Kinnear-Weed Corp. v. Humble Oil & Refining Co.

150 F. Supp. 143, 112 U.S.P.Q. (BNA) 385, 1956 U.S. Dist. LEXIS 2277, 1956 Trade Cas. (CCH) 68,743
CourtDistrict Court, E.D. Texas
DecidedSeptember 28, 1956
DocketCiv. A. 2363
StatusPublished
Cited by21 cases

This text of 150 F. Supp. 143 (Kinnear-Weed Corp. v. Humble Oil & Refining Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinnear-Weed Corp. v. Humble Oil & Refining Co., 150 F. Supp. 143, 112 U.S.P.Q. (BNA) 385, 1956 U.S. Dist. LEXIS 2277, 1956 Trade Cas. (CCH) 68,743 (E.D. Tex. 1956).

Opinion

CECIL, District Judge.

1. Plaintiff, Kinnear-Weed Corporation, is a Texas corporation having its principal office and place of business in Beaumont, Texas. Plaintiff is the owner of U.S. Patents Nos. 2,380,112 and Re. 23,416, both issued to C. W. Kinnear, the subject matter of which is a rotary drill bit for drilling oil and gas wells. These patents constitute plaintiff’s principal assets and plaintiff’s only business is the exploitation of these patents.

2. Defendant, Humble Oil & Refining Company, is a Texas corporation having its principal office and place of business in Houston, Texas. Defendant is engaged in the business of producing, refining and marketing petroleum and petroleum products. Defendant is not in the drill bit business, but does use drill bits in the drilling of its oil and gas wells. Defendant has an office and does business in the Eastern District of Texas.

3. Plaintiff charges defendant with breach of a confidential relationship, unfair competition, patent infringement and violation of the Federal and Texas anti-trust laws. All of these claims involved, and are inextricably connected with, the above-mentioned two Kinnear patents, Nos. 2,380,112 and Re. 23,416.

4. In addition to this suit, plaintiff has sued Hughes Tool Company, Reed Roller Bit Company and Hunt Tool Company, all of Houston, Texas, for infringement of the same two patents, as well as for violation of confidential relationship and unfair competition. These suits are pending in the United States District Court for the Southern District of Texas, Houston Division.

5. In rotary drilling, a bit is attached to the lower end of a string of pipe known as the “drill stem” which is rotated by machinery located at the surface. The cutting elements on the bit cut or crush the formation into small chips. Mud laden water known as drilling fluid is pumped down through the drill stem *148 and out through water courses in the bit onto the cutters, the formation being drilled, or both. The drilling fluid cools and lubricates the bit and also removes the chips produced by the bit, carrying them upwardly through the annular space between the drill stem and the wall of the hole, to the surface.

6. Rotary drill bits fall into the following generally recognized categories, depending upon the cutting elements on the bit:

(a) Drag bits

(b) Cone bits

(c) Cross-roller bits

(d) Combination bits

7. Drag bits have one or more blades with sharp, chisel-like cutting edges as their only cutting elements. They are normally used for drilling in relatively soft formations, such as sand and shale, and accomplish drilling by means of the dragging or scraping action of the cutting edges on the formation. Drag bits having two blades are commonly known as “fish-tail” bits by reason of their shape. Drag bits have been used in the .Gulf Coast since approximately 1900.

8. ■ Cone bits normally have either two or three cone-shaped cutters, which are usually equipped with a plurality of sharp teeth. The cones are mounted on axles or spindles, and as the bit rotates, the cones roll over the bottom and accomplish drilling by means of the crushing or chipping action of the teeth on the formation. These bits have no blades of any kind and the cones cut the entire bottom of the hole. Cone bits have been used in the Gulf Coast since approximately 1910. Originally intended for drilling hard formations only, such as rock, bits of this type have gradually been modified and improved with the result that cone bits are now capable of drilling through practically all formations, hard and soft, and have to a great extent replaced drag bits, which now account for a very small percentage of the total bits used. The cone bit w.as pioneered, and developed primarily by Howard R. Hughes, Sr. and the Hughes Tool Company, which is the largest manufacturer of drilling bits in the world.

9. Cross-roller bits have two independent sets of rolling cutter elements equipped with cutting teeth. The first set consists of a pair of outer-roller cutters, which cut the outer bottom portion of the hole; the other set consists of two or more roller cutters mounted on an axle or axles disposed between the outer roller cutters at substantially right angles to the axles of the outer-roller cutters. Cross-roller bits have no blades and the entire bottom of the hole is cut by the rolling cutters. Like cone bits, cross-roller bits were originally intended for drilling hard formations, such as rock, and accomplish drilling by the crushing or chipping action of the teeth on the formation being drilled. They have been used in the Gulf Coast area almost as long as cone bits.

10. Combination bits have both roller cutters and one or more blade-type cutters. Generally, the roller cutters are mounted on the inner sides of a pair of downwardly extending legs, and the blade is positioned between the roller cutters. Combination bits are intended to be used in alternating hard and soft formations. In actual practice, however, their use is largely confined to drilling the surface hole, i. e., the first thousand or so feet of the well. Relatively few combination bits are used in comparison with the other types,' particularly cone and cross-roller bits. ■

11. Plaintiff contends that C. W. Kin-near conceived the idea of positioning the wáter courses in the bit body so that the streams of drilling fluid discharged therefrom would miss the cutting elements and strike directly on the bottom of the hole in what plaintiff refers to as “a concentrated stream” or a “direct blast”. Plaintiff further contends that this concept is- disclosed and claimed in the two patents in suit, was disclosed by C. W. Kinnear to defendant in confidence prior to the issuance of either of the patents in suit, was utilized by defendant to its own advantage in the drilling of its wells, was disclosed by defendant to *149 others in violation of such confidence, was wrongfully appropriated and publicized by defendant as defendant’s own development and was monopolized or attempted to be monopolized, and was used by defendant to restrain trade, in violation of the anti-trust laws.

12. Defendant denies that C. W. Kin-near invented the concept of positioning the water courses in a bit so that the drilling fluid would miss the cutters and strike directly on the bottom of the hole, denies that the patents in suit disclose or claim any such concept, denies that C. W. Kinnear disclosed such concept (or any other information) to defendant in confidence, denies that defendant utilized, disclosed to others or published any information obtained by it from C. W. Kin-near, denies that it has competed unfairly with C. W. Kinnear, or his successors in interest, including plaintiff, denies that the patents in suit are valid or have been infringed by defendant, denies that defendant has violated any of the antitrust laws and denies that Kinnear, or his successors in interest, including plaintiff have been injured by any act of defendant.

13. On January 2, 1942, C. W. Kin-near filed an application in the U. S.

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Bluebook (online)
150 F. Supp. 143, 112 U.S.P.Q. (BNA) 385, 1956 U.S. Dist. LEXIS 2277, 1956 Trade Cas. (CCH) 68,743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinnear-weed-corp-v-humble-oil-refining-co-txed-1956.