Notice2021-21998
Certain Balanced Armature Devices, Products Containing Same, and Components Thereof; Notice of a Commission Determination Finding a Violation of Section 337; Issuance of a General Exclusion Order and Cease and Desist Orders; Termination of the Investigation
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 8, 2021
Issuing agencies
International Trade Commission
Abstract
Notice is hereby given that the U.S. International Trade Commission has determined to affirm, on modified grounds, a summary determination ("ID") (Order No. 50) of the presiding administrative law judge ("ALJ") finding a violation of section 337. The Commission has determined that the appropriate remedy is a general exclusion order ("GEO") and cease and desists orders ("CDO") to certain respondents. The Commission terminates the investigation.
Full Text
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<title>Federal Register, Volume 86 Issue 193 (Friday, October 8, 2021)</title>
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[Federal Register Volume 86, Number 193 (Friday, October 8, 2021)]
[Notices]
[Pages 56290-56291]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-21998]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 337-TA-1186]
Certain Balanced Armature Devices, Products Containing Same, and
Components Thereof; Notice of a Commission Determination Finding a
Violation of Section 337; Issuance of a General Exclusion Order and
Cease and Desist Orders; 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 determined to affirm, on modified grounds, a summary
determination (``ID'') (Order No. 50) of the presiding administrative
law judge (``ALJ'') finding a violation of section 337. The Commission
has determined that the appropriate remedy is a general exclusion order
(``GEO'') and cease and desists orders (``CDO'') to certain
respondents. The Commission terminates the investigation.
FOR FURTHER INFORMATION CONTACT: Amanda Pitcher Fisherow, Esq., Office
of the General Counsel, U.S. International Trade Commission, 500 E
Street SW, Washington, DC 20436, telephone (202) 205-2737. Copies of
non-confidential documents filed in connection with this investigation
may be viewed on the Commission's electronic docket (EDIS) at <a href="https://edis.usitc.gov">https://edis.usitc.gov</a>. For help accessing EDIS, please email
<a href="/cdn-cgi/l/email-protection#c98c8d809afa81aca5b989bcbaa0bdaae7aea6bf"><span class="__cf_email__" data-cfemail="bffafbf6ec8cf7dad3cfffcaccd6cbdc91d8d0c9">[email protected]</span></a>. General information concerning the Commission may
also be obtained by accessing its internet server at <a href="https://www.usitc.gov">https://www.usitc.gov</a>. 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 November 29, 2019, the Commission
instituted this investigation based on a complaint filed by Knowles
Corporation and Knowles Electronics, LLC of Itasca, Illinois, and
Knowles Electronics (Suzhou) Co., Ltd. of Suzhou, China (collectively,
``Knowles''). 84 FR 65840 (Nov. 29, 2019). The complaint, as
supplemented, alleged violations of section 337 of the Tariff Act of
1930, as amended, 19 U.S.C. 1337, due to the importation into the
United States, sale for importation, or sale in the United States after
importation of certain balanced armature devices, products containing
same, and components thereof by reason of misappropriation of trade
secrets, the threat or effect of which is to destroy or substantially
injure a domestic industry. Id. The notice of investigation named
twelve (12) respondents, including Shenzhen Bellsing Acoustic
Technology Co. Ltd. of Shenzhen, China, Suzhou Bellsing Acoustic
Technology Co. Ltd. of Suzhou, China, Dongguan Bellsing Precision
Device Co., Ltd. of Dongguan, China, and Bellsing Corporation of Lisle,
Illinois (collectively, ``Bellsing''); Liang Li (a/k/a Ryan Li) of
Suzhou City, China (``Mr. Li''); Dongguan Xinyao Electronics Industrial
Co., Ltd. of Dongguan, China (``Xinyao''); Soundlink Co., Ltd. of
Suzhou, China (``Soundlink''); Magnatone Hearing Aid Corporation d/b/a
Persona Medical and lnEarz Audio of Casselberry, Florida (``Persona'');
Jerry Harvey Audio LLC of Orlando, Florida (``Harvey''); Magic
Dynamics, LLC d/b/a MagicEar of Clearwater, Florida (``MagicEar'');
Campfire Audio, LLC of Portland, Oregon (``Campfire''); and Clear Tune
Monitors, Inc. of Orlando, Florida (``Clear Tune''). Id. The Office of
Unfair Import Investigations (``OUII'') is also a party in this
investigation. Id.
Xinyao, Soundlink, MagicEar, CampFire, Persona, Clear Tune, and
Harvey were all terminated from the investigation based on the issuance
of consent orders. See Order Nos. 37-40, unreviewed by Comm'n Notice
(Nov. 23, 2020); Order Nos. 34-35, unreviewed by Comm'n Notice (Nov.
