Federal Register - September 16, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices
INTERNATIONAL TRADE
COMMISSION
Investigation No. 337TA1133
Rescission
Certain Unmanned Aerial Vehicles and Components Thereof; Commission Determination To Institute a Rescission Proceeding and Rescind Permanently a Limited Exclusion Order and Cease and Desist Orders;
Termination of Rescission Proceeding U.S. International Trade Commission.
ACTION: Notice.
AGENCY:
Notice is hereby given that the U.S. International Trade Commission the Commission has determined to institute a rescission proceeding and rescind the remedial orders issued in the underlying investigation. This rescission proceeding is hereby terminated.
FOR FURTHER INFORMATION CONTACT: Carl P. Bretscher, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, telephone 202
2052382. Copies of non-confidential documents filed in connection with this investigation may be viewed on the Commissions 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 Commissions TDD terminal, telephone 202 2051810.
SUPPLEMENTARY INFORMATION: The Commission instituted this investigation on October 2, 2018, based on a complaint filed by Autel Robotics USA, Inc. Autel of Bothell, Washington.
83 FR 4957576 Oct. 2, 2018. The complaint accuses respondents of violating 19 U.S.C. 1337 of the Tariff Act of 1930, as amended Section 337 by importing into the United States, selling for importation, or selling in the United States after importation certain unmanned aerial vehicles UAVs and components thereof that infringe one or more of the asserted claims of U.S. Patent Nos. 9,260,184
the 184 patent; 7,979,174 the 174
patent; and 10,044,013 the 013
patent. Id. The complaint also alleges the existence of a domestic industry. Id.
The notice of investigation named the following respondents: SZ DJI
Technology Co. Ltd. of Shenzhen, SUMMARY:
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China; DJI Europe B.V. of Barendrecht, Netherlands; DJI Technology Inc. of Burbank, California; iFlight Technology Co., Ltd. iFlight of Hong Kong; DJI
Baiwang Technology Co. Ltd. of Shenzhen, China; DJI Research LLC of Palo Alto, California; DJI Service LLC
DJI Service of Cerritos, California;
and DJI Creative Studio LLC of Burbank, California collectively, DJI. Id. The Office of Unfair Import Investigations is not a party to this investigation. Id.
On March 2, 2020, the presiding Chief Administrative Law Judge CALJ
issued a combined Initial Determination on Violation of Section 337 ID and Recommended Determination RD on Remedy and Bonding, finding a violation of Section 337 by way of infringement of the 184 patent but no violation with respect to the 174 patent or 013 patent.
On May 29, 2020, while the parties petitions for review were still pending before the Commission, respondents counsel filed a letter with the Commission attaching four recent Final Written Decisions by the Patent Trial and Appeal Board PTAB of the U.S.
Patent and Trademark Office, finding the challenged claims of the 184, 174, and 013 patents, including the claims asserted in this investigation, to be unpatentable. See, e.g., SZ DJI
Technology Co. v. Autel Robotics USA
LLC, Case IPR201900343, Final Written Decision Finding All Challenged Claims Unpatentable PTAB May 21, 2020, on appeal sub. nom., Autel Robotics USA
LLC v. SZ DJI Technology Co., Appeal No. 201987 Fed. Cir. Appeal No.
201987.
On June 8, 2020, the Commission issued a notice stating that it had determined to partially review certain findings relating to the 184 patent, including the impact, if any, of the PTABs Final Written Decision finding the 184 patent claims unpatentable.
Commn Notice at 23 June 9, 2020.
The Commission determined not to review the IDs findings that there is no violation with respect to the 174 patent or013 patent. Id.
On August 20, 2020, the Commission affirmed that DJI violated Section 337 by way of infringing claims 1 and 2 of the 184 patent. Commn Notice at 3 Aug.
20, 2020 Commn Notice; Commn Op. at 821 Aug. 20, 2020 Commn Op.. Having found a violation of Section 337, the Commission determined that the appropriate remedy is: a A limited exclusion order prohibiting the importation of UAVs and components thereof that are covered by claims 1 or 2 of the 184
patent; b cease and desist orders against respondents iFlight and DJI
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Service; and c set a bond in the amount of 11.5 percent of the entered value of the excluded products imported during the period of Presidential review 19 U.S.C. 1337j.
See Commn Notice at 3; Commn Op.
at 2634. The Commission determined that the public interest factors enumerated in Section 337d1 and f1 do not preclude issuance of the limited exclusion order or cease and desist orders. Id. The Commission, however, determined to suspend enforcement of the limited exclusion order, cease and desist orders, and bond provision pending final resolution of the PTABs Final Written Decision regarding the 184 patent. See Commn Notice at 4; Commn Op. at 3538.
On October 16, 2020, Autel filed a notice of appeal of the Commissions final determination, including its determination to suspend enforcement of its remedial orders. See Robotics USA, LLC v. ITC, Appeal No. 211082
Appeal No. 211082. On November 25, 2020, DJI filed a notice of a crossappeal of the Commissions final determination. See SZ DJI Technology Co. Ltd. v. ITC, Appeal No. 211363
Appeal No. 211363. On December 16, 2020, the Federal Circuit consolidated the appeals, designating Appeal No. 211082 as the lead case.
On August 16, 2021, Autel and DJI
filed a joint motion to voluntarily dismiss their appeal and cross-appeal.
See Autel Robotics USA LLC v. Intl Trade Commn LLC, Appeal Nos. 2021
1082, 1363, Joint Stipulation to Dismiss Appeals Aug. 16, 2021. The Federal Circuit granted the motion and dismissed the appeals the following day. See Autel Robotics USA LLC v. Intl Trade Commn, Appeal Nos. 211082, 1363, Order Fed. Cir. Aug. 17, 2021.
On August 16, 2021, Autel and DJI
filed a Joint Petition to Rescind the Limited Exclusion Order and Cease and Desist Orders Joint Petition that the Commission issued in this investigation, pursuant to 19 U.S.C. 1337k and Commission Rule 210.76a 19 CFR
210.76a. The parties filed both confidential and public versions of the settlement agreements.
Upon consideration of the parties joint petition, the Commission has determined that the petition complies with Commission rules, see 19 CFR
210.76a3, and that there are no extraordinary reasons to deny rescission of the remedial orders. Accordingly, the Commission has determined to institute a rescission proceeding and to permanently rescind the LEO and the CDOs. This rescission proceeding is hereby terminated.
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