Opinion ID: 211680
Heading Depth: 2
Heading Rank: 2

Heading: Sales of SKF USA's Bearings

Text: 31 Next, we consider the Commission's factual findings relating to the amount of SKF USA's sales that allegedly lacked post-sale support. It was undisputed that 87.4% of SKF USA's sales to authorized distributors were supported by the full panoply of post-sale technical and engineering services. Final Determination, slip op. at 44-45, 54-55. Regarding the remaining sales, SKF USA sold bearings to the vehicle service market through its Chicago Rawhide business unit. As stated by the Commission, the ALJ found that Chicago Rawhide provided on-site technical services and its own hotline services to its customers. Id., slip op. at 42-43. In addition, it was able to provide SKF USA's hotline services to customers when necessary. Id., slip op. at 43. However, the Commission was troubled by the fact that Chicago Rawhide's on-site services were available only on a discretionary basis, based on the size of the customer and whether the customer had a record of multiple problems. Id., slip op. at 42-43. The Commission relied on the ALJ's remand findings that Chicago Rawhide's on-site technical services were available on a discretionary basis and depended on the size of the customer and/or whether a customer has had multiple problems. Id. The Commission also agreed with the respondents' argument that even in instances where a downstream end user is aware of SKF USA's post-sale technical and engineering services, ... there is no guarantee that the end user will consistently and predictably receive post-sale technical support services in connection with its SKF bearing purchases. Id., slip op. at 48, 51-52. The Commission thoroughly considered the evidence, including the remand findings made by the ALJ. Although it found that SKF USA presented evidence on the differences in the alternate markets, the Commission determined that the record contains little probative evidence on consumer expectations, [and] we do not base our decision on consumer expectations. Id., slip op. at 57. It concluded that because the provision of post-sale services by SKF USA or its business unit Chicago Rawhide was discretionary, a consumer was not assured that the goods were predictably and consistently accompanied by the post-sale services, and hence that all or substantially all of SKF USA's goods were not accompanied by them. The determinations by the Commission that, because the Chicago Rawhide post-sale services were discretionary, they were not predictably and consistently available to purchasers, and that all or substantially all of the goods were not accompanied by the services are findings of fact, subject to substantial evidence deference by this court. We conclude that those findings were supported by substantial evidence and we must therefore affirm them. 32 Additionally, the Commission determined that Roller Bearing Company/Tyson Bearing Company provided its own technical services, and that it found SKF USA's argument that RBC/Tyson provided equivalent post-sale services to those of SKF USA somewhat disingenuous in the face of SKF USA's stated position that no respondent can provide equivalent services to those of SKF USA because SKF USA's services are per se superior to any services that others could provide. Id., slip op. at 49. The Commission also found that SKF USA's bearings do not differ materially from respondents' bearings because SKF USA has authorized the sale of SKF USA marked bearings by nonauthorized distributors, gray market distributors (including respondents), surplus distributors, and RBC/Tyson which we find are not predictably and consistently accompanied by post-sale technical and engineering services. Id., slip op. at 63. Those are also findings of fact to which we defer. 33 Finally, we disagree with SKF USA that the Commission erred by focusing too heavily on the services provided to the so-called alternate channels of distribution. The material difference standard focuses on differences in the goods themselves, not differences in their channels of distribution or the consumer expectations in those channels. Nitro Leisure Products, upon which SKF USA relies, is inapposite; that case dealt with used or refurbished goods, and the trial court in that case did not use a material difference standard. 341 F.3d at 1364 (The Champion Court recognizes that consumers do not expect used or refurbished goods to be the same as new goods and that for such goods, `material differences' do not necessarily measure consumer confusion.). We discern no error in the Commission's findings or its reliance on the ALJ's factual findings, and we do not disturb those findings on appeal. We therefore conclude that the Commission made no error of law and that its fact-findings were supported by substantial evidence. 34 We have considered Appellant's remaining arguments and are not persuaded. Accordingly, we affirm the determination of the Commission and hold that SKF USA has not established that the respondent companies violated § 337 by reason of trademark infringement.