Justia International Law Opinion Summaries

Articles Posted in US Court of Appeals for the Federal Circuit
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The case involves the classification of certain knit gloves with partial plastic coating under the Harmonized Tariff Schedule of the United States. The United States Court of Appeals for the Federal Circuit affirmed the decision of the United States Court of International Trade that the gloves are properly classified under heading 6116. The plaintiff, Magid Glove & Safety Manufacturing Co. LLC, imported the gloves from China and South Korea and argued that the gloves should have been classified under subheading 3926.20.10, a duty-free provision. However, the Court of International Trade and the Court of Appeals disagreed, stating that the gloves are not "of plastics" as required by heading 3926, but are "knitted" as described by heading 6116. The Court of Appeals also rejected the plaintiff's argument that Section XI Note 1(h) and the "completely embedded" test applied in a previous case excluded the gloves from classification under heading 6116. The court concluded that the term "completely embedded" does not appear in Section XI Note 1(h) or the two competing headings in this case and is not applicable to the classification of the gloves. View "MAGID GLOVE & SAFETY MANUFACTURING CO. LLC v. US" on Justia Law

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In this case, the United States Court of Appeals for the Federal Circuit was asked to review a decision by the United States Court of International Trade. The dispute arose from an anti-dumping investigation conducted by the Department of Commerce into the sale of certain welded carbon steel pipes from Thailand, specifically those sold by Saha Thai Steel Pipe Public Company Limited and Thai Premium Pipe Company Ltd.The Department of Commerce initially found that the costs of producing these pipes were distorted by a "particular market situation" (PMS) in Thailand that affected the cost of hot rolled steel coil, a crucial component in the production of these pipes. As a result, the Department made upward adjustments to the production costs of these companies when calculating the anti-dumping margins, which impacted the duty rates assigned to each company. This decision was challenged in the Court of International Trade, which found that the Department had overstepped its statutory authority.The Court of International Trade ruled, based on the precedent set in Hyundai Steel Co. v. United States, that the Department of Commerce was not allowed to make a PMS adjustment to the cost of production when determining anti-dumping margins. The court remanded the case to the Department to recalculate the dumping margins without the PMS adjustment.The case was subsequently appealed to the United States Court of Appeals for the Federal Circuit. The appellant, Wheatland Tube Company, argued that this case could be distinguished from Hyundai Steel because the Department had relied on a subsection of the statute to adjust the cost of production upward to account for a PMS by framing it as a constructed value calculation. The Court of Appeals disagreed, affirming the lower court's decision and holding that the statute does not authorize PMS adjustments to cost of production calculations, regardless of how the Department attempted to frame it. View "SAHA THAI STEEL PIPE PUBLIC COMPANY LIMITED v. US " on Justia Law

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Sharifi alleges the U.S. Army took his land when it built Combat Outpost Millet in Afghanistan in 2010. The government asserted that Sharifi’s Fifth Amendment complaint was “vague and ambiguous” because it did not specifically identify the property interest that the government allegedly took, that Sharifi had not provided a legal description of the land, a deed, or other documents that would allow the government to identify the location. The Claims Court instructed Sharifi to file an amended complaint. Sharifi alleged that government records, verified by the District Governor of Arghandab, showed that his grandfather owned the land on which the Army built COP Millet: Ownership of the land passed to Sharifi and his siblings, who subdivided the land by a 2004 inheritance agreement. The government submitted six declarations, including several witness declarations and an expert declaration on Afghan law. The Claims Court dismissed Sharifi’s amended complaint for failure to show a cognizable property interest.The Federal Circuit affirmed. The government records attached to Sharifi’s amended complaint and the 2004 inheritance agreement do not constitute proof of land ownership under the laws of Afghanistan. Even accepting as true all factual allegations in Sharifi’s amended complaint, the amended complaint does not contain sufficient facts to state a plausible takings claim. View "Sharifi v. United States" on Justia Law

