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Transcript of In the Matter of - USITC 2014-05-21¢  Werkstad (KMW); a KMW subsidiary and distributor of...

  • In the Matter of

  • UNITED STATES INTERNATIONAL TRADE COMMISSIQN

    COMMISSIONERS

    Bill Alberger, Chalrman Michael J, Celhoun, Vice Chalrman

    Catherlne Bedell

    Paula Stern

    Kenneth R, Mason, Secretary to the Commisslon

    Address all communications to

    Office of the Secretary United States International Trade Commission

    Washington, D.C. 20436

  • . I

    ,' ..- ,., ;.- is: L L I '/ E D

    -1 I n the Mat ter of 1

    MACHINE FORMING SECTIONS FOR THE 1 CONTINUOUS PRODUCTION OF PAPER, 1 AND COMPONENTS THEREOF 1

    ~ ~~~

    CERTAIN HEADBOXES AND PAPERMAKING ;. I n v e s t i g a t i o n No. 337-TA-82

    ~

    COMMISSION ACTION AND

    I n t r o d u c t i o n

    ORDER

    The United S t a t e s I n t e r n a t i o n a l Trado, Commission conducted i n v e s t i g a t i o n

    No. 337-TA-82 t o determine whether t h e r e i s a v i o l a t i o n o f s e c t i o n 337 o f t h e

    T a r i f f A c t of 1930 (19 U.S.C. 8 1337) i n c o n n e c t i o n with a l l e g e d u n f a i r

    methods o f compet i t ion and u n f a i r acts i n t h e importa t ion i n t o t h e United

    S t a t e s o f c e r t a i n headboxes and papermaking machine forming s e c t i o n s f o r t h e

    cont inuous product ion o f paper , and components t h e r e o f , o r i n t h e sa le of such

    a r t i c l e s , t h e e f f e c t o r tendency o f which i s t o d e s t r o y o r s u b s t a n t i a l l y

    i n j u r e an i n d u s t r y , e f f i c i e n t l y and economica l ly o p e r a t e d , i n t h e United

    S t a t e s .

    (Commissioner S t e r n d i s s e n t i n g ) t h a t t h e r e i s a v i o l a t i o n o f t h e s t a t u t e i n

    the importa t ion and s a l e of mult i -ply headboxes and papermaking machine

    forming s e c t i o n s , and components t h e r e o f , which i n f r i n g e , c o n t r i b u t e t o t h e

    On March 23, 1981, t h e Commission determined by a 3-to-1 v o t e

    i n f r i n g e m e n t , o r induce t h e in f r ingement o f c l a i m s 1 , 1 2 , 1 5 , 1 6 , or 22 of

  • 2

    U.Sa Letters Patent RE 28,269 and claims 4, 5, or 6 of U.S. Leiters Patent

    3,923,593#

    that the statutory public-interest considerations do not preclude relief in

    . I f

    Having determined by a 3-to-0 vote (Cornmissioner Stern not voting)

    this case, the Commission also determined by a 2-to-1 vote (Chairman Alberger

    dissenting and Commissioner Stern not voting), that an exclusion order is the

    appropriate remedy.

    , Action

    Having reviewed the record compiled in investigation No. 337-TA-82 and

    the recommended determination of the presiding officer, on March 23 1981, the

    Commission determined that--

    1. There is a violation of section 337 of the Tariff Act

    of 1930 in the importation and sale of certain

    multi-ply headboxes and papermaking machine forming

    . 'sections for the continuous productioa of paper, and

    components thereof, which infringe claims 1, 12, 15,

    16, or 22 of U.S. Letters Patent RE 28,269 and claims

    4, 5, or 6 of U . S . Letters Patent 3,923,593, the

    tendency of which is to substantially injure an

    industry, efficiently and economically operated, in

    the United States. 1/ - 2. The issuance of an exclusion order, pursuant to

    subsection (d) of section 337 of the Tariff Act of

    1/ In determining that there is a violation of section 337, Commissioner Beaell determined that the unfair methods of competition and u n f a i r acts o f the respondents have had the effect or tendency to substantially injure an industry, efficiently and economically operated, in the United States.

  • 3

    1930 , prevent ing importat ion .. o f m u l t i - p l y headboxes and papermaking machine forming s e c t i o n s f o r t h e

    continuous product ion of paper , and components

    t h e r e o f , made i n accordance w i t h c la ims 1 , 1 2 , 1 5 ,

    1 6 , and 22 of U.S. L e t t e r s P a t e n t RE 28,269 and

    c la ims 4 , 5, and 6 o f U.S. L e t t e r s P a t e n t 3 , 9 2 3 , 5 9 3 ,

    for the remaining terms of s a i d p a t e n t s , except where

    such importa t ion i s l i c e n s e d by the owner o f s a i d

    p a t e n t s , i s the a p p r o p r i a t e remedy f o r the v i o l a t i o n

    o f s e c t i o n 337.

