STAMICARBON, NV v. Escambia Chemical Corporation

300 F. Supp. 1209, 160 U.S.P.Q. (BNA) 815, 1969 U.S. Dist. LEXIS 13439
District Court, N.D. Florida·Decided January 27, 1969·No. PCA 1559·Published·Cited by 9 cases

Opinion

FINDINGS OF FACT

ARNOW, District Judge.

1. Plaintiff, STAMICARBON, N.Y., is a corporation of the Netherlands, having its principal place of business at Heerlen and Geleen, the Netherlands. It has no offices or place of business in the United States.

2. Defendant, ESCAMBIA CHEMICAL CORPORATION, is a Delaware corporation, having a regular and established place of business at Pace, Florida, and is a subsidiary of the Electric Bond & Share Corporation.

3. Plaintiff charges Defendant with infringement of claims 1 to 3 of patent No. 2,727,069 and Defendant contends that those claims are invalid and not infringed.

4. The general subject of the patent and the art to which it relates is a method for minimizing corrosion of stainless steel equipment in apparatus for manufacturing urea.

5. By agreement between the parties approved by the Court, the trial of this case has been split, with the case initially tried on the issue of liability only. Trial on that issue has now been completed.

*1211 6. The following facts have been stipulated between the parties, and are agreed statements of facts, requiring no proof of any kind in regard to this case:

A. United States Letters Patent No. 2,727,069 were granted on December 13, 1955, to Joseph P. M. van Waes, who was assignor to Stamicarbon, N.V., Heerlen, Netherlands, the Plaintiff in this suit. These Letters Patent were granted upon an application filed in the United States Patent Office on April 9, 1954, under Serial No. 422,263. The application claimed the benefit of its priority date based upon an application made in the Netherlands, filed April 15, 1953, under the provisions of Title 35, United States Code, Section 119, and under the International Convention for the Protection of Industrial Property (53 Stat. 1748).

B. The Assignment of all rights of Joseph P. M. van Waes in the invention in United States Patent 2,727,069 was made to Stamicarbon, N.V. in a document identified as Plaintiff’s Pre-trial Exhibit No. 61, and duly recorded in the United States Patent Office under the provisions of Title 35, United States Code, Section 261.

C. The Defendant Escambia Chemical Corporation owns and operates a plant for the manufacture of urea (NH2CONH2), which plant reacts ammonia (NH3) and carbon dioxide (C02) together in order to manufacture such urea.

D. The reaction is conducted in a “reactor” or “autoclave”.

E. In the “reactor” or “autoclave”, the said ammonia and carbon dioxide reactants are brought together under reaction conditions to form a “urea-earbamate melt” reaction product. This “melt” has been recognized in literature for years prior to the priority date of the patent in suit as a corrosive chemical material.

F. The internal surfaces of said “reactor” or “autoclave”, of Defendant’s plant, which are exposed to the reactants, are composed of a chromium-nickel alloy stainless steel, which has the following alloy constitutents which fall within the ranges indicated:

Chromium 16-18 %
Nickel 10-14%
Molybdenum 2-3%

G. The Defendant Escambia Chemical Corporation also operates its urea plant so that the reaction of the ammonia and C02 to form the “melt” is conducted in the presence of an amount of oxygen which falls within the range of 0.1 to 3% by volume of the carbon dioxide used.

H. The Defendant Escambia Chemical Corporation urea plant has an alarm system installed to indicate if the oxygen addition to the carbon dioxide feed stream to the reactor or autoclave is for any reason interrupted.

I. The Defendant’s urea plant was designed by and erected pursuant to a contract between the Defendant and Chemical Construction Corporation.

J. The Chemical Construction Corporation never built a urea plant using a reactor having its internal surfaces exposed to the reactants lined with a stainless steel prior to the priority date of the patent in suit.

K. Defendant Escambia Chemical Corporation and the Chemical Construction Corporation are both subsidiaries of the Electric Bond & Share Corporation. The defense of this civil action has been openly conducted by the Chemical Construction Corporation, which has agreed to indemnify the Escambia Chemical Corporation against patent infringement with respect to the operation of accused urea plant.

L. Acetic acid has long been known to have a boiling point of 118° C at standard atmospheric pressure.

M. Insofar as the van Waes patent is concernéd, the “time the invention was made” under 35 U.S.C. § 103 is April 15, 1953.

*1212 N. The process used by the Defendant is identical with the claims of process set forth in Claims 1, 2 and 3 of Plaintiff’s patent, except that Defendant contends its process is not substantially free of sulphur. The percentage of sulphur found in the process used by the Defendant at the time of the institution of this suit, and until recently, when the Defendant contends it has changed the amount, is within the range 0.1 ppm to 0.2 ppm total sulphur in carbon dioxide, and the total sulphur in the carbon dioxide is from .00001 percent to .00002 percent.

The quantities and percentages of sulphur in Plaintiff’s patented process are as follows:

The quantities of sulphur referred to in Plaintiff’s patent are 2 mg. of sulphur per m3 of C02 and 5 to 10 mg. per m3 of C02 (page 1, column 2, lines 35, 36).

On the basis that 1 mg. per m3 equals 0.5 ppm, then 2 mg. per m3 equals 1 ppm, and 5-10 mg. per m3 equals 2.5-5 ppm.

1 ppm. equals 0.000001, or .0001%.

Therefore, 2.5-5 ppm equals .00025%-.0005% and these are the percentages for the corresponding quantities of sulphur given above.

7. Prior to instituting this civil action, Plaintiff had given both the Escambia Chemical Corporation and the Chemical Construction Corporation written notice of the accused infringement, such notice having been originally given in July of 1961.

8. For a number of years prior to date of the invention of the patent in suit, the publicly known and used processes for the manufacture of urea employed reaction vessels or “autoclaves” which were lined with silver or lead metal to avoid the corrosion problem.

9. Silver-lined apparatus is expensive to fabricate and is not generally selected by persons skilled in the art as a preferred material of construction for chemical apparatus unless its use is necessary. Furthermore, the use of silver-lined equipment requires careful purification of the reactants, especially with respect to the removal of oxygen from the carbon dioxide.

10. Lead-lined apparatus is also difficult to fabricate, and maintain, and suffers from the added disadvantage that it cannot be used at the relatively high temperatures at which urea-forming reaction proceeds most efficiently, (e.g., 180-200° C).

11.

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

STAMICARBON, NV v. Escambia Chemical Corporation, 300 F. Supp. 1209, 160 U.S.P.Q. (BNA) 815, 1969 U.S. Dist. LEXIS 13439 (N.D. Fla. 1969).

300 F. Supp. 1209 (STAMICARBON, NV v. Escambia Chemical Corporation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

ANCHOR WALL SYSTEMS v. Rockwood Retaining Walls, Inc.
610 F. Supp. 2d 998 (D. Minnesota, 2009)
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)
Wycoff v. Motorola, Inc.
502 F. Supp. 77 (N.D. Illinois, 1980)
Lockheed Aircraft Corp. v. United States
553 F.2d 69 (Court of Claims, 1977)
Potter Instrument Co., Inc. v. ODEC Computer Systems, Inc.
370 F. Supp. 198 (D. Rhode Island, 1974)
Stamicarbon, N v. V. Escambia Chemical Corporation
430 F.2d 920 (Fifth Circuit, 1970)