Exxon Research and Engineering Company v. United States

265 F.3d 1371, 60 U.S.P.Q. 2d (BNA) 1272, 2001 U.S. App. LEXIS 20590, 2001 WL 1097021
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 19, 2001
Docket00-5077
StatusPublished
Cited by225 cases

This text of 265 F.3d 1371 (Exxon Research and Engineering Company v. United States) 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
Exxon Research and Engineering Company v. United States, 265 F.3d 1371, 60 U.S.P.Q. 2d (BNA) 1272, 2001 U.S. App. LEXIS 20590, 2001 WL 1097021 (Fed. Cir. 2001).

Opinion

BRYSON, Circuit Judge.

Exxon Research and Engineering Co. is the assignee of U.S. Patent Nos. 5,292,705 (“the '705 patent”) and 5,348,982 (“the '982 patent”), which are directed to improvements in a method for converting natural gas into liquid hydrocarbon products. Exxon brought suit against the United States in the Court of Federal Claims, asserting that the government infringed the '705 and '982 patents by authorizing Department of Energy subcontractors to use conversion methods covered by the patents. The government filed a motion for summary judgment seeking to have both patents held invalid for indefiniteness. In a detailed and careful opinion, the Court of Federal Claims granted the government’s motion, and Exxon appealed. We conclude that, although this case presents several close questions, the claims at issue are not invalid for indefiniteness. Accordingly, we reverse the court’s judgment of invalidity with respect to the two Exxon patents and remand the case for further proceedings.

I

The '705 and '982 patents relate to improvements in what is known as the Fischer-Tropsch process for converting natural gas to liquid hydrocarbon products. As the process is described in the patents, natural gas is first broken down to produce synthesis gas (carbon monoxide and hydrogen). The synthesis gas is then introduced into a slurry bubble column where it undergoes the Fischer-Tropsch reaction. In the slurry bubble column, catalytic particles are suspended in liquid hydrocarbons. Gas phase reactants, including the synthesis gas, are then bubbled through the reactor. As the gas bubbles rise, the reactants are absorbed into the liquid and diffuse to the catalyst where they are converted to liquid hydrocarbon products.

A

The '705 patent is directed to a method of activating an essentially fresh, reduced cobalt-containing Fischer-Tropsch catalyst. According to the specification, the cobalt catalyst is incorporated into an inert support material such as an inorganic refractory oxide. Because cobalt can be dangerous to handle, the supported cobalt catalyst is then typically heated in air to form an inactive cobalt oxide. The cobalt oxide must then be “reduced” to active cobalt metal before it is introduced into the slurry bubble column reactor. That is conventionally done by treating the cobalt oxide with hydrogen or hydrogen-containing gas at elevated temperatures or pressures. The specification teaches that the essentially fresh, reduced cobalt catalyst can then be “super activated” in a way that accelerates the conversion of the natural gas components into liquid hydrocarbons if the cobalt is further treated with hydrogen or a hydrogen-containing gas after the catalyst is introduced into the slurry bubble column reactor. The super-activation procedure is conducted either before synthesis gas is introduced into the reactor or shortly after the synthesis reaction has begun. The '705 patent states that the claimed *1374 treatment method increases the relative catalyst productivity in the Fischer-Tropsch reaction by at least 30%. '705 patent, col. 1, 11. 59-64. The '705 patent claims:

1. A method for activating an essentially fresh, reduced cobalt containing Fischer-Tropsch catalyst which comprises treating the catalyst with hydrogen or a hydrogen containing gas in the presence of hydrocarbon liquids for a period sufficient to increase substantially the initial catalyst productivity.

All other claims of the '705 patent depend from claim 1.

In its motion for summary judgment, the government asserted that the terms “for a period sufficient” and “to increase substantially” in claim 1 of the '705 patent were both indefinite. The Court of Federal Claims agreed with the government’s submission and therefore held the '705 patent invalid.

B

The '982 patent teaches a method for optimally operating a slurry bubble column using a supported cobalt catalyst to produce hydrocarbon products at an increased rate. This result is achieved by controlling certain reactor variables. Claim 1 of the '982 patent recites:

1. A method for optimally operating a large diameter three phase (gas, liquid, solid) slurry bubble column having a diameter greater than 15 cm for Fischer-Tropsch synthesis over a supported cobalt catalyst in which solid particles are fluidized in the liquid phase by bubbles of the gas phase, comprising:
(a) injecting the gas phase into said column at an average gas velocity along said column, Ug % 2 cm/sec, such that the flow regime is in the substantial absence of slug flow;
(b) fluidizing the solid supported cobalt catalyst particles of average diameter, d;) % 5 |xm, to the height, H % 3m, of the expanded liquid in the column by operating with a catalyst settling velocity, Us, and dispersion coefficient, D, such that
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and

(c)maintaining plug flow in said column by operating with a gas phase velocity, Ug, expanded liquid height, H, and dispersion coefficient, D, such that

Ug = 0.2D/H, where H % 3m, Ug % 2 cm/sec

wherein

Ps = effective density of the particles
Pi = density of the liquid
ú = viscosity of the liquid
f(Cp) = hindered settling function
= volume fraction of solids in the slurry (liquid plus solids)
|xL = liquid velocity along the column
H. = height of the expanded liquid in said reactor
g = gravitational constant
dp = diameter of particles
m = meters.

All other claims of the '982 patent depend from claim 1.

On the government’s motion for summary judgment, the Court of Federal Claims found that four of the terms in claim 1 of the '982 patent were indefinite and that claim 1 and all the dependent claims were therefore invalid. The four terms that the court found to be indefinite are: “substantial absence of slug flow,” “fluidizing the ... catalyst particles ... to the height, H % 3m,” “particles of average diameter,” and the term “UL” as used in the first formula set out in claim 1.

*1375 II

Section 112 paragraph 2 of the Patent Act requires that a patent specification conclude with one or more claims “particularly pointing out and distinctly claiming subject matter which the applicant regards as his invention.” 35 U.S.C. § 112, ¶2. We have stated the standard for assessing whether a patent claim is sufficiently definite to satisfy the statutory requirement as follows: If one skilled in the art would understand the bounds of the claim when read in light of the specification, then the claim satisfies section 112 paragraph 2. Miles Labs., Inc. v. Shandon, Inc.,

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Bluebook (online)
265 F.3d 1371, 60 U.S.P.Q. 2d (BNA) 1272, 2001 U.S. App. LEXIS 20590, 2001 WL 1097021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exxon-research-and-engineering-company-v-united-states-cafc-2001.