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The U.S. Court of International Trade affirmed the Department of Commerce’s final affirmative determination in the countervailing duty investigation on cold-rolled steel flat products from the Republic of Korea. Commerce determined that the Korean government provided the respondents no financial assistance “because the prices charged to these respondents under the applicable industrial tariff were consistent with KEPCO’s [Korea Electric Power Corporation] standard pricing mechanism.” KEPCO is the state-owned sole provider of electricity in Korea. Commerce found no evidence suggesting that that the respondents received preferential treatment over other industrial users of electricity that purchase comparable amounts of electricity. Commerce did not review quality, availability, marketability, transportation, or other conditions affecting KEPCO’s purchase or sale of electricity.The Federal Circuit vacated. The 1994 Uruguay Round Agreements Act, 19 U.S.C. 3511, changed the definition of what constitutes a benefit conferred. Commerce’s reliance on a preferential-rate standard is inconsistent with the statute, particularly the less-than-adequate-remuneration requirement, and is therefore contrary to law. Commerce’s cost-recovery analysis was limited to discussion of KEPCO’s costs. That limited analysis does not support its conclusion that electricity prices paid to KEPCO by respondents are consistent with prevailing market conditions because Commerce failed to evaluate the Korea Power Exchange’s impact on the Korean electricity market. View "Posco v. United States" on Justia Law

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The International Trade Commission (ITC) investigated a complaint under Tariff Act Section 337, alleging that Comcast’s customers directly infringe patents by using Comcast’s X1 system. The patents claim an interactive television program guide system for remote access to television programs. An ALJ found a violation, concluding that the X1 set-top boxes are imported by ARRIS and Technicolor and that Comcast is sufficiently involved with the design, manufacture, and importation of the products, such that it is an importer under Section 337. The ITC affirmed, stating that Comcast induced infringement and that Comcast "instructs, directs, or advises its customers on how to carry out direct infringement.” The ITC affirmed that ARRIS and Technicolor do not directly infringe because they do not provide a “remote access device” as required by the claims and do not contributorily infringe because the set-top boxes have substantial non-infringing uses. The ITC issued a limited exclusion order and cease and desist orders directed to Comcast. The Federal Circuit affirmed, rejecting Comcast’s arguments that its conduct is not actionable under Section 337 because Comcast’s inducing conduct “takes place entirely domestically, well after, and unrelated to," the importation and that Comcast does not itself import the articles. The ITC has authority (19 U.S.C. 1337(d)(1)) to issue an exclusion order that blocks the importation of articles manufactured and imported by ARRIS and Technicolor, despite its determination that they did not violate Section 337 and did not infringe the patents. View "Comcast Corp. v. International Trade Commission" on Justia Law

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The University, an agent or instrumentality of the Swiss Confederation, having a place of business in Bern, Switzerland, granted an exclusive license of its 114 patent to the German company LABOKLIN, whose principal place of business is in Bad Kissingen, Germany. Under the License Agreement, LABOKLIN was required to commercialize the invention in North America. LABOKLIN entered into sublicenses in the U.S. PPG, a corporation headquartered in Washington State, offers laboratory services. After obtaining the University’s consent, LABOKLIN sent a cease-and-desist letter to PPG in Spokane, Washington. PPG sued LABOKLIN and the University, requesting a declaratory judgment that the Asserted Claims of the 114 patent are ineligible under 35 U.S.C. 101 for failing to claim patent-eligible subject matter. The Federal Circuit affirmed that the district court had jurisdiction over both LABOKLIN and the University. LABOKLIN had sufficient minimum contacts with the U.S. to comport with due process; the University, a foreign sovereign in the U.S., had engaged in “commercial activity” sufficient to trigger an exception to jurisdictional immunity under 28 U.S.C. 1605(a)(2) by “obtain[ing] a patent and then threaten[ing] PPG by proxy with litigation.” PPG had stipulated to infringement of the Asserted Claims; the courts found those Claims patent-ineligible as directed to patent-ineligible subject matter, namely the discovery of the genetic mutation that is linked to HNPK. View "Genetic Veterinary Sciences, Inc. v. LABOKLIN GMBH & Co. KG" on Justia Law

