PUBLIC VERSION
`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`~ WASHINGTON,D.C.
`
`“In the Matter of
`
`
`
`
`
`_ CERTAIN ROAD MILLING
`MACHINES AND COMPONENTS
`~ THEREOF
`,
`
`
`Inv. No. 337-TA-1067
`
`FINAL INITIAL DETERMINATION |
`Administrative Law Judge David P. Shaw
`Pursuantto the notice of investigation, 80 Fed. Reg. 40595 (Aug. 25, 2017),this is the
`initial determination in Certain Road Milling Machines and Components Thereof, United States
`International Trade Commission Investigation No. 337-TA-1067. It is held that a violation of
`
`section 337 of the Tariff Act, as amended, has occurred in the importation into the United States,
`the sale for importation, or the sale within the United States after importation, of certain road
`milling machines and components thereof, with respect to U.S.Patent Nos. 7,828,309 and
`9,656,530. It is held thata violation has not occurred with respect to U.S. Patent Nos. 7,530,641
`
`and 9,644,340.
`
`

`

`PUBLIC VERSION
`
`Table of Contents
`
`Table of Abbreviations ..........:cccesscsseeseceeteeeeeeesseacaesececseeesecseseceseeeeeenenteneaeaessesteseeeesseeesssecsseetacs iv
`I.
`Background.........:csceecceeseeereeeesseuceusceusecsnecseevucesseeeaeenaeeeeecenenaeenssceecsseseesessssecsssssscaseseeaeeseeees|
`A. __
`Institution ofthe InvestigatiOn ........cccssssssssssssseeesseeeeeeeseseeenaesMecsesecsssetsseeesteseee I
`B.
`Procedural HUStOTY oo... ceeeeeceeceesceeseceeeesceseeesecssecesccsaseseevsaesasesseseesesseceesseseebesueeeasees 2
`C.
`The Private PartiesescssesseeeeaactsaceeseoeneseeceeeeaeeVeceeeeenneesaceesceesaeeesaeessaceesaeeeeeeearees 5
`D.
`The Accused Products...ccscccssssssscsssessecsssseesseesseesesssendeeeesdacesssaceesessceeceesuesenseseessaees 7
`E,
`The Domestic Industry Products.....c.ccccsscssecssssssssssscsessesssssssesscsessssnescessseseeseeseeseens 9
`F.
`Technological Background ....ccsccccssesssessesseecsesssssesseessssteeseeseeseeseenssesseesesesasacsesssees 12
`Jurisdiction and Standing 0... ccc ceeecescseeeeeceeeeeseeeseeeessecesercnseesessesseasesassseeseseases seseeeeens 14
`A.
`Personal andSubject Matter Jurisdiction........cc.ccccscsssssssessssesecsesessesessssesteneedeeeeaes 14
`B.
`In Rem Jurisdiction 00... ccecececeeeesesseeseerseneeseasseenseseeaesvaseseeaeeeeessesesseseeeeseeeeten 15
`
`C._—_The Importation Requirement............ccccescsesseeeseesneseessensseesnsnedeeeneaneneenenneneeaseneey 15
`D.
`Standing 0... eeecccceecesccseesecseeesceeecseeeeessseeeseesccesnseesseseesssesssnsesesceessssereessseseseeasee 24
`General Principles of Law .........cccesesceeesceeseeeeesesseeeeeseeeneesesuestuceseveruvsnessasessesselenuessuessees, 28
`A.
`Claim Construction ....cecscecsccsccssssesseseesssessesssseessssssessesssseacssessesceeseeeeesdeceeseeeeneeeses 28
`
`Il.
`
`II.
`
`IV.
`
`V.
`
`Infringement.............ccesceesceseeeeceeeceeeeeneeecesseeeseeeaeesosaeeeseceeseneeeeesesessesesseasseneseseeseees 30
`B.
`Co 0 Validity cece ccccccccesscseseessssesesesesceeseseseeeeeeseaescseescseacseeeeasseseesesesenerisseassesenecseeseens 34
`D.
`DomesticIndustry ......cescsscsssessesssesssesssecssecseessneessissveseseeeesseacseseneecsssssesesaseseaes 39
`U.S. Patent No. 7,828,309.........ccccssssscseccceceesscsescsnnnecsceceessssescacaeececeeserseeeterserseseseaseneeseeess 41
`A.
`Overview of the ‘309 Patent (JIX-0005) ...cccccsccscssssssessesssssssecseesesceseeseseeesseeneeneenees Al
`B.
`Claim Construction....... seseseeanecneenecsecaecuesseesssessessteesiesnesnsssnssasaccssseensssenssarensnensess 44
`
`Infringement.................spueuesscenaeecseesesseuccascessessaacsscesscessnessnesesaeseceseseceeeesusesusesseesens 55
`C.
`Domestic Industry (Technical Prong)............seseneatsueseassvsscacsesesecsssesvsecsessseseaceeess 81
`D.
`Obviousness — Swisher and Neumeier............ccceceereeesdecseesesesesseeeeeesdeeeneteeeeae 94
`E.
`Obviousness — Swisher, Neumeier, and FICY oo..ceeceeesecesceceseceseceeescceeseeeessevenseesues 120°
`F.
`Obviousness — Secondary Considerations ...........:ccscecseeseeeetseeeeeenenesseeeeeenseeenees 130
`G.
`U.S. Patent No. 7,530,641... cece seseseseeeeeceeeeeeeeesseseseneaeseeceeseseeasseeeseacsesesssseneeesases 137
`A.
`Overviewofthe ‘641 Patent (JX-0004) 0... ce eceeeeteeeeeeseesseeeeseeebeneensneseeeeens 137
`B.
`Claim Construction ........ccccccccecsscssessescescseeaseeceececeaceesecseeseseeseeseseesseaseneesheeseeeeess 139
`
`C.
`D.
`E.
`
`Infringement... cee eeeeseceeeeeeseseeeesessaceessessessesscesecseassessesseesseeeesseesseseeeneesens 153
`Domestic Industry (Technical PLOMG) sesccssssssssesssssssseseesseeseedeceesneeseeeessesuesssevensees 176.
`Anticipation —PM-565 ...cccccsessessessesissessessessseseesesecesecuecnenesneenseesseeasseceesaeessenensses 190
`
`

