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

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

U.S. Customs and Border Protection denied Ford’s claims for post-entry duty refunds. The Court of International Trade upheld the denial and the Federal Circuit vacated. While 19 U.S.C. 1520(d) required Ford to file the relevant certificates of origin within one year, and its failure to do so could not be excused by 19 C.F.R. 10.112, Customs failed to adequately explain why it treats post-entry claims for refunds under 1520(d) differently depending on whether they were filed on paper or through the reconciliation program, under the North American Free Trade Agreement, which allows qualifying goods to enter the United States duty free(art. 502). View "Ford Motor Co. v. United States" on Justia Law

The U.S. Department of Commerce used a practice known as “zeroing” to determine antidumping duties in administrative reviews, even though Commerce no longer uses zeroing in investigations establishing antidumping orders. Using zeroing, negative dumping margins (margins of sales of merchandise sold at nondumped prices) are given a value of zero and only positive dumping margins (margins for sales of merchandise sold at dumped prices) are aggregated, to avoid a negative number that would offset a positive margin for another averaging group. The statute, 19 U.S.C. 1677(35)(A), does not mention zeroing. However, Commerce has emphasized language that the dumping margin “means the amount by which the normal value exceeds the export price or constructed export price of the subject merchandise.” Commerce attributes the differing interpretations as necessary to comply with international obligations, while preserving a practice that serves recognized policy goals. Following two remands, the Court of International Trade and Federal Circuit affirmed. No rule of law precludes Commerce from interpreting the statute differently in different circumstances as long as it provides an adequate explanation. View "Union Steel v. United States" on Justia Law

Kahrs imports engineered wood flooring panels for distribution to flooring wholesalers. Kahrs classified the products as “assembled parquet panels” under the Harmonized Tariff Schedule of the United States (HTSUS) subheading 4418.30.00, a duty-free provision for “Builders’ joinery and carpentry of wood, including cellular wood panels and assembled parquet panels; shingles and shakes: parquet panels.” Customs subsequently liquidated Kahrs’ merchandise under HTSUS 4412, which covers “plywood, veneered panels and similar laminated wood,” at a duty rate of eight percent ad valorem. Customs denied a protest and the Court of International Trade found that Customs correctly classified Kahrs’ merchandise as plywood under heading 4412. The Federal Circuit affirmed. View "Kahrs Int'l, Inc. v. United States" on Justia Law