Solvay S.A. v. Honeywell International Inc.

742 F.3d 998, 109 U.S.P.Q. 2d (BNA) 1609, 2014 WL 539659, 2014 U.S. App. LEXIS 2604
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 12, 2014
Docket2012-1660
StatusPublished
Cited by25 cases

This text of 742 F.3d 998 (Solvay S.A. v. Honeywell International Inc.) 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.

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Solvay S.A. v. Honeywell International Inc., 742 F.3d 998, 109 U.S.P.Q. 2d (BNA) 1609, 2014 WL 539659, 2014 U.S. App. LEXIS 2604 (Fed. Cir. 2014).

Opinions

Opinion for the court filed by Circuit Judge DYK.

Dissenting opinion filed by Circuit Judge NEWMAN.

DYK, Circuit Judge.

Plaintiff Solvay S.A. (“Solvay”) appeals from a judgment of the United States District Court for the District of Delaware in favor of defendant Honeywell International (“Honeywell”). The district court held that asserted claim 1 of Solvay’s U.S. Patent No. 6,730,817 (“the '817 patent”) was invalid under 35 U.S.C. § 102(g)(2) (2006). This was so because engineers working at the Russian Scientific Center for Applied Chemistry (“RSCAC”) first conceived the invention, which was reduced to practice in this country by Honeywell personnel pursuant to the RSCAC’s instructions, and did not abandon, suppress, or conceal it.

Background

I

The question at the heart of this appeal is when an invention conceived by a foreign inventor and reduced to practice in the United States qualifies as prior art [1000]*1000under § 102(g)(2).1 That section provides, “[a] person shall be entitled to a patent unless ... before such person’s invention thereof, the invention was made in this country by another inventor who had not abandoned, suppressed, or concealed it.” 35 U.S.C. § 102(g)(2). Although section 102(g) initially was designed for determining priority of invention in interference proceedings, it is settled that the section has “independent significance as a basis for prior art outside of the interference context.” Thomson, S.A. v. Quixote Corp., 166 F.3d 1172, 1175 n. 3 (Fed.Cir.1999); see also Solvay v. Honeywell International, Inc. (“Solvay I”), 622 F.3d 1367, 1375-76 (Fed.Cir.2010). A patent is invalid under that section if the claimed invention was made in this country by another inventor before the patent’s priority date. See, e.g., Solvay I, 622 F.3d at 1375 n. 3 (describing 1999 amendments to § 102(g)). Making the invention requires conception and reduction to practice. While conception is the “formation, in the mind of the inventor, of a definite and permanent idea of a complete and operative invention,” reduction to practice “requires that the claimed invention work for its intended purpose.” Id. at 1376 (citing Hybritech, Inc. v. Monoclonal Antibodies, Inc., 802 F.2d 1367, 1376 (Fed.Cir.1986)). It is also necessary that the invention not be suppressed, abandoned, or concealed. See, e.g., Apotex USA, Inc. v. Merck & Co., 254 F.3d 1031, 1036 (Fed.Cir.2001).

Our prior cases have illuminated what is meant by “made in this country.” See, e.g., Solvay I, 622 F.3d at 1376 (citing Mycogen Plant Sci., Inc. v. Monsanto Co., 243 F.3d 1316, 1331 (Fed.Cir.2001); Apotex, 254 F.3d at 1036). Although the inventors may reside in a foreign country and conceive the invention abroad, a reduction to practice made outside the United States is beyond the scope of § 102(g)(2) prior art. In other words, § 102(g)(2) allows conception to occur in another country, but in such circumstances requires the work constituting the reduction to practice to be performed in the United States by or on behalf of the inventor.2 However, “there is no requirement that the inventor be the one to reduce the invention to practice so long as the reduction to practice was done on his behalf’ in the United States. In re DeBaun, 687 F.2d 459, 463 (CCPA 1982) (citing Litchfield v. Eigen, 535 F.2d 72, 76 (CCPA 1976)). Consistent with that principle, “[a]cts by others working explicitly or implicitly at the inventor’s request will inure to his benefit.” 3A Donald S. Chisum, Chisum on Patents § 10.06[3].

Here, Honeywell contends that the invention was conceived by Russian inventors outside the United States and reduced to practice in the United States by Honey[1001]*1001well personnel following the Russian inventors’ instructions before the '817 patent’s priority date. It follows, argues Honeywell, that the invention qualifies as § 102(g)(2) prior art.

II

Solvay’s '817 patent claims an improvement to a method of making a hydrofluoro-carbon (“HFC”) known as HFC-245fa.3 '817 patent col. 1 11. 4-5. HFC-245fa belongs to a group of HFCs that do not deplete the ozone layer and for that reason, are legislatively mandated to replace ozone-depleting alternatives. HFC-245fa is especially useful in preparing polymeric materials commonly used for insulation in refrigeration and heat storage systems. The '817 patent has a priority date of October 23,1995.

In 1994, before Solvay’s priority date, Honeywell and RSCAC personnel entered into a research contract. Pursuant to that agreement, RSCAC engineers, working in Russia, conducted process development studies for the commercial production of HFC-245fa. In July 1994, the RSCAC sent Honeywell a report documenting the development of a continuous process capable of producing high yields of HFC-245fa by reacting HCC-240fa4 with hydrogen fluoride in the presence of a catalyst. Honeywell personnel in the United States used the RSCAC’s report to run the same process in this country in 1995, before the '817 patent’s October priority date.5

Solvay sued Honeywell in the District of Delaware, alleging that the process Honeywell was using to manufacture HFC-245fa infringed certain claims of the '817 patent. Independent claim 1, the only claim at issue on appeal, reads:

In a process for the preparation of [HFC-245fa] comprising reaction of [HCC-240fa] with hydrogen fluoride in the presence of a hydrofluorination catalyst, the improvement which comprises carrying out the reaction at a temperature and under a pressure at which [HFC-245fa] is gaseous and isolating ... [HFC-245fa] from the reaction mixture by drawing off [HFC-245fa] and hydrogen chloride [HC1] in a gaseous phase as each of said [HFC245fa] and [HC1] is being formed.

'817 patent, col. 511. 36-46.

Honeywell defended, inter alia, on the ground that independent claim 1 and dependent claims 5, 7, 10, and 11 of the '817 patent were invalid under § 102(g)(2). Honeywell’s initial theory was that its engineers had reduced the invention to practice in the United States and that this made the Honeywell engineers inventors under § 102(g)(2).

In 2008, the district court construed the “isolating” limitation in claim 1 to read:

The process for making HFC-245fa includes a reaction at a temperature and under a pressure whereby HFC-245fa and HC1 are produced in gaseous form and separated from the reaction mixture in a gas stream that, can include other compounds, such as unconverted reactants and chlorofkioropropanes possibly formed by incomplete fluorination of HCG-mfa.

[1002]*1002J.A. 4 (emphasis added).

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742 F.3d 998, 109 U.S.P.Q. 2d (BNA) 1609, 2014 WL 539659, 2014 U.S. App. LEXIS 2604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/solvay-sa-v-honeywell-international-inc-cafc-2014.