Justia Commercial Law Opinion Summaries

Articles Posted in U.S. Federal Circuit Court of Appeals
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When merchandise is sold in the U.S. at less than fair value, the Commerce Department may impose antidumping duties, 19 U.S.C. 1673e(a)(1), 1677b(a)(1), 1677a(a). Commerce generally determines individual margins for each exporter or producer, but if that is not practicable, may investigate a reasonable number of respondents. Others are assigned a separate “all-others” rate. In proceedings involving non-market economy countries, including China, Commerce presumes that exporters and producers are state-controlled, and assigns them a state-wide rate. This presumption is rebuttable; a company that demonstrates sufficient independence from state control may apply for a separate rate. Commerce concluded that the Jiangsu Jianghai Chemical was entitled to a separate rate. The company subsequently challenged the rate calculation. The Court of International Trade held that Commerce did not exceed the scope of a remand order when it recalculated the U.S. price and that the explanation given for calculation of the separate rate was not unreasonable. The Federal Circuit reversed in part and remanded to Commerce to again reconsider its approach to calculating the separate rate. “Commerce must act non-arbitrarily and must explain why its approach is a ‘reasonable method,’” in light alternatives available and with recognition that the calculation will affect only cooperating respondents. View "Changzhou Wujin Fine Chem. Factory Co., Ltd. v. United States" on Justia Law

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Since 2003, Cummins and TAS have been engaged in three separate actions regarding idle-control technologies for heavy-duty truck engines. Earlier suits concerned breach of a master license agreement between the parties. In a 2009 action, Cummins sought a declaratory judgment that claims of TAS’s 703 and 469 patents are invalid and unenforceable. The district court found that the suit was barred by the doctrine of res judicata in light of a decision in an earlier claim. The Federal Circuit affirmed. Cummins could have pursued claims regarding invalidity and unenforceability of the TAS patents in prior litigation, which featured the same parties, arose from the same group of operative facts, and resulted in a final resolution on the merits so that res judicata bars Cummins’ defenses under 35 U.S.C. 102 and 103. View "Cummins, Inc. v. TAS Distrib. Co., Inc." on Justia Law

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MT filed an application with the Patent and Trademark Office, to register the mark JPK PARIS 75 in connection with sunglasses, wallets, handbags and purses, travel bags, suitcases, belts, and shoes. “JPK” are the initials of Klifa, the manager of MT and designer of the goods at issue. MT submitted four articles discussing consumer purchasing decisions and a declaration from Klifa, a French citizen who lived in Paris for 22 years until 1986, currently residing in the U.S., indicating that he exhibited at trade shows in Paris. The examining attorney refused to register the mark, finding it “primarily geographically deceptively misdescriptive” in relation to the goods, Lanham Act, 15 U.S.C. 1052(e)(3). The Board affirmed, rejecting an argument that the monogram “JPK” is the dominant portion of the mark, and finding that using “Paris” in the mark “serves to identify the geographic origin of the products” such that consumers would assume that the products have a connection with Paris either in their manufacture or design. The Board found the evidence sufficient to show that a substantial portion of relevant consumers would be deceived into believing that the goods came from Paris. The Federal Circuit affirmed. View "In re Miracle Tuesday, LLC" on Justia Law

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The Department of Commerce issued an antidumping duty order on certain stainless steel plate in coils (SSPC). The order states that the products subject to the order are those which are “4.75 mm or more in thickness.” ASB, a Belgian producer of SSPC, requested a scope ruling to determine whether its products, which have nominal thicknesses of 4.75 mm or more but are imported into the U.S. with actual thicknesses less than 4.75 mm, are included within the scope of the order. Commerce determined that the scope of its antidumping order encompasses SSPC having a nominal thickness of 4.75 mm but an actual thickness of less than 4.75 mm. The Court of International Trade affirmed. The Federal Circuit reversed, finding that the ruling was contrary to the plain language of the order. View "Arcelormittal Stainless Belgium, N.V. v. United States" on Justia Law

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Amkor initiated an International Trade Commission investigation, based on the importation, sale for importation, and sale within the U.S. after importation of certain encapsulated integrated circuit devices that allegedly infringed patent claims The Commission determined that the patent was invalid under 35 U.S.C. 102(g)(2). The Federal Circuit reversed. Evidence establishing that there might have been a prior conception is not sufficient to meet the clear and convincing burden needed to invalidate a patent. View "Amkor Tech., Inc. v. Int'l Trade Comm'n" on Justia Law