`

`PUBLIC VERSION
`
`F.
`
`G.
`
`H.
`I,
`
`Anticipation — PM-465.........saseueceesceeuessceeeaeeseeceneenesseeeaeeeaeeacenseoes saceuseeeneeeeceeaees 208
` Obviousness — “PM-565 combined with the
`a
`_knowledge of a POSITA and/or PM-465”ooo. eee eesesseesesereseeceteseseessseeseseeeaes 225
`Obviousness — “PM 465 alone andiin combination
`oe
`with the knowledge of a POSITA” voicccesccssessesssleseesssesssessecsecsseesesssecsesseseseenvenss ... 237
`Obviousness — Secondary Considerations......eedeceeaceeeeaees 242
`
`VI.
`
`U.S. Patent No. 9,644,340 ..csscssesssssstsenstsetsetissiestetistietsstietsstnstnsensenesnseni 247
`
`- AL.
`
`B.
`
`Overview ofthe *340 Patent (IX-0001)nndacecaseesuecsneeseneesseeeeeaeessceeseneesseeeeeas 247 .
`
`Claim Construction .....cccccccscesecsesesseseeeseesesseseeeeseeeteeeeaescetsseateseseeceseenesesseeeeseeneess 250
`
`Infringement... cece ee eeeeeseeeceeeeeedeeseseeseseecssessssevssenseesssseesscensasessseessseeenees wastes 204
`C.
`Domestic Industry - TechnicalProngeceaueeeececeaseceseeaeeteeeeeeeeesaceeneesseseseneneneeeesenes 272
`D.
` Obviousness — Marini MP 1300 «1...sessessseeeeesessseesssesetsnseseanseeesnnneeeiee 285
`E.
`Obviousness — Marini MP 1300 in View of Overton ...sscssssssssssesssssssseseesssseees 310
`F,
`Obviousness — PM-565 veceeeedeeescenaeenceeseesceeeeaeesdeesacerscseesseescecaeceaaeeseseascnseseasceseeeses 316
`G.
`Obviousness — PM-565 in View of Overton...........0.vaceeaceeeaeeeeeeeesaeestcerteneetees JOD
`H.
`Obviousness — “combination ofthe PM-565 with MP 1300” eesesseeeeseeeesseeennetens. 339
`I.
`Obviousness — Secondary Considerations.........ccccc ce ccesseseseeeeeeeneeeeteees Leceeeee 340
`J.
`> US. Patent NO. 9,656,530...ccccsscesceccessesccsccssececessecaceseessenersceeeceeseseeseeseenaeetesneeesaeereneaens 343
`A.
`Overview of the ‘530 Patent (TX-0003) baceceseneeeceaeesescecesascessceesesaeeeeeeeeeteeaaceneenes 343
`B..Claim Construction... sesesssssseesensunesasesssteusseseeeee sessestaseesssestennsessseneeeneee 346
`
`VII.
`
`Infringement... eee eeeeseeesecesesseseesenseseeeeeesSeeeseeeeeeecvessussssesissstessesutsasesseeenesees 351
`C.
`D. Domestic Industry (Technical Prong).............004seosssuessesssesasessessesssessesassseseesseees 366
`E.
`Obviousness — “Roadtec RX-500 (alone .
`. .)s
`a
`
`in combination with Davis”...........teseeeeseeeeeessunceesscecsceeeeeaeecesaeesenaeeteetaaeeenenees 370
`
`F.
`
`G.
`
`H.
`
`. in view of Glasson),
`Obviousness — “Roadtec RX-500 (. .
`in combination With Davis”..........:ccccsccsseccceseceereeeesceseessseeessdesaseseesesnesceseesessseenaas 388
`Obviousness — “Roadtec RX-500 (alone or in view of Glasson),
`_in combination with Davis and Hosseini”«0.0.0...reese eeeseeeneneseeneeeseeees 391
`Obviousness — “Obvious over Roadtec RX-500
`(alone or in view of Glasson)” (without Davis)...........0...seeecenecranensesnenseeessness 395
`© Obviousness —“Swisher in Combination With Glasson”.............deeseaeeeeeeseeeeaes 399
`I.
`Obviousness — “Swisher in Combination WithGlasson and Hosseini”.........:... 410
`J.
`Obviousness _ “Swisher in Combination With Glasson and Davis”.........:0008 412
`K.
` Obviousness — Secondary Considerations................cccseeeaseeteeeeeeeeed veebesseceees 416
`.
`-L.
`M._- Indefiniteness.............cceeeesegesueavesuesansneeneassecsesesesecenssesesseesees seeeeteeeeeneeeeneeeees 423
`Domestic Industry — Economic Prong ......cccccssccssssesesesessesseqeeesseceeseseeecaeeneneneaseneneneesever 424
`
`|
`
`VU.
`
`ii
`
`

