Atlas Powder Co. v. E.I. Du Pont De Nemours & Co.

588 F. Supp. 1455, 221 U.S.P.Q. (BNA) 426, 1983 U.S. Dist. LEXIS 16273
CourtDistrict Court, N.D. Texas
DecidedJune 14, 1983
DocketCiv. A. CA-3-79-1562-G
StatusPublished
Cited by4 cases

This text of 588 F. Supp. 1455 (Atlas Powder Co. v. E.I. Du Pont De Nemours & Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlas Powder Co. v. E.I. Du Pont De Nemours & Co., 588 F. Supp. 1455, 221 U.S.P.Q. (BNA) 426, 1983 U.S. Dist. LEXIS 16273 (N.D. Tex. 1983).

Opinion

MEMORANDUM OPINION

PATRICK E. HIGGINBOTHAM, District Judge.

This patent infringement suit involves ammonium nitrate fuel oil (“ANFO”) explosives that are used in the form of a water-in-oil emulsion. ANFO explosives are used extensively in mining and construction because they are inexpensive and, in contrast to explosives containing high explosive ingredients such as TNT, they can be transported and handled with relative safety. Because they cannot be detonated without an outside charge equivalent to a no. 8 blasting cap, they enjoy an industry classification of “blasting agents.” 1 At the same time, ammonium nitrate is exceptionally soluble in water, a distinct disadvantage in wet application such as in wet “bore holes.” Coxon, Ammonium Nitrate Explosives — Some Experimental Mixes, paper delivered to Aus. I.M.M. Annual Conference, 1963, Defendants’ Exhibit 130, Tab 11 at 2. In a wet bore hole some of the ammonium nitrate in a common ANFO mix will dissolve. The mix will become insensitive and fail to detonate.

In response to this problem, the explosives industry developed slurry mixes of ammonium nitrate in water. Slurries are resistant to water but have less explosive power than a pure ANFO mix. In order to obtain the power necessary for commercial use, the industry added high explosives, such as TNT, or chemical sensitizers to the slurries. Defendants’ Exhibit 130, Tab 11 at 2, 9; Plaintiff’s Exhibit 16. It was also *1459 necessary to add gelling agents to some of these mixtures to prevent the chemical sensitizers from separating from the slurries. See Transcript at 799. The use of sensitizers and gelling agents significantly increased the cost and the danger of explosion of the ANFO blasting agents. See Transcript at 402, 442; Plaintiffs Exhibit 57.

On June 3, 1969, Atlas Powder Co. obtained a patent which claimed to eliminate the need for high explosive or chemical sensitizers while retaining the water resistance of the gels and slurries. The patent, entitled “Ammonium Nitrate Emulsion blasting Agent and Method of Preparing Same,” U.S. Patent No. 3,447,978 (hereinafter the “Bluhm patent” for its assignor, inventor Harold F. Bluhm), describes a water-in-oil emulsion slurry blasting agent consisting essentially of water, ammonium nitrate, a carbonaceous fuel, and an emulsifying agent. The ammonium nitrate, or similar oxidizing agent, is placed in a water solution. This solution is mixed with fuel and the emulsifier to create a water-in-oil emulsion. In addition, air is entrapped or occluded in the emulsion to sensitize it.

Atlas alleges that the defendants, E.I. Du Pont de Nemours and Alamo Explosives Company, Inc. (collectively “Du Pont”), have infringed the Bluhm patent. Atlas alleges that Du Pont infringed the patent by manufacturing and selling Du Pont’s products, EL-881, Tovex E, and To-vex EA-4, and that Alamo infringed the patent by reselling these same products. Atlas claims that the accused products and the process for making them infringe upon the Bluhm patent product and process. Specifically, Atlas alleges that Du Pont has infringed the Bluhm patent’s product claims 1, 2, 3, 4, 5, 7, 12, 13, 14, 16 and 17. •Claim 1 sets forth in general terms the patent’s product claims:

An emulsion blasting agent consisting essentially of
an aqueous solution of ammonium nitrate forming a discontinuous emulsion phase;
a carbonaceous fuel forming a continuous emulsion phase;
an occluded gas dispersed within said emulsion and comprising at least 4% by volume, thereof at 70°F. and atmospheric pressure; and
a water-in-oil type emulsifying agent;
said carbonaceous fuel having a consistency such that said occluded gas is held in said emulsion at a temperature of 70°F.

Bluhm Patent, Col. 14, lines 9-21 (numbering added). The other product claims are dependent on claim 1 and set forth specific ranges of the four major components in claim 1. (The complete text of the patent is attached as Appendix B). Atlas also alleges that Du Pont has infringed the patent’s process claims 18, 20, 21, 22, 24, and 30. Claim 18 describes in general terms the patent’s process claims:

A process for preparing an emulsion blasting agent which comprises:
(a) preparing with a water-in-oil type - emulsifying agent an emulsion of:
(1) an aqueous ammonium nitrate solution as a discontinuous emulsion phase;- and
(2) a liquid carbonaceous fuel as a continuous emulsion phase;
(b) thickening by cooling said liquid carbonaceous fuel to a consistency such that a gas may be occluded therein; and
(c) occluding at least 4% by volume at 70°F. and atmospheric pressure of a gas in the thickened emulsion.

Bluhm Patent, Col. 15, lines 36-49. The other process claims are dependent on and represent slight variations of claim 18.

Du Pont counterclaims, arguing that the Bluhm patent should be declared invalid because it was anticipated by the prior art, 35 U.S.C. § 102, it was obvious to one of ordinary skill in the art, 35 U.S.C. § 103, it does not set forth the “best mode” for making the invention, it is a mere invitation to experiment, and its claims are overly broad, 35 U.S.C. § 112. Du Pont also argues that the Bluhm patent is invalid because Atlas committed fraud on the Patent *1460 Office in obtaining the patent. Finally, Du Pont argues that even if the patent is valid, it has not been infringed by the accused products.

I. VALIDITY

A. Presumption of Validity and Burden of Proof

Congress requires judicial deference to the judgment of the Patent Office in considering the validity of a patent:

A patent shall be presumed valid .... The burden of establishing invalidity of a patent or any claim thereof shall rest on the party asserting it.

35 U.S.C. § 282. This statute creates a rebuttable presumption of validity in favor of a patent. If the Patent Office considered all the pertinent prior art, the presumption of validity remains at full strength and the party challenging the patent must prove invalidity by “clear and convincing evidence” or “beyond a reasonable doubt.” Baumstimler v. Rankin, 677 F.2d 1061, 1066 (5th Cir.1982).

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Bluebook (online)
588 F. Supp. 1455, 221 U.S.P.Q. (BNA) 426, 1983 U.S. Dist. LEXIS 16273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlas-powder-co-v-ei-du-pont-de-nemours-co-txnd-1983.