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Federal Appeals Court Denies Petition To Rehear Its Decision Affirming Amstedís 10-Year Exclusion Order and 10-Year Cease and Desist Orders Against Tianrui, Tianrui Foundry, SCT and Barber


Monday, February 06, 2012

Chicago, IL -- McAndrews, Held & Malloy announced today a victory for its client, Chicago-based Amsted Industries Incorporated, in a matter before the U.S. Court of Appeals for the Federal Circuit, No. 2010-1395.

On February 1, 2012, the Federal Circuit denied Appellants Tianrui Group Company Limited and Tianrui Group Foundry Company Limited’s combined petition for hearing and rehearing en banc. In denying that petition, the Federal Circuit confirmed the propriety of its October 11, 2011 decision in favor of Amsted.

In that October 11 decision, the Federal Circuit affirmed the International Trade Commission’s (ITC) determination “that the importation of certain cast steel railway wheels violated section 337 of the Tariff Act of 1930, 19 U.S.C. § 1337.” More specifically, the Federal Circuit “conclude[d] that the Commission has authority to investigate and grant relief based in part on extraterritorial conduct insofar as it is necessary to protect domestic industries from injuries arising out of unfair competition in the domestic marketplace” and “affirm[ed] the Commission’s determination that the wheel imports threaten to destroy or substantially injure an industry in the United States, in violation of section 337.”

The domestic industry that is properly protected is Amsted’s cast steel railway wheel operations, and the relief that is properly continued is a 10-year limited exclusion order and 10-year cease and desist orders that the Commission issued on February 16, 2010 against the four Appellants: two Chinese companies (Tianrui Group and Tianrui Group Foundry) and two U.S. companies (Standard Car Truck Company, Inc., which Wilmerding, Pa.-based Wabtec Corporation (NYSE-WAB) acquired in 2008, and Barber Tianrui Railway Supply, LLC).

The exclusion order and cease and desist orders are directed to cast steel railway wheels and products containing cast steel railway wheels manufactured by or for Appellants using any of Amsted’s 128 trade secrets that Appellants misappropriated. The exclusion order prohibits the entry into the United States of such cast steel railway wheels and products. The cease and desist orders prohibit all four Appellants from, among other things, importing or selling for importation into the United States, offering for sale, marketing, selling or distributing in the United States and advertising such cast steel railway wheels and products.

“All along, this case has been about improper commercial conduct -- specifically, trade secret misappropriation -- and corresponding importation into the United States,” said Greg Vogler, a McAndrews shareholder and Amsted’s lead trial counsel on the case. “As such, the Federal Circuit properly decided the case and properly denied Appellants’ petition.”

“This case shows that U.S. companies with operations abroad can successfully go to the ITC when they’re faced with competing against their own misappropriated trade secrets in the U.S. market,” added McAndrews shareholder and trial counsel Dean Pelletier, who argued before the Federal Circuit on behalf of Amsted.

Amsted is represented by McAndrews, Held & Malloy and Kirkland & Ellis.

About McAndrews, Held & Malloy

Founded in 1988, McAndrews, Held & Malloy is one of the nation’s preeminent legal resources on intellectual property, antitrust and technology matters, serving institutions ranging from major multinationals and start-ups to world-class colleges and universities. The firm’s technically trained attorneys have built an unparalleled record of litigation successes in jury trials, bench trials and ADR proceedings. In addition, McAndrews offers its clients services in the following areas: patent and trademark procurement and portfolio management, patent interferences, trademark oppositions and cancellations, international practice, intellectual property/technology opinions and investigations, due diligence and M&A support, technology licensing and joint ventures, and technology transfers and donations. Additional information can be found at www.mcandrews-ip.com.



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