`

`-PUBLIC VERSION
`
`.. Investment in Plant and Equipment ..0..... ccc ceeceeeneeerecereneeeseeeeseesseeenseesaneesveseee 425
`A.
`Laboror Capital ..c.cc..ccsssssssssssssssessssssessssellessseessssseeeessseeesseslasesescceceeeseseseseaeeseee 429
`B.
`Conclusionsof Fact and Law... cece seceecsenscessessessessessecneessenees ecsetesees veseeeeeeeees 435
`Order Concerning Proposed Redactionsfor Public Version ........cccccceteeteteteteteeeeeteeens 438
`Initial Determination on Violation ..........cceseeseeseeeeeeeneees aseseceeesceeeceeeeeneesseesesensaeseees 439
`
`IX.
`
`| XI.
`
`iii”
`
`

`

`PUBLIC VERSION
`
`Table of Abbreviations |
`
`The following abbreviations may beusedinthisInitial Determination:
`
`
`
`
`
`
`
`
`
` Dep.|Deposition
`
`
`
`
`
`
`
`
`
`Joint Exhibit
`
`iv
`
`

`

`PUBLIC VERSION
`
`I.
`
`· Background
`
`A.
`
`Institution of the Investigation
`
`On July 19, 2017, complainant Wirtgen America, Inc. ("Wirtgel?-" or "Wirtgen America,"
`
`depending on the context) filed a complaint alleging that the Caterpillar respondents unlawfully
`
`import "certain road milling machines and components thereofl:.]" Compl., ~ 2. The _complaint
`
`asserted the following five patents:
`
`• U.S. Patent No. 7,530,641 (the "'641 Patent") (JX-0004);
`
`• U.S. Patent No. 7,828,309 (the "'309 Patent") (JX-0005);
`
`• U.S. Patent No. 9,624,628 (the "'628 Patent");
`
`•
`
`·u.S. Patent No. 9,644,340 (the "'340 Patent") (JX-0001); and
`
`• U.S. Patent No. 9,656,530 (the "'530 Patent") (JX-0003).
`
`Id.
`
`By publication of a notice in the Federal Register on August 25, 2017, pursuant to
`
`subsection (b) of section 33 7 of the Tariff Act of 1930, as amended, the Commission instituted
`
`this investigation to determine:
`
`[W]hether there is a violation of subsection (a)(l )(B) of section 337
`in the importation into the United States, the sale for importation, or
`the sale within the United States after importation of certain road
`milling machines and components thereof by reason of infringement
`of one or more of claims 1-5, 7-12, and 14-17 of the '340 patent;
`claims 1, 2, 5, 6, 9-22, and 27-29 of the '628 patent; claims 1-7,
`13-24, and 26 of the '530 patent; claims 1, 2, 4, 6-8, 11, 12, and 15-:-
`17 of the '641 patent; and claims 1-3, 5-24, and 26-36 of the '309
`patent; and whether an industry in the United States exists as
`required by subsection (a)(2) ofsection 337;
`
`82 Fed. Reg. 40595 (Aug. 25, 2017). The Commission did not direct the administrative law
`
`judge to take evidence or hear argument regarding the public interest. See id.; 19 C.F .R.
`
`§ 210.50(b )(1 ).
`
`1
`
`