19, 2020); and Order No. 28, unreviewed by Comm'n Notice (Sept. 20,
2020).
On January 14, 2021, the presiding ALJ issued an ID (Order No. 46),
granting-in-part and denying-in-part Knowles' motion for sanctions
(``Sanctions ID''). As to Bellsing, the Sanctions ID found that
Bellsing failed to disclose spoliation of evidence, that its failure to
do so was in bad faith, and that the appropriate sanction was default.
Sanctions ID at 18-46. The Sanctions ID denied Knowles' motion as to
Mr. Li, and denied Knowles' request for monetary sanctions. Id. at 17-
18, 46-47. No one petitioned for review of the Sanctions ID.
Nevertheless, on February 16, 2021, the Commission determined to review
the Sanctions ID in its entirety. Comm'n Notice (Feb. 16, 2021). On
March 17, 2021, the Commission issued its final determination on the
Sanctions ID, affirming the Sanctions ID, with modification, finding
Bellsing in default. Sanctions ID at 47 (Jan. 14, 2021), aff'd with
modification, Comm'n Notice (Mar. 17, 2020).
On June 1, 2021, the ALJ issued the subject ID. On June 11, 2021,
Bellsing and Mr. Li filed a joint petition for review. On June 21,
2021, OUII and Knowles filed responses.
On August 2, 2021, the Commission determined to review the ID in
part. Specifically, the Commission determined to review (1) whether
Bellsing can participate in briefing on remedy and bonding before the
ALJ (ID at 4) and in briefing on remedy, the public interest, and
bonding before the Commission notwithstanding its default; (2)
importation; (3) use by Mr. Li of Representative Trade Secret Nos.
(``RTS'') 1-10 (ID at 35-36, 41-42, 49, 56-57, 61, 72-73, and 84-85);
(4) all findings related to RTS No. 6; and (5) domestic industry. 86 FR
43270 (Aug 6, 2021). The Commission also reviewed the issues raised in
the parties' arguments relating to due process, comity, and collateral
estoppel. Id. at 43270-71. The Commission requested briefing on the
issues under review, remedy, bonding, and the public interest. Id. at
43271. On August 16, 2021, Respondents, Knowles, and OUII each filed
their initial responses to the Commission's notice of review. On August
23, 2021, Respondents, Knowles, and OUII each filed their replies.
Having considered the record, including the ID, the ALJ's
recommended determination on remedy and bonding, and the parties'
submissions, the Commission has
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determined that a violation has occurred as to Mr. Li. Bellsing had
previously been found in default, and the Commission finds a violation
has occurred as to Bellsing. Specifically, the Commission finds that
(1) Mr. Li has met the importation requirement on modified grounds, and
affirms the ID's remaining findings on importation; (2) Mr. Li has used
and/or disclosed each of RTS Nos. 1-10; (3) RTS No. 6 has been
misappropriated; and (4) affirms the IDs findings on domestic industry.
All findings in the ID that are not inconsistent with the Commission's
determination are affirmed.
Accordingly, the Commission finds that there is a violation of
section 337. The Commission has determined that the appropriate remedy
is a GEO and CDOs directed to each of the Bellsing respondents and Mr.
Li. These orders bar Bellsing and Mr. Li's unfair acts for a duration
of twenty-six (26) years. The Commission has also determined that the
public interest factors enumerated in subsections 337(d)(1) and (f)(1)
(19 U.S.C. 1337(d)(1), (f)(1)) do not preclude the issuance of the GEO
and CDOs. The GEO is directed to covered products that are made by,
for, or on behalf of Bellsing and/or Mr. Li. The GEO reaches downstream
products incorporating the covered products. The GEO includes a
provision requiring any importer seeking to import the covered products
(or products containing them or the components thereof) manufactured by
or for Bellsing and/or Mr. Li or their affiliates or successors, to
obtain a ruling from the Commission prior to the importation of the
articles, finding that they are not subject to the GEO. The Commission
has set the bond at one hundred percent (100%) of the value of the
entered products imported by or on behalf of Bellsing and/or Mr. Li and
sets a zero percent (0%) bond (i.e., no bond) for downstream products
or components thereof. The investigation is terminated.
The Commission's orders and opinion were delivered to the President
and to the United States Trade Representative on the day of their
issuance.
The Commission vote for this determination took place on October 4,
2021.
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: October 4, 2021.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2021-21998 Filed 10-7-21; 8:45 am]
BILLING CODE 7020-02-P
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