Akzo N.V. v. U.S. International Trade Commission

808 F.2d 1471, 8 I.T.R.D. (BNA) 1673, 1 U.S.P.Q. 2d (BNA) 1241, 1986 U.S. App. LEXIS 20737
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 22, 1986
DocketNo. 86-877
StatusPublished
Cited by51 cases

This text of 808 F.2d 1471 (Akzo N.V. v. U.S. International Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akzo N.V. v. U.S. International Trade Commission, 808 F.2d 1471, 8 I.T.R.D. (BNA) 1673, 1 U.S.P.Q. 2d (BNA) 1241, 1986 U.S. App. LEXIS 20737 (Fed. Cir. 1986).

Opinion

DAVIS, Circuit Judge.

This is an appeal by Akzo, N.V., Enka B.V., Aramide Maatschappij v.o.f. and Akzona Inc. (appellants or Akzo) from an exclusion order by the United States International Trade Commission (Commission or trial tribunal) pursuant to §§ 337 and 337(a) of the Tariff Act of 1930, 19 U.S.C. §§ 1337, 1337(a) (1982), prohibiting the importation into the United States of aramid fibers manufactured by Akzo in the Netherlands. We affirm.

I. Background; Issues; Scope of Review

A. Background. On April 18, 1984, E.I. du Pont de Nemours and Company (appellee or Du Pont) filed a complaint with the Commission under § 337 of the Tariff Act of 1930 (19 U.S.C. § 1337).1 The complaint alleged that Akzo had engaged in unfair methods of competition and unfair acts including the importation, sale and marketing in the United States of certain aramid fibers2 produced in the Netherlands by a process purportedly covered by the claims of Du Pont’s U.S. Letters Patent No. 3,767,756 (the Blades or ’756 patent). In addition, the complaint charged Akzo with attempting both to exploit applications of aramid fibers and to penetrate markets for aramid fibers created by Du Pont. Finally, the complaint alleged that the effect or tendency of the unfair methods of competition and unfair acts was to destroy or substantially injure an industry, efficiently and economically operated, in the United States.

After evaluating Du Pont’s complaint, the Commission instituted an investigation pursuant to § 337(b), 19 U.S.C. § 1337(b), and an administrative law judge (AU) was assigned to preside over the investigation.

The major substantive question before the AU (and now before us) is the validity and enforceability of Du Pont’s Blades patent. Those issues, and the related facts and circumstances, are set forth and discussed in Part II, infra. The major procedural issue is whether Akzo was denied due process because Du Pont’s confidential documents were not disclosed'to appellants’ management. This problem (together with an alleged violation of treaty rights) is considered in Part III, infra. The other issues presented to us are dealt with in Part IV, infra.

Following 14 days of hearing, the AU issued an initial determination holding that [1476]*1476there was a violation of § 337(a) of the Tariff Act of 1930 in the unlawful importation or sale of certain aramid fibers produced overseas by means of a process that if practiced in the United States would infringe the Blades '756 patent, and that importation has the tendency to injure substantially an efficiently and economically operated industry in the United States.

Akzo filed a petition for review of the ALJ’s initial determination on June 3, 1985. On July 15, 1985, the Commission decided to review only those portions of the initial determination pertaining to anticipation and obviousness of the Blades '756 patent under 35 U.S.C. §§ 102 and 103. Ultimately, the Commission affirmed the ALJ’s findings and conclusions on anticipation and obviousness and determined that appellants had failed to prove the Blades ’756 patent invalid. Having decided not to review the remainder of the initial determination, the Commission concluded that there was a violation of § 337. Accordingly, on November 25, 1985, the Commission, after further consideration, entered an exclusion order limited to certain forms of aramid fibers produced by Akzo. The Commission’s order became final on January 25, 1986 when the President declined to overrule it pursuant to § 337(g).

B. Issues. On this appeal, Akzo raises a number of issues for us to resolve:

(1) whether the Commission’s finding that claim 13 of the '756 patent was “not invalid” and “not unenforceable” is supported by substantial evidence;3
(2) whether Akzo’s due process and treaty rights were violated in the Commission proceeding;
(3) whether the Commission, as a non-Article III tribunal, is constitutionally prohibited from adjudicating the validity and enforceability of patents;
(4) whether the Commission’s finding that Akzo’s sales of aramid fibers in the United States would have a tendency to “destroy or substantially injure” an industry economically and efficiently operated is supported by substantial evidence;
(5) whether the Commission’s conclusion that Du Pont’s value-in-use pricing did not violate the antitrust laws is correct and supported by substantial evidence; and
(6) whether it is a defense to Du Pont’s complaint that Du Pont employed a solvent included in a polymerization process patented by Akzo.

C. Scope of review. This court defined our scope of review in cases appealed from the Commission in Beloit Corp. v. Valmet OY, (Order), 742 F.2d 1421, 223 USPQ 193 (1984), cert. denied, 472 U.S. 1009, 105 S.Ct. 2706, 86 L.Ed.2d 721 (1985). There we held that the court “does not sit to review what the Commission has not decided.” 742 F.2d at 1423, 223 USPQ at 194. Beloit is distinguishable from this case because there the Commission specifically adopted only a portion of the presiding official’s initial decision. See, e.g., American Hospital Supply Corp. v. Travenol Laboratories, Inc., 745 F.2d 1, 5 n. 13, 223 USPQ 577, 580 n. 13 (Fed.Cir.1984). In contrast, in the current case, the Commission merely determined not to review the remainder of the initial decision, choosing to conduct its own §§ 102 and 103 analysis. The Commission neither rejected any part of the initial determination nor did it say that it was taking no position on any part of it. Although the Commission limited its own review to patent validity under §§ 102 and 103, the fact that it affirmed the conclusion of the AU that there was a § 337 violation makes reviewable those conclusions of the AU necessary for the Commission to have determined (as it did) that there was a § 337 violation. Accord Warner Brothers, Inc. v. U.S. International Trade Commission, 787 F.2d 562, 229 USPQ 126 (Fed.Cir.1986). This includes not only the §§ 102 and 103 issues of anticipation and obviousness, but also whether there was inequitable conduct be[1477]*1477fore the Patent Office and the other issues decided by the Commission and the ALJ.4

II. Validity and Enforceability of the Blades Patent

A. The Invention.5 The Blades ’756 patent, “Dry-Jet Wet Spinning Process,” was issued on October 23, 1973 to Dr. Herbert Blades and immediately assigned to Du Pont.

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Bluebook (online)
808 F.2d 1471, 8 I.T.R.D. (BNA) 1673, 1 U.S.P.Q. 2d (BNA) 1241, 1986 U.S. App. LEXIS 20737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akzo-nv-v-us-international-trade-commission-cafc-1986.