`

`PUBLIC VERSION
`
`The Commission named Wirtgen America, Inc. as complainant. The Commission named
`Caterpillar Bitelli SpA,Caterpillar Prodotti Stradali S.r.L., Caterpillar Americas CV,Caterpillar
`
`Paving Products, Inc., and Caterpillar Inc. as respondents.. The Office of Unfair Import
`Investigations (“Staff”) was also nameda partyto the investigation, althoughthe Stafflater
`withdrew from the investigation.+
`
`B..
`‘Procedural History
`The administrative law judge issued the procedural schedule on October 5, 2017. See
`Order No. 6 (Procedural Schedule). The procedural schedule set a target date of December 26,
`2018, which is approximately 16 monthsafterinstitution. Id.; see also Order No. 4 (Setting
`Target Date); 19 C.F.R. § 210.51(a); 19 C.F.R. § 210.42(a)(1)(i);19 C.F.R. § 201.14(a).
`In accordance with the procedural schedule, the partiesfiled initial claim construction
`briefs in December 2017,reply claim construction briefs in January 2018, and supplemental
`briefs in March 2018. See Order No. 6 (Procedural Schedule); Order No. 14 (granting joint
`motion to amend the procedural schedule).
`/
`|
`.
`On October, 31, 2017, the Staff filed a “Notice ofNon-Participation” that stated “OUI
`
`will cease to participate” in the investigation.
`On December4, 2017, Wirtgen filed an unopposed motion seeking to terminate
`
`respondent Caterpillar Bitelli SpA based on the withdrawal of the complaint as to that
`
`respondent. The administrative law judge granted the motion in an initial determination, which
`
`issued on December 19, 2107. See Order No. 11 (initial determination not reviewedper.
`
`Commission Notice (EDIS Doc. ID No. 634173)).
`
`

`

`PUBLIC VERSION
`
`On December5, 2017, Wirtgen filed amotion seeking a summary determination thatit
`has satisfied the economic prong ofthe domesticindustry requirement. The administrative law
`| judge denied Wirtgen’s motion on January 19, 2018. See Order No.16.
`|
`On January 29, 2018, Wirtgen filed an unopposed motion seeking to terminate the »
`investigation as to multipleclaims from the ‘340, ‘628, ‘530, ‘309, and ‘641 Patents. The
`administrative lawjudge granted the motionin an initial determination, whichissued on
`February 5, 2018. See Order No. 20 (initial determination not reviewed per Commission Notice _
`
`(EDIS Doc.ID No. 638181)).
`‘On January 23, 2018, Wirtgenfiled a motion seeking a.summary determination thatit has
`met the importation requirement. The administrative lawjudge granted Wirtgen’s motion in
`part. See Order No. 23 (initial determination not reviewed per Commission Notice (EDIS Doc.
`ID No. 639371)). The initial determination held “that Wirtgen has shown Caterpillar Paving,
`Caterpillar Prodotti, andCaterpillar Inc. have met the importation requirement”in relation to the ~
`PM312, PM620, PM622, PM820, PM822 and PM825 cold planers. Jd. at 14-18. Theinitial
`determination further held that the importation requirement had not been met with respect to
`products that contain the so-called 2018 product updates. Jd. at 19.
`
`On February 16, 2018, Caterpillar filed a motion seeking summary determination thatits
`
`2018 Product Updates to the PM600 and PM800 series road milling machines do notinfringe the
`“309, ‘340, and ‘628 Patents. See Order No.26 (March 29,2018). The administrative lawjudge
`declined to adjudicate the 2018 product updates on summary determination, as Caterpillar failed
`to show that it was entitled to a summary determination as a matter oflaw that the 2018 product
`
`updates do not infringe the ‘309, ‘340, and ‘628 Patents. Id. at 3.
`
`_
`
`

`

`PUBLIC VERSION
`
`On March 14, 2018, Wirtgen filed an unopposed motion seeking to terminate the
`investigation as to multiple claims from the*340, ‘628, ‘530, ‘309, and ‘641 Patents. The
`administrative lawjudge granted the motion in an initial determination, whichissued on March
`15, 2018. See Order No. 28 (initial determination not reviewed per Commission Notice (EDIS
`Doc. ID No. 641964)).
`|
`|
`On March 14, 2018, Wirtgen filed an unopposedmotion seekingto terminate the |
`investigation as to the ‘628 Patent. The administrative law judge granted the motion in an initial
`determination, whichissued on March 27, 201 8. See Order No. 30 (initial determination not
`reviewed per Commission Notice (EDIS Doc. ID No. 643454)).
`|
`A prehearing conference was held on April 20, 2018, with the evidentiary hearing
`beginning immediately thereafter. See, e.g., Prehearing Tr. (Apr. 20, 2018); Order No. 32
`(Allocation ofHearing Time). The hearingconcluded on April 24, 2018. See, e.g., Tr. 939-940.
`The parties were requestedtofile post-hearing briefs notto exceéd 300 pages,andtofile reply
`briefs not to exceed 100 pages. See Pre-Hr’gTr.6.
`On May11, 2018, Wirtgen filed its post-hearing brief, which asserts the following
`
`_
`
`~ claims:
`
`° Claims 4,5, 9, and 2 ofthe ‘340 Patent;
`
`e Claims 2, 5, 16, and 23 of the ‘530 Patent;
`—
`© Claims 1, 7, 11, and 17 ofthe ‘641 Patent; and
`
`-e Claims 10, 29, and 36 of the ‘309 Patent.
`
`See Wirtgen Br. at 11.
`
`

