Studiengesellschaft Kohle Mbh, as Trustee for the Max-Planck-Institut Fur Kohlenforschung v. Eastman Kodak Company

616 F.2d 1315
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 8, 1980
Docket77-3230
StatusPublished
Cited by100 cases

This text of 616 F.2d 1315 (Studiengesellschaft Kohle Mbh, as Trustee for the Max-Planck-Institut Fur Kohlenforschung v. Eastman Kodak Company) 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
Studiengesellschaft Kohle Mbh, as Trustee for the Max-Planck-Institut Fur Kohlenforschung v. Eastman Kodak Company, 616 F.2d 1315 (5th Cir. 1980).

Opinion

COLEMAN, Chief Judge.

Opinion Outline

I. Background

A. The Chemistry Involved

B. The Legal Principles

II. Laches & Estoppel

A. The Legal Background

B. Application to the Facts

III. The ’332 Patent

A. Estoppel

B. Scope of the ’332 Patent

IV. The ’792 Patent

A. Validity

1. Prior Art
2. Other Challenges

B. Infringement

Summary

Studiengesellschaft Kohle mbH (SGK) charged Eastman Kodak Company (Eastman) with infringement of patents obtained by Professor Karl Ziegler covering certain chemical catalysts useful in the polymerization of hydrocarbons. Acting as Trustee for the Max-Planck-Institut fiir Kohlenforschung, the predecessor in interest to the Ziegler patents, SGK accused Eastman of violating U.S. Letters Patent No. 3,113,115 (’115); No. 3,257,332 (’332); No. 3,231,515 (’515); No. 3,392,162 (’162); and No. 3,826,-792 (’792). The alleged infringement took place at Eastman’s Longview, Texas, plant, where Eastman used a special catalyst, known as its “409 catalyst” to produce polypropylene. SGK contends that Eastman’s process and catalyst employ the teachings of the listed patents, resulting in infringement. Although SGK initially sought an injunction against Kodak’s activity, it subsequently sought instead compensation for use by Kodak of SGK’s patented invention.

*1320 The patents cover catalysts and processes for polymerizing certain hydrocarbons. In essence the patents teach that by mixing certain organometal compounds, particularly an organoaluminum compound, with a compound of a metal of Group IVB, VB, or VIB of the Periodic System of Elements, such as a titanium salt, a polymerization catalyst would be produced that polymerized olefins much more effectively than was previously possible. SGK sought a broad reading to the patents and an equally large protection against the unlicensed use of the teachings of the patents.

Eastman’s 409 process employs a catalyst composed of lithium butyl (LiBu), aluminum triethyl (AlEt3), and hydrogen-reduced alpha titanium trichloride (H-6-TiCl3) at a temperature of 160° C. and a pressure of 71 atmospheres to produce polypropylene. SGK contended that this process was directly covered by the patents.

Eastman denied infringement, asserting that it uses additional components not specified in the patents under different conditions to produce a different product. Eastman further asserted that various claims of the patents were invalid because of existing prior art. Finally Eastman argued that SGK’s claims were barred by laches.

Prior to trial SGK sought to remove the ’115 patent from suit, and the claims based upon it were dismissed with prejudice. Following a two-week trial, the District Court allowed the taking and filing of post-trial depositions and the submission of additional exhibits. It subsequently accepted substantial post-trial briefs and heard lengthy oral argument from both sides. At the conclusion of these extensive proceedings, the Court found that Eastman had not infringed the remaining patents, held that certain claims of the ’792 patent were invalid, and concluded, alternatively, that SGK’s claims were barred by laches. Studiengesellschaft Kohle v. Eastman Kodak, 450 F.Supp. 1211 (E.D.Tex.1977).

Although four patents were at issue in the District Court’s opinion, SGK has appealed the trial court’s determination on only the ’332 and ’792 patents. SGK urges on appeal that the District Court erred (1) in finding the action barred by laches, (2) in failing to find infringement of the ’332 and ’792 patents, (3) in finding claims 22 to 32 of the ’792 patent anticipated by prior art, (4) in holding claims of the ’792 patent invalid for failure to comply with various statutory disclosure requirements, (5) in failing to dismiss defendant’s “unclean hands” and “inequitable conduct” defenses as not being properly pleaded and not properly before the Court, and (6) in arbitrarily and summarily ordering SGK to produce numerous documents previously held privileged by the Special Master.

After an extensive examination of the voluminous record, we find that the suit is not barred by laches, and we affirm the decision of the district court as to the infringement and reverse as to the validity issues. We dismiss SGK’s procedural objections as being without merit.

A. The Chemistry Involved

We must begin with a general discussion of the chemistry underlying the patents at issue. The basic principles of the relevant organic chemistry were described in considerable detail in Ziegler v. Phillips Petroleum Co., 483 F.2d 858 (5th Cir.), cert. denied, 414 U.S. 1079, 94 S.Ct. 597, 38 L.Ed.2d 485 (1973). We review them briefly here.

The simplest hydrocarbon molecule is a compound of one carbon atom and four hydrogen atoms and is commonly known as methane, represented by the chemical symbol CH4. Because the molecule is bonded together exclusively by single pairs of electrons, methane is known as a saturated hydrocarbon. 1 The carbon atom in methane may form single bonds with additional car *1321 bon atoms, forming other saturated hydrocarbons, such as ethane (C2H6), propane (Cs H8), and butane (C4H10). These molecules are called members of a homologous series.

Carbon atoms may also bond to each other in double bonds, producing unsaturated hydrocarbons. The simplest of these is ethylene (C2H4). 2 The addition of other carbon atoms by single bonds produces another homologous series whose members include propylene (C3H6) and butylene (C4H3). This unsaturated series is known as the olefin series or as ethylenically unsaturated hydrocarbons. The double bond connecting the adjacent carbon atoms is known as an unsaturated or olefinic bond. In ethylene the double bond must be at the end, but in higher members of the series the unsaturated bond may appear at other locations within the hydrocarbon chain.. Where the unsaturated bond occurs at the end of the hydrocarbon chain, the compound is called an alpha olefin. 3

The patents in suit claim to teach chemical processes and catalysts which produce synthetic polymers of hydrocarbons. These products are formed by causing hydrocarbon molecules to link together in long chains, called polymers. Thus a synthetic polymer may be produced by causing individual molecules of, say, ethylene to link together into one long chain, called polyethylene. In this case the smaller molecule, ethylene, is called a monomer. Polyethylene is, of course, the polymer.

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