Opinion ID: 623909
Heading Depth: 1
Heading Rank: 5

Heading: other '985 patent issues

Text: The Initial Determination held that the Mitsubishi turbines infringe the '985 patent, that the patent is valid, and that inequitable conduct had not been shown. The Notice of Commission Determination to Review a Final Initial Determination stated that the Final Initial Determination would be reviewed except for the issues of importation and the intent element of the inequitable conduct ruling. See n. 2 supra. However, for the '985 patent the Commission decided only the domestic industry question, and took no position on any other issue. The Commission states on this appeal that the other issues decided by Final Initial Determination are not subject to judicial review because they are not a Commission determination. Commission's Br. at 49 (the initial determination has no effect as a Commission determination in this case). This removal from finality is in stark tension with the statutory purpose of expedition in Commission proceedings, for the Commission now holds that issues of the Initial Determination that are noticed but not reviewed are not subject to the statutory right of appeal: 19 U.S.C. § 1337(c) Determinations; review. ... Each determination under subsection (d) or (e) [exclusion from entry] of this section shall be made on the record after notice and opportunity for a hearing in conformity with the provisions of subchapter II of chapter 5 of Title 5. All legal and equitable defenses may be presented in all cases ... Any person adversely affected by a final determination of the Commission under subsection (d), (e), (f), or (g) of this section may appeal such determination, within 60 days after the determination becomes final, to the United States Court of Appeals for the Federal Circuit for review in accordance with chapter 7 of Title 5.... The regulations provide that the initial determination becomes the Commission's determination unless the Commission orders review of the initial determination or certain issues therein: 19 C.F.R. § 210.42 Initial determinations. . . . (h)(2) An initial determination under § 210.42(a)(1)(i) [issues of violation of section 337] shall become the determination of the Commission 60 days after the date of service of the initial determination, unless the Commission within 60 days after the date of such service shall have ordered review of the initial determination or certain issues therein or by order has changed the effective date of the initial determination. Thus issues not selected for review by the full Commission may be appealed to the Federal Circuit in accordance with 19 U.S.C. § 1337(c). However, the Commission states that issues selected but not reviewed may not be appealed to the Federal Circuit. The Commission states that this anomalous procedure was established by this court in Beloit Corp. v. Valmet Oy, 742 F.2d 1421 (Fed.Cir.1984), and was confirmed by regulatory amendment (with emphasis added to the 2008 amendment at issue): 19 C.F.R. § 210.45 Review of initial determinations on matters other than temporary relief. . . . (c) Determination on review. On review, the Commission may affirm, reverse, modify, set aside or remand for further proceedings, in whole or in part, the initial determination of the administrative law judge. In addition, the Commission may take no position on specific issues or portions of the initial determination of the administrative law judge. The Commission also may make any findings or conclusions that in its judgment are proper based on the record in the proceeding. If the Commission's determination on review terminates the investigation in its entirety, a notice will be published in the Federal Register. Thus the Commission holds that when the full Commission does not review an issue that it noticed for review, that issue is removed from access to judicial review. This interpretation conflicts with the statutory right of judicial review of Commission determinations, provided in 19 U.S.C. § 1337(c). Such interpretation also conflicts with the principles of 19 C.F.R. § 210.42(h) and § 210.45(c), for no statutory or regulatory provision contemplates excluding a fully litigated ITC decision from access to judicial review. The Commission has stated that the 2008 amendments are simply procedural rules promulgated in order to increase the efficiency of its section 337 investigations. Rules of General Application and Adjudication and Enforcement, 73 Fed. Reg. 38,316, 38,318 (July 7, 2008). The public comments on the 2008 amendments were directed to the proposed extensions of the time limits, and did not perceive the possibility of removal of fully litigated issues from finality. This consequence is not stated in the regulation, and is not explored in the comment record, where most commentators stated their concern for the lengthening of the target dates for Commission proceedings. For example: [O]ne of the great advantages of Section 337 proceedings is their speedy adjudication. The role that the Commission and Section 337 have achieved as one of the key forums for protection of valuable U.S. intellectual property rights rests on the speed and high quality of its adjudicatory process. ITC Trial Lawyers Association, Comment to Notice of Proposed Rulemaking, ITC Doc. No. 296282, at 6 (Mar. 31, 2008). Speedy adjudication requires finality. The amendment to § 210.45(c) does not state that any issue on which the Commission takes no position is removed from access to the judicial review of Commission proceedings as provided by § 210.42(h). Such a purpose would surely have occasioned comment; for example, the Intellectual Property Owners Association commented on the authorized extension of target dates, stating that: IPO members place much value in the Commission's prompt and effective resolution of Section 337 investigations at the earliest practicable time. (quoting 19 U.S.C. § 1337(b)). Comment to Notice of Proposed Rulemaking, ITC Doc. No. 296810, at 2 (Mar. 31, 2008). Prompt and effective resolution is not served by removing finality from the decision of issues on which Commission proceedings are over, thereby barring judicial appeal of those decisions. The Commission states that this court held in Beloit Corp. supra, that any noticed issue of the Initial Determination on which the Commission took no position cannot be appealed to the court. That is inaccurate, for Beloit dealt with the situation in which the prevailing party in the Commission sought judicial review of other issues that the Commission did not reach. This court held that the prevailing party had no right of appeal, and that issues which had not been reviewed by the Commission were not appealable by the party that prevailed in the Commission. Of course a prevailing party cannot appeal, for there is no controversy. Am. Tel. & Tel. Co. v. Int'l Trade Comm'n, 67 CCPA 165, 626 F.2d 841, 842 (1980) (Since the ITC determined that there was no § 1337 violation by Bell, Bell is without standing to appeal.). The court in Beloit did not authorize the Commission to deprive the losing party of its right of judicial appeal. 19 C.F.R. § 210.42(h)(2) provides that issues decided by Initial Determination and not reviewed by the full Commission become final, and are appealable to the Federal Circuit. This right cannot be negated by taking no position on the issue. The result propounded by the Commission is anomalous: if the issue decided by initial determination is noticed and then reviewed by the Commission, the decision of that issue is routinely subject to appeal by the losing party; if the issue is not noticed by the Commission, the decision is again routinely subject to appeal by the losing party; but if the issue is noticed by the Commission and then not reviewed, the decision is not subject to appeal by the losing party. The consequences of this practice are illustrated in this case, for all contested issues concerning the '985 patent were investigated by the Commission, tried to the ALJ, decided by Initial Determination, yet nearly all were held unavailable for judicial review. Thus we are obliged to remand to the Commission for undefined further proceedings, for which one may be confident only of further time and cost in the Commission and upon re-appeal to this court. The legislative purpose of expedited ITC resolution of unfair competition issues requires attention, in accord with statute and regulation, that issues decided by initial determination and not substantively reviewed by the full Commission are deemed determinations of the Commission in accordance with 19 C.F.R. § 210.42(h)(2), and entitled to appeal in accordance with 19 U.S.C. § 1337(c).