`

`PUBLIC VERSION
`
`Pursuant to Order No. 2 (Ground Rules), the parties also submitted ajoint outline ofthe
`issuestobe decided in the FinalInitial Determination. See Joint Outline ofIssues to Be Decided
`(EDIS Doc.ID No. 644951) (Joint Outline’’).
`|
`|
`On August 9, 2018, the administrative lawjudgeissued an initial determinationextending
`the target date to February 1, 2019. See Initial Determination (Aug. 9, 2018) (not reviewed per |
`Commission Notice dated Aug. 30, 2018).
`|
`
`Cc.
`
`The Private Parties
`
`1.
`
`Complainant and Related Entities
`a)
`| Wirtgen
`Complainant Wirtgen America, Inc. (“Wirtgen”or “Wirtgen America”) is a privately
`held Tennessee corporation, with a principal place of business at 6030 Dana Way, Antioch,
`
`Tennessee 37013-3116. Compl., § 15.
`.
`b)
`Wirtgen GmbHand Wirtgen Group
`Wirtgen’s complaint, pre-hearing brief, post-hearing brief, and post-hearing reply .
`mention two Wirtgen-related entities, Wirtgen GmbH and Wirtgen Group, which both reside in
`Germany. Wirtgen does not provide much detail about these entities.
`|
`
`Caterpillar argues that Wirtgen GmbH and Wirtgen Groupare largely responsible for
`“designing, developing, manufacturing, servicing, and supporting the domestic industry
`products.” Caterpillar Br. at 285. The parties donot dispute that the asserted patents were
`originally assigned to Wirtgen GmbH and that Wirtgen GmbHassignedthe asserted patents to
`Wirtgen America in May 2017, before Wirtgen America filed the complaint. See generally JX-
`0011 (assignment for the ‘340 Patent); JX-0013 (assignment for the ‘530 Patent); JX-0014
`
`(assignmentfor the ‘641 Patent); JX-0015 (assignment for the ‘309 Patent).
`
`

`

`~ PUBLIC VERSION
`
`|
`
`. Deere & Company
`c)
`Deere & Company(i.e., John Deere). acquired the Wirtgen Group in 2017. See, e.g., RX-
`0408C; Order No. 22 (granting motion to quash subpoenaserved on Deere). Apart from
`opposing a subpoena, Deere did not participate in the investigation. See, e.g., Order No. 22.
`- 2.
`Respondents
`|
`|
`a)
`- The “Caterpillar” Respondents
`“Caterpillar” collectively refers to respondents Caterpillar Prodotti Stradali S.r.L.,
`Caterpillar Americas CV, Caterpillar Paving Products,Inc., and Caterpillar Inc.
`b)
`Caterpillar Bitelli SpA
`|
`Caterpillar’s Response to the Complaint stated that “Caterpillar Bitelli does notexist as a
`legal entity” and disputed that Caterpillar Bitelli SpA was a proper respondent. Resp.at 2-3.
`Caterpillar Bitelli SpA was terminated from the investigation on December19, 2107. ‘See Order
`No. i (initial determination not reviewed per Commission Notice (EDIS Doc. ID No. 634173)).
`o)
`Caterpillar Prodotti Stradali S.r.L.
`|
`Caterpillar Prodotti Stradali S.r.L. (“Caterpillar Prodotti”) is an Italian corporation with a
`principal place ofbusiness at Via IV Novembre, 2, I-40061 Minerbio BO,Italy. Resp.to the
`Compl. at 12-13.
`|
`
`| CaterpillarAmericas CV
`d)
`Caterpillar Americas CV (‘Caterpillar Americas”) is a Swiss corporation with a principal
`place ofbusiness at 76 Route de Frontenex, Boite Postale 6000, 1211 Geneva Switzerland.
`
`Resp. to the Compl. at 13.
`
`

`

`PUBLIC VERSION
`
`Caterpillar Paving Products, Inc.
`é)
`Caterpillar Paving Products, Inc. (“Caterpillar Paving Products’) is an Oklahoma
`
`corporation with a principal place of business at 8401 85th Avenue North, Minneapolis,
`
`Minnesota 55445. Resp. to the Compl. at 13.
`
`Sf)
`
`- Caterpillar Inc.
`
`Caterpillar Inc. is a Delaware corporation withits principal place of business at 100 NE
`_AdamsStreet, Peoria, Illinois 61629. Resp. to the Compl. at 13. Caterpillar Inc. is the parent
`company of Caterpillar Prodotti, Caterpillar Americas CV, and Caterpillar Paving Products,Inc.
`
`D.
`
`‘The Accused Products
`
`1.
`
`Overview
`
`The accused products are cold planers, which are large machines that remove pavement.
`
`CX-0062C features the following image of the PM620 cold planer:
`
`
`
`CX-0062.0007.
`
`

