Phillips Petroleum Co. v. Shell Oil Co.

166 F.2d 384, 76 U.S.P.Q. (BNA) 492, 1948 U.S. App. LEXIS 4149
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 1, 1948
DocketNo. 11815
StatusPublished
Cited by9 cases

This text of 166 F.2d 384 (Phillips Petroleum Co. v. Shell Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips Petroleum Co. v. Shell Oil Co., 166 F.2d 384, 76 U.S.P.Q. (BNA) 492, 1948 U.S. App. LEXIS 4149 (5th Cir. 1948).

Opinion

SIBLEY, Circuit Judge.

On Christmas Eve of 1941, Phillips Petroleum Company sued Shell Oil Company for infringement of claim 2 of Patent No. 2,002,394 issued in May, 1935, to plaintiff as assignee of the inventor Frey, seeking injunction and an accounting of profits and damages. The defendant denied 'infringement, and claimed the patent was void for lack of invention in view of the prior art, [385]*385and for other reasons. A counterclaim was made for a declaratory judgment that the patent is void, and that the operations of defendant are no infringement and may be continued without interference. The district court held claim 2 of the patent invalid because too vague and a mere invitation to experiment, and because lacking in invention in view of the prior art; and that defendant’s operations did not infringe if the claim were valid; and judgment was given as prayed by defendant. Plaintiff appeals.

The patent application is headed, “Process for converting Hydrocarbons,” and the first sentence is, “This invention relates to a process for converting hydrocarbons by thermal treatment into products of higher molecular weight, and more specifically, to reacting together paraffins and olefins into products of higher molecular weight which are substantially aliphatic in character.” We are instructed by the evidence that the hydrocarbons are a numerous group of substances composed wholly of carbon and hydrogen and the molecular weight of each is principally due to the carbon atoms. Where the proportion of carbon in the molecule is quite small the substance will be a gas at ordinary temperatures and at atmospheric pressure; where it is greater, the compound is a light liquid; when increased yet more, heavier liquids and oils result; and at the top of the carbon scale solids occur. Natural gas and crude oil are a mixture of hydrocarbons, some more useful than others. Because of the demand for gasoline, and for certain other liquid hydrocarbons in making synthetic rubber and nylon, there has been great effort to convert the less useful of these hydrocarbons into others in great demand. It has long been known that some hydrocarbons are difficult to change into others by chemical action, they being stable in their nature, and “saturated” as to their chemical affinity for others, and hence called “paraffins”, meaning “too little affinity.” Others are unstable, inclined to deteriorate, and to react'with one another, and are called “olefins.” These terms are used throughout the patent. There is a third group, by some classed as paraffins, but more usually called “aromatics,” which are once referred to in the patent. “Of higher molecular weight” refers particularly to the change of comparatively valueless gases into the desired liquids, which as above stated results when molecules are formed which have more carbon than those of the gases.

The first efforts, more than twenty-five years ago, to increase the volatile liquids obtainable from crude oil were directed to “cracking” by heat the molecules of the heavier liquids, and so reducing their carbon content. This process was called “fractionation,” and the liquids produced “fractions.” The effort here involved is the reverse, that is, to build up the molecular carbon content so as to turn gases or undesired light liquids into those desired. The oil industry was alert to this effort in the early 1930’s. In 1932 the defendant, through' the research department of Universal Oil Products Company, in which Ipatieff and Grosse were employed, was working at the problem, not by using heat and pressure, which are well known to favor chemical reactions, but by the use of catalysts, which in a less understood and less predictable way may promote such reactions. Ipatieff and Grosse’s work culminated in patents, two of which were for catalysts, the applications being filed on July 5 and Oct. 22, 1932, before that of Frey, which was filed June 22, 1934. Frey, in the research department of plaintiff, was working on a process by "thermal treatment,” as the above quotation and the whole tenor of his patent disclosure show, under high pressure. The use of a catalyst is only once mentioned by him, where it is said: “The reaction will proceed without the use of catalysts, but in some cases they are beneficial.” No particular catalyst is suggested and no case is defined in which a catalyst had been found beneficial. Frey explicitly states what is the process which he wishes to patent: “The process consists in subjecting a paraffin hydrocarbon such as butane or propane to a temperature at which decomposition will take place but very slowly (400-500° C.) and under a pressure of 1,000 pounds per square inch or more, adding thereto a small portion of gaseous ole-fins, not exceeding ten percent of the paraffin, allowing the olefins to react and add[386]*386ing from time to time additional small increments of olefin, maintaining a concentration of olefin in the reaction mixture not exceeding ten percent” In the examples which follow, a pressure of 3,000 pounds is specified and a heat of 470°C. equivalent to say 900° Fahrenheit. Of the seven claims of the patent, all save Claim 2 specify as a part of the process a pressure exceeding 1,000 pounds and temperature of 400° to 500° C or a “decomposition temperature,” or a “reaction temperature,” or merely “heating”; and they include maintaining in the mixture not more than 10% by weight of olefins. Claim 2, which alone is involved here, reads: “2. In a process for the production of higher boiling hydrocarbons from lower boiling hydrocarbons, the step which consists in adding to a stream of predominantly saturated hydrocarbons, maintained at a conversion temperature and pressure, successive small quantities of predominantly olefinic hydrocarbons in such amount that the content of added olefin in the mixture at no time exceeds 10% by weight of the total hydrocarbons present.”

Now the defendant in its plants is not converting hydrocarbons by “thermal treatment”, but instead of heating its mixtures it keeps them chilled below ordinary temperatures and far below “decomposition temperature,” or “conversion temperature” from a heat standpoint alone; and conversion is brought about by the use of a catalyst, strong sulphuric acid, perhaps the first used and best known catalyst, but yet found not to be effective with all hydrocarbons. Defendant is thus not using the catalysts which it patented through Ipatieff and Grosse. As to pressure, defendant uses only approximate atmospheric pressure. It does add successively small quantities of an olefin so that the olefins present in the mixture do not exceed 10%, and indeed are less than 1%. Plaintiff, conceding that six of its claims are not infringed, urges that Claim 2 is, because its words “maintained at a conversion temperature and pressure” are broad enough to cover any temperature and pressure at which a conversion occurs, although the conversion be induced by a catalyst.

We do not think this a proper scope to be given this claim. The claim must be interpreted in the light of the patent disclosure. The words “In a process for the production of higher boiling hydrocarbons” do not mean any process whatever, but such a process as is set forth in the disclosure. That process is by “thermal” treatment, with high temperatures and pressures as specified. No process by catalysis is disclosed, no catalyst is suggested, none was used by the inventor. The testimony is that in the hydrocarbon field a large number are known, including acids, metals, oxides and clays; and that the action of any one on any hydrocarbon cannot be predicted but must be tested empirically. This puts catalytic processes in a special class, and the patent discloses no catalytic process.

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166 F.2d 384, 76 U.S.P.Q. (BNA) 492, 1948 U.S. App. LEXIS 4149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-petroleum-co-v-shell-oil-co-ca5-1948.