Flexsys wins another lawsuit over 4-ADPA patents

Washington DC - Flexsys America has won another court case in its battle to prevent Chinese chemicals manufacturer Sinorgchem from making a chemical which it claims infringes Flexsys patents.

Flexsys maintains that Sinorgchem is making the chemical, 4-ADPA which is an intermediate for PPD products, in a process that is a copy of Flexsys' own patented process. The chemical and its derivatives, 6PPD and IPPD are imported into the US by Sinorgchem's agent, Sovereign Chemicals, and Sovereign has also been named in all Flexsys' lawsuits.. Flexsys further maintains that anyone who buys the 4-ADPA made in the disputed process is acting illegally.

One such customer of Sinorgchem is Korea Kumho Petrochemical Co. (KKPC), which buys 4-ADPA from Sinorgchem and makes 6PPD from it. KKPC then imports the 6PPD into the United States and sells it in direct competition to Flexsys' own 6PPD product. Flexsys argues that this activity is illegal, and has issued a number of lawsuits that attempt to restrain KKPC in its activities. KKPC has issued counter-suits claiming Flexsys is restraining its free trade opportunities in the US.

Flexsys further claims that companies who buy 6PPD from KKPC to make rubber products are acting illegally. It is attemptig to restrict imports of tyres made by Kumho Tire Co. Ltd into the US because that company uses 6PPD supplied from KKPC.

The most recent result is that the International Trade Commission has found that

The Flexsys patents at issue are valid;

Sinorgchem's process is covered by the Flexsys patents;

The importation of Sinorgchem's 4-ADPA and 6PPD into the United States by Sinorgchem and Sovereign violates US law

The ITC also found that KKPC was not in violation of the relevant section of the US Tariff act

In a statement, Flexsys said, "Flexsys will now pursue its patent infringement action in the US District Court (Northern District of Ohio) which has been stayed pending the ITC decision. In this case, Flexsys seeks money damages in the amount of $20 million and other relief against chemical manufacturers Sinorgchem and KKPC, as well as an importer, Sovereign. Further, this case will involve importers of tyres made with Sinorgchem's 4-ADPA or PPD products, namely Kumho Tire Co., Inc., and Kumho Tire USA, Inc.

Flexsys' statement continued, “The decision by the ITC is an excellent result for Flexsys,” said Wolter Kymmell, General Counsel. “We will now pursue our District Court action. The statute at issue in the District Court is different than that in the ITC and we are optimistic about a favourable decision with respect to KKPC infringement.”