Xene Corp. v. Nouryon B.V.

CourtDistrict Court, E.D. New York
DecidedDecember 2, 2024
Docket1:22-cv-02850
StatusUnknown

This text of Xene Corp. v. Nouryon B.V. (Xene Corp. v. Nouryon B.V.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Xene Corp. v. Nouryon B.V., (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------x Xene Corporation,

Plaintiff, MEMORANDUM & ORDER - against - 22-CV-2850 (PKC) (MMH)

Nouryon B.V., et al.,

Defendants. -------------------------------------------------------x PAMELA K. CHEN, United States District Judge: Plaintiff Xene Corporation (“Xene” or “Plaintiff”) commenced this action on May 16, 2022 against the Nouryon Defendants1; Akzo Nobel, Inc (“Akzo Nobel”); Diadem Sports; and Lantor Composites AB.2 (Compl., Dkt. 1, ¶ 1.) Plaintiff alleged in its Complaint that the Nouryon Defendants and Akzo Nobel induced Diadem Sports, Lantor Composites AB, non party RTP Imagineering Plastics, and similarly situated John Does, to violate 35 U.S.C. § 271(g) by importing, offering for sale, selling, or using within the United States products containing “thermoplastic microspheres” or “microcapsules”—with trade name “Expancel” and “Masterbatch”—which, Plaintiff alleged, “is made by a process claimed” by two of Plaintiff’s patents. (Compl., Dkt. 1, ¶¶ 13–15, 95.)

1 The Court has previously defined the term “Nouryon Defendants” to include Nouryon B.V. (f/k/a Akzo Nobel), Nouryon USA LLC, Nouryon Pulp and Performance Chemicals AB, Nouryon Salt LLC, Nouryon US Holding 1 Inc., Nouryon US Holding 2 Inc., Nouryon US Holding 4 Inc., Nouryon Chemicals LLC (f/k/a Akzo Nobel Chemicals Inc.), and Nouryon Pulp and Performance Chemicals LLC. (See Dismissal Order, Dkt. 29, at 1.) 2 The Court previously dismissed sua sponte Defendants Diadem Sports and Lantor Composites AB from this action based on Plaintiff’s failure to serve them. (See Dismissal Order, Dkt. 29, at 2 n.2 (citing Fed. R. Civ. P. 4(m)).) On September 12, 2024, the Court granted Defendants’ motions to dismiss for lack of personal jurisdiction under Federal Rule of Civil Procedure (“Rule”) 12(b)(2) as to Defendant Nouryon B.V., and improper venue under Rule 12(b)(3) as to all other Defendants. (See Dkt. 29 (“Dismissal Order”), at 18.) Presently before the Court is Plaintiff’s motion for reconsideration of

the Dismissal Order with respect to the Court’s finding that venue was improper for the Nouryon Defendants pursuant to a forum-selection clause in a Confidentiality Agreement between the parties. Plaintiff does not seek reconsideration of the Court’s decision to dismiss its claims against either Akzo Nobel or Nouryon B.V. For the reasons stated herein, Plaintiff’s reconsideration motion is denied. BACKGROUND I. Relevant Factual Background The Court assumes the parties’ familiarity with the facts of this case and therefore recites only those facts relevant to this decision.3 Plaintiff Xene Corporation is a New York corporation and owns two patents: U.S. Patent No. 10,500,447 (“’447 Patent”) and No. 8,328,666 (“’666 Patent”) (together, the “Asserted Patents”). (Compl., Dkt. 1, ¶¶ 2, 4, 45–46.) The ’666 Patent,

issued on December 11, 2012, is for a “resin and fiber composite racket,” such as a sports racket. (Id. ¶¶ 47, 51.) The ’447 Patent, issued on December 10, 2019, describes a method through which “microspheres” are used to manufacture “fiber composites,” which are in turn used to make various products in the fields of aviation, automobiles, transportation, and marine industries. (Id. ¶¶ 32– 35, 45.) Put simply, the ’447 Patent claims “a method of using microcapsules for composite manufacturing” while the ’666 Patent claims “a product containing composite[s made] using

