation to the accused products, please identify any 
information in the record, including allegations in the pleadings, that 
addresses the existence of any domestic inventory, any domestic 
operations, or any sales-related activity directed at the United States 
for each respondent against whom a cease and desist order is sought and 
whether the inventories, business operations, or sales activities are 
significant.
    (3) Discuss any instances where the Commission has issued a cease 
and desist order to a respondent in his individual capacity and/or an 
individual respondent acting on behalf of a company? In what 
circumstance should the Commission issue a cease and desist order 
directed to an individual?
    The statute requires the Commission to consider the effects of that 
remedy upon the public interest. The public interest factors the 
Commission will consider include the effect that an exclusion order and 
cease and desist orders would have on: (1) The public health and 
welfare, (2) competitive conditions in the U.S. economy, (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 U.S. Trade 
Representative, as delegated by the President, has 60 days to approve, 
disapprove, or take no action on the Commission's determination. See 
Presidential Memorandum of July 21, 2005, 70 FR 43251 (July 26, 2005). 
During this period, the subject articles would be entitled to enter the 
United States under 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 if a remedy is ordered.
    Written Submissions: The parties to the investigation are requested 
to file written submissions on the issues identified in this notice. 
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 recommended determination by the ALJ on 
remedy and bonding.
    In their initial submissions, Complainants are also requested to 
identify the remedy sought and Complainants and OUII are requested to 
submit proposed remedial orders for the Commission's consideration. 
Complainants are further requested to provide the HTSUS subheadings 
under which the accused products are imported, and to supply the 
identification information for all known importers of the products at 
issue in this investigation. The initial written submissions and 
proposed remedial orders must be filed no later than close of business 
on August 16, 2021. Reply submissions must be filed no later than the 
close of business on August 23, 2021. Opening submissions are limited 
to 50 pages. Reply submissions are limited to 30 pages. No further 
submissions on any of these issues will be permitted unless otherwise 
ordered by the Commission.
    Persons filing written submissions must file the original document 
electronically on or before the deadlines stated above. The 
Commission's paper filing requirements in 19 CFR 210.4(f)

[[Page 43272]]

are currently waived. 85 FR 15798 (March 19, 2020). Submissions should 
refer to the investigation number (Inv. No. 337-TA-1186) in a prominent 
place on the cover page and/or the first page. (See Handbook for 
Electronic Filing Procedures, https://www.usitc.gov/documents/handbook_on_filing_procedures.pdf). Persons with questions regarding 
filing should contact the Secretary, (202) 205-2000.
    Any person desiring to submit a document to the Commission in 
confidence must request confidential treatment by marking each document 
with a header indicating that the document contains confidential 
information. This marking will be deemed to satisfy the request 
procedure set forth in Rules 201.6(b) and 210.5(e)(2) (19 CFR 201.6(b) 
& 210.5(e)(2)). Documents for which confidential treatment by the 
Commission is properly sought will be treated accordingly. A redacted 
non-confidential version of the document must also be filed 
simultaneously with any confidential filing. All information, including 
confidential business information and documents for which confidential 
treatment is properly sought, submitted to the Commission for purposes 
of this investigation may be disclosed to and used: (i) By the 
Commission, its employees and Offices, and contract personnel (a) for 
developing or maintaining the records of this or a related proceeding, 
or (b) in internal investigations, audits, reviews, and evaluations 
relating to the programs, personnel, and operations of the Commission 
including under 5 U.S.C. Appendix 3; or (ii) by U.S. government 
employees and contract personnel, solely for cybersecurity purposes. 
All contract personnel will sign appropriate nondisclosure agreements. 
All non-confidential written submissions will be available for public 
inspection on EDIS.
    The Commission vote for this determination took place on August 2, 
2021.
    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: August 2, 2021.
Katherine Hiner,
Supervisory Attorney.
[FR Doc. 2021-16792 Filed 8-5-21; 8:45 am]
BILLING CODE 7020-02-P


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