`

`PUBLIC VERSION
`
`Wirtgen accuses Caterpillar’s PM600 Series(e.g., the PM620 and PM622 models) and
`PM800 Series (e.g., the PM820, PM822, and PM825 models)cold planer machines ofinfringing |
`the asserted claims from the asserted patents. Wirtgen Br. at 14. Wirtgen further accuses.|
`Caterpillar’s PM300 Series (eg., the PM310, PM312, and PM3 13 models) cold planer machines
`ofinfringingthe asserted claimsofthe ‘641 Patent. Id. Wirtgen submits that the parties have
`agreed that the PM620 model“is representative of the PM622 model and PM800Series products
`for purposesofinfringement.” Jd.(citing IX-0017C (Representative Accused Products
`Stipulation)). Wirtgen also submits that the PM312 modelis representative ofthe PM310 and
`
`PM313 models. Jd. As discussed below, the administrative law judge has determined that the
`
`PM620 modelis representative of the PM600 Series and PM800Series products, and that the
`
`PM312 modelis representative of the PM300 Series products.
`
`Products Imported “on or before December 31, 2017”
`2.
`Wirtgen and Caterpillar filed a stipulation agreeing that the PM620 modelis
`representative ofthe PM600 and PM800series products andthat the PM312 modelis
`representative of the PM300series products “imported on or before December31, 2017.” JX-
`
`0017C at 1-3.
`
`3.
`
`‘Products Imported “after December 31, 2017” —the So-Called “2018
`Product Updates”
`
`Caterpillar argues that it has modified portions of the PM600 and PM800series products;
`Caterpillar refers to the modified products as the “2018 Product Updates.” Caterpillar argues:
`
`The parties dispute whether, for the ‘340 and ‘309 patents, the
`PM620 Model mayberepresentative of all machines importedafter.
`December 31, 2017.
`Jd. Caterpillar has developed 2018 Product
`Updates for the PM600 and PM800 Series of Cold Planers (the
`“2018 Product Update Machines”)
`relevant
`to the alleged
`infringement of these two patents. See Caterpillar’s Motion for
`Partial Summary Determination of Noninfringement
`(Feb. 16,
`
`

`

`- PUBLIC VERSION
`
`_
`
`2018), EDIS Doc. ID 636793; RX-0993C (Engelmann Rebuttal
`_ Witness Statement) at Q/A 4-5. Relevant to the ‘340 patent, the
`2018 Product Update Machines [
`.
`]. Id. at Q/A
`_ 8; RX-0990C (Fronczak Rebuttal Witness Statement) at Q/A 64.
`Andrelevantto the ‘309patent, the 2018 Product Update. Machines
`[
`|.
`RX-0993C at Q/A 17-18; RX-0991C (Alleyne Rebuttal Witness
`Statement) at Q/A 385-386.
`Caterpillar Br. at 7.!
`The administrative law judge addresses the 2018 products in the subsequent analysis. See .
`Part II(C)(4), infra
`E.
`The Domestic Industry Products
`
`Wirtgen introduces its products as follows:
`
`There are sixteen models of domestic-industry products (“the DI
`Products”) that can be grouped by three size categories: small,
`compact, or large. CX-0002C (Schmidt WS) Q25-28; CX-0010C |
`(Allen WS) Q10. The small DI machines include the W50Ri and
`W60Ri (corresponding to seriés 1505). The compact machines
`include:
`the W100Ri, W120Ri, WI100Fi, W120Fi, W100CFi,
`W120CFi, W130CFi, W150i, and W150CFi models (corresponding
`to series 1610, 1310, 1810, 0613, and 0813). Finally, the large
`machines include the W200i, W210i, W220, W220i, and W250i
`models (correspondingto series 1420, 1520, 0522, 0722, and 0622).
`CX-0002C (Schmidt WS) Q25-28. These models are sometimes
`referred to by Series Number, as summarized below.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`! Any emphasisfrom the parties’ briefs is generally omitted in this initial determination.
`
`

`

`PUBLIC VERSION
`
`
`
`
`
`
`
`irtgen
`Model No Le W
`Se 0
`wor,
`
`=1610
`
`
`
`
`
`
`
`
`
`|
`
`
`
`
`wisi|0613
`
`
`
`
`
`W120CFi
`
`The different model numbersrelate to the size of the milling drum,
`and the suffixes after the model numberrelate to certain attributes
`ofthe machines that differ between the same model number. For
`instance, the suffix “i” denotes a model with a “Tier four final”
`engine (specifying that it meets certain emissionscriteria). The “R”
`and “F” suffixes indicate the direction of the conveyor—whetherit
`‘is a rear-facing conveyer (R) or a front-facing conveyer (F). The
`final suffixin the DI Products, “CFi,” denotes a compact front-load
`machine,or a front-load machinethat has tracks instead of wheels,
`as other smaller cold-milling machinesdo.
`
`_ The DI products that practice various claims of the Asserted Patents
`
`W200i, W210i, W220, W220i,
`‘340 Patent
`W250i, W150i, W150CFi.
`(Improved Pivoting Scraper)|4,5, 9, 12
`
`are summarized below.
`
`
`
`
`W200i, W210i, W220, W220i,
`W250i, WS0Ri, W60Ri,
`
`W100Ri, W120Ri, W100Fi,
`
`
`
`W120Fi, W100CFi, W120CFi,
`“641 Patent
`
` 1, 7,11, 17
`
`W130CFi, W150i, W150CFi’
`(Safely Driving Backward)
`
`
`W200i, W210i, W220, W220i,
`W250i, WS50Ri, W60Ri,
`©
`W100Ri, W120Ri, W100Fi,
`
`
`-W120Fi, W100CFi, W120CFi,
`
`
`“530. Patent
`
` 2,5, 16, 18, 23
`W130CFi, W150i, W150CFi
`Untelligent Leg Control)
`
`
`
`
`10
`
`

