For Immediate Release
Momentive Specialty Chemicals Inc. Obtains Two Favorable Rulings in Separate Patent Proceedings Against Hebei Shield Relating to Production of CARDURATM Glycidyl Ester Monomers
Columbus, Ohio (July 9, 2012) – Momentive Specialty Chemicals Inc. (“Momentive”) has received favorable rulings in two separate patent proceedings against Bazhou-based Hebei Shield Excellence Technology Co. Ltd. (“Hebei Shield”). On June 15, 2012, the Jiangsu High Court rejected a jurisdictional challenge filed by Hebei Shield contesting the authority of the Suzhou Intermediate People’s Court to preside over a patent infringement case initiated by Momentive. In rejecting Hebei Shield’s jurisdictional challenge, the Court ruled that the Suzhou court has jurisdiction to decide the merits of Momentive’s infringement complaint. In the complaint, which was filed on August 24, 2011, Momentive alleges that Hebei Shield is violating one of Momentive’s patents for the production of CARDURATM Glycidyl Ester Monomers. In conjunction with the infringement complaint, Momentive also petitioned the Suzhou court to conduct an Evidence Preservation Action at Hebei Shield’s manufacturing complex in Hebei Province. A site visit was conducted by the judges in charge on November 24, 2011, but Hebei Shield did not produce any of the documents and samples requested by the court. Now that the jurisdictional issue has been resolved, the matter can move forward to a trial on the merits of Momentive’s infringement complaint. To that end, the Suzhou court has scheduled a pre-hearing for mid-July, 2012 to address evidentiary issues in the case, including the status of the Evidence Preservation Action.
In a separate matter involving Hebei Shield, Momentive has obtained a favorable ruling from the Reexamination Board of the State Intellectual Property Office of the P.R.C. In December 2011, Momentive filed an action with the Reexamination Board requesting the Board to declare invalid a process patent for the manufacture of glycidyl esters that had been obtained by Hebei Shield. Momentive argued, among other things, that the patent lacked industrial applicability and specified a process that was an obvious modification of a process known in the industry for more than 50 years. On June 21 2012, the Reexamination Board issued a decision which agreed with Momentive’s arguments and declared the Hebei Shield patent invalid in whole.
CARDURA Glycidyl Ester Monomers are a specialty derivative of Momentive’s VERSATIC™ acid 10. They are a key ingredient in specialty coatings, such as those used in automotive, civil engineering, industrial, marine, coil and UV-curable coating systems. Momentive has actively been developing an IP portfolio of process patents, application patents and trademarks since it first introduced CARDURA Glycidyl Ester Monomers in the marketplace. CARDURA Glycidyl Ester Monomers provide a wide range of advance performance characteristics to finished coatings including superior appearance, UV stability and acid resistance.
Momentive has filed the suit in the name of its affiliates, Resolution Research Netherland BV (patent owner) and Momentive Specialty Chemicals Management (Shanghai) Co., Ltd. (licensee).
Momentive Performance Materials Holdings LLC is the ultimate parent company of Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (collectively, “Momentive”). Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. Momentive was formed in October 2010 through the combination of entities that indirectly owned Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. The capital structures and legal entity structures of both Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (formerly known as Hexion Specialty Chemicals, Inc.), and their respective subsidiaries and direct parent companies, remain separate. Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. file separate financial and other reports with the Securities and Exchange Commission. Momentive is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information about Momentive and its products is available at www.momentive.com
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