ALJ Lord Recommends 12 Month Delayed Relief Based On Public Interest If Commission Finds Violation Of Section 337 In 910 – On April 10, 2015, ALJ Lord issued the public version of the Initial Determination on Violation and Recommended Determination on Public Interest, Remedy, and Bonding (“ID”) in Certain Television Sets, Television Receivers, Television Tuners, and Components Thereof, Inv. No. 337-TA-910. The ID found no violation of Section 337, in part because ALJ Lord determined that Complainant failed to satisfy the economic prong of the domestic industry requirement and that the patents are invalid. ALJ Lord recommended that if the Commission finds a violation of Section 337, however, a limited exclusion order and cease and desist order issue, but that implementation of such orders be delayed 12-months in view of public interest considerations. The ID found that the effect of exclusion orders on such a large segment of the television market could be significant in the short term, and a 12 month delay is “mandated by the scope of the excluded items but also takes into account the anticipated rapidity of the response by the television industry.” ID at 225. On April 30, 2015, the Commission issued a Notice that is has determined to review portions of the ID, including domestic industry-economic prong and whether the public interest warrants any tailoring of relief.

Commission Affirms Sanctions Determination In 883 Investigation – On April 30, 2015, the Commission issued its Opinion in Certain Opaque Polymers,Inv. No. 337-TA-883, affirming the ALJ’s ID that granted a motion for default and sanctions for spoliation of evidence. The Commission affirmed in part joint and several liability for sanctions as to Respondents Organik Kimya San. ve Tic. A.S, Organik Kimya Netherlands B.V., and Organik Kimya US, Inc. (collectively “Respondent”) and its U.S. counsel, but reversed the imposition of sanctions on Turkish counsel. The ID found that Respondent engaged in “massive spoliation of evidence” by deleting electronic data and “knowingly and deliberately presented” a “multitude of lies” to cover its wrongdoing. The Commission found that the filing of the sanctions motion provided adequate notice that U.S. counsel could be held jointly and severally liable under Commission Rule 210.33(c). The Commission also found that U.S. counsel’s liability was justified by “false” representations in a letter to the ALJ on behalf of Respondent without “check[ing] the veracity of the explanations in that letter before it was filed”; the failure to safeguard evidence from Respondent’s tampering despite the presence of U.S. counsel in Turkey; and the lack of any evidence that U.S. counsel gave litigation hold instructions or actively attempted to preserve evidence. Commissioner Schmidtlein dissented as to U.S. counsel’s joint and several liability, finding insufficient notice.

Commission Issues Limited Exclusion And Cease And Desist Orders For Trade Secret Theft In 887 Investigation – On April 16, 2015, the Commission issued its Notice of Final Determination in Certain Crawler Cranes and Components Thereof, No. 337-TA-887, finding a violation of Section 337 by respondent Sany Heavy Industry Co. and its affiliates (“Sany”). The Commission determined that imports of crawler cranes by Sany infringed a valid U.S. patent and misappropriated trade secrets of Complainant Manitowoc Cranes, LLC, a U.S. manufacturer of crawler cranes. The Commission issued a limited exclusion order prohibiting the importation of certain crawler cranes and components thereof that infringe Complainant’s patent claims and/or are manufactured using Complainant’s trade secrets for a period of ten years. The Commission also issued a cease and desist order prohibiting Sany from conducting activities in the United States on certain crawler cranes manufactured using Complainant’s trade secrets. The Commission Opinion setting forth the reasons for the Commission’s determination, which affirms-in-part and reverses-in-part the final ID issued by ALJ Shaw, is not yet public.