David Netzer Consulting Engineer LLC v. Shell Oil Co.

824 F.3d 989, 118 U.S.P.Q. 2d (BNA) 1701, 2016 U.S. App. LEXIS 9698, 2016 WL 3031104
CourtCourt of Appeals for the Federal Circuit
DecidedMay 27, 2016
Docket2015-2086
StatusPublished
Cited by14 cases

This text of 824 F.3d 989 (David Netzer Consulting Engineer LLC v. Shell Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Netzer Consulting Engineer LLC v. Shell Oil Co., 824 F.3d 989, 118 U.S.P.Q. 2d (BNA) 1701, 2016 U.S. App. LEXIS 9698, 2016 WL 3031104 (Fed. Cir. 2016).

Opinion

LOURIE, Circuit Judge.

David Netzer Consulting Engineer LLC (“Netzer”) * appeals from the decision of the United States District Court for the Southern District of Texas granting summary judgment of noninfringement of the asserted claims of U.S. Patent 6,677,496 (“the '496 patent”). David Netzer Consult *991 ing Eng’r LLC v. Shell Oil Co., No. 4:14-cv-00166, EOF No. 45 (S.D. Tex. Aug. 26, 2015) (“Decision”). For the reasons that follow, we affirm.

BACKGROUND

Netzer owns the '496 patent, entitled “Process for the Coproduction of Benzene from Refinery Sources and Ethylene by Steam Cracking,” which describes a process for the coproduction of ethylene and purified benzene from refinery mixtures. Claim 1, the sole independent claim, reads as follows:

1. A process for the coproduction of ethylene and purified benzene comprising:
providing a first mixture comprising benzene, toluene, and one or more C6 to C7 non-aromatics;
separating the majority of the benzene and the one or more C6 to C7 non-aromatics from the majority of the toluene to form a second mixture containing at least a portion of the benzene and at least a portion of the one or more C6 to C7 non-aromatics, wherein the second mixture is substantially free of hydrocarbons having more than nine carbons;
introducing at least a portion of the second mixture to a cracker and thereafter cracking at least about 80% of the C6 to C7 non-aromatics in the portion of the second mixture that has been introduced to the cracker while maintaining essentially no cracking of benzene to produce a cracked product containing ethylene, propylene and pyrolysis gasoline comprising olefins, di-ole-fins and benzene; and
fractionating the pyrolysis gasoline to form a purified benzene product comprising at least about 80 wt % benzene.

’496 patent col. 7 11. 11-32 (emphases added).

The claimed process thus requires four steps: (1) providing a mixture containing benzene, toluene, and C6-C7 non-aromatic hydrocarbons; (2) separating most of the benzene and C6-C7 non-aromatic hydrocarbons from most of the toluene; (3) introducing the benzene-rich stream into a cracker, i.e., a reactor that breaks down long-chain hydrocarbons to short-chain hydrocarbons, and then cracking the C6-C7 non-aromatic hydrocarbons to produce ethylene and pyrolysis gasoline; and (4) “fractionating the pyrolysis gasoline to form a purified benzene product comprising at least about 80 wt % of benzene” (“the fractionating step”).

On January 23, 2014, David Netzer, the sole inventor of the '496 patent, assigned the patent to Netzer, a limited liability company newly formed under Texas law. J.A. 85 (assignment); J.A. 81-83 (Certificate of Filing issued by the Secretary of State). The next day, Netzer sued Shell Oil Company, Shell Chemical LP, and Shell Oil Products Company LLC (collectively, “Shell”) in the United States District Court for the Southern District of Texas, alleging that Shell infringed the ’496 patent. Shortly thereafter, the State of Texas requested that Netzer remove the word “Engineer” from its name. In March 2014, Netzer changed its name from David Net-zer Consulting Engineer LLC to David Netzer — Petrochemicals Consultant LLC through a Certificate of Correction. J.A. 78-79, 87-88. Meanwhile, Shell answered and counterclaimed for a declaratory judgment of noninfringement and invalidity in the district court.

Shell then moved for summary judgment of non-infringement. Shell argued that the term “fractionating” should be *992 construed to mean “conventional distillation, i.e., separating compounds based on difference in their boiling points,” which excludes extraction, i.e., separating compounds based on solubility differences. Shell argued that the patentee disclaimed extraction in the specification and prosecution history.. According to Shell, its accused process does not meet the fractionating step because it uses extraction — more specifically, the Sulfolane process developed by Shell in the 1960s — to form a benzene product with 99.9% purity. Netzer responded that “fractionating” should be construed to mean “separating a chemical mixture into fractions, no matter the process units used.” Examples of process units, according to Netzer, include distillation columns (for separating chemicals based on differences in boiling points), extractors (for separating chemicals based on solubility differences), and hydrotreaters (for hydrogenating unsaturated hydrocarbons, such as olefins). Netzer also argued that Shell infringes literally under either construction, and that Shell also infringes under the doctrine of equivalents.

The district court granted summary judgment of non-infringement. The court did not formally construe the claims, but, rather, implicitly agreed with Shell that “fractionating” does not include extraction. The court found no literal infringement, reasoning that “Netzer’s method does not include extraction and does not yield benzene of 99.9% purity” and that “[t]o infringe, Shell would have to eliminate the extraction step and still produce benzene purified to at least 80%.” Decision at 2. The court also found no infringement under the doctrine of equivalents because Netzer is barred by “specific exclusion, prosecution-history estoppel, and prior art.” Id. at 3.

The district court then entered final judgment in favor of Shell. David Netzer Consulting Eng’r LLC v. Shell Oil Co., No. 4:14-cv-00166, ECF No. 46 (S.D. Tex. Aug. 26, 2015). Netzer timely appealed to this court. However, because Shell’s counterclaims remained pending in the district court, this court granted the parties’ joint motion for a limited remand. On that limited remand, the district court dismissed Shell’s declaratory judgment counterclaims without prejudice and then entered an amended final judgment, thus disposing of all claims and counterclaims. David Netzer Consulting Eng’r LLC v. Shell Oil Co., No. 4:14-cv-00166, ECF No. 56 (S.D. Tex. Mar. 31, 2016). Netzer then filed a new notice of appeal, and its appeal was reinstated in this court. We have jurisdiction under 28 U.S.C. § 1295(a)(1).

DISCUSSION

I.

Before we reach the merits of Netzer’s appeal, Netzer asks us to confirm that it has standing to maintain this action. According to Netzer, on January 24, 2014, at the inception of the lawsuit, an entity known as David Netzer Consulting Engineer LLC held enforceable title to the '496 patent pursuant to the January 23, 2014 assignment, and thus had standing to sue. Netzer argues that the March 2014 name change did not retroactively invalidate the January 2014 assignment under Texas law. The district court did not question Net-zer’s standing.

We agree with Netzer that it has standing to bring and maintain this action.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
824 F.3d 989, 118 U.S.P.Q. 2d (BNA) 1701, 2016 U.S. App. LEXIS 9698, 2016 WL 3031104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-netzer-consulting-engineer-llc-v-shell-oil-co-cafc-2016.