Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

The Court of International Trade rejected the Department of Commerce’s interpretation of an antidumping order, imposed under 19 U.S.C. 1673a(b), on nails from the People’s Republic of China. The Trade Court held that nails included in certain household tool kits imported by Target were subject to the order. The Federal Circuit vacated, noting that whether a “mixed media” item (a tool kit) is subject to an antidumping order that covers included merchandise is not addressed in the regulations. Commerce has historically treated the answer as depending on whether the mixed media item is to be treated as a single, unitary item, or a mere aggregation of separate items. Remand is necessary for Commerce to revisit its mixed media determination in light of a statutory requirement that any implicit mixed media exception to the literal scope of the order be based on preexisting public sources. Problems presented by this case could be avoided if Commerce identified, in its antidumping orders or in prospective regulations, factors that it will consider in resolving mixed media and other cases. View "Mid Cont't Nail Corp v. United States" on Justia Law

For more than 20 years, members of the U.S. softwood lumber industry accused Canada of unfairly subsidizing production of softwood lumber, resulting in a substantial amount of litigation. The U.S. and Canada have entered into several agreements intended to resolve the dispute. Under a 2006 agreement, the Department of Commerce agreed to refund duties collected on Canadian lumber after May, 2002, approximately $5 billion. Canada agreed that for seven years after the 2006 effective date, it would impose export taxes on certain softwood lumber exported to the U.S. and distribute $1 billion to U.S. groups, half to be distributed to benefit members of the Coalition. Plaintiffs are U.S. softwood lumber producers who are not members of the Coalition. Plaintiffs sued, asserting that by agreeing to a distribution that did not include all members of the domestic softwood lumber industry, the U.S. Trade Representative acted outside of its authority; that the distribution violates equal protection; and that the USTR wrongfully delegated to the Coalition the function of determining how much each affected domestic producer should receive. On remand, the Trade Court dismissed three counts for failure to state a claim. The Federal Circuit affirmed, stating that plaintiffs failed to allege facts to make plausible any of its claims. View "Almond Bros. Lumber Co. v. United States" on Justia Law

Shapiro, a U.S. affiliate of Aifudi, imports laminated woven sacks manufactured and exported by Aifudi in the People’s Republic of China (PRC). In 2008, the Department of Commerce found that those sacks were being sold in the U.S. at less than fair market value (19 U.S.C. 1673) and issued an antidumping-duty order. Aifudi participated, submitted verified information, and demonstrated that it was not subject to government control. Aifudi was assigned a “separate rate” of 64.28 percent, not the default PRC-wide rate. In a later review, conducted at Aifudi’s request, of the amount of the duty for a defined period, Commerce considered Aifudi’s eligibility for a company-specific rate for that period. Commerce published preliminary results, favorable to Aifudi. Aifudi immediately withdrew from the proceeding and removed its confidential information from the record. Commerce concluded that the record no longer contained enough verifiable information to prove that Aifudi was not subject to government control and assigned Aifudi the default PRC-wide rate for the review period. Shapiro appealed. The Court of International Trade upheld the decision. The Federal Circuit affirmed, concluding that Commerce’s decision to apply the PRC-wide rate to Aifudi was supported by substantial evidence and did not violate any law. View "AMS Assocs., Inc. v. United States" on Justia Law

The companies, which import clothing and footwear, filed suit in the Court of International Trade, alleging that classifications in the Harmonized Tariff Schedule of the United States discriminated on the basis of age or gender in violation of the equal protection clause of the Due Process Clause. Those classifications assess different tariff rates depending on whether footwear or clothing is subcategorized as being for youth, men, or for women. The Trade Court dismissed for failure to state a claim. The Federal Circuit affirmed. Where a law is facially neutral, a party pleading discrimination under equal protection must show that the law has a disparate impact resulting from a discriminatory purpose. Proving discriminatory intent requires more than mere awareness of consequences; it would require proving that Congress enacted the classifications “because of, not merely in spite of, [their] adverse effects upon an identifiable group.” View "Rack Room Shoes v. United States" on Justia Law

In 2006 InterDigital granted LG a license to certain patents concerning devices capable of wireless voice or data communications, including devices designed to operate in accordance with second-generation (2G) wireless standards and devices designed to operate in accordance with third-generation (3G) wireless standards. After the contract terminated, InterDigital filed a complaint with the International Trade Commission, claiming violation of the Tariff Act, 19 U.S.C. 1337, by importing devices that infringed patents relating to 3G wireless technology. The ITC terminated the investigation as to LG, based on an arbitration clause in the contract. The Federal Circuit reversed, holding that there was no plausible argument that the case arose from the patent license contract between the companies. View "InterDigital Commc'ns, LLC v. Int'l Trade Comm'n" on Justia Law

