Sun Oil Co. v. Tubular Service & Engineering Co.

120 F. Supp. 428, 101 U.S.P.Q. (BNA) 450, 1954 U.S. Dist. LEXIS 3574
CourtDistrict Court, S.D. Texas
DecidedApril 15, 1954
DocketCiv. No. 5795
StatusPublished
Cited by1 cases

This text of 120 F. Supp. 428 (Sun Oil Co. v. Tubular Service & Engineering Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Sun Oil Co. v. Tubular Service & Engineering Co., 120 F. Supp. 428, 101 U.S.P.Q. (BNA) 450, 1954 U.S. Dist. LEXIS 3574 (S.D. Tex. 1954).

Opinion

HANNAY, District Judge.

Findings of Fact

1. Plaintiff Sun Oil Company is the owner of United States Letters Patent No. 2,518,663 issued to it on August 15, 1950, as the assignee of the inventors Preston E. Chaney and William E. Barnes, and has been the owner of said patent since that date. (Pltfs. Exs. 1, 2.)

Notice of Infringement

2. Plaintiff before filing the original Complaint herein gave actual notice to' Defendant Tubular Service & Engineering Company of its infringement of the patent in suit. (See Paragraph X of the Second Supplemental Complaint and Paragraph X of Defendant’s Answer to Second Supplemental Complaint.)

3. Defendant Tuboscope Company operates what is substantially the former tubing calipering business of Defendant Tubular Service & Engineering Company and is in substance the creature and instrument of the latter corporation, and hence had notice of its infringement at its inception. (See last sentence of Paragraph VIII of the Second Supplemental Complaint, which was not denied by Defendants in their answer thereto and hence must be taken as admitted.)

4. Defendants John Cary Kinley and Myron M. Kinley were notified of their infringement by the filing of the Second Supplemental Complaint, and had actual notice of this suit and assumed the defense thereof from the beginning. (See Paragraphs VIII and IX of the Second Supplemental Complaint, the latter being admitted by the Answer thereto; see also Pltfs. Ex. 10, Article 15.)

The Invention

The Problem'

5. Preston E. Chaney and William E. Barnes in April and May, 1944, were giv[429]*429en by their employer, Plaintiff, Sun Oil Company, the problem of providing a tubing caliper suitable for use in high pressure oil and gas wells for determining and recording variations of internal surface configurations of conduits such as oil well tubing, for the purpose of determining the extent of reduction in wall thickness thereof due to corrosion or other factors. (Chaney, Tr. p. 56-58.)

6. The requirements for a caliper such as Chaney and Barnes were called upon to provide included:

(a) It should be mechanical rather than electrical to operate under pressure because of the practical difficulties of running an electrical cable through a stuffing box or seal into the well against such pressures. (Chaney & Barnes in Oxford Report, Pltfs.Ex. 23, p. 18); J. C. Kinley, Tr. p. 610-12; patent in suit, Pltfs.Ex. 1, col. 1, ll. 38-54.)

(b) Stuffing boxes and packing glands ;should be avoided in the caliper proper as they would not be practical under the -conditions of temperature and pressure •in deep, high pressure wells, so that all ;parts of the caliper had to be of a nature -that could be open to the well fluids. (Chaney in Oxford Report, Pltfs.Ex. 23, -p. 33; J. C. Kinley, Tr. p. 612-14; pat-ent in suit, col. 3, ll. 5-15.)

(c) It had to be both sensitive and -rapid in its operation so that a long .■string of tubing could be calipered in a reasonable time. (J. C. Kinley, Tr. p. «616-7.)

(d) A considerable number of feelers -were required so as to scan as large a • portion of the inner circumference of the ■tubing as possible. (Adamson deposición, Tr. p. 378; J. C. Kinley, Tr. p. 617-::8; Kelly, Tr. p. 297.)

(e) All the feelers should act upon a . single stylus to produce a single simple record. (Patent in suit, col. 2, ll. 28-44 -and col. 3, ll. 27-34; J. C. Kinley, Tr. p. ■,620-1.)

