In the Matter of Certain Automotive Vehicles and Designs Therefore; Notice of Commission Issuance of Limited Exclusion Order and Cease and Desist Orders Against Infringing Products of Respondents Found in Default; Termination of Investigation

William R. Bishop
Federal Register
March 15, 2011

[Federal Register: March 15, 2011 (Volume 76, Number 50)]
[Notices]               
[Page 14070-14072]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15mr11-129]                         

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-722]

 
In the Matter of Certain Automotive Vehicles and Designs 
Therefore; Notice of Commission Issuance of Limited Exclusion Order and 
Cease and Desist Orders Against Infringing Products of Respondents 
Found in Default; Termination of Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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[[Page 14071]]

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has terminated the above-captioned investigation under 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
has issued the following remedial orders against respondents previously 
found in default: a cease and desist order against infringing products 
of Vehicles Online, Inc. (``Vehicles'') of Charlotte, North Carolina, 
and a limited exclusion order and a cease and desist order against 
infringing products of Shanghai Tandem Industrial Co., Ltd. (``Shanghai 
Tandem'') of China.

FOR FURTHER INFORMATION CONTACT: Clint Gerdine, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
SW., Washington, DC 20436, telephone (202) 708-2310. Copies of non-
confidential documents filed in connection with this investigation are 
or will be available for inspection during official business hours 
(8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. 
International Trade Commission, 500 E Street, SW., Washington, DC 
20436, telephone (202) 205-2000. General information concerning the 
Commission may also be obtained by accessing its Internet server at 
http://www.usitc.gov. The public record for this investigation may be 
viewed on the Commission's electronic docket (EDIS) at http://
edis.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: The Commission instituted this investigation 
on June 17, 2010, based on a complaint filed by Chrysler Group LLC 
(``Chrysler'') of Auburn Hills, Michigan. 75 FR 34483-84 (June 17, 
2010). The complaint alleges violations of section 337 of the Tariff 
Act of 1930, as amended, 19 U.S.C. 1337, in the importation into the 
United States, the sale for importation, and the sale within the United 
States after importation of certain automotive vehicles and designs 
therefor by reason of infringement of U.S. Patent No. D513,395 (``the 
'395 patent''). The complaint further alleges the existence of a 
domestic industry. The Commission's notice of investigation named 
several respondents including Vehicles, Boat N RV Supercenter (``Boat N 
RV'') of Rockwood, Tennessee, and Shanghai Tandem.
    On July 7, 2010, Chrysler moved, pursuant to 19 CFR 210.16, for: 
(1) An order directing respondents Vehicles and Boat N RV to show cause 
why they should not be found in default for failure to respond to the 
complaint and notice of investigation as required by 19 CFR 210.13, and 
(2) the issuance of an initial determination (``ID'') finding Vehicles 
and Boat N RV in default upon their failure to show cause. On July 19, 
2010, the ALJ issued Order No. 8, which required Vehicles and Boat N RV 
to show cause no later than August 2, 2010, as to why they should not 
be held in default and judgment rendered against them pursuant to Sec.  
210.16. Boat N RV responded to Order No. 8, but no response was 
received from Vehicles.
    The presiding administrative law judge (``ALJ'') issued an ID on 
August 11, 2010, finding Vehicles in default, pursuant to Sec. Sec.  
210.13 and 210.16, because Vehicles did not respond to the complaint 
and notice of investigation or to Order No. 8's instruction to show 
cause. On September 9, 2010, the Commission issued notice of its 
determination not to review the ALJ's ID finding Vehicles in default.
    On August 19, 2010, Chrysler moved, pursuant to Sec.  210.16, for: 
(1) An order directing respondent Shanghai Tandem to show cause why it 
should not be found in default for failure to respond to the complaint 
and notice of investigation as required by Sec.  210.13, and (2) the 
issuance of an ID finding Shanghai Tandem in default upon its failure 
to show cause. On August 31, 2010, the ALJ issued Order No. 12, which 
required Shanghai Tandem to show cause no later than September 14, 
2010, as to why it should not be held in default and judgment rendered 
against it pursuant to Sec.  210.16.
    The ALJ issued an ID on September 22, 2010, finding Shanghai Tandem 
in default, pursuant to Sec. Sec.  210.13 and 210.16, because Shanghai 
Tandem did not respond to the complaint and notice of investigation or 
to Order No. 12's instruction to show cause. On October 14, 2010, the 
Commission issued notice of its determination not to review the ALJ's 
ID finding Shanghai Tandem in default.
    On October 29, 2010, complainant Chrysler filed declarations 
requesting immediate relief against the defaulting respondents. On 
November 15, 2010, the Commission determined not to review an ID (Order 
No. 17) terminating the last remaining respondents, including Boat N 
RV, on the basis of a consent order. On November 29, 2010, the 
Commission issued a Notice that requested briefing from interested 
parties on remedy, the public interest, and bonding with respect to 
respondents found in default. 75 FR 75184-85 (Dec. 2, 2010).
    Chrysler and the Commission investigative attorney submitted 
briefing responsive to the Commission's request on December 6 and 14, 
2010, respectively. Each proposed a cease and desist order directed to 
Vehicles' infringing products, and a limited exclusion order and a 
cease and desist order directed to Shanghai Tandem's infringing 
products. Neither party requested bonding during the period of 
Presidential review.
    The Commission found that the statutory requirements of section 
337(g)(1)(A)-(E) (19 U.S.C. 1337(g)(1)(A)-(E)) were met with respect to 
the defaulting respondents. Accordingly, pursuant to section 337(g)(1) 
(19 U.S.C. 1337(g)(1)) and Commission rule 210.16(c) (19 CFR 
210.16(c)), the Commission presumed the facts alleged in the complaint 
to be true. The Commission has determined that the appropriate form of 
relief is the following: (1) Cease and desist orders prohibiting 
Vehicles and Shanghai Tandem from conducting any of the following 
activities in the United States: importing, selling, marketing, 
advertising, distributing, offering for sale, transferring (except for 
exportation), and soliciting U.S. agents or distributors for automotive 
vehicles and designs therefor that infringe the '395 patent; and (2) a 
limited exclusion order prohibiting the unlicensed entry of automotive 
vehicles and designs therefore that infringe the '395 patent, which are 
manufactured abroad by or on behalf of, or are imported by or on behalf 
of, Shanghai Tandem, or any of its affiliated companies, parents, 
subsidiaries, licensees, contractors, or other related business 
entities, or its successors or assigns.
    The Commission has further determined that the public interest 
factors enumerated in section 337(g)(1) (19 U.S.C. 1337(g)(1)) do not 
preclude issuance of the limited exclusion order or the cease and 
desist orders. Finally, the Commission has determined that no bond is 
required during the period of Presidential review (19 U.S.C. 1337(j)). 
The Commission's orders were delivered to the President and to the 
United States Trade Representative on the day of their issuance.
    The Commission has terminated this investigation. 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 sections 
210.16(c) and 210.41 of the Commission's Rules of Practice and 
Procedure (19 CFR 210.16(c) and 210.41).

    By order of the Commission.


[[Page 14072]]


    Issued: March 10, 2011.
William R. Bishop,
Hearings and Meetings Coordinator.
[FR Doc. 2011-5999 Filed 3-14-11; 8:45 am]
BILLING CODE 7020-02-P