Certain Power Inverters and Converters, Vehicles Containing the Same, and Components Thereof; Notice of a Commission Determination To Review in Part and, on Review, Affirm a Final Initial Determination Finding No Violation of Section 337; Termination of the Investigation Publication: Federal Register Agency: International Trade Commission Byline: Katherine Hiner Date: 13 December 2022 Subject: American Government

[Federal Register Volume 87, Number 238 (Tuesday, December 13, 2022)]
[Notices]
[Pages 76215-76216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26963]



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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1267]


Certain Power Inverters and Converters, Vehicles Containing the 
Same, and Components Thereof; Notice of a Commission Determination To 
Review in Part and, on Review, Affirm a Final Initial Determination 
Finding No Violation of Section 337; Termination of the 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 (the ``Commission'') has determined to review in part the 
final initial determination (``ID'') issued by the presiding 
administrative law judge (``ALJ''). On review, the Commission has 
determined to affirm the final ID's finding of no violation. The 
investigation is hereby terminated.

FOR FURTHER INFORMATION CONTACT: Carl P. Bretscher, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-2382. Copies of non-
confidential documents filed in connection with this investigation may 
be viewed on the Commission's electronic docket system (``EDIS'') at 
https://edis.usitc.gov. For help accessing EDIS, please email 
EDIS3Help@usitc.gov. 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, telephone (202) 205-1810.

SUPPLEMENTARY INFORMATION: On June 28, 2021, the Commission instituted 
this investigation based on a complaint filed by Arigna Technology 
Limited of Carrickmines, Ireland (``Arigna''). 86 FR 34042-43 (Jun. 28, 
2021). The complaint, as amended, alleges violations of section 337 of 
the Tariff Act of 1930, as amended, 19 U.S.C. 1337 (``section 337''), 
based upon the importation into the United States, the sale for 
importation, and the sale within the United States after importation of 
certain power inverters and converters, vehicles containing the same, 
and components thereof that infringe one of more of the asserted claims 
of U.S. Patent Nos. 8,247,867 (``the '867 patent'') and 8,289,082 
(``the '082 patent''). Id. at 34042. The complaint also alleges that a 
domestic industry exists or is in the process of being established. Id.
    The Commission's notice of investigation named the following 
respondents: Audi AG of Ingolstadt, Germany and Audi of America, LLC of 
Herndon, Virginia (collectively, ``Audi''); Bentley MotorsLimited. of 
Crewe, United Kingdom and Bentley Motors, Inc. of Reston, Virginia 
(collectively, ``Bentley''); Bayerische Motoren Werke AG of Munich, 
Germany and BMW of North America, LLC, of Woodcliff Lake, New Jersey 
(collectively, ``BMW''); Daimler AG of Stuttgart, Germany and Mercedes-
Benz USA, LLC of Sandy Springs, Georgia (collectively, ``Daimler''); 
General Motors Company of Detroit, Michigan (``GMC''); General Motors 
LLC of Detroit, Michigan (``GM''); Automobili Lamborghini S.p.A. of 
Sant'Agata, Italy and Automobili Lamborghini America, LLC of Herndon, 
Virginia (collectively, ``Lamborghini''); Porsche AG of Stuttgart, 
Germany and Porsche Cars North America, Inc. of Atlanta, Georgia 
(collectively, ``Porsche''); and Volkswagen AG of Wolfsburg, Germany 
and Volkswagen Group of America, Inc. of Herndon, Virginia 
(collectively, ``Volkswagen'') (all collectively, ``Respondents''). Id. 
at 34043. The Office of Unfair Import Investigations (``OUII'') is also 
participating in this investigation. Id.
    On December 1, 2021, the presiding administrative law judge 
(``ALJ'') held a Markman hearing. On January 18, 2022, the ALJ issued a 
Markman order (Order No. 30), construing certain disputed claim terms 
of the '082 and '867 patents.
    On January 18, 2022, the Commission terminated the investigation 
with respect to General Motors Company based on a withdrawal of the 
complaint. Order No. 23 (Dec. 20, 2021), unreviewed by Comm'n Notice 
(January 18, 2022).
    On March 15, 2022, the Commission partially terminated the '867 
patent from the investigation as asserted against BMW. Order No. 37 
(Feb. 18, 2022), unreviewed by Comm'n Notice (Mar. 15, 2022).
    On April 25, 2022, the Commission terminated certain claims of the 
'082 patent and '867 patent based on a partial withdrawal of the 
complaint. Order No. 50 (Apr. 6, 2022), unreviewed by Comm'n Notice 
(Apr. 25, 2022).
    On May 17, 2022, the Commission terminated the investigation with 
respect to Porsche due to a settlement agreement. Order No. 53 (April 
29, 2022), unreviewed by Comm'n Notice (May 17, 2022).
    The presiding ALJ held an evidentiary hearing on April 4-8, 2022. 
The parties timely filed their initial post-hearing briefs on April 25, 
2022, and their post-hearing reply briefs on May 4, 2022.
    On August 12, 2022, the presiding ALJ issued the subject ID, 
finding no violation of section 337 with respect to either the '082 
patent or the '867 patent. In particular, the ID finds: (1) Arigna 
failed to prove that Respondents infringed any of asserted claims 1, 
13, 17, or 29 of the '082 patent; (2) claims 1, 13, 17, and 29 of the 
'082 patent are invalid as anticipated or obvious over the prior art; 
(3) Respondents did not infringe asserted claim 8 of the '867 patent; 
(4) claim 4 of the '867 patent (asserted for domestic industry 
purposes) is invalid as anticipated; but asserted claim 8 is not 
invalid; and (5) Arigna has not satisfied the economic prong of the 
domestic industry requirement with respect to the '867 patent.
    On August 26, 2022, the presiding ALJ issued a recommended 
determination on remedy, the public interest, and bonding, recommending 
that the Commission issue a limited exclusion order (subject to a delay 
in implementation of up to six months) and cease and desist orders 
against Audi, BMW, Mercedes, GM, and Volkswagen (but not Bentley or 
Lamborghini), and set a zero percent bond, should the Commission find a 
violation of section 337.
    On August 26, 2022, Arigna filed a petition for review of the ID's 
findings on claim construction, non-infringement, and invalidity with 
respect to the '082 patent. No other party petitioned for review of the 
ID's findings regarding the '082 patent.
    On August 26, 2022, respondent GM filed a contingent petition for 
review of the ID's finding that asserted claim 8 of the '867 patent is 
not invalid. No other party, including Arigna, petitioned for review of 
any findings regarding the '867 patent.
    On September 6, 2022, Respondents and OUII each filed their 
opposition to Arigna's petition for review of the ID's findings with 
respect to the '082 patent. OUII filed a response to GM's contingent 
petition for review on the same date.
    On November 22, 2022, the Commission terminated the investigation 
with respect to Daimler, Volkswagen, Audi, Bentley, and Lamborghini due 
to settlement agreements. Comm'n Notice (Nov. 22, 2022). BMW and GM 
remain as respondents.
    Upon consideration of the ID, the parties' submissions, and the 
evidence of record, the Commission has determined to review in part 
and, on

