Stamicarbon, N v. V. Escambia Chemical Corporation

430 F.2d 920, 166 U.S.P.Q. (BNA) 362, 1970 U.S. App. LEXIS 8055
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 21, 1970
Docket27596
StatusPublished
Cited by53 cases

This text of 430 F.2d 920 (Stamicarbon, N v. V. Escambia Chemical Corporation) 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
Stamicarbon, N v. V. Escambia Chemical Corporation, 430 F.2d 920, 166 U.S.P.Q. (BNA) 362, 1970 U.S. App. LEXIS 8055 (5th Cir. 1970).

Opinion

CLARK, Circuit Judge.

Stamicarbon brought suit for patent infringement and an accounting against Escambia. Escambia defended by attacking the validity of the patent on the bases of obviousness and anticipation. After a lengthy and extensive trial to the court, the district judge found the patent both valid and infringed and reserved decision on the matter of an accounting. Escambia appeals, contending (1) the district court applied an incorrect standard of proof, (2) the court’s findings are clearly erroneous, (3) one of its witnesses was improperly impeached, and (4) the appeal should be dismissed because it appealed from an order which is not appealable. Finding no reversable error in the findings and conclusions of the district court, we affirm.

I. BACKGROUND. 1

Although the date of the patent in suit is April 15, 1953, the story of this case begins almost twenty years before —in the mid-thirties when a young engineer, Joseph P. M. van Waes, developed a process for manufacturing urea in stainless steel containers which, for all practical purposes, solved the attendant problem of corrosion which had previously plagued the use of such otherwise most desirable equipment. The chief ingredient of the van Waes process was oxygen. When a measured amount of oxygen was introduced in the equipment in which urea was manufactured, it reacted with the stainless steel containers to form a protective film of oxide on the container walls, thus preventing— or very substantially retarding — corrosion. Because of the intervention of World War II and for various other reasons, the van Waes process was not immediately exploited. In fact, it remained unused until about 1948 when Companie Nerlandaise de L’Asote (CNA) sold the *923 pilot plant developed by van Waes to the Dutch State Mines (DSM), the parent of Stamicarbon. The urea manufacturing plant was reassembled, and van Waes, who was then working for DSM, was called upon for advice and assistance in making the plant operational and in bringing stainless equipment corrosion under practical control. Finally, in 1953 it occurred to someone that van Waes’ process might be patentable. Consequently an application for a patent was filed in The Netherlands on April 15, 1953. The United States application was filed April 9, 1954, and the subject Letters Patent No. 2,727,069 were granted van Waes on December 13, 1955. Van Waes subsequently assigned this patent to Stamicarbon.

The significance of the van Waes process is manifest. Urea was first synthesized in the early 1800’s. It was originally used for the production of certain plastics. In recent years demand has multiplied as it has become important in the fertilizer industry and as a component in certain animal feed. The raw materials of urea basically are carbon dioxide and ammonia. During the process of synthesizing urea, a highly corrosive substance, ammonium carba-mate is necessarily produced. Before the van Waes process was developed, urea had to be manufactured in corrosion-resistant vessels that were lined with either silver or lead, neither of which provided a satisfactory solution to the corrosion problem. Both forms of lined vessels were economically and structurally unsatisfactory. The van Waes process permitted the use of cheaper and lighter stainless steel.

Escambia’s plant, which is the cause of this suit, is located in Pace, Florida, and was constructed and designed by Chemical Construction Company. It went into operation in January 1962. Assuming the validity of the patent, there is no serious question but that the Escambia process as originally constructed and used does in fact infringe. 2

II. THE ERRONEOUS STANDARD OF PROOF.

The first ground for reversal advanced by Escambia is that the district court applied an erroneous standard of proof in making its findings in the instant case. Here the attack principally centers upon Conclusion 3, which reads:

“The aforesaid patent in suit is entitled to the presumption of validity under 35 U.S.C. § 282, and the proof offered to overcome this presumption of validity must be such as to prove invalidity beyond a reasonable doubt.”

Escambia develops two salients in this assault — (1) the conclusion erroneously imposes a standard of proof “beyond a reasonable doubt”, and (2) equally wrongly, it requires proof of invalidity —a question of law to which no standard of proof is appropriate.