(f) The single record should indicate ..clearly and accurately the depth of the . deepest pit encountered at any level along the length of-the tubing. (Patent in suit, col. 2, ll. 17-28, and col. 2, l. 53 to col. 3, l. 4; Oxford Report, Pltfs.Ex. 23, p. 32; Chaney, Tr. p. 60; Price, Tr. p. 917.)

7. The problem of dealing with tubing corrosion in wells has existed ever since iron and steel pipe has been used in wells, and this problem has been intensified by the experiences of well operators with corrosion in high pressure gas condensate wells, as a result of which one of the most aggressive research programs ever designed for developing protection against corrosion was put into effect. (Short article in Oil and Gas Journal of January 6, 1945, Pltfs.Ex. 16, also contained in Defs.Ex. 29, p. 1, col. 1 of the •publication.).

8. Prior to the invention of the patent in suit it was necessary, in order to determine the extent of corrosion in well tubing in a high pressure well, to kill the well by pumping heavy mud into it, with the possibility of damaging its production, to remove the tubing and examine it on the surface visually, and then either run it back in or replace it as indicated by the inspection. In addition to the danger of damaging the well, this procedure involved great expense in pulling and re-running the tubing. (Short article in Oil and Gas Journal, Pltfs.Ex. 16, p. 1, col. 3; Chaney, Tr. p. 56.)

The Chaney-Barnes Tubing Caliper of the Patent in Suit Solved the Problem and Achieved Commercial Success.

9. The Chaney-Barnes tubing caliper described and claimed in the patent in suit satisfies fully all of the requirements of the problem as set forth in findings 5 and 6 above. (See patent in suit, Pltfs. Ex. 1.)

10. Plaintiff, Sun Oil Company, has constructed and used successfully in its own wells from March, 1945 until the latter part of 1948, calipers as exemplified in Plaintiff’s Exhibit 19 which were substantially identical with the caliper shown and described in the Chaney-Barnes patent. (Chaney, Tr. p. 66-71.)

[430]*43011. Plaintiff, Sun Oil Company, entered into an agreement with Otis Pressure Control, Inc. and Otis Engineering Corporation, of Dallas, Texas, effective February 1, 1946, under which the said Otis Companies became licensees under the application for the patent in suit. (Spurdle, Tr. p. 173-4; Pltfs.Ex. 32.)

12. Under that license agreement Otis Pressure Control, Inc. borrowed from plaintiff, Sun Oil Company, two or three Chaney-Barnes calipers each having six wheeled feelers and otherwise substantially identical with Plaintiff’s Exhibit 19, and with the instrument shown and described in the patent in suit, and subsequently, Otis Engineering Corporation built for Otis Pressure Control, Inc. a number of additional calipers known as Type A substantially identical in construction and operation to those borrowed from Plaintiff, Sun Oil Company, and to the caliper shown and described in the patent in suit. (Chaney, Tr. p. 67; Kelly, Tr. p. 123-7.)

13. When the Chaney-Barnes and Otis six-wheel Type A calipers became available to the public in 1946 they were immediately successful and in less than three years were used to caliper 6,556,-784 feet of well tubing. (Kelly, Tr. p. 120-2-; Pltfs.Ex. 26.)

14. An Otis-built caliper with certain design changes such as the use of “sled” type feelers instead of wheeled feelers but in which the principle of operation was essentially the same as the wheeled feeler calipers theretofore offered by Otis (Kelly, Tr. p. 296-7), was made available to the public in 1948 and has since been used to caliper over 21,000,000 feet of well tubing (Kelly, Tr. p. 275-6; Pltfs.Ex. 26).

15. Among the Otis customers for whom the wheel type caliper was run are Humble Oil & Refining Co., The Texas Co., Gulf Oil Co.

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120 F. Supp. 428, 101 U.S.P.Q. (BNA) 450, 1954 U.S. Dist. LEXIS 3574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-oil-co-v-tubular-service-engineering-co-txsd-1954.