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review, affirm the ID's finding of no violation of section 337. 
Specifically, the Commission has determined to review and take no 
position on the ID's findings: (a) that claims 1 and 17 of the '082 
patent are anticipated by Japanese Patent Publication No. S62-171212 to 
Soneda (``Soneda''); (b) that claims 13 and 29 of the '082 patent are 
invalid as obvious over Soneda in combination with U.S. Patent No. 
6,094,246 to Kozisek et al. (``Kozisek''); (c) that claim 8 of the '867 
patent is not invalid as obvious over U.S. Patent Publication No. 2009/
0179261 to Sekugichi in combination with U.S. Patent Publication No. 
2009/0218619 to Hebert; and (d) on the domestic industry requirement 
for the '082 patent and the '867 patent.
    The Commission has determined not to review, and thereby adopts, 
the ID's remaining findings, including with respect to the '082 patent: 
(a) the ID's claim constructions; (b) that Arigna failed to prove that 
Respondents infringed any of asserted claims 1, 13, 17, and 29; (c) 
that asserted independent claims 1 and 17 are invalid as anticipated by 
a prior art article written by Suharli Tedja et al. and published in 
the IEEE Journal of Solid-State Circuits in February 1995 (``Tedja''); 
(d) that asserted dependent claims 13 and 29 are invalid as obvious 
over Tedja alone or Tedja in combination with Kozisek; and (e) that 
asserted claims 1, 13, 17, and 29 are invalid as obvious over Kozisek 
in combination with Soneda. The Commission has further determined not 
to review the ID's findings that the asserted claims of the '867 patent 
are not infringed and claim 4 is invalid as anticipated by 
International Patent Application Publication WO 2009/060670 to Torii.
    For the foregoing reasons, the Commission concludes that there is 
no violation of section 337 with respect to either the '082 patent or 
'867 patent. This investigation is hereby terminated.
    The Commission voted to approve this determination on December 7, 
2022.
    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: December 7, 2022.
Katherine Hiner,
Acting Secretary to the Commission.
[FR Doc. 2022-26963 Filed 12-12-22; 8:45 am]
BILLING CODE 7020-02-P