[Federal Register Volume 85, Number 52 (Tuesday, March 17, 2020)]
[Notices]
[Pages 15223-15224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05396]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1130]
Certain Beverage Dispensing Systems and Components Thereof;
Commission Decision Finding a Violation of Section 337; Issuance of a
Limited Exclusion Order and Cease and Desist Order; 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 has found a violation of section 337 of the Tariff Act of
1930, as amended, in this investigation and has issued a limited
exclusion order and a cease and desist order prohibiting importation of
infringing beverage dispensing systems and components thereof.
FOR FURTHER INFORMATION CONTACT: Sidney A. Rosenzweig, Esq., Office of
the General Counsel, U.S. International Trade Commission, 500 E Street
SW, Washington, DC 20436, telephone (202) 708-2532. The public version
of the complaint can be accessed on the Commission's electronic docket
(EDIS) at https://edis.usitc.gov, and 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 (https://www.usitc.gov). The public record for this
investigation may be viewed on the Commission's electronic docket
(EDIS) at https://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 September 5, 2018, based on a complaint filed by Heineken
International B.V. and Heineken Supply Chain B.V., both of Amsterdam,
The Netherlands; and Heineken USA Inc. of White Plains, New York
(collectively, ``Heineken''). 83 FR 45141, 45141-42 (Sept. 5, 2019).
The complaint alleges a violation section 337 of the Tariff Act 1930,
as amended, 19 U.S.C. 1337 (``section 337'') in the importation into
the United States, sale for importation, or sale in the United States
after importation of certain beverage dispensing systems and components
thereof that allegedly infringe claims 1-11 of the '751 patent. Id. The
notice of investigation names as respondents Anheuser-Busch InBev SA,
and InBev Belgium NV, both of Leuven, Belgium; and Anheuser-Busch, LLC
of St. Louis, Missouri (collectively, ``ABI''). Id. The Office of
Unfair Import Investigations was not named as a party to this
investigation. Id.
On February 6, 2019, the presiding administrative law judge
(``ALJ'') granted Heineken's motion to partially terminate the
investigation as to claims 2, 4-6, 8-9, and 11 of the '751 patent.
Order No. 6 (Feb. 6, 2019), not reviewed, Notice (Mar. 7, 2019).
Remaining within the investigation are claims 1, 3, 7, and 10 of the
'751 patent. On March 26, 2019, the ALJ issued Order No. 14, the
Markman Order, construing certain claim terms. The ALJ conducted the
evidentiary hearing from April 16-18 and 23, 2019.
On September 5, 2019, the ALJ issued a final initial determination
(``ID''), finding claims 1, 3, 7, and 10 infringed and not invalid, and
thereby finding a violation of section 337 with respect to those
claims. On September 19, 2019, the ALJ issued a Recommended
Determination on Remedy and Bond (``RD''). The RD recommends that
should the Commission find a violation of section 337, that the
Commission issue a limited exclusion order, a cease and desist order,
and impose a bond rate
[[Page 15224]]
during the period of Presidential review in the amount of five percent
of the entered value of infringing articles.
On September 18, 2019, ABI filed a petition for Commission review
of aspects of the ID. That same day, Heineken filed a contingent
petition for review. On September 26, 2019, the parties responded to
each other's petitions.
On November 4, 2019, the Commission determined to review the ID in
its entirety. Notice at 2 (Nov. 4, 2019) (``Notice of Review''),
published at 84 FR 60452 (Nov. 8, 2019). The Commission solicited
briefing on remedy, the public interest, and bonding, as well on
specific issues concerning claim construction, infringement,
invalidity, and the domestic industry requirement.
On November 18, 2019, the parties filed opening briefs in response
to the Notice of Review. On November 26, 2019, the parties filed
replies to each other's brief.
Having reviewed the record of the investigation, including the
Markman Order, the final ID, and the parties' submissions to the ALJ
and to the Commission, the Commission has found a violation of section
337. Specifically, the Commission finds that Heineken has demonstrated
the existence of a domestic industry and that asserted claims 1, 3, 7,
and 10 of the '751 patent are infringed and are not invalid.
The Commission has further determined that the appropriate remedy
is: (1) A limited exclusion order prohibiting the entry of infringing
beverage dispensing systems and components thereof; and (2) a cease and
desist order directed to respondent Anheuser-Busch LLC. The Commission
has determined that the public interest factors enumerated in section
337(d) and (f), 19 U.S.C. 1337(d), (f), do not preclude the issuance of
the limited exclusion order or the cease and desist order. The
Commission has determined that a bond in the amount of five (5) percent
of the entered value of the imported beverage containers is required
during the period of Presidential review. 19 U.S.C. 1337(j)(3).
Notwithstanding the foregoing, the exclusion order and the cease and
desist order permit ABI to import beverage containers that are used as
part of ABI's PureDraught system.
The investigation is terminated. The Commission's reasoning in
support of its determinations is set forth more fully in its opinion.
The Commission's orders and opinion were delivered to the President and
the United States Trade Representative on the day of their issuance.
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 11, 2020.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2020-05396 Filed 3-16-20; 8:45 am]
BILLING CODE 7020-02-P