`

`PUBLIC VERSION
`
`*309 Patent —|W200i, W210i, W220, W220i,|
`
`
`(Four-Way Floating Axle)
`10, 29
`W250i, W150i, W150CFi
`
`
`
`
`
`
`
`Wirtgen Br. at 15-16.
`
`Caterpillar introduces Wirtgen’s machinesas follows:
`
`In the Complaint, Wirtgen identified three categories of Domestic
`Articles: 1) Large Milling Machines; 2) Small Milling Machines;
`and 3) Compact Milling Machines. Compl. at § 94. On October 27,
`2017, Wirtgen filed its Identification of Products on Which It: Will
`Rely to Satisfy the Domestic Industry Requirement. In relevantpart,
`Wirtgen identified the following machines for each of the Asserted
`Patents: 1) the ‘340 patent— W200i, W210i, W220, W220i, W250i,
`W150i, W150CFi; 2) the ‘530 patent— W200i, W200Hi, W210i,
`W220, W220i, W250i, WS50Ri, W60Ri, WI100Ri, W120Ri,
`W100Fi, W120Fi, WI00CFi, W120CFi, W130CFi, W150i,
`W150CFi; 3) the ‘641 patent— W200i, W200Hi, W210i, W220,
`W220i, W250i, W50, W50DCi, WS50Ri, W60Ri, W60i, W100i,
`WIOO0Ri, W120Ri, WI100Fi, W120Fi, W100CFi, W120CFi,
`W130CFi, W150i, W150CFi; and 4) the ‘309 patent— W200i,
`W200Hi, W210i, W220, W220i, W250i, W150i, W150CFi.
`
`the parties submitted a Stipulation Regarding
`On January 29,
`Representative Domestic
`Industry
`products.
`JX-0019
`(Representative DI Products Stipulation). For the technical prong
`ofthe domestic industry requirement, the parties agreedthat for each
`of the ‘340 and ‘309 patents: 1) the W150 CFiis representative of
`the W150i, and 2) the W210i is representative of the W200i, W220,
`W220i, and W250i.
`JX-0019.0002. The parties did not reach an ~
`agreement on representative machines for the purposes of the ‘530
`and ‘641 patents.
`Caterpillar Br. at 9-102 Asdiscussed below, the administrative law judge has determinedthat:
`
`e
`
`e
`
`Forthe ‘309 and ‘340 Patents, the W150CFi modelis representative of the W150i
`and W150CFi models; and the W210i modelis representative of the W200i,
`W220, W220i, and W250i models.
`
`For the ‘641 Patent, the W100Ri/W120Ri modelsare representative of the
`W50Ri, W60Ri, W100Fi, W120Fi, W100CFi, W120CFi, and W130CFi models;
`
`2 For the “530 and ‘641 Patents, Caterpillar fails to present any argument that the machinesthat
`Wirtgenidentified are not representative.
`_
`
`11
`
`

`

`“PUBLICVERSION
`
`- the W150CFi modelis representative ofthe W150i and W150CFi models; and the -
`W210i model is representative of the W200i, W220, W220i, and W250i models.
`
`e
`
`-.For the ‘530 Patent, the W120Ri modelis representative of the W50Ri W60Ri,
`_ WI100Fi, W120Fi, W100CFi, W120CFi, W130CFi, W100Ri, and W120Ri
`models; the W150CFi modelis representative of the W150i and W150CFi
`models; and the W210i modelis representative ofthe W200i, W210i, W220,
`W220i, and W250i models.
`F. Technological Background
`The parties submitted ajoint technology stipulation on January 23, 2019, which vwas
`received into the record as JX-0018. Thetechnology stipulation provides thefollowing images
`and explanation:
`_ The Asserted Patents relate to machines usedin road construction,
`- including road milling machines.
`
`
`
`Road milling machines are also referred to as cold planers. Road
`milling machines havea rotating milling drum (also referred to as a
`rotor) that removes or “mills” existing pavement.
`N
`
`12
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`

`

`PUBLIC VERSION
`
`Asthe drum rotates, spike-like cutting tools (also referred to as bits)
`on the drum grind the pavementinto millings. The drum is enclosed
`in a housing (also referred to as a casing or chamber) that contains
`
`
`these millings.
`
`
`Within the housing, the millings are directed toward a conveyorthat
`deposits the millings into a nearbytruck.
`
`13
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`