With respect to Bestpak’s importation of narrow woven ribbons with woven selvedge from China, he U.S. Department of Commerce calculated a separate rate margin using a simple average of a de minimis and an adverse facts available margin, yielding a rate of 123.83%. The Court of International Trade upheld the decision. The Federal Circuit vacated and remanded, finding that substantial evidence did not support the rate. View "Yangzhou Bestpak Gifts & Crafts Co., Ltd. v. United States" on Justia Law

Forrester and Wheelabrator are competitors in the market for phosphate-based treatment systems for stabilizing heavy metals in waste such as incinerator ash, to prevent heavy metals from leaching into drinking water sources. Wheelabrator calls its treatment system “WES-PHix” and has obtained several related U.S. patents. Forrester calls its system “FESI-BOND” and has also obtained patents. In 2001, Wheelabrator entered into a license agreement that granted Bio Max the exclusive right to use and sublicense WES-PHix® in Taiwan. Bio Max sublicensed WESPHix to Kobin, which used WES-PHix at its Taipei plant. Forrester learned that Kobin was dissatisfied with WES-PHix due to the odor it generated. Forrester developed a variation on its system, addressing the odor problem, and persuaded Kobin to license FESI-BOND for use at its plant. Wheelabrator sent a letter asserting that Kobin was in breach of its WES-PHix sublicense agreement and threatening legal action. Kobin stopped purchasing from Forrester and entered into a new sublicense with Wheelabrator. Forrester filed suit alleging violation of the New Hampshire Consumer Protection Act; tortious interference with a contractual relationship; tortious interference with Forrester’s prospective advantage; and trade secret misappropriation. The district court denied remand and granted summary judgment for Wheelabrator. The Federal Circuit vacated, with instructions to remand to state court. View "Forrester Envt.l Servs., Inc. v. Wheelabrator Techs.,Inc." on Justia Law

In 1989, the Department of Commerce determined that U.S domestic industry for ball bearings was being materially injured by sales of ball bearings imported from France, Germany, Italy, Japan, Romania, Singapore, Sweden, Thailand, and the U.K. at less than fair value and published an anti-dumping order. Following four remands, the Court of International Trade’s affirmed the Commission’s decisions, issued under protest, to revoke the anti-dumping orders on ball bearings from Japan and the U.K. The Federal Circuit reversed in part and vacated in part, finding that the Commission’s second remand determination was supported substantial evidence and that the Court of International Trade erred in repeatedly remanding the case. View "NSK Corp. v.. FAG Italia, S.P.A." on Justia Law

Motiva’s patent, issued in 2007 and titled “Human Movement Measurement System,” generally relates to a “system for ... testing and training a user to manipulate the position of ... transponders while being guided by interactive and sensory feedback . . . for the purpose of functional movement assessment for exercise and physical rehabilitation.” Motiva accused Nintendo’s Wii video game system of infringement. The district court stayed the case pending patent reexamination. Motiva then filed a complaint with the International Trade Commission, asserting that the Wii infringed the patent, so that its importation violated the Tariff Act. After the Commission began its investigation, Nintendo moved for summary determination under Section 337, which prohibits importation of articles that infringe a valid and enforceable U.S. patent if “an industry in the United States, relating to the articles protected by the patent ... exists or is in the process of being established.” 19 U.S.C. 1337(a)(2). According to Nintendo, there were no commercialized products incorporating Motiva’s patented technology, and Motiva’s activity aimed at developing a domestic industry consisted solely of the litigation. The administrative law judge agreed. The Federal Circuit affirmed. View "Motiva, LLC v. Int'l Trade Comm'n" on Justia Law

Deckers imported UGG® Classic Crochet boots having a knit upper portion and a rubber sole. They do not have laces, buckles, or fasteners, can be pulled on by hand, and extend above the ankle. At liquidation, Customs classified the boots under Subheading 19.35, covering: “Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: Footwear with outer soles of rubber or plastics: Other: Footwear with open toes or open heels; footwear of the slip-on type, that is held to the foot without the use of laces or buckles or other fasteners, the foregoing except footwear of subheading 6404.19.20 and except footwear having a foxing or foxing-like band wholly or almost wholly of rubber or plastics applied or molded at the sole and overlapping the upper” and subject to a duty rate of 37.5 percent. Deckers sought reclassification under subheading 6404.19.90, covering“[f]ootwear with outer soles of rubber . . . uppers of textile materials” that is “[v]alued [at] over $12/pair,” subject to a duty rate of nine percent. Customs rejected an argument that the term “footwear of the slip-on type” only encompasses footwear that does not extend above the ankle. The Trade Court granted the government summary judgment. The Federal Circuit affirmed. View "Deckers Outdoor Corp. v. United States" on Justia Law