In the Matter of Certain Radio Control Hobby Transmitters and Receivers and Products Containing Same; Notice of Commission Issuance of Limited Exclusion Order Against Infringing Products of Respondents Found In Default; Termination of Investigation

Topics:  Horizon Hobby

James R. Holbein
Federal Register
September 30, 2011

[Federal Register Volume 76, Number 190 (Friday, September 30, 2011)]
[Notices]
[Pages 60872-60873]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25280]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-763]


In the Matter of Certain Radio Control Hobby Transmitters and 
Receivers and Products Containing Same; Notice of Commission Issuance 
of Limited Exclusion Order Against Infringing Products of Respondents 
Found In Default; Termination of Investigation

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 terminated the above-captioned investigation under 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
has issued a limited exclusion order against infringing products of 
respondents previously found in default, Koko Technology, Ltd. 
(``Koko'') and Cyclone Toy & Hobby (``Cyclone'') 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 March 9, 2011, based on a complaint filed by Horizon Hobby, Inc. 
(``Horizon'') of Champaign, Illinois. 76 FR 12995-96 (March 9, 2011). 
The complaint, as amended, 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 radio control hobby 
transmitters and receivers and products containing same by reason of 
infringement of certain claims of U.S.

[[Page 60873]]

Patent No. 7,391,320 (``the '320 patent''), U.S. Copyright Reg. No. TX-
7-226-001 (``the '001 copyright''), and U.S. Trademark Reg. No. 
3,080,770 (``the 770 mark''). The complaint further alleges the 
existence of a domestic industry. The Commission's notice of 
investigation named Koko and Cyclone as the only respondents. The 
complaint and notice of investigation were served on respondents on 
March 3, 2011. No responses were received.
    On April 11, 2011, Horizon moved, pursuant to 19 CFR 210.16, for: 
(1) An order directing respondents Koko and Cyclone 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 Sec.  210.13; and 
(2) the issuance of an ID finding Koko and Cyclone in default upon 
their failure to show cause. Koko and Cyclone did not respond to the 
motion. On April 22, 2011, the presiding administrative law judge 
(``ALJ'') issued Order No. 5 which required Koko and Cyclone to show 
cause no later than May 12, 2011, as to why they should not be held in 
default and judgment rendered against them pursuant to Sec.  210.16. No 
response was received from either Koko or Cyclone to the show cause 
order.
    The ALJ issued an initial determination (``ID'') (Order No. 6) on 
May 16, 2011, finding both Koko and Cyclone in default, pursuant to 
Sec. Sec.  210.13, 210.16, because both respondents did not respond to 
the complaint and notice of investigation, or to Order No. 5 to show 
cause. Also, on May 17, 2011, the ALJ issued an ID (Order No. 7) 
terminating the investigation because Koko and Cyclone are the only 
respondents in the investigation. On June 3, 2011, the Commission 
issued notice of its determination not to review the ALJ's IDs finding 
Koko and Cyclone in default and terminating the investigation. 76 FR 
33362-63 (June 8, 2011). In the same notice, the Commission requested 
written submissions on the issues of remedy, the public interest, and 
bonding with respect to respondents found in default.
    Horizon and the Commission investigative attorney (``IA'') 
submitted briefing responsive to the Commission's request on June 24, 
2011, and the IA submitted a reply brief on July 1, 2011. Horizon 
requested both a limited exclusion order directed to Koko's and 
Cyclone's infringing products and a general exclusion order as well. 
The IA recommended a limited exclusion order and opposed Horizon's 
request for a general exclusion order.
    Having reviewed the record in the investigation, including the 
written submissions of the parties, the Commission has made its 
determination on the issues of remedy, the public interest, and 
bonding. The Commission has determined to issue relief directed solely 
to the defaulting respondents pursuant to Section 337(g)(1). 19 U.S.C. 
1337(g)(1). 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. Pursuant to section 337(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. Based on the 
record in this investigation and the written submissions of the 
parties, the Commission has determined that the appropriate form of 
relief is a limited exclusion order directed to the defaulting 
respondents prohibiting the unlicensed entry of radio control hobby 
transmitters and receivers and products containing same that are 
covered by one or more of claims 1-5 of the '320 patent, the '001 
copyright, or the '770 mark, and that are manufactured abroad by or on 
behalf of, or are imported by or on behalf of, Koko or Cyclone, or any 
of their affiliated companies, parents, subsidiaries, licensees, 
contractors, or other related business entities, or its successors or 
assigns. 19 U.S.C. 1337(g)(1). The Commission has determined not to 
issue a general exclusion order because Horizon did not establish the 
evidentiary showing required by 19 U.S.C.1337(g)(2) and it did not 
declare that it sought a general exclusion order under Commission rule 
210.16(c)(2) (19 CFR 210.16(c)(2)).
    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. Finally, the 
Commission has determined that a bond of 100 percent of the entered 
value of the covered products is required during the period of 
Presidential review (19 U.S.C. 1337(j)). The Commission's order was 
delivered to the President and to the United States Trade 
Representative on the day of its 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.
    Issued: September 27, 2011.
James R. Holbein,
Secretary to the Commission.
[FR Doc. 2011-25280 Filed 9-29-11; 8:45 am]
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