`

`PUBLIC VERSION
`
`Height-adjustable legs elevate the milling machine’s body abovethe
`ground surface. The legs are connected to propulsion units that
`move the machine forward and backwards.
`~_
`
`The ‘340patentis directed to the scraper (also referred to as the rear
`door or drum flap) that forms therear of the housing enclosing the
`milling drum. The ‘628 patent is directed to an auxiliary drive for
`rotating the milling drum. The‘641 patent is directed to traveling
`backwards while the engine rotates the milling drum. And the ‘530
`_ and ‘309 patents are directed to the height-adjustable legs.
`
`JX-0018 at 2-3.
`
`Il.
`
`Jurisdiction and Standing
`
`A.
`
`Personal and Subject Matter Jurisdiction
`
`Noparty has contested the Commission’s personal or subject matter jurisdiction in this
`
`investigation. See Wirtgen Br. at 16; Caterpillar Br. at 10 (“Caterpillar does not contest the
`subject matterjurisdiction or personaljurisdiction ofthe Commission to adjudicate this
`
`Investigation.”).
`
`Wirtgen hasfiled a complaint alleging a violation of section 337, and the Commission,
`therefore, has subject matter jurisdiction. See Amgen, Inc. v. United States Int 'l Trade Comm’n,
`
`902 F.2d1532, 1535-37 (Fed. Cir. 1990).
`
`_
`
`In addition, Wirtgen and Caterpillar have appeared and participated in the investigation.
`
`The Commission, therefore, has personaljurisdiction over the parties. See, e.g., Certain Liquid
`
`Crystal Display Modules, Products Containing Same, andMethodsfor Using the Same,Inv. No.
`337-TA-634, Final Initial and Recommended Determinationsat 3 (June 12, 2009) (relevant part
`
`adopted by Commission Opinion issued July 22, 2011).
`
`3 The Commission “adopt[ed] all of the ALJ’s findings and conclusionsthat arenot inconsistent
`with [its] opinion.” Comm’n Op.at 35.
`
`14
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`

`PUBLIC VERSION
`
`B.
`
`In Rem Jurisdiction
`
`_
`
`The Commission has in rem jurisdiction when infringing articles are imported, sold for
`importation, or soldwithin the UnitedStatesafter importation by the owner, importer, or
`consignee. 19 U.S.C. § 1337(a)(1)(B). “All that is required for in rem jurisdiction to be
`established is the presence ofthe imported property in the United States.” Certain Male
`
`Prophylactic Devices, Inv. No. 337-TA-546,Initial Determination (June 30, 2006) (citing
`
`Certain Steel Rod TreatingApparatus and Components Thereof, lav.No. 337-TA-97, USITC
`Pub. No. 1210 (Jan. 1982), Commission Opinionat 4, 11 for the proposition that presence of res
`
`establishes in rem jurisdiction in Section 337 actions).
`Asdiscussed below,there is no dispute that the accused products—excluding the 2018
`Product Updates—are manufactured abroad and imported into the United States. The
`Commission doesnot have jurisdiction overthe 2018 Product Updates because Caterpillar has
`not imported machines including the updates into the United States. Accordingly, the
`| administrative lawjudge has determinedthat the Commission has in rem jurisdiction over the
`accused products, but not machines that include the 2018 Product Updates.
`
`C.
`
`The Importation Requirement
`
`Section 337 ofthe Tariff Act makes unlawful,in certain circumstances, the “importation
`
`into the United States, the sale for importation, or the sale within the United States after
`importation by the owner, importer, or consignee, ofarticles” that infringe a U.S. patent. 19
`U.S.C. § 1337(a)(1)(B). Prior decisionshave referred to subsection (a)(1)(B) ofthe statute as the
`- “Importation Requirement.” Accord Certain Products Containing Interactive Program Guide-
`and Parental Control Technology, Inv. No. 337-TA-845, Comm’n Op.at 1 (Dec. 11, 2013);
`
`Certain Toner Cartridges & Components Thereof, Inv. No. 337-TA-918, Notice of
`
`15
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`

`PUBLIC VERSION
`
`Determination Not to Review Two Initial Determinations; One Regarding the Importation
`Requirement; and the Other Regarding the Economic Prong ofthe Domestic Industry |
`
`Requirement (Feb. 18, 2015) (EDIS Doc. ID No. 551684, 2015: WL 13662634).
`
`1.
`
`PM312, PM620, PM622, PM820, PM822, and PM825
`a)
`Caterpillar Paving
`a
`_ Order No. 23 (Initial Determination) determined that Caterpillar Paving hasimportedinto
`the United States the following products:
`
`_
`
`1)
`2)
`
`At least one PM312coldplaner;
`At least one PM620cold planer;
`
`|
`
`3) At least one PM622 cold planer;
`
`4)
`
`At least one PM820 cold planer;
`
`At least one PM822 cold planer; and
`5)
`|
`At least one PM825cold planer.
`6)
`See Order No. 23 at 14-15. Caterpillar did not seek review of Order No.23, andthe Commission
`did not review Order No. 23. Accordingly, Wirtgen has shown that Caterpillar Paving has met
`the importation requirement.
`|
`
`States:
`
`Caterpillar Prodotti
`b)
`Order No. 23 determined that Caterpillar Prodotti has sold for importation into the United
`.
`|
`At least one PM312 cold planer;
`At least one PM620 cold planer;
`
`1)
`2)
`
`|
`
`3)
`4)
`
`5)
`
`At least one PM622 cold planer;
`Atleast one PM820 cold.planer;
`
`. Atleast one PM822 cold planer; and
`
`16
`