[Federal Register: March 8, 2002 (Volume 67, Number 46)]
[Notices]
[Page 10755-10756]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08mr02-90]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-448]
In the Matter of: Certain Oscillating Sprinklers, Sprinkler
Components, and Nozzles; Notice of Commission Issuance of Limited
Exclusion Order and Termination of Investigation
AGENCY: International Trade Commission.
ACTION: Notice.
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SUMMARY: Notice is hereby given that the U.S. International Trade
Commission has issued a limited exclusion order and terminated the
above-captioned investigation.
FOR FURTHER INFORMATION CONTACT: Laurent de Winter, Esq., Office of the
General Counsel, U.S. International Trade Commission, 500 E Street,
SW., Washington, DC 20436, telephone 202-708-5452. Copies of the
limited exclusion order and all other nonconfidential 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 (http://www.usitc.gov). The public record for this
investigation may be viewed on the Commission's electronic docket
(EDIS-ON-LINE) at http://dockets.usitc.gov/eol.public. Hearing-impaired
persons are advised that information on the matter can be obtained by
contacting the Commission's TDD terminal on 202-205-1810.
SUPPLEMENTARY INFORMATION: The Commission instituted this
investigation, which concerns allegations of unfair acts in violation
of section 337 of the Tariff Act of 1930 in the importation and sale of
certain oscillating sprinklers, sprinkler components, and nozzles, on
February 9, 2001. 66 FR 9721. In its complaint, filed on January 8,
2001, and amended on January 31, 2001, complainant L.R. Nelson Corp.
(``Nelson'') alleged that Naan Sprinkler and Irrigation Systems, Inc.,
Watex International Co., Ltd., Lego Irrigation Equipment, Inc., Rain
Bird Manufacturing Corporation, Gardena Krest + Kastner GmbH and
Gardena's subsidiary Melnor, Inc., Ruey Ryh Enterprises Co,. Ltd., Yuan
Mei Corp., Amagine Garden Inc., Aqua Star Industries Inc., Le Yuan
Industrial Co. Ltd., Shin Da Spurt Water of Garden Tool Co. Ltd., and
Orbit Irrigation Products, Inc. violated section 337 through the
importation, sale for importation, and/or sale within the United States
after importation of certain oscillating sprinklers, sprinkler
components, and nozzles by reason of infringement of certain claims of
U.S. Letters Patent Nos. 6,036,117 (``the '117 patent''), 5,645,218
(``the '218 patent''), and 5,511,727 (``the '727 patent'').
On May 3, 2001, complainant Nelson moved, pursuant to 19 U.S.C.
1337(g)(1) and Commission rule 210.16, for an order to show cause why
respondent Watex International Co., Ltd. (``Watex'') should not be
found in default for failing to respond adequately and properly to the
amended complaint and notice of investigation, as required by
Commission rule 210.13. The Commission investigative attorney (``IA'')
supported complainant's motion to the extent that it requested an order
to show cause against Watex. The presiding administrative law judge
(``ALJ'') issued an ID (Order No. 4) on March 30, 2001, directing Watex
to show cause why it should not be found in default. Watex did not
respond to the show cause order.
On May 22, 2001, the ALJ issued an ID (Order No. 7) finding Watex
in default pursuant to Commission rule 210.16, and ruling that it had
waived its rights to appear, to be served with documents, and to
contest the allegations at issue in the investigation. No petitions for
review of the ID were filed. On June 12, 2001, the Commission
determined not to review the ID, thereby allowing it to become the
Commission's final determination.
On September 13, 2001,Nelson moved to withdraw all allegations
related to the '117 patent from the investigation. No party responded
to Nelson's motion and the IA supported the motion. On September 25,
2001, the ALJ issued an ID (Order No. 26) granting the motion to
withdraw the allegations relating to the '117 patent, and on October
26, 2001, the Commission determined not to review that ID. This
withdrawal terminated the investigation with respect to all respondents
except Watex.
On October 1, 2001, Nelson filed a declaration seeking, pursuant to
section 337(g)(1) and Commission rule 210.16(c)(1), entry of a limited
exclusion order against Watex barring importation into the United
States of Watex sprinklers infringing the claims in issue of the '218
and '727 patents. In its declaration, Nelson did not seek issuance of a
cease and desist order against Watex. On December 11, 2001, the
Commission issued a notice requesting briefing on the issues of remedy,
public interest, and bonding. On January 10, 2002, Nelson, the IA, and
Tekni-Plex, Inc., a purchaser of Watex sprinklers, submitted briefing
on the issues of the public interest and bonding and proposed limited
exclusion orders. No briefs were filed by any other person or
government agency. Only the IA filed a reply brief.
Section 337(g)(1) of the Tariff Act of 1930 provides that the
Commission shall presume the facts alleged in a complaint to be true,
and upon request issue a limited exclusion order and/or cease and
desist order if: (1) A complaint is filed against a person under
section 337, (2) the complaint and
[[Page 10756]]
a notice of investigation are served on the person, (3) the person
fails to respond to the complaint and notice or otherwise fails to
appear to answer the complaint and notice, (4) the person fails to show
good cause why it should not be found in default, and (5) the
complainant seeks relief limited to that person. Such an order shall be
issued unless, after considering the effect of such exclusion, the
Commission finds that such exclusion should not be issued.
The Commission found that each of the statutory requirements for
the issuance of a limited exclusion order was met with respect to
defaulting respondent Watex. The Commission further determined that the
public interest factors enumerated in section 337(g)(1) did not
preclude the issuance of such relief. Finally, the Commission
determined that bond under the limited exclusion order during the
Presidential review period shall be in the amount of one hundred (100)
percent of the entered value of the imported articles.
This action is taken under the authority of section 337 of the
Tariff Act of 1930, 19 U.S.C. 1337, and Sec. 210.16 of the Commission's
rules of practice and procedure, 19 CFR 210.16.
By order of the Commission.
Issued: March 4, 2002.
Marilyn R. Abbott,
Secretary.
[FR Doc. 02-5512 Filed 3-7-02; 8:45 am]
BILLING CODE 7020-02-P