Exxon Wins Metallocene Catalyst Patent Suit; Mobil Will Appeal $171-million Decision

The United States District Court in Houston found on Aug. 11 in favor of Exxon Chemical Co., ruling that Mobil Oil infringed an Exxon metallocene catalyst patent. The judge also confirmed that Exxon's patent, U.S. Patent No. 5,324,800, is valid and fully enforceable. Damages were granted to Exxon in the amount of $171 million and it is expected that Mobil will be enjoined from further infringement of this Exxon patent.

"Exxon Chemical is pleased with the court's verdict," said Exxon Chemical President Ray Nesbitt. "This validates our strong belief that Mobil infringed our pioneering metallocene catalyst patent and the damages granted will help to compensate us for our very substantial investment to develop and defend our metallocene patent estates."

"We strongly disagree with the judge's decision and are confident it will be overturned on appeal," said Mobil Chemical President Raymond McGowan. "We also believe the amount of damages awarded by the jury is completely unjustified. Mobil does not market any metallocene products allegedly covered by an Exxon patent," McGowan said. "If Exxon prevails in receiving damages based on the potential future value of technology, this case could undermine legitimate research throughout the petrochemicals industry."

Mobil says that Exxon admitted it did not suffer any loss of profits or sales as a result of Mobil's research activities.

"Metallocene technology has been Exxon Chemical's largest research and development effort to date, and we are fully prepared to enforce and protect our substantial investment in metallocene technology," counters Exxon's Nesbitt.

Exxpol metallocene catalysts are used primarily to manufacture plastics and rubber, and are considered "smart" catalysts because they provide better manufacturing control of product quality and improve end-use products. Product applications include automotive parts, diaper components, refuse and shopping bags, industrial film, heavy-duty shipping sacks, and molded containers, as well as flexible food packages, such as fresh vegetable packaging, ice bags, frozen-food wraps, liquid and dry powder pouches, poultry bags and processed meat packaging.