Sinorgchem Co., Shandong v. International Trade Commission

511 F.3d 1132, 85 U.S.P.Q. 2d (BNA) 1415, 2007 U.S. App. LEXIS 30348, 2007 WL 4465270
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 21, 2007
Docket2006-1633
StatusPublished
Cited by60 cases

This text of 511 F.3d 1132 (Sinorgchem Co., Shandong v. International Trade Commission) 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
Sinorgchem Co., Shandong v. International Trade Commission, 511 F.3d 1132, 85 U.S.P.Q. 2d (BNA) 1415, 2007 U.S. App. LEXIS 30348, 2007 WL 4465270 (Fed. Cir. 2007).

Opinions

Opinion for the court by Ciruict Judge DYK. Dissenting opinion filed by Circuit Judge NEWAN.

DYK, Circuit Judge.

Appellant Sinorgchem Co., Shandong (“Sinorgchem”) appeals from a limited exclusion order of the International Trade Commission (“ITC”) based on a finding that Sinorgchem infringed four method claims of U.S. Patents 5,117,063 (“the '063 patent”) and 5,608,111 (“the '111 patent”) owned by intervenor Flexsys America L.P. (“Flexsys”). In re Certain Rubber Antide-gradants, Components Thereof, and Products Containing Same, No. 337-TA-533 (I.T.C. July 13, 2006) (commission opinion). Because the ITC’s determination of infringement was based on an erroneous construction of the term “controlled amount” in the claims at issue, and under the correct construction Sinorgchem does not literally infringe, we vacate and remand.

BACKGROUND

Sinorgchem produces in China and sells for importation to the United States a compound known as 6PPD, a rubber anti-degradant that counters the deteriorative effect of various environmental factors on tires. 6PPD is made from an intermediate compound, 4-aminodiphenylamine, or 4-ADPA, which Sinorgchem also makes in China. In turn, Sinorgchem makes the intermediates of 4-ADPA using a process that reacts aniline and nitrobenzene. In that reaction, aniline is a solvent, tetrame-thylammonium hydroxide (“TMAH”) is a base, and water is a protic material. The term “protic material” refers to proton donors. The amount of water used in the condensation reaction of nitrobenzene with [1134]*1134aniline is at least 10 to 15% water throughout the reaction.

The issue is whether Sinorgehem’s method for producing 6PPD and 4-ADPA infringes the asserted method claims of the '063 and '111 patents, owned by Flex-sys. The '111 patent issued from a continuation-in-part application to the application that led to the '063 patent and is subject to a terminal disclaimer based on the earlier filed '063 patent. The specification of the '111 patent includes additional Examples 13 through 21 but is otherwise substantially identical to the '063 patent specification. The parties agree that the term “controlled amount” in both patents should receive the same construction.

At issue are independent claims 30 and 61 of the '063 patent and claims 7 and 11 of the '111 patent. These claims describe methods for producing 4-ADPA and 6PPD. Claim 61 of the '063 patent is representative:

61. A method of producing alkylated p-phenylenediamines [6PPD] comprising the steps of:
a) bringing aniline and nitrobenzene into reactive contact in a suitable solvent system;
b) reacting the aniline and nitroben-zene in a confined zone at a suitable temperature, and in the presence of a suitable base and controlled amount of protic material to produce one or more 4-ADPA intermediates;
e) reducing the 4-ADPA intermediates to produce 4-ADPA; and
d) reductively alkylating the 4-ADPA of Step c) [which produces 6PPD],

'063 patent col.15 11.34-46. The central question is whether Sinorgehem’s method of producing 4-ADPA intermediates satisfies the claim limitations of step (b). There is no dispute that Sinorgchem utilizes steps (a), (c), and (d). The ITC and the private parties particularly focus on a portion of the specification that states: “A ‘controlled amount’ of protic material is an amount up to that which inhibits the reaction of aniline with nitrobenzene, e.g., up to about 4% H20 based on the volume of the reaction mixture when aniline is utilized as the solvent.” Id. at col.4 11.48-52.

On February 23, 2005, Flexsys filed a complaint with the ITC alleging, among other things, that Sinorgchem was infringing claims 30 or 61 of the '063 patent or claims 7 or 11 of the '111 patent, and had violated subsection (a)(1)(B) of section 337 of the Tariff Act of 1930, which makes unlawful the importation of articles that either infringe a valid U.S. patent or are produced by a process covered by the claims of a valid U.S. patent. 19 U.S.C. § 1337(a)(1)(B) (2000). The administrative law judge (“ALJ”) issued a final initial determination (“final ID”) on February 17, 2006, holding that Sinorgchem had infringed the claims and violated section 337. In re Certain Rubber Antidegradants, No. 337-TA-533 (I.T.C. Feb. 17, 2006) (final initial and recommended determinations).

Central to the dispute before the ALJ was the claim construction of the term “controlled amount of protic material” found in each of the asserted independent claims. Sinorgchem urged the ALJ to adopt a construction of “controlled amount of protic material” as “up to about 4% water in the reaction mixture when aniline is the solvent.” J.A. at 108-09. Under this construction, Sinorgchem does not infringe because its process uses more than 4% water.

Flexsys argued that “controlled amount” meant “that the amount of protic material should be controlled between an upper limit and a lower limit,” where the upper limit was “that amount beyond which the reaction between nitrobenzene and aniline is inhibited,” and the lower limit was “that [1135]*1135amount below which the desired selectivity for 4-ADPA intermediates is not maintained.” J.A. at 108. Under Flexsys’s claim construction, the Sinorgchem process would infringe.

The ALJ rejected Sinorgchem’s construction and adopted Flexsys’s construction of the term “controlled amount.” Based on this construction, the ALJ concluded that (1) Sinorgchem’s processes for making 4-ADPA and 6PPD literally infringed the asserted claims, (2) the claims as construed were not invalid as indefinite, and (3) the claims were not invalid as obvious in view of the prior art.

On appeal, the ITC rejected the construction of “controlled amount” urged by Flexsys and adopted by the ALJ. It found that the patentee in the specification had acted as his own lexicographer and expressly defined the meaning of “controlled amount” of protic material as “an amount up to that which inhibits the reaction of aniline with nitrobenzene.” J.A. at 227. However, it excluded from that construction the second clause of the sentence, which stated “e.g., up to about 4% H20 based on the volume of the reaction mixture when aniline is utilized as the solvent.” The ITC read the 4% water limit as inconsistent with other general language found in the same paragraph (quoted below), which the ITC interpreted as teaching that the amount of protic material can change based on other reaction conditions, even where aniline is used as the solvent. Similarly, the ITC read the 4% limit as inconsistent with the reaction in Example 10, where a calculated 10% water level was utilized.

The ITC construed “controlled amount” as specifying an upper limit determined by when protic material “inhibits the reaction of aniline with nitrobenzene.” J.A. at 227. The ITC found that “inhibits” meant inhibits “to the extent where the reaction is no longer significant,” J.A. at 232, and that “significant” in turn meant that the “minimum acceptable conversion rate would be more than 12% but less than 63%,” J.A. at 233-34. In determining what was “significant,” the ITC looked to Example 8 for the conversion rate of nitrobenzene at which a reaction would be considered significant.

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511 F.3d 1132, 85 U.S.P.Q. 2d (BNA) 1415, 2007 U.S. App. LEXIS 30348, 2007 WL 4465270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinorgchem-co-shandong-v-international-trade-commission-cafc-2007.