    3 . The p u b l i c - i n t e r e s t f a c t o r s enumerated i n s u b s e c t i o n

    ( d ) of s e c t i o n 337 o f t h e T a r i f f A c t of 1930 do n o t

    preclude the i s suance o f an e x c l u s i o n order i n t h i s

    . i n v e s t i g a t i o n . --- 4 . The a p p r o p r i a t e bond provided f o r i n s u b s e c t i o n

    ( g ) ( 3 ) o f s e c t i o n 337 o f the T a r i f f Act o f 1930

    d u r i n g the per iod t h i s m a t t e r is b e f o r e the P r e s i d e n t

    i s i n the amount o f ’ 1 0 0 p e r c e n t ad valorem o f t h e

    headboxes and papermaking machine forming s e c t i o n s ,

    and components t h e r e o f , concerned.

    Accordingly , i t i s hereby ordered t h a t -

    1. M u l t i - p l y headboxes and papermaking machine forming s e c t i o n s f o r the

    continuous production o f paper , and components t h e r e o f , w h i c h i n € r i n g e claims

    1 , 12, 1 5 , 1 6 , o r 22 o f U . S . L e t t e r s P 3 t e n t ” k 2 8 , 2 6 9 and c la ims 4, 5 , o r 6 o f

  • . , r '

    4

    UI S I Letters Patent 3,923,593 are excluded from entry into the United States

    for the remaining term o f r a i d patents, except where such importation $6

    ' .'

    licensed by the potent owner;

    2 . The articles ordered to be excluded from entry into the United

    States shall be entitled t o entry under bond in the amount of 100 percent

    ad valorerd (ad valorem to be determined in accordance with sec. 402 of the

    Tariff Act of 1930 (19 U.S.C. 1401(a)) from the day after this order is

    received by the President pursuant to subsection (8 ) of section 337 of the

    Tariff Act of 1930 until such time as the President notifies the Commission

    that he approves or disapproves this action, but, in any event, not later than

    60 days after the date of receipt;

    3 . Notice of this Action and Order be published in the Federal

    I Register;

    4 . Copies of this Action and Order, and the Opinions of the

    Commissioners be served upon each party of record in ;his investigation and

    upon the Department of Health and Human Services, the U.S. Department of

    Justice, the Federal Trade Commission, and the Secretary of the Treasury; and

    5. The Commission may amend this order in accordance with the procedure

    described in Commission Rule 211.57 (46 Fed. Reg. 17533, Mar. 18, 1981).

    By order of the Commission. ,

    Issued: April 8, 1981.

    S c r e t a r y 1

  • OPINION OF CHAIRMAN BILL ALBERGER, VICE-CHAIRMAN MICHAEL J. CALHOUN,

    AND COMMISSIONER CATHERINE BEDELL

    PROCEDURAL HISTORY

    This i n v e s t i g a t i o n was i n s t i t u t e d on the b a s i s o f a complaint f i l e d on

    b e h a l f o f the B e l o i t Corporat ion , a manufacturer , deve loper , and d i s t r i b u t o r

    o f machinery for t h e manufacture o f paper. The complaint a l l e g e d t h e

    v i o l a t i o n o f s e c t i o n 337 o f the T a r i f f Act o f 1930 i n t h e unauthorized

    importat ion i n t o t h e United S t a t e s and i n t h e sa le o f c e r t a i n papermaking

    machive apparatus i n c o r p o r a t i n g invent ions which have been patented i n this

    country. S p e c i f i c a l l y , B e l o i t a l l e g e d t h a t complete papermaking machines

    & i c h inc lude headboxes and twin wire forming s e c t i o n s , as well as components

    t h e r e f o r , which d i r e c t l y i n f r i n g e , c o n t r i b u t o r i l y i n f r i n g e and/or induce t h e

    infr ingement o f U.S. L e t t e r s P a t e n t s RE 2 8 , 2 6 9 ; 3 , 9 2 3 , 5 9 3 and 3 , 8 7 6 , 4 9 8 have

    been imported i n t o t h e United S t a t e s and s o l d and o f f e r e d f o r s a l e t o

    customers i n t h e United S t a t e s i n d i s r e g a r d o f B e l o i t ' s r i g h t s a s t h e a s s i g n e e

    o f the a f o r e s a i d p a t e n t s .

    U.S. L e t t e r s P a t e n t RE 28 ,269 ( ' 269 p a t e n t ) covers a headbox having a

    s l i c e chamber and a s l i c e opening f o r d e l i v e r i n g papermaking s t o c k t o a

    forming sur face i n which t h e improvement comprises a t r a i l i n g element

    p o s i t i o n e d i n t h e s l i c e chamber.

    sa id headbox from pondside t o pondside and i s anchored only a t i t s upstream

    end with i t s downstream p o r t i o n unattached and c o n s t r u c t e d t o be

    s e l f - p o s i t i o n a b l e so as t o be s o l e l y respons ive to f o r c e s exerted thereon by