Carbide & Carbon Chemicals Corp. v. Texas Co.

21 F.2d 199, 1927 U.S. Dist. LEXIS 1359
CourtDistrict Court, S.D. Texas
DecidedAugust 4, 1927
DocketNo. 271
StatusPublished
Cited by13 cases

This text of 21 F.2d 199 (Carbide & Carbon Chemicals Corp. v. Texas Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carbide & Carbon Chemicals Corp. v. Texas Co., 21 F.2d 199, 1927 U.S. Dist. LEXIS 1359 (S.D. Tex. 1927).

Opinion

HUTCHESON, District Judge.

This is a suit asserting the validity of three United States patents, Nos. 1,465,598, 1,429,175, and 1,523,314, charging defendant with infringement of them, asking an injunction against further infringement, and an accounting for profits from past infringement.

The first numbered patent, No. 1,465,598, was issued to De Brey, a foreign patentee, upon an application filed June 1, 1918, entitled for improvements in a “process for the treating of hydrocarbons,” and, as stated by plaintiff in its brief, “this patent was acquired by plaintiff after its issuance, and upon discovery that it contained dominating claims which would otherwise have been infringed by plaintiff under the Thompson patents.”

The Thompson patents, No. 1,429,175 and No. 1,523,314, were issued on applications filed, respectively, August 29, 1921, and May 31, 1923, to Thompson, an employee of plaintiff.

Infringement is alleged of claims 1, 3, 5, 9, and 10 of De Brey and claims 2 and 3 of the first Thompson, all process claims, and of claims 7, 8, and 9 of the first Thompson, and 1, 2, 3, 4, 5, and 6, second Thompson, all product claims. See appendix, this opinion.

While all of the De Brey claims, except No. 3, cover broadly mixtures of hydrocarbons, the infringement claimed is connected with the manufacture of natural gas gasoline, and the real insistence of the plaintiff as to its process claims is that they have to do' with improvements in the treatment of those hydrocarbons with which the natural gas gasoline art is concerned; that these improvements are directed to increasing the yield of gasoline, while holding the product within the range of permitted volatility, or, putting it another way, to increasing the yield of marketable gasoline while at the same time preserving the product from inadmissible “wildness.”

As to most, if not all, the process claims, and as to most of the product claims, I think infringement is clear, and around the validity of these claims the real contest revolves; for if there are any of the claims so narrowly phrased, and to be so narrowly construed as that defendant’s operations will not infringe them, these are of such minor importance and so restricted as to be practically unimportant here, while the claims that are infringed are of the greatest importance, not only to plaintiff and defendant, but to those generally engaged in the manufacture of natural gasoline, and it is to these broader claims, undoubtedly infringed, if valid, that I shall devote this opinion.

Natural gasoline, the material about which this controversy rages, is gasoline extracted from natural gas. There are two sources from which natural gas is derived: First, from wells which yield only natural gas; and, second, from producing or exhausted oil wells.

The end, sought in the production of natural gasoline from natural gas is a liquid gasoline product, consisting of hydrocarbons taken from the natural gas, and having a designated volatility or vapor tension. This is accomplished usually in two successive steps. In the first or extraction step, a separation is made between the highly volatile and the less volatile constituents of the natural gas, the latter forming a liquid product known as raw gasoline, which has too high a vapor tension, or, as the expression goes, is too “wild” for safe transportation and use. This extraction is usuallj carried out in a compression or absorption plant.

The second step consists in reducing to the desired figure the vapor tension or volatility of the raw gasoline, which has been ex-[201]*201traeted from the natural gas by the first step. The patents in suit have to do with the second step, the treatment of raw gasoline to reduce its vapor tension.

The natural gasoline industry sprang up in connection with the oil industry, “as a kind of mushroom industry.”' At first the only natural gasoline was tha,t which automatically condensed under atmospheric pressure and temperature conditions at the point of collection. Later the compression method was introduced to increase the natural yield, and during this period it was only with gases of the greatest richness in gasoline component that the industry concerned itself. Still later the absorption method came into standard use for treating lean gases, while the compression method was used for treating rich gases. By the use of these methods a gross product was obtained which was unmarketable without further treatment, to get rid of the more volatile constituents, so that the gasoline would be both safe to handle and would not continually lose by evaporation.

Since the inception of the natural gasoline industry the most common methods for accomplishing this have been weathering and blending, and sometimes the two methods have been combined. Blending involves merely the mixing with the raw natural gasoline of petroleum naphtha of relatively low volatility, so as to produce a mixture having a volatility or vapor tension lower than that of the original raw gasoline. Weathering has a more important bearing upon the issues of this case than has blending.

Weathering means merely separating off, by simple evaporation, a sufficient qiiantity of the highly volatile constituents to reduce the vapor tension of the remaining liquid mixture to the desired figure, and, while simple evaporation is a very inexpensive method compared with blending, it is a very wasteful method, because of the excessive losses. Its efficacy was increased by the use of closed tanks, instead of open ones, and by sending the vapors from the top of these tanks back to the inlet of the compression or absorption system, where they mingled with the incoming natural gas.

In recent years the increasing. demand for motor fuel has stimulated the production of gasoline of all kinds. As a result tliere has been a tendency to place the natural gasoline producing plants on, a more efficient operating basis, and this development finally opened the door to the introduction, as a substitute for weathering, of the use of distillation apparatus, the well-known rectifying column. It is the process of employing the rectifying column, and the products produced from this process, which is the subject-matter of this suit — plaintiff contending that the claims of the patents in suit evidence inventions of great magnitude and importance; the defendant contending that what is represented by the patents is merely the well-known process of rectification, the essential characteristic of which is that it makes possible a closer separation between constituents of different volatility than can bo accomplished by the nse of the simple still. That weathering tanks were simply stills, and that the application of rectification to this industry is precisely the same, and came in precisely the same way that it has done in other industries, not through invention, but because, commercially, the time had arrived when, notwithstanding the expense of installing and operating, it is profitable to nse.

In addition to this brief history of the industry, something should be said of the physical and chemical characteristics of the product itself, and as to that it may be briefly said:

Natural gas, whatever its source, is a mixture of a number of different hydrocarbons, each one having a definite chemical composition, or, in other words, a definite number of hydrogen and carbon atoms to the molecule; for example, methane, one of these hydrocarbons, has a chemical formula, CIT4, one carbon and four hydrogen atoms; hexane, C0H14, six carbon and fourteen hydrogen atoms.

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21 F.2d 199, 1927 U.S. Dist. LEXIS 1359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carbide-carbon-chemicals-corp-v-texas-co-txsd-1927.