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The Virgin Islands is a U.S. territory that can set and receive proceeds from duties, Virgin Islands Port Authority (VIPA) is authorized to “determine, fix, alter, charge, and collect reasonable rates, fees, rentals, ship’s dues and other charges.” Since 1968, VIPA has set wharfage and tonnage fees for Virgin Islands ports. Customs collected those fees from 1969-2011, deducting its costs. The remaining funds were transferred to VIPA. In 1994, the Virgin Islands and Customs agreed to “the methodology for determining the costs chargeable to [the Virgin Islands] . . . for operating various [Customs] activities.” The agreement cited 48 U.S.C. 1469c, which provides: To the extent practicable, services, facilities, and equipment of agencies and instrumentalities of the United States Government may be made available, on a reimbursable basis, to the governments of the territories and possessions of the United States. Customs increased collection costs, which outpaced the collection of the disputed fees starting in 2004, leaving VIPA without any proceeds. After failed efforts to resolve the issue, VIPA notified Customs in February 2011, that VIPA would start to collect the fees in March 2011. VIPA sued Customs to recover approximately $ 10 million in disputed fees that Customs collected from February 2008 to March 1, 2011. The Federal Circuit affirmed a judgment in favor of Customs. Customs had authority to collect the disputed fees during the time at issue under the 1994 agreement, in combination with 48 U.S.C. 1469c. View "Virgin Islands Port Authority v. United States" on Justia Law

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Maxchief has its principal place of business in China and distributes one of the plastic tables it manufactures (UT-18) exclusively through Meco, which is located in Tennessee. Meco sells the UT-18 tables to retailers. Wok competes with Maxchief in the market for plastic folding tables, and also has its principal place of business in China. Wok owns patents directed to folding tables. Wok sued Maxchief’s customer, Staples, in the Central District of California, alleging that Staples’ sale of Maxchief’s UT-18 table infringed the Wok patents. Staples requested that Meco defend and indemnify Staples. Meco requested that Maxchief defend and indemnify Meco and Staples. The Staples action is stayed pending the outcome of this case. Maxchief then sued Wok in the Eastern District of Tennessee, seeking declarations of non-infringement or invalidity of all claims of the Wok patents and alleging tortious interference with business relations under Tennessee state law. The district court dismissed the declaratory judgment claim for lack of personal jurisdiction. With respect to the state law tortious interference claim, the district court concluded it lacked subject matter jurisdiction. The Federal Circuit affirmed. Wok lacked sufficient contacts with the forum state of Tennessee for personal jurisdiction as to both the declaratory judgment claim and the tortious interference claim. View "Maxchief Investments Ltd. v. Wok & Pan, Ind., Inc." on Justia Law

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Plaintiffs filed a patent infringement suit in the District of Delaware against HTC, a Taiwanese corporation with its principal place of business in Taiwan, and its wholly owned U.S. based subsidiary, HTC America, a Washington corporation with its principal place of business in Seattle. HTC and HTC America moved to dismiss for improper venue or, in the alternative, to transfer the case to the Western District of Washington pursuant to 28 U.S.C. 1404(a) or 1406(a). The district court found that venue was not proper as to HTC America but was proper as to HTC. Plaintiffs voluntarily dismissed their suit against HTC America without prejudice. HTC filed a mandamus petition seeking dismissal for improper venue. The Federal Circuit denied relief, rejecting HTC’s attempts to characterize the legal issue as “unsettled.” Suits against alien defendants are outside the operation of the federal venue laws. View "In re: HTC Corp." on Justia Law

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Alimanestianu, a U.S. citizen, was killed in the 1989 bombing of Flight 772 by the Abu Nidal Organization. The State Department determined that the Libyan government sponsored the bombing. Libya was protected from suit in the U.S. under the Foreign Sovereign Immunities Act (FSIA); in 1996, FSIA was amended to permit claims for personal injury or death caused by acts of foreign sovereigns designated as state sponsors of terrorism, 28 U.S.C. 1605(a)(7). Libya had been designated in 1979. In 2002, the Alimanestianus and others sued Libya and obtained summary judgment in 2008, awarding $6.9 billion in total; the Alimanestianus received $1.297 billion. While the defendants appealed, the United States entered into a Claims Settlement Agreement with Libya. Libya agreed to deposit $1.5 billion into a humanitarian fund, $681 million of which was for claims by U.S. nationals for wrongful death or physical injury in pending case as “a full and final settlement.” The Foreign Claims Settlement Commission subsequently awarded the Alimanestianus $10 million. The Federal Circuit rejected a claim that vacating their judgment constituted a compensable taking. The court considered the Penn Central factors: the Executive has an overwhelming interest in conducting foreign affairs; the plaintiffs have no evidence that they had an investment-backed expectation in their claims and nonfinal judgment; plaintiffs’ claim that the Commission’s award was less than their nonfinal judgment does not refute that they received more than they would have without government action. View "Alimanesianu v. United States" on Justia Law