Justia International Trade Opinion Summaries

MPS and O2 Micro compete in the market for integrated circuit products that control LCD and LED lighting. O2 had filed several prior patent infringement claims against MPS and its customers. MPS sought a declaratory judgment of noninfringement and invalidity with respect to four related O2 patents (the 519 family). After O2 learned of the suit, O2 filed a complaint with the International Trade Commission (ITC), under section 337 of the Tariff Act, against MPS and its customers, claiming that their imports infringed the 519 patents and the 382 patent. In the court action, O2 counterclaimed for infringement, added MPS customers, as counter-defendants, and moved to stay proceedings. The court denied the motion. O2 later withdrew assertions concerning the 519 family from both proceedings and covenanted not to sue MPS or its customers for infringement of those patents. O2 insisted that the 382 patent was entitled to a 1998 conception date and filed verified interrogatories attesting to that. O2’s story ultimately unraveled and it “sought to mask its proffer of false testimony.” Ultimately, the court ruled that the earliest invention date was 1999: O2 signed a covenant not to sue with respect to the patent. The district court later dismissed all claims with prejudice and granted fees and costs, based on an exceptional case finding on O2’s “vexatious litigation strategy, litigation misconduct and unprofessional behavior.” The Federal Circuit affirmed. View "Monolithic Power Sys., Inc. v. O2 Micro Int'l, Ltd." on Justia Law

Trek was the importer of record for 72 entries of men’s suits in 2004. Mercantile was the consignee. Shadadpuri is president and sole shareholder of Trek, and a 40% shareholder of Mercantile. Trek and Mercantile provided a number of fabric “assists” to manufacturers outside the U. S. An assist refers to “materials, components, parts, and similar items incorporated in the imported merchandise,” 19 U.S.C. 1401a(h)(1)(A)(i). Customs determined that the entry documentation failed to include the cost of the fabric assists in the price paid for the suits which lowered the amount of duty payable by Trek. Shadadpuri had previously failed to include assists in entry declarations when acting on behalf of a corporate importer. The Court of International Trade found Shadadpuri liable for gross negligence in connection with the entry of imported merchandise and imposed penalties under 19 U.S.C. 1592(c)(2). The Federal Circuit reversed the penalty assessment, holding that corporate officers of an “importer of record” are not directly liable for penalties. Shadadpuri is not liable, absent piercing Trek’s corporate veil to establish that Shadadpuri was the actual importer of record, as defined by statute, or establishing that Shadadpuri is liable for fraud or as an aider and abettor. View "United States v. Trek Leather, Inc." on Justia Law

This case stemmed from a dispute between the parties over license agreements which allowed Myriad access to Oracle's Java programming language. On appeal, Myriad challenged the district court's partial denial of its motion to compel arbitration. The court concluded that the incorporation of the United Nations Commission on International Trade Law (UNCITRAL) arbitration rules into the parties' commercial contract constituted clear and unmistakable evidence that the parties agreed to arbitrate arbitrability. Accordingly, the court reversed and remanded for further proceedings. View "Oracle America, Inc. v. Myriad Group A.G." on Justia Law

La Crosse imports electronic devices that measure atmospheric conditions and display the information alongside time and date. The devices use wireless instruments that measure outdoor conditions and a base unit that measure indoor conditions and have an LCD display, a barometer, and a microprocessor. The microprocessor uses an algorithm to analyze historical barometric measurements to provide a forecast of whether the weather will improve or deteriorate, is displayed as an arrow, a series of icons, or an image of a boy whose clothes indicate the type of weather predicted. U.S. Customs initially classified all the devices as “other clocks” under Harmonized Tariff Schedule (HTSUS) c9105.91.40. The U.S. Court of International Trade reclassified many of the devices according to three general categories. The court classified Weather Station models under HTSUS subheading 9025.80.10 (including thermometers, barometers, hygrometers, and combinations of these instruments); Professional models under subheading 9015.80.80 (including certain “meteorological ... instruments and appliances”); and Clock models under subheading 9105.91.40 (certain clocks). The Federal Circuit reversed as to the Weather Station and Clock models and ordered classification under HTSUS subheading 9015.80.80. View "La Crosse Tech., Ltd. v. United States" on Justia Law

The government appealed the district court's order which altered the terms of a bond the Coast Guard had fixed for the release of a detained ship that was under investigation and restricted the types of penalties the government could seek for the ship's potential violations of certain ocean pollution prevention statutes. The ship at issue, the Pappadakis, an ocean-going bulk cargo carrier carrying a shipment of coal to Brazil, was detained by the Coast Guard because the vessel had likely been discharging bilge water overboard. The court reversed and remanded for dismissal under Federal Rule of Civil Procedure 12(b)(1) where the matter was not subject to review in the district court because the Coast Guard's actions were committed to agency discretion by law. Consequently, the district court lacked jurisdiction to consider the petition. View "Angelex Ltd. v. United States" on Justia Law

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

Appellant fled to the United States after a Hong Kong magistrate issued a warrant for his arrest on charges of smuggling, evasion of customs duties, bribery, conspiracy to defraud, and money laundering. On appeal, appellant challenged the district court's grant of an application under 28 U.S.C. 2467(d)(3) for a restraining order to preserve appellant's assets. The court concluded that the district court's restraining order was issued in a manner consistent with the procedural due process protections of 18 U.S.C. 983(j)(1)(A) where the applicable foreign criminal or forfeiture proceedings in this case afforded protections consistent with those afforded by the filing of a civil forfeiture complaint in the United States. The court need not decide whether all of those proceedings were required, or whether fewer or different proceedings would have sufficed. Accordingly, the court affirmed the judgment, concluding that the proceedings appellant was afforded was sufficient to satisfy the mandate of section 2467(d)(3). View "Luan, et al. v. United States" on Justia Law

Defendant appealed his sentence stemming from his conviction of importing wire hangers without paying the proper duties. The court concluded that the district court incorrectly applied U.S.S.G. 2C1.1 where defendant did not engage in "improper use of government influence," bribery, or extortion, nor did he conspire to do so. Instead, the district court should have applied U.S.S.G. 2T3.1 for evading import duties or restrictions. In regards to calculations for the amount of loss, the court did not resolve the question of which rates apply to which wire hangers, but left the question for the district court to decide on remand under the proper sentencing guideline. View "United States v. Huizar-Velazquez" on Justia Law

Triple A, a Michigan corporation, has offices in Dearborn, Michigan, the Congo (previously known as Zaire), and Sierra Leone. In 1993, Zaire ordered military equipment worth $14,070,000 from Triple A. A South Korean manufacturer shipped the equipment to Zaire at Triple A’s request. For 17 years, Triple A sought payment from Zaire and then the Congo without success. In 2010, Triple A sued the Congo for breach of contract. The district court dismissed the case, citing lack of jurisdiction under the Foreign Sovereign Immunities Act, 28 U.S.C. 1602. The Sixth Circuit affirmed, citing the language of the Act, under which federal courts have jurisdiction “in any case in which the action is based upon” the following: [1] a commercial activity carried on in the United States by the foreign state; or [2] upon an act performed in the United States in connection with a commercial activity of the foreign state elsewhere; or [3] upon an act outside the territory of the United States in connection with a commercial activity of the foreign state elsewhere and that act causes a direct effect in the United States. View "Triple A Int'l, Inc. v. Democratic Republic of the Congo" 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