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Shell imported petroleum products, 1993-1994, upon which custom duties, taxes, and other fees were paid. During the same period, Shell exported drawback-eligible substitute finished petroleum derivatives. In 1995-1996, substitution drawback claims were filed with the U.S. Customs and Border Protection on Shell’s behalf. Generally, Customs provides a drawback of 99% of any duty, tax, or fee imposed under federal law upon entry or importation if the merchandise (or a commercially interchangeable substitute) is subsequently exported or destroyed under Customs supervision and not used within the U.S. before exportation or destruction, 19 U.S.C. 1313(j),(p). Drawback claims must be filed within three years of exportation. During the time of Shell’s imports, drawback eligibility of Harbor Maintenance Tax and Environmental Tax payments, which Shell now seeks, were heavily disputed. Shell was found not to have included an express request for HMT and ET in the “net claim” figure. In 1997, after the three-year period for the filing of drawback claims had expired Shell filed protests with Customs, seeking drawback as to HMT and ET payments. Customs denied Shell’s protests. The Court of International Trade found the claims time-barred. The Federal Circuit affirmed, holding that 1999 and 2004 statutory amendments did not change Shell’s position. View "Shell Oil Co. v. United States" on Justia Law

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In 2004 Ford owned the British car maker Jaguar. In 2004 and 2005, Ford imported Jaguar-brand cars. On the cars’ entry into the U. S., Ford deposited estimated duty payments with Customs. Ford subsequently concluded that its estimates were too high and filed reconciliation entries seeking a refund. The total refund claimed, across nine disputed entries at issue, was about $6.2 million. The general one-year time period imposed for liquidating such entries had long expired when Ford filed suit, 19 U.S.C. 1504(a). The Court of International Trade rejected the complaint’s assertion of jurisdiction under 28 U.S.C. 1581(i), the Tariff Act’s grant of residual jurisdiction over matters concerning enforcement and administration of duty assessment. The Federal Circuit reversed, finding valid invocation of the court’s residual jurisdiction, as the importer could not have asserted jurisdiction under any of the other enumerated provisions of section 1581. Post-complaint efforts by Customs to clear the importer’s accounts did not undo such jurisdiction. View "Ford Motor Co. v. United States" on Justia Law

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Avisma produces magnesium and titanium sponge in Russia. The process starts with a dehydration step. Most of the resultant raw magnesium is then processed into pure and alloyed magnesium, the subject of an antidumping order issued by Commerce in response to a petition by domestic producers. A portion of the raw magnesium is used to produce titanium sponge. After Commerce imposed a 15.77 percent duty, the Trade Court remanded the case. On remand, Commerce declined to alter the determination. The Trade Court then held that, when determining Avisma’s magnesium production costs for purposes of calculating the constructed value of Avisma’s magnesium, Commerce was required to take into account Avisma’s entire production process, which includes titanium, as well as magnesium. In its second remand determination, Commerce determined the constructed value of Avisma’s magnesium by taking into account Avisma’s entire production process, resulting in an antidumping duty of 8.51 percent. The Trade Court issued final judgment accordingly. The Federal Circuit reversed and reinstated Commerce’s earlier decision. The Trade Court erred in requiring Commerce to consider an affidavit by Avisma’s accountant that Commerce had determined was untimely. View "PSC VSMPO-Avisma Corp. v. United States" on Justia Law

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The Department of Commerce investigated Essar's participation in several programs, including its purchase of iron ore from India's government-owned National Mineral Development Corporation and participation in programs under India's Special Economic Zone Act, and found that Essar received countervailable subsidies (19 U.S.C. 1677(5)(E)(iv)) from the government of India for certain hot-rolled carbon steel flat products. The Court of International Trade affirmed that holding, but remanded with respect to whether the company received subsidies through the Indian state of Chhattisgarh Industrial Program. The Federal Circuit affirmed with respect to the subsidies from the Indian government, but reversed with respect to the CIP. The lower court should have upheld Commerce's application of adverse facts against Essar; Essar did not act to the best of its ability during the review with regard to the CIP issue.View "Essar Steel, Ltd. v. United States" on Justia Law

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In 1998, the Supreme Court held that the Harbor Maintenance Tax, 26 U.S.C. 4461-4462, was unconstitutional as applied to exports. U.S. Customs enacted procedures for refunds and established a separate HMT database with data from its ACS database, through which HMT payments had been processed. Customs discovered wide-spread inaccuracies in its HMT database, but was unable to make corrections related to payments made before July 1, 1990, because it no longer had original documents. Customs established different requirements for supporting documentation, depending on whether an exporter was seeking a refund of pre- or post-July 1, 1990 payments. Ford sought HMT refunds for both pre- and post-July 1, 1990, payments and has received more than $17 million, but claims that Customs still owes about $2.5 million. In addition to a FOIA Report of Ford’s pre-July 1, 1990 payments was drawn from information in the ACS database, Ford submitted an affidavit attesting that it was only claiming refunds of HMT paid on exports and declarations about the consistency and quality of its quarterly HMT payment records. Customs denied the claims. The Trade Court entered judgment in favor of the government. The Federal Circuit affirmed. The claims were insufficient because there still was high potential for error. View "Ford Motor Co. v. United States" on Justia Law