Ecolochem, Inc. v. Southern California Edison Company

227 F.3d 1361, 56 U.S.P.Q. 2d (BNA) 1065, 2000 U.S. App. LEXIS 22681, 2000 WL 1273566
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 7, 2000
Docket99-1043
StatusPublished
Cited by109 cases

This text of 227 F.3d 1361 (Ecolochem, Inc. v. Southern California Edison Company) 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
Ecolochem, Inc. v. Southern California Edison Company, 227 F.3d 1361, 56 U.S.P.Q. 2d (BNA) 1065, 2000 U.S. App. LEXIS 22681, 2000 WL 1273566 (Fed. Cir. 2000).

Opinion

MICHEL, Circuit Judge.

Ecolochem, Inc. (“Ecolochem”) filed suit in 1992, alleging that Southern California Edison Company (“Edison”) infringed Ec-olochem’s U.S. Patent Nos. 4,556,492 (“the ’492 patent”) and 4,818,411 (“the ’411 patent”) when deoxygenating water in the High-Flow Makeup Demineralizer (“HFMUD”) at Edison’s San Onofre Nuclear Generating Station (“SONGS”). Edison denied infringement, counterclaimed for declaratory judgment of invalidity, and asserted equitable defenses. By grant of partial summary judgment to Edison, the United States District Court for the Central District of California invalidated claims 1, 2, and 5-10 of the ’492 patent and claims 20-21 of the ’411 patent, holding the subject matter of each of these claims to be either anticipated under 35 U.S.C. § 102 and/or obvious under 35 U.S.C. § 103. On appeal to this court, we reversed the holding by the district court that there was no genuine issue of material *1364 fact that the invention of claim 20 of the ’411 patent would have been obvious at the time of the invention, and remanded the case for a trial on invalidity in light of Ecolochem’s evidence of secondary considerations. As to the invalidation of the other appealed claims, we affirmed. Eco-lochem continued to assert infringement of claims 1, 3-13,15,17, 18, and 20 of the ’411 patent after remand, but dropped its suit as to the remaining claims of the ’492 patent. After a bench trial, the district court found that Edison had willfully infringed claims 1, 3-13, 15, 17, 18, and 20 of Ecolochem’s ’411 patent and rejected Edison’s equitable defenses. The court then went on to invalidate all of the claims found to be infringed. Ecolochem appeals the holdings of invalidity as to claims 1, 3-13, 15, 17, 18, and 20 of the ’411 patent here. Edison does not cross-appeal the district court’s finding that Edison willfully infringed those claims of the ’411 patent.

We affirm the district court’s finding that claim 20 of the ’411 patent was proven invalid by clear and convincing evidence both as anticipated under 35 U.S.C. § 102 and obvious under 35 U.S.C. § 103. We reverse its findings of invalidity for anticipation for claims 1, 4, and 7-12 because we discern clear error in the district court’s finding that the prior art was proven by clear and convincing evidence to have recited every limitation of claims 1, 4, and 7-12. We also reverse the district court’s conclusions that the subject matter of claims 1, 3-13, 15, 17, and 18 of the ’411 patent was proven invalid for obviousness by clear and convincing evidence, as we discern clear error in the district court’s implicit finding that there was motivation to combine the teachings of the prior art references. As the district court’s findings of willful infringement stand unchallenged, we remand for a determination of damages.

BACKGROUND

Edison operates SONGS, a type of nuclear power plant known as a Pressurized Water Reactor (“PWR”). PWRs use water in two systems, called the “primary system” and the “secondary system.” A minute amount of water from the secondary system is lost during each operation cycle. This water must be replaced, and the replacement water is commonly referred to as “make-up water.” Because water in the secondary system must be of extremely high purity, make-up water is supplied from a make-up demineralization system, which takes outside source water and refines it through “demineralization,” i.e., the removal of mineral ions.

During the start-up operations for SONGS, Edison decided to construct a HFMUD to meet the make-up water needs of SONGS’ two active reactors. While the HFMUD was being constructed, Edison employed outside vendors, including Ecolochem, to provide the needed make-up water. Before hiring Ecolochem, Edison hired other vendors who provided poor quality water and constantly shuttled demineralization trucks on and off Edison’s property to meet Edison’s requirements. In the summer of 1982, Edison hired Ecolochem to provide purer quality water at the large volumes Edison needed to meet its make-up water needs. Ecolo-chem used a patented “Mobile Flow” trailer apparatus to provide water treatment services, which enabled it to regenerate its trailers on-site, thus avoiding the other vendors’ needs to truck the impure water off-site. Ecolochem, however, was hired only to produce demineralized water, not water that had been both demineralized and deoxygenated.

The Electrical Power Research Institute (“EPRI”), a research organization for the power industry, published new guidelines in 1982, recommending the use of deoxy-genated water in PWRs. These guidelines were soon implemented throughout the utility industry. In direct response to these guidelines, Edison asked Ecolochem to deoxygenate the make-up water used in SONGS. Shortly thereafter, Ecolochem began developing the patented process at issue in the instant case.

*1365 Once construction of the HFMUD was finished, Edison had no further need for Ecolochem’s services, being able to now produce, on its own, sufficient, high purity, deoxygenated make-up water by passing the water through the HFMUD. The HFMUD passes the make-up water through a strong acid cation 1 resin bed, a predominantly weak base anion 2 resin bed, an activated carbon bed, a second strong acid cation resin bed, a strong base anion bed, and, finally, a vacuum deareator. This process removes suspended, undissolved solids and dissolved impurities, including salt, mineral ions, organic chemicals, and oxygen.

Ecolochem alleged that Edison’s process, as described above, infringes its ’411 patent. Ecolochem asserted all three independent claims of the ’411 patent, and multiple dependent claims. The independent claims read as follows:

1. A deoxygenation process comprising a first step of contacting a liquid contacting [sic] dissolved oxygen and hydrazine with a bed of activated carbon to catalyze a reaction between said dissolved oxygen and a portion of said hydrazine, whereby an amount of dissolved carbon contaminants is added to said liquid, and a second step of removing said contaminants and said unreacted hydrazine that comprises passing said liquid through a strong acid cation exchange resin and a strong base anion exchange resin.
15.

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227 F.3d 1361, 56 U.S.P.Q. 2d (BNA) 1065, 2000 U.S. App. LEXIS 22681, 2000 WL 1273566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ecolochem-inc-v-southern-california-edison-company-cafc-2000.