September 18, 2012
News Release 12-099
Inv. No. 337-TA-855
Contact: Peg O'Laughlin, 202-205-1819

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain sintered rare earth magnets, methods of making same, and products containing same. The products at issue in this investigation are rare earth magnets and products incorporating rare earth magnets, such as motors, audio speakers, headphones, cordless tools, computer hard drives, and golf ball markers.

The investigation is based on a complaint filed by Hitachi Metals, Ltd., of Japan, and Hitachi Metals North Carolina, Ltd., of China Grove, NC, on August 17, 2012. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain sintered rare earth magnets, methods of making same, and products containing same that infringe patents asserted by the complainants. The complainants request that the USITC issue an exclusion order and cease and desist orders.

The USITC has identified the following as respondents in this investigation:

Yantai Zhenghai Magnetic Material Co., Ltd., of China;
Ningbo Jinji Strong Magnetic Material Co., Ltd., of China;
Earth-Panda Advance Magnetic Material Co., Ltd., of China;
Skullcandy, Inc., of San Clemente, CA;
Beats Electronics, LLC, of Santa Monica, CA;
Monster Cable Products, Inc., of Brisbane, CA;
Bose Corp. of Framingham, MA;
Callaway Golf Co. of Carlsbad, CA;
Taylor Made Golf Co. of Carlsbad, CA;
Adidas America, Inc., of Portland, OR;
Milwaukee Electric Tool Corp. of Brookfield, WI;
Techtronic Industries Co. Ltd. of Hong Kong;
DeWALT Industrial Tool Corp. of Towson, MD;
Electro-Voice, Inc., of Burnsville, MN;
Shure Inc. of Niles, IL;
AKG Acoustics GmbH of Austria;
Harman International Industries of Stamford, CT;
Maxon Precision Motors, Inc., of Fall River, MA;
Dr. Fritz Faulhaber GmBH & Co. KG of Germany;
Micromo Electronics, Inc., of Clearwater, FL;
TELEX Communications, Inc., of Burnsville, MN;
Bosch Security Systems, Inc., of Burnsville, MN;
Electro-Optics Technology, Inc., of Traverse City, MI;
Nexteer Automotive Corp. of Saginaw, MI;
Bunting Magnetics Co. of Newton, KS;
Viona Corp. of Syosset, NY;
Allstar Magnetics LLC of Vancouver, WA;
Dura Magnetics Inc. of Sylvania, OH; and
Integrated Magnetics, Inc., of Culver City, CA.

By instituting this investigation (337-TA-855), the USITC has not yet made any decision on the merits of the case. The USITC's Chief Administrative Law Judge will assign the case to one of the USITC's six administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ 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 USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.