DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,090

PIXEL PLAYGROUND, INC.
WOODLAND HILLS, CALIFORNIA

Notice of Termination of Investigation
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the
Trade Preferences Extension Act of 2015, Public Law No. 114-27,
section 405(a)(1)(A), the investigation into this petition was
reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of title
II of the Trade Act of 1974, as amended by the TAARA 2015, to the
facts of this petition (statutory reconsideration).
The initial investigation, initiated on February 24, 2014,
resulted in a negative determination, issued on March 26, 2014,
that was based on the finding that the firm does not produce an
article within the meaning of Section 222(a) or Section 222(b) of
the Act. The determination was applicable to workers and former
workers of Pixel Playground, Inc., Woodland Hills, California. The
workers are engaged in activities related to the related to
production of digital augmentation services. A complaint was
filed with the U.S. Court of International Trade on June 13, 2014
(No. 14-00142); a stipulation of dismissal of the case was filed
on October 17, 2014.
The worker group on whose behalf the petition was filed is
eligible to apply for Trade Adjustment Assistance under an existing
certification (TA-W-83,367; expires on April 22, 2017).
Consequently, the investigation has been terminated.

Signed in Washington, D.C., this 20th day of February, 2016

/s/Del Min Amy Chen
____________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance




DEPARTMENT OF LABOR

Employment and Training Administration
TA-W-85,090

PIXEL PLAYGROUND, INC.
WOODLAND HILLS, CALIFORNIA


Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor herein
presents the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department of Labor to issue a certification for workers under
Section 222(a) of the Act, 19 U.S.C. § 2272(a), the following three
criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such workers' firm, or
an appropriate subdivision of the firm, have become totally or
partially separated, or are threatened to become totally or
partially separated
(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm must
have decreased absolutely, AND
(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles like
or directly competitive with articles which are produced
by such firm or subdivision; and
(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a free
trade agreement with the United States;
(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers of
a Supplier or a Downstream Producer, the following criteria must be
met:
(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;
(2) the workers' firm is a Supplier or Downstream Producer to
a firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the
Act, 19 U.S.C. § 2272(a), and such supply or production
is related to the article that was the basis for such
certification; and
(3) either
(A) the workers' firm is a supplier and the component parts
it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production or
sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to the
workers' separation or threat of separation.
Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
The investigation was initiated in response to a petition filed by
a state workforce official on February 24, 2014 on behalf of
workers of Pixel Playground, Inc., Woodland Hills, California
(Pixel Playground). The workers' firm is engaged in the supply of
digital augmentation services (receive digital files from
unaffiliated studios, digitally augment the files, return the files
to the studios). The worker group does not include leased workers.
The petitioners allege "Foreign trade and foreign film
subsidies have been taking VFX film work from America. Even though
the US and CA have offered subsidies to keep work from going
overseas, it has not stopped the work from going overseas . . . ."
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that Pixel Playground does not
produce an article within the meaning of Section 222(a) or Section
222(b) of the Act. In order to be considered eligible to apply for
adjustment assistance under Section 223 of the Trade Act of 1974,
the worker group seeking certification (or on whose behalf
certification is being sought) must work for a "firm" or
appropriate subdivision that produces an article. The definition
of a firm includes an individual proprietorship, partnership, joint
venture, association, corporation (including a development
corporation), business trust, cooperative, trustee in bankruptcy,
and receiver under decree of any court.
During the investigation, the Department obtained information
which revealed that the workers' firm supplied services related to
the supply of digital augmentation services.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
trade adjustment assistance (TAA). Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Pixel Playground,
Inc., Woodland Hills, California, are denied eligibility to apply
for adjustment assistance under Section 223 of the Trade Act of
1974, and are also denied eligibility to apply for alternative
trade adjustment assistance under Section 246 of the Trade Act of
1974.

Signed in Washington, D.C., this 26th day of March, 2014

/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance