Standard Oil Co. v. American Cyanamid Co.

585 F. Supp. 1481, 224 U.S.P.Q. (BNA) 210, 1984 U.S. Dist. LEXIS 17749
CourtDistrict Court, E.D. Louisiana
DecidedApril 10, 1984
DocketCiv. A. 80-1325
StatusPublished
Cited by2 cases

This text of 585 F. Supp. 1481 (Standard Oil Co. v. American Cyanamid Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Oil Co. v. American Cyanamid Co., 585 F. Supp. 1481, 224 U.S.P.Q. (BNA) 210, 1984 U.S. Dist. LEXIS 17749 (E.D. La. 1984).

Opinion

OPINION

ARCENEAUX, District Judge.

The Standard Oil Company (“Sohio”), an Ohio Corporation with its principal place of business in Cleveland, Ohio, instituted this suit against American Cyanamid Company (“Cyanamid), a Maine corporation, but having its principal place of business in Wayne, New Jersey, on April 16, 1980. Cyanamid also does regular and substantial business in the Eastern District of Louisiana, including the operation of a large chemical plant at Fortier, Louisiana.

Sohio originally sought both injunctive relief and damages from Cyanamid based on the defendant’s alleged infringement of Sohio’s United States Patent No. 3,381,034, (“the original patent”) and claim 2 of its U.S. Patent Number Reissue 28,525 (“the *1483 reissue patent”). Prior to trial, Sohio withdrew its claims for injunctive relief and for infringement of the original patent. It maintained its claim for infringement of Claim 2 of the reissue patent, but limited its claim for damages on that claim to a reasonable royalty for the use of the invention from August 19, 1975, the date the U.S. Patent and Trademark office issued the reissue patent. Sohio also seeks its costs and attorneys fees in prosecuting this action.

Cyanamid has denied any infringement, and has counterclaimed for a declaration that the reissue patent in its entirety is invalid, unenforceable and not infringed. Cyanamid likewise seeks costs and attorneys fees.

Jurisdiction is in this court pursuant to 28 U.S.C. § 1338(a); venue lies under 28 U.S.C. § 1400(b).

I. Background

This matter deals with a process used by Cyanamid to manufacture an organic chemical compound known as acrylamide, a valuable “starting material” for the production of polymers, which presently have varied uses in numerous applications. Acrylamide is produced by a chemical process from an organic compound known as acrylonitrile. Prior to the mid 1960’s, this conversion was accomplished by the use of a two-step process using sulfuric acid.

In early 1965, Sohio instructed one of its research chemists, Dr. Janice L. Greene to investigate, among other things, the possibility of utilizing a catalytic method to accomplish such conversion. A catalyst is a material which will effect a chemical reaction without the catalyst itself being consumed in the reaction. The process is known as catalysis.

During the course of this investigation, Dr. Greene found that certain copper compounds would produce a catalytic result and would thereby convert acrylonitrile to acrylamide.

In June, 1965, Dr. Greene, and her colleague, Murrell Godfrey, applied for a patent on their work. ■ In July, 1965, they assigned their rights in their work and in the patent application to Sohio. Patent counsel for Sohio, principally one John Jones, prepared and prosecuted the patent application.

By patent office action taken in mid-July, 1967, the examiner rejected the original claims, on two grounds:

First, he pointed out that the language of those claims “includes ions which are insoluble in the nitrile and H2O,” whereas the specification provided that the copper had to be ‘‘at least slightly soluble in water, the nitrile, or both water and the nitrile.” In response, Sohio amended the claims to include the “at least partially soluble” limitation now found in Claim 2. In so doing, Sohio remarked that “The claims all recite the ... solubility characteristics of the copper ion ... ” This new limitation was accepted by the examiner.

Second, the examiner rejected use of the term “copper ion” on the ground that it was “broad, vague, indefinite and a distortion.” In response to this rejection, Sohio amended the claims to include the limitation, “said copper ion being composed of copper in a combined valence state of Cu° + Cu1, Cu° + Cu11, Cu1 + Cu1 1, or Cu” + Cu 1 + Cu1 1.” This limitation was also accepted by the examiner.

On April 30, 1968, U.S. Patent No. 3,381,-034 entitled “Process for Hydrolyzing Ni-triles” issued to Sohio.

In March or April, 1967, Dr. Greene, while investigating another process, came upon a literature reference to an article by a Dr. Kenichi Watanabe, published in 1964, entitled, “Studies on Organic Catalytic Reactions. II. The Hydration of Nitriles to Amides with Nickel Catalysts”, 37 Bull. Chem. Soc’y Japan, 1325 (1964). (“The Watnabe Article”). She ordered a copy of the article, which was received by the Sohio research laboratory in April 1967, read by Dr. Greene and filed away. She did not call the article to the attention of patent counsel. The Watanabe article reports a catalytic conversion of benzonitrile to ben- *1484 zamide using a substance known as Urishi-bara copper.

However, some six years later, in September of 1973, Attorney Jones learned of the Watanabe article while reading The Dow Chemical Company patent No. 3,758,-578, which was issued on September 11, 1973, and in the fall of that year, he discussed the 1964 Watanabe article with Dr. Greene, who affirmed that she had not seen or found the article prior to applying for the original patent.

As a result of Jones’ discovering the Watanabe article, Sohio filed an application to reissue the original Greene patent on April 26, 1974.

The “Reissue Application Oath by As-signee” states that:

“Donald G. Stevens, being duly sworn, deposes and says he is a citizen of the United States; that he is an authorized agent with signatory authority for The Standard Oil Company, an Ohio corporation, having a place of business at Midland Building, Cleveland, Ohio 44115; that the entire title of United States Letters Patent No. 3,381,034 for “Process for Hydrolyzing Nitriles", issued April 30, 1968, to Janice L. Greene and Murrel Godfrey, is vested in the said ‘The Standard Oil Company’; that he verily believes the said Janice L. Greene and Mur-rel Godfrey to be the original and first inventors of the invention described and claimed in the aforesaid Letters Patent and in the foregoing specification; that he does not know and does not believe that said invention was ever known or used before the invention thereof by the said Janice L. Greene and Murrel God-frey; that he verily believes the original United States Letters Patent No. 3,381,-034 is partially inoperative by reason of patentee claiming more than it was entitled to in claims 1, 2 and 12 of said patent; that the patentees’ attorney inadvertently, and without deceptive intent, erroneously included ‘benzonitrile’ in the group of compounds called ‘nitriles’.” [Plaintiff’s Exhibit No. 4].

The specifications and claims of the reissue application worked significant changes in the terms of the original patent; that patent had claimed copper-ion based catalysis to amides of two classes of nitriles, known as aromatic nitriles and aliphatic nitriles. These compounds are distinguished on the basis of the arrangement of their constitutent carbon atoms.

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585 F. Supp. 1481, 224 U.S.P.Q. (BNA) 210, 1984 U.S. Dist. LEXIS 17749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-oil-co-v-american-cyanamid-co-laed-1984.