POET Research, Inc. v. Hydrite Chemical Company

District Court, N.D. Illinois·Decided September 22, 2025·No. 1:24-cv-01285·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION POET RESEARCH, INC., ) ) Plaintiff, ) ) No. 24-cv-01285 v. ) ) Judge Andrea R. Wood HYDRITE CHEMICAL COMPANY, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER Plaintiff POET Research, Inc. (“POET”) is a producer of ethanol and other biorefined products. Relevant here, POET owns four patents covering methods, processes, and systems for remediating toxins present in feedstock used in biorefinery processes. According to POET, Defendant Hydrite Chemical Company (“Hydrite”) is infringing on POET’s patents by selling certain products that it claims can be used to remediate toxins in the corn-grain byproduct of an ethanol manufacturing process. For that reason, POET has brought the present action, with its now-operative First Amended Complaint (“FAC”) asserting four claims for patent infringement in violation of 35 U.S.C. § 271, and one claim for trade secret misappropriation under the Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1831 et seq. Now before the Court is Hydrite’s motion to dismiss the FAC for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2) and for improper venue pursuant to Federal Rule of Civil Procedure 12(b)(3). (Dkt. No. 22.) For the reasons that follow, Hydrite’s motion is granted. While the Court finds that it lacks personal jurisdiction and venue is not proper in this District, instead of dismissing the case, the Court will transfer it to a district court with personal jurisdiction where venue would be proper. BACKGROUND As alleged in the FAC,1 POET is a South Dakota corporation with its principal place of business in Sioux Falls, South Dakota, that along with its affiliated entities, has become one of the world’s largest producers of ethanol and other products, such as animal feed, made from the byproduct of the ethanol manufacturing process. (FAC ¶¶ 4, 11, 13, Dkt. No. 20.) POET holds

more than 100 U.S. patents, including U.S. Patent Nos. 11,076,621 (“’621 Patent”), 11,800,884, 11,882,861, and 11,950,617 (collectively, “Asserted Patents”), each of which is entitled “Remediation of Toxins in Biorefinery Process Streams.” (Id. ¶¶ 14, 17–20.) The Asserted Patents “provide methods, processes, systems, and grain biorefineries to reduce toxicity, the concentration, or both, of toxins present in feedstock used in biorefinery processes. These inventive processes allow for remediation of feedstock (e.g., grains) and improving the quality and nutritional value of such feedstock that may otherwise go to waste.” (Id. ¶ 16.) Defendant Hydrite is a corporation organized in Wisconsin with its principal place of business in Brookfield, Wisconsin. (Id. ¶ 5.) Hydrite is a chemical company that makes industrial products for several industries, including the biofuel industry. (Id. ¶ 22.) In addition, Hydrite

offers its customers technological and equipment support services. (Id.) One of the products that Hydrite offers its biofuel customers is Hydri-Maize CB-400 (“CB-400”), a sulfite compound that Hydrite advertises as a solution that can be used to remediate deoxynivalenol (“DON”) and

1 For purposes of the present motion, the Court summarizes the factual allegations of the complaint but, of course, does not vouch for their veracity in doing so. aflatoxin, two mycotoxins in the corn-grain byproduct of an ethanol manufacturing process. (Id. ¶¶ 23, 27, 31.) In October 2022, Hydrite contacted POET about CB-400, touting early trial data showing its efficacy in reducing mycotoxins in the animal feed byproduct of ethanol manufacturing and

later following up with additional information regarding the product. (Id. ¶¶ 23–24.) Sometime after November 1, 2022, POET notified Hydrite that it had a patent that encompassed the use of CB-400 to remediate mycotoxins in the animal feed byproduct of an ethanol manufacturing process, specifically the ’621 Patent, which had been issued on August 3, 2021. (Id. ¶¶ 17, 28– 29.) Hydrite did not dispute the ’621 Patent’s applicability and began to discuss with POET the possibility of a license for that patent, but no agreement was reached. (Id. ¶¶ 29, 41.) Subsequently, POET was issued the other three Asserted Patents. (Id. ¶¶ 18–20, 30–32.) Along with CB-400, POET has identified at least two other products that Hydrite advertises and sells for the purpose of reducing mycotoxins: Hydri-Maize CB-427 and product 2216 (collectively, “Accused Products”). (Id. ¶¶ 33–37.) POET alleges that Hydrite directs its

