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Certain Replacement Automotive Lamps II; Notice of the Commission's Final Determination Finding No Violation of Section 337; Termination of the Investigation Publication: Federal Register Agency: International Trade Commission Byline: Katherine Hiner Date: 13 March 2024 Subject: American Government 
Topic: Hyundai |
[Federal Register Volume 89, Number 50 (Wednesday, March 13, 2024)]
[Notices]
[Pages 18431-18432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05273]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1292]
Certain Replacement Automotive Lamps II; Notice of the
Commission's Final Determination Finding No Violation of Section 337;
Termination of the Investigation
AGENCY: International Trade Commission.
ACTION: Notice.
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SUMMARY: Notice is hereby given that the U.S. International Trade
Commission (``Commission'') has found no violation of section 337 of
the Tariff Act of 1930, as amended, in the above-captioned
investigation. The investigation is terminated.
FOR FURTHER INFORMATION CONTACT: Lynde Herzbach, Office of the General
Counsel, U.S. International Trade Commission, 500 E Street SW,
Washington, DC 20436, telephone (202) 205-3228. Copies of non-
confidential documents filed in connection with this investigation may
be viewed on the Commission's electronic docket (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
on (202) 205-1810.
SUPPLEMENTARY INFORMATION: On January 24, 2022, the Commission
instituted this investigation under
[[Page 18432]]
section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337
(``section 337''), based on a complaint filed by Hyundai Motor Company
of Seoul, Republic of Korea and Hyundai Motor America, Inc. of Fountain
Valley, CA (collectively, ``Hyundai''). See 87 FR 3583-84 (Jan. 24,
2022). The complaint alleges a violation of section 337 based upon the
importation into the United States, sale for importation, or sale after
importation into the United States of certain replacement automotive
lamps by reason of infringement of certain claims of U.S. Design Patent
Nos. D617,478; D618,835; D618,836; D631,583; D637,319; D640,812;
D655,835; D664,690; D709,217; D736,436; D738,003; D739,057; D739,574;
D740,980; D759,864; D759,865; D771,292; D780,351; D818,163; D829,947;
and D834,225 (collectively, ``Asserted Patents''). Id. The complaint
further alleges that a domestic industry exists. Id. The notice of
investigation names four respondents: (1) TYC Brother Industrial Co.,
Ltd. of Tainan, Taiwan; (2) Genera Corporation (dba. TYC Genera) of
Brea, California; (3) LKQ Corporation of Chicago, Illinois; and (4)
Keystone Automotive Industries, Inc. of Exeter, Pennsylvania
(collectively, ``Respondents''). Id. The Office of Unfair Import
Investigations is not named as a party.
On February 7, 2022, the Chief Administrative Law Judge (``CALJ'')
ordered an evidentiary hearing for both Inv. Nos. 337-TA-1291 and 337-
TA-1292 on the economic prong of the domestic industry requirement
pursuant to the Commission's pilot program for interim initial
determinations (``IID''). See Order No. 7 (Feb. 7, 2022). The combined
evidentiary hearing was held on April 20, 2022. On July 1, 2022, the
CALJ issued an IID finding that Hyundai has satisfied the economic
prong of the domestic industry requirement with respect to all of the
asserted design patents. On August 24, 2022, the Commission determined
to review the IID. See Comm'n Notice (Aug. 24, 2022).
On January 24, 2023, the CALJ issued a final initial determination
(``FID'') finding a violation of section 337 by Respondents based on
infringement of each of the Asserted Patents. The FID also finds that
no Asserted Patent is invalid as anticipated or obvious. The FID
further finds that Hyundai has satisfied the technical prong as to
certain representative domestic industry products. Concerning the
economic prong of the domestic industry requirement, the FID reduces
Hyundai's alleged investments due to Hyundai's failure to establish
that certain of its alleged domestic industry products are
representative of other alleged domestic industry products. The FID
finds, however, that the economic prong of the domestic industry
requirement is satisfied for all of the Asserted Patents based on the
reduced investments. The CALJ also simultaneously issued a recommended
determination on remedy and bonding (``RD'') recommending that, if the
Commission finds a violation, it should issue a limited exclusion order
but not issue any cease and desist order against any of Respondents.
On February 6, 2023, Respondents filed a petition for review
challenging the FID's findings on the economic prong of the domestic
industry requirement, infringement, and validity. Also on February 6,
2023, Hyundai filed a petition for review challenging the RD's
recommendations and contingently petitioning regarding the FID's
findings concerning non-satisfaction of the technical prong of the
domestic industry requirement for certain non-representative products.
On February 14, 2023, Respondents and Hyundai filed responses to each
other's petitions.
On February 23, 2023, the Commission received public interest
submissions pursuant to Commission Rule 210.50(a)(4) from the LKQ
Respondents and the TYC Respondents. 19 CFR 210.50(a)(4). On February
22 and 23, 2023, the Commission received twelve responses to the
Commission notice seeking public interest submission. 88 FR 7759-7760
(Feb. 6, 2023).
On May 11, 2023, the Commission determined to review the FID in its
entirety. 88 FR 31522-24 (May 17,2023). The Commission asked the
parties to address four questions, which related to infringement, the
technical prong of the domestic industry requirement, and the economic
prong of the domestic industry requirement. Id. The Commission also
requested briefing from the parties, interested government agencies,
and the public concerning remedy, bonding, and the public interest. Id.
On May 25, 2023, Hyundai and Respondents filed their initial
written responses to the Commission's request for briefing. On June 1,
2023, Hyundai and Respondents filed their reply submission.
On June 15, 2023, Respondents filed a motion to strike a
declaration filed with the Hyundai reply submission. On June 26, 2023,
Hyundai filed an opposition to the motion to strike.
Having reviewed the record of the investigation, including the IID,
the FID, and the parties' petitions, responses, and other submissions,
the Commission has determined to find no violation of section 337 with
respect to the Asserted Patents. Specifically, the Commission has
determined to vacate the IID and the FID's economic prong findings and
find that Hyundai has failed to satisfy the economic prong of the
domestic industry requirement with respect to any of the Asserted
Patents. The Commission has further determined to take no position on
the issues of infringement, satisfaction of the technical prong of the
domestic industry requirement, and invalidity. The Commission further
finds that Respondents' motion to strike the declaration filed with
Hyundai's reply submission is moot in view of the finding that there is
no violation of section 337 and the public interest factors do not need
to be addressed.
The investigation is terminated with a finding of no violation of
section 337. The Commission's reasoning in support of its
determinations is set forth more fully in its opinion.
Commissioner Schmidtlein does not join the majority's opinion but
agrees that Hyundai has failed to establish the economic prong of the
domestic industry requirement for any of the Asserted Patents. She
therefore agrees that there has been no violation of section 337 in
this investigation. She explains her views in a concurring opinion.
The Commission vote for this determination took place on March 7,
2024.
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: March 7, 2024.
Katherine Hiner,
Supervisory Attorney.
[FR Doc. 2024-05273 Filed 3-12-24; 8:45 am]
BILLING CODE 7020-02-P