Jan 29, 2020
Ingevity to petition U.S. International Trade Commission to review Administrative Law Judge’s Initial Determination; intends to pursue case against MAHLE for infringing gasoline vapor emission control technology patent
NORTH CHARLESTON, S.C., January 29, 2020 – Ingevity Corporation (NYSE:NGVT) will petition the U.S. International Trade Commission to review the Administrative Law Judge’s Initial Determination published today in regards to its decision in the hearing phase of the ITC Section 337 proceeding that it brought against MAHLE Filter Systems North America, Inc., Murfreesboro, Tennessee, and other named defendants, seeking to prevent further importation of activated carbon products that infringe Ingevity’s patent covering canister systems used to comply with U.S. Environmental Protection Agency (EPA) Tier 3 and California LEV III regulations to control automotive gasoline vapor emissions (Patent No. RE38,844). In addition, Ingevity intends to continue to pursue its case against MAHLE in the U.S. District Court in the Northern District of Illinois alleging infringement on that patent and seeking remuneration for damages.
The ruling of the ITC judge does not invalidate Ingevity’s patent which remains in force. The company noted that the U.S. Patent Trial and Appeal Board in October 2019 ruled in Ingevity’s favor and dismissed a petition from MAHLE to invalidate the patent.
“While we’re disappointed in this ruling, it’s important to keep it in context. This ruling is limited to the specific request to the ITC to ban the importation of infringing materials,” said Michael Wilson, Ingevity’s president and CEO. “The ITC does not have the ability to invalidate patents issued by the U.S. Patent and Trademark Office. And, it’s important to note that the judge did find infringement on the part of MAHLE.”
Wilson said that Ingevity was determined to continue to take whatever steps are necessary to protect its intellectual property. “We strongly believe that our automotive gasoline vapor emission control technology is unique, and it’s incumbent upon us to defend our innovations against infringement for the benefit of our customers and shareholders. We remain confident in the leadership and expertise we have in this application. We continue to innovate and develop new technologies and patents that help position us as the supplier of choice. As such, we remain confident in the short- and long-term outlook for this business.”
Ingevity’s patent – which is set to expire in March 2022 – covers certain canister systems designed to achieve gasoline vapor emission levels that comply with the most stringent U.S. Environmental Protection Agency (EPA) Tier 3 and California LEV III regulations. Ingevity’s trial against MAHLE alleges that MAHLE has engaged in the development, manufacture, marketing and sale of infringing canisters.
The automotive gasoline vapor emission control products are part of Ingevity’s Performance Materials segment which has manufacturing facilities in Covington, Virginia; Wickliffe, Kentucky; Waynesboro, Georgia; Changshu, China; and Zhuhai, China. Ingevity estimates that globally approximately 8 million gallons of gasoline are captured and recovered by the company’s activated carbon products every day.
Ingevity: Purify, Protect and Enhance
Ingevity provides specialty chemicals, high-performance carbon materials and engineered polymers that purify, protect, and enhance the world around us. Through a team of talented and experienced people, Ingevity develops, manufactures, and brings to market products and processes that help customers solve complex problems. These products are used in a variety of demanding applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks, coatings, elastomers, bioplastics and automotive components that reduce gasoline vapor emissions. Headquartered in North Charleston, South Carolina, Ingevity operates from 25 locations around the world and employs approximately 1,750 people. The company is traded on the New York Stock Exchange (NYSE: NGVT). For more information visit www.ingevity.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,” “continues,” “forecast,” “prospect,” “potential” or similar expressions. Forward-looking statements may include, without limitation, expected financial positions, results of operations and cash flows; financing plans; business strategies and expectations; operating plans; synergies and the potential benefits of the acquisition of Georgia-Pacific’s pine chemicals business and the acquisition of Perstorp Holding AB’s Capa caprolactone business (the “acquisitions”); capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost-reduction initiatives, plans and objectives; markets for securities and expected future repurchase of shares, including statements about the manner, amount and timing of repurchases. Like other businesses, Ingevity is subject to risks and uncertainties that could cause its actual results to differ materially from its expectations or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results to materially differ from those contained in the forward-looking statements, or that could cause other forward-looking statements to prove incorrect, include, without limitation, risks that the expected benefits from the acquisitions will not be realized or will not be realized in the expected time period; the risk that the acquired businesses will not be integrated successfully; significant transaction costs; unknown or understated liabilities; general economic and financial conditions; international sales and operations; currency exchange rates and currency devaluation; compliance with U.S. and foreign regulations; competition from infringing intellectual property activity; attracting and retaining key personnel; the impact of Brexit; conditions in the automotive market or adoption of alternative technologies; worldwide air quality standards; a decrease in government infrastructure spending; declining volumes and downward pricing in the printing inks market; the limited supply of crude tall oil (“CTO”); lack of access to sufficient CTO; access to and pricing of raw materials; competition from producers of alternative products and new technologies, and new or emerging competitors; a prolonged period of low energy prices; the provision of services by third parties at several facilities; natural disasters, such as hurricanes, winter or tropical storms, earthquakes, floods, fires; other unanticipated problems such as labor difficulties including renewal of collective bargaining agreements, equipment failure or unscheduled maintenance and repair; protection of intellectual property and proprietary information; information technology security breaches and other disruptions; government policies and regulations, including, but not limited to, those affecting the environment, climate change, tax policies, tariffs and the chemicals industry; and lawsuits arising out of environmental damage or personal injuries associated with chemical or other manufacturing processes. These and other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are and will be more particularly described in our filings with the U.S. Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2018 and our other periodic filings. Readers are cautioned not to place undue reliance on Ingevity’s projections and forward-looking statements, which speak only as the date thereof. Ingevity undertakes no obligation to publicly release any revision to the projections and forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.