3 A detailed description of the factual and procedural history of this case can be found in the Dismissal Order. (See Dismissal Order, Dkt. 29, at 3–5). microcapsules.” (Id. ¶ 49.) The applications for both patents were filed in 2010. (Id. ¶ 47.) In its Complaint, Plaintiff alleged, inter alia, that the Nouryon Defendants induced third parties to violate 35 U.S.C. § 271(g) by “importing into the United States, offering to sell, selling, and/or using within the United States the Microspheres product, which is made by a process claimed in

the [’444] Patent.” (Id. ¶ 95.) A. The Confidentiality Agreement Though Plaintiff did not bring any breach-of-contract claims against the Nouryon Defendants, the Complaint nevertheless alleged violations of a “joint venture . . . for the purpose of marketing and selling microspheres to the composites industry” that Plaintiff had entered into with “Defendants’ predecessor Akzo Nobel”4 around 2014 “after Plaintiff filed [patent] applications worldwide in 2010.” (Id. ¶¶ 37–38.) Pursuant to these agreements, Plaintiff allegedly shared trade secrets with the Nouryon Defendants regarding the marketing of microspheres to the composites industry for the purpose of jointly benefiting or sharing profits from the venture. (Id. ¶ 40.) The Nouryon Defendants, in return, “agreed not to sell unauthorized products to the industries covered by [the Asserted Patents] and [to] otherwise not . . . expropriate Xene’s

proprietary practice.” (Id. ¶ 39.) Plaintiff asserted in the Complaint that it had been cut out by the Nouryon Defendants from sharing in any profits from the business and received none of the remuneration that it was due from sales in the composites market. (Id. ¶¶ 41–42.)

4 Though the joint venture was allegedly with Akzo Nobel, Plaintiff maintained in its Complaint and opposition brief that Akzo Nobel was succeeded by “Defendants,” defined as Nouryon B.V. and its affiliates. (See Complaint, ¶ 37; see also Dismissal Order at 1 n.1 (explaining the dispute between the parties regarding whether Nouryon B.V. was formerly known as Akzo Nobel).) The Court thus construes Plaintiff’s allegations regarding the joint venture with Akzo Nobel as stating that it had an agreement with the Nouryon Defendants. In briefing their dismissal motion, the Nouryon Defendants submitted a Confidentiality Agreement (“Agreement”) between Plaintiff and the Nouryon Defendants signed in November 2021. (See Confidentiality Agreement, Dkt. 22, at ECF 3.)5 The Nouryon Defendants claim in their dismissal motion—but not in their affidavits—that this was the “sole agreement” they were aware of between the parties.6 In resolving the dismissal motion, the Court therefore construed

the allegations in Plaintiff’s Complaint regarding the “joint venture” that existed between Plaintiff and the Nouryon Defendants “by virtue of agreements between them commencing in 2014,” (Compl., Dkt. 1, ¶ 37), as essentially referring to the valid Agreement between them. The stated “Purpose” of the Agreement was “Expancel Microspheres Use-[]Composite Applications and Masterbatch Forms.” (Confidentiality Agreement, Dkt. 22, at ECF 2.) Under the Agreement, Xene was the party disclosing confidential information to Nouryon Pulp & Performance Chemicals LLC. (Id.) The forum selection clause in the Agreement requires “[a]ll

5 When deciding a motion to dismiss for improper venue, courts may consider materials outside the pleadings. See, e.g., New Moon Shipping Co., Ltd. v. MAN B & W Diesel AG, 121 F.3d 24, 26 (2d Cir. 1997). The Court therefore previously considered the Confidentiality Agreement, attached to the Nouryon Defendants’ opening brief. (Dkt. 22.) Citations to “ECF” refer to the pagination generated by the Court’s CM/ECF docketing system and not the document’s internal pagination.

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