Frank's Casing Crew & Rental Tools, Inc. v. PMR Technologies, Ltd.

292 F.3d 1363
CourtCourt of Appeals for the Federal Circuit
DecidedJune 4, 2002
DocketNos. 00-1518, 00-1558 to 00-1560 and 01-1046
StatusPublished
Cited by5 cases

This text of 292 F.3d 1363 (Frank's Casing Crew & Rental Tools, Inc. v. PMR Technologies, Ltd.) 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
Frank's Casing Crew & Rental Tools, Inc. v. PMR Technologies, Ltd., 292 F.3d 1363 (Fed. Cir. 2002).

Opinion

DYK, Circuit Judge.

PMR Technologies LTD and PMR Services, Inc. (collectively, “PMR”) appeal a declaratory judgment entered by the United States District Court for the Western District of Louisiana. The court held that it had personal jurisdiction over PMR; held that the named inventors of United [1366]*1366States Patent RE 34,063 (the “'063 patent”) had failed to list a true inventor (Peter Weiner (‘Weiner”)); and held that the '063 patent was unenforceable due to inequitable conduct by named inventors in failing to name Weiner as an inventor. Frank’s Casing Crew & Rental Tools, Inc. v. PMR Techs. Ltd, Civ. No. 98-0254 (W.D.La., January 24, 2000). Cross-appellants, Frank’s Casing Crew & Rental Tools, Inc., et al. and Tubular Makeup Technology, Inc., et al. (collectively, “Frank’s”), the assignees of Weiner’s claimed interest in the patent, appeal the district court’s decision holding the '063 patent unenforceable and declining to correct inventorship of the patent to name Weiner as the sole inventor of the patent. Cross-appellants, Connection Technology, Ltd., et al. and Gulfstream Rental Tools, Inc., et al. appeal the district court’s decision declining to award them attorney fees pursuant to 35 U.S.C. § 285.

Because PMR waived its personal jurisdiction defense by filing claims against new defendants in the United Sates District Court for the Western District of Louisiana; because the district court’s finding (that a true inventor of at least one of the '063 patent claims was not named on the patent) was not erroneous; because the district court did not commit reversible error in concluding that the '063 patent was unenforceable because of inequitable conduct during its prosecution; and because the district court did not abuse its discretion in denying attorney fees, we affirm those portions of the district court’s holding. We remand to the district court for the limited purpose of determining the correct inventorship of the '063 patent.

I

PMR is the assignee of the '063 patent, which is directed to a method and apparatus for monitoring torque while connecting threaded tubular goods. The '063 patent is a reissue of United States Patent 4,738,-145 (the “'145 patent”),1 which issued on April 19, 1988, pursuant to an application filed on June 1, 1982. The invention disclosed in the '063 patent has particular utility in the field of oil and gas drilling.

Oilfield pipes have threaded connections which may be screwed together to connect sections of pipe. As the pipes are screwed together (or “made-up”), the torque required to turn the sections generally increases. By monitoring the amount of torque required to turn the sections while the sections are made-up, it may be determined when a successful connection between two sections has been made.

The “Background” section of the patent describes prior art techniques of simultaneously monitoring the torque and the number of turns applied to sections of threaded pipe as they are made-up to determine if the final connection between the sections is satisfactory. The Background cites several references as describing prior art methods of monitoring torque and turns applied to pipe sections being made-up (“torque-turn” monitoring), including U.S. Patent Nos. 4,091,451, issued to Weiner, et al. and 4,210,017, issued to James V. Motsinger. Generally, in torque-turn monitoring, as two sections of pipe were made-up, the number of turns on one section relative to the other section and the torque applied to the connection were monitored. A satisfactory connection was determined if the number of turns applied was between a predetermined minimum and maximum number of turns while the torque applied to the connection was simultaneously within a predetermined minimum and maximum amount of torque. See '063 patent, col. 1,11. 27-36.

[1367]*1367The Background section of the '063 patent further describes “premium” pipe connections which involve “metal-to-metal sealing or ‘shoulder’ connections along specially shaped areas of the pin and box members being connected.” Id., col. 1, 11. 42-45. Premium connections have generally straight or slightly tapered threads and include one or more annular shoulders surrounding the male tubular part and within the female tubular part. A metal-to-metal seal is obtained between these shoulders when the male and female parts are screwed together. The Background states that

torque-turn monitoring was not well adapted for premium connections, since shoulder could occur in a much smaller portion of a turn than the intervals, usually tenths, into which one revolution of a pipe was divided for monitoring turns. There have been indications that reducing the size of turn interval might help in shoulder contact detection, but this would require a substantial increase in the number of lugs or projections formed for turn interval division purposes on the rotary jaw member of the power tongs used in makeup of petroleum tubular goods.

Id., col. 1, 11. 50-60. Apparently, when using torque-turn monitoring, the number of turns was not monitored continuously, but only at a finite number of positions around a circle concentric with the axis of the pipe sections being made-up.

In the invention described in the '063 patent, torque on a connection is monitored as the connection is made-up. The torque is generally monitored as a function of time, rather than turns. When the shoulders of the sections of a premium pipe connection meet, the applied torque rapidly increases as the connection is made-up. The applied torque is monitored to detect this rapid increase in the applied torque, indicating that shoulder contact has been achieved.

An additional torque (a “differential torque”), to be imposed on the connection after the shoulder contact condition is obtained, may also be specified. Id., col. 2,11. 28-31. The sum of the differential torque and the torque at which shoulder contact occurred may be compared to acceptable minimum and maximum torque values. Id., col. 2, 11. 31-38. If the connection cannot obtain this total torque in operation, it is characterized as unsatisfactory and rejected. If total torque is greater than an acceptable maximum torque level, the connection is characterized as unsatisfactory, and the make-up of the connection is halted to prevent damage to the connection. Whether a satisfactory connection has been made may be determined by comparing the torque at which the shoulder condition occurred to minimum and maximum torque levels for achieving the shoulder condition, id., col. 2,11.17-19, and by comparing the total torque to minimum and maximum levels.

The '063 patent contains 8 independent claims and 55 dependent claims. Independent claim 30, at issue on this appeal, claims:

30. A method of monitoring torque conditions during the make-up of a threaded tubular connection, wherein shoulder contact is formed in the threaded connection, comprising the steps of:
(a) sensing the torque imposed on the connection during makeup;
(b) monitoring the torque conditions during said step of sensing the torque to detect if a satisfactory threaded connection is obtained;
(c) establishing a supplemental torque level for an acceptable minimum torque differential after shoulder contact; and

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292 F.3d 1363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franks-casing-crew-rental-tools-inc-v-pmr-technologies-ltd-cafc-2002.