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NEWS RELEASE 98-065; SEPTEMBER 10, 1998 September 10, 1998
News Release 98-065
Inv. No. 337-TA-413

ITC INSTITUTES SECTION 337 INVESTIGATION ON CERTAIN RARE-EARTH MAGNETS AND MAGNETIC MATERIALS AND ARTICLES CONTAINING SAME

The U.S. International Trade Commission (ITC) has voted to institute an investigation of certain rare-earth magnets and magnetic materials and articles containing same. The products at issue in this investigation are rare-earth magnets, most commonly neodymium-iron-boron magnets, which may be sold unfinished or unmagnetized, and rare-earth magnetic materials, such as rare-earth alloy powders. Rare-earth permanent magnets are commonly used in a wide variety of electrical and electronic devices.

The investigation is based on a complaint filed by Magnequench International, Inc. of Anderson, Indiana, and Sumitomo Special Metals Co., Ltd., of Osaka, Japan, on July 31, 1998. The complaint, as supplemented, alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain rare-earth magnets and magnetic materials and articles containing same that infringe U.S. patents owned by Magnequench and Sumitomo. In their complaint, the companies request that the ITC issue permanent exclusion orders and permanent cease and desist orders barring the importation into and sale within the United States of the allegedly infringing products.

The ITC has identified the following companies as respondents in the investigation:

Houghes International, Inc., of Great Neck, NY;
International Magnaproducts Inc. of Valparaiso, IN;
Multi-Trend International Corp. of Fremont, CA;
American Union Group, Inc., of Germantown, MD;
High End Metals Corp. of Hsinchu Hsein, Taiwan;
Harvard Industrial America, Inc., of Brea, CA;
H.T.I.E., Inc., of Sharon, PA; and,
CYNNY Magnetics of Montville, NJ.

By instituting this investigation (337-TA-413), the ITC has not yet made any decision on the merits of the case. The case will be referred to an ITC administrative law judge, who will schedule and hold an evidentiary hearing. The administrative law judge will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The ITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the ITC will set a target date for completing the investigation. ITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the President of the United States within that 60-day period.

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