We consider first the challenged requirement: “to prove invalidity”. In Graham v. John Deere Company, 383 U.S. 1, 86 S.Ct. 684, 15 L.Ed.2d 545 (1966), the Supreme Court discussed for the first time the enactment of 35 U.S.C.A. § 103 (1954) which was added to the patent law in 1952. It ruled that Section 103 codifies the requirement of “invention” imposed by the court in a line of cases beginning with Hotchkiss v. Greenwood, 11 How. (52 U.S.) 248, 13 L.Ed. 683 (1851). Section 103 speaks of the concept in terms of “obviousness” rather than “invention”. Graham establishes these procedures by which obviousness is determined:

“Under § 103, the scope and content of the prior art are to be determined; *924 differences between the prior art and the claims at issue are to be ascertained ; and the level of ordinary skill in the pertinent art resolved. Against this background, the obviousness or non-obviousness of the subject matter is determined.” 383 U.S. at 17, 86 S. Ct. at 693.

Thus obviousness is a question of law determined against the factual background of the state of the prior art and the claimed improvement on it. See Anderson’s Black Rock, Inc. v. Pavement Salvage Co., 396 U.S. 57, 90 S.Ct. 305, 24 L.Ed.2d 258 (1969) ; Johns-Manville Corp. v. Cement Asbestos Products Co., 428 F.2d 1381 (5th Cir. 1970); Swofford v. B & W, Inc., 395 F.2d 362 (5th Cir. 1968), cert. denied 393 U.S. 935, 89 S.Ct. 296, 21 L.Ed.2d 272 (1968), reh. denied 393 U.S. 1060, 89 S.Ct. 677, 21 L.Ed.2d 703 (1969). Technically read, Conclusion 3 quoted above could be said to set down a standard of proof for a question of law, but this semantic sortie will not carry the point for Escambia. In the first place, numerous cases of this and other courts have loosely spoken in terms of “proving” or “disproving” the validity of a patent. See e. g. Fairchild v. Poe, 259 F.2d 329 (5th Cir. 1958); Harman v. Scott, 90 F.Supp. 486 (S.D. Ohio 1950), aff’d 195 F.2d 916 (6th Cir. 1952), cert. denied 343 U.S. 965, 72 S.Ct. 1059, 96 L.Ed. 1362 (1952); Grand Union Co. v. Kingston Mfg. Co., 292 F. Supp. 483 (D.N.H.1968); Consolidated Car Heating Co. v. Chrome-Gold Alloys Corp., 109 F.Supp. 652 (N.D.N.Y.1952); Galion Iron Works & Mfg. Co. v. Buffalo-Springfield Roller Co., 108 F.Supp. 811 (S.D.Ohio 1952). There is another answer. In the broad overall context of its opinion the court’s wording here is no more than elliptical.

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

Related

Nartron v. Borg Indak
Federal Circuit, 2012
Schwarz Pharma, Inc. v. Teva Pharmaceuticals USA, Inc.
132 F. App'x 369 (Federal Circuit, 2005)
Boehringer Ingelheim Vetmedica, Inc. v. Schering-Plough Corp.
106 F. Supp. 2d 696 (D. New Jersey, 2000)
Upjohn Co. v. Medtron Laboratories, Inc.
751 F. Supp. 416 (S.D. New York, 1990)
Solarex Corp. v. Arco Solar, Inc.
121 F.R.D. 163 (E.D. New York, 1988)
Kori Corp. v. Wilco Marsh Buggies & Draglines, Inc.
561 F. Supp. 512 (E.D. Louisiana, 1982)
Wycoff v. Motorola, Inc.
502 F. Supp. 77 (N.D. Illinois, 1980)
Bird Provision Co. v. Owens Country Sausage, Inc.
568 F.2d 369 (Fifth Circuit, 1978)
General Electric Co. v. United States
572 F.2d 745 (Court of Claims, 1978)
Joy Manufacturing Co. v. Ingersoll-Rand Co.
441 F. Supp. 1331 (S.D. West Virginia, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
430 F.2d 920, 166 U.S.P.Q. (BNA) 362, 1970 U.S. App. LEXIS 8055, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stamicarbon-n-v-v-escambia-chemical-corporation-ca5-1970.