customers to use the Accused Products in a manner that infringes on each of the Asserted Patents. (Id. ¶¶ 38–41.) Specifically, POET accuses Hydrite of promoting the Accused Products as chemical additives that can be used to treat mycotoxins found in the animal feed byproduct of an ethanol manufacturing process. (Id. ¶ 41.) Accordingly, Counts I through IV of POET’s FAC assert patent infringement claims for both direct infringement in violation of 35 U.S.C. § 271(a) and induced infringement in violation of 35 U.S.C. § 271(b). In addition to the patent infringement claims, Count V of the FAC asserts a claim under the DTSA. That claim arises out of Hydrite’s employment of Chad Poppe, who previously worked for POET between 2004 and 2013. (FAC ¶ 42.) During his tenure at POET, Poppe was involved in the research and development of mycotoxin remediation methods that ultimately led to the issuance of the Asserted Patents. (Id. ¶¶ 44–46.) As a result, Poppe had knowledge of and access to POET’s trade secrets concerning mycotoxin remediation. (Id. ¶¶ 44–51.) Shortly after Hydrite hired Poppe in August 2019, Hydrite began developing and testing the Accused Products

for treating mycotoxins in biorefinery processes. (Id. ¶ 55.) POET contends that Hydrite’s ability to put the Accused Products to such use quickly demonstrates that Hydrite must have relied on Poppe’s knowledge of POET’s trade secrets. (Id. ¶ 59.) Therefore, POET alleges that Hydrite violated the DTSA by misappropriating POET’s trade secrets for its own benefit. DISCUSSION Hydrite asks this Court to dismiss the FAC for lack of personal jurisdiction, arguing that it is a Wisconsin-based business that lacks the minimum contacts with Illinois necessary for this Court to exercise jurisdiction over it. Further, even if it is subject to jurisdiction in Illinois, Hydrate nonetheless claims that the Northern District of Illinois is not a proper venue for this action. While POET insists that both personal jurisdiction and venue are proper, in the event that the Court finds that POET has not sufficiently established either jurisdiction or venue, POET

Free access — add to your briefcase to read the full text and ask questions with AI

POET Research, Inc. v. Hydrite Chemical Company, (N.D. Ill. 2025).

POET Research, Inc. v. Hydrite Chemical Company (POET Research, Inc. v. Hydrite Chemical Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Tamburo v. Dworkin
601 F.3d 693 (Seventh Circuit, 2010)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Vita-Mix Corp. v. Basic Holding, Inc.
581 F.3d 1317 (Federal Circuit, 2009)
Avocent Huntsville Corp. v. Aten Intern. Co., Ltd.
552 F.3d 1324 (Federal Circuit, 2008)
Medical Solutions, Inc. v. C CHANGE SURGICAL LLC
541 F.3d 1136 (Federal Circuit, 2008)
Global-Tech Appliances, Inc. v. SEB S. A.
131 S. Ct. 2060 (Supreme Court, 2011)
Zoltek Corp. v. United States
672 F.3d 1309 (Federal Circuit, 2012)
Hollyanne Corporation v. Tft, Inc.
199 F.3d 1304 (Federal Circuit, 1999)
In Re John Kollar
286 F.3d 1326 (Federal Circuit, 2002)
Ntp, Inc. v. Research in Motion, Ltd.
418 F.3d 1282 (Federal Circuit, 2005)
Grober v. Mako Products, Inc.
686 F.3d 1335 (Federal Circuit, 2012)
GCIU-Employer Retirement Fund v. Goldfarb Corp.
565 F.3d 1018 (Seventh Circuit, 2009)
ABN AMRO, Inc. v. Capital International Ltd.
595 F. Supp. 2d 805 (N.D. Illinois, 2008)
Moldflow Corp. v. Simcon, Inc.
296 F. Supp. 2d 34 (D. Massachusetts, 2003)
Ticketreserve, Inc. v. Viagogo, Inc.
656 F. Supp. 2d 775 (N.D. Illinois, 2009)