Universal Oil Products Co. v. Winkler-Koch Engineering Co.

6 F. Supp. 763, 1934 U.S. Dist. LEXIS 1794
CourtDistrict Court, D. Delaware
DecidedApril 27, 1934
Docket716, 895
StatusPublished
Cited by15 cases

This text of 6 F. Supp. 763 (Universal Oil Products Co. v. Winkler-Koch Engineering Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Universal Oil Products Co. v. Winkler-Koch Engineering Co., 6 F. Supp. 763, 1934 U.S. Dist. LEXIS 1794 (D. Del. 1934).

Opinion

NIEHDS, District Judge.

This suit charges defendants with infringement of two process patents for the production of gasoline by cracking cheap petroleum oil. Patent No. 1,392,629' was granted in 1921 to Carbon Petroleum Dubbs and thereupon assigned to the plaintiff. The other patent, No. 1,537,593, was granted in 1925 to the plaintiff upon an application filed in 1920 by Gustav Egloff. All claims of both patents are in suit except claim 6 of the Dubbs patent. ■

The defenses are noninfringement and invalidity. Stated more specifically, the defense of invalidity is: The Dubbs patent is invalid for lack of disclosure, the Egloff patent is invalid for lack of utility, and both patents are invalid for lack of patentable novelty over the prior art.

Por a number of years plaintiff has been engaged in promoting the use by refiners, in this country and abroad, of the “Dubbs process” for cracking heavy petroleum oils for the production of gasoline. It owns a number of patents, including the two patents in suit, although many of them are not practiced in the Dubbs process. That process is bottomed upon the Dubbs patent in suit. In the decade before 1931 plaintiff received in royalties under licenses of the Dubbs process $33,500,000'. Root Refining Company, hereinafter referred to as defendant, is engaged in the business of refining petroleum at Eldorado, Ark. The other defendant was never-served with process.

In the early days of refining crude petroleum, gasoline was obtained by distillation. The operation consisted in gradually increasing the temperature of the oil and driving off a part in the form of vapor. The vapors were then condensed and a separation effected by directing the condensate of one volatility into' one vessel, and a portion of a lower volatility into another vessel and so on. This operation was essentially a nonchemical one.

The use of combustion engines in motor vehicles created a great demand for gasoline. That demand would have exhausted the available petroleum deposits within the span of a life unless a large additional supply of gasoline could be obtained. Chemists for several generations had studied the production of gasoline by cracking. “Cracking” is the decomposition of petroleum by heat and pressure, with the consequent breaking up of the molecules and the production of both lighter and heavier hydrocarbons. Gasoline is a lighter hydrocarbon produced by this chemical action. Many patents had issued for processes and apparatus! to crack petroleum. The first commercially successful process of cracking to produce gasoline was invented by Dr. Burton and used by the Standard Oil Company of Indiana in 1913. Shortly after the advent of the Burton process, it was improved by the invention of Clark.

At the time plaintiff entered the field with the Dubbs process, the most effective process *765 in commercial use for producing gasoline by cracking was the Burton-Clark process. The features characterizing this process were: (1) Raising the oil to the cracking temperar ture by passing it through tubes located in a furnace. (2) Receiving the discharge in an unheated but insulated chamber where the vapors liberate themselves from the liquid and pass overhead to a condenser. (3) A condensing action whereby the heavier vapors are liquefied into a reflux condensate and the passing of the vapors which are not condensed to a final condenser. (4)- Passing of the liquid from the final condenser to a receiver. (5) Returning the reflux condensate and the fresh charge to the heating tubes. (6) The maintenance of a pressure of approximately 95 pounds per square inch.

The Burton-Clark process is a liquid-vapor phase process. There is always a very substantial quantity of liquid in the heating zone. In this process, as well as in earlier processes, the accumulation of carbon upon the heating tubes or chambers of the still was rapid and required the shutting down of the still after it had been “on stream” for a very short‘period. The carbon formed on the inner surfaces of the heating tubes and the heat became localized in the tubes and increased the temperature thereof to a point where their tensile strength was insufficient to withstand the high pressure. The appearance of red spots was a danger signal, and the still was shut down, the contents discharged and the parts thoroughly cleaned before an attempt was made to bring the still again “on stream.” Moreover, these stills were confined to the cracking of light oils. The cracking of crude oil would have been out of the question. The normal operating - cycle of the Burton-Clark still was 72 hours, of which 36 hours was the “on stream” period and the balance of the cycle was used in cleaning the still and bringing it “on stream.” The monthly output was about 4,000 barrels, with a gasoline yield of from 30 to 33 per cent.

In 1919 the Dubbs process embodying the invention of the Dubbs patent in suit was given an experimental demonstration at Independence, Kan., by the plaintiff. Dubbs was in charge of the work. In February of that year the operation was witnessed by Daniel Pyzel in charge of the Royal Dutch Shell group of refineries. The following month Dubbs applied for his patent. In December of that year Pyzel obtained a license for his companies from plaintiff. Pyzel testified that the so-called “clean circulation” of the Dubbs patent was the primary object in obtaining the license. Prior to this demonstration the Dutch Shell group operated under the Trumble patents. After seeing the Dubbs operation, Pyzel testified his companies had been proceeding on the “wrong track,” because in the Trumble process a very substantial part of the dirty residuum was returned to the heating coil.

In the summer of 1919 the operation of the Dubbs still at Independence was witnessed by 21 refinery representatives. These observers were familiar with the Burton and Burton-Clark type of still. The “on stream” period of the Dubbs still in this demonstration was 800 per cent, longer than it had been possible to obtain in any other gasoline cracking process. The explanation of the length of the run was the employment of the “clean circulation” feature of the Dubbs process.

The Standard Oil Company of California also recognized the superiority of this process. It had used the Burton and Burton-Clark types of still for cracking the heavy California oils, but found them unsatisfactory. That company maintained a development department of 200 men at a yearly cost of a million dollars in a vain effort to develop a successful cracking process. It sent one of its engineers to a plant of the Shell Company to observe the operation of a Dubbs unit. Upon receiving the report of the engineer, Hanna, vice president of the California Company, wrote to his superior officers, inter alia:

“In studying over these reports, it would seem to me that we have picked up the following :

“First: Cleanliness is next to godliness. e e a

“Sixth: That if the maximum degree of cleanliness is maintained, higher furnace efficiency can be attained.”

In 1925, the California Company obtained a license from the plaintiff and installed 15 Dubbs plants in California. For the oil processed to June 30, 1930, it paid to the plaintiff royalties in excess of $2,300,-000.

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Bluebook (online)
6 F. Supp. 763, 1934 U.S. Dist. LEXIS 1794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/universal-oil-products-co-v-winkler-koch-engineering-co-ded-1934.