Zenon gets verdict in US court ruling

Filtration Industry Analyst

May 2005

Filtration Company Index 3M

1,5

Air Science Technologies

1

Alfa Laval

6

Amiad North America

4

Amsoil Inc

4

Biosor Technologies Inc

2

Calgon Carbon Corp

10

Camfil Farr

8

Catalyx Inc

13

Corning Inc

16

Cummins Inc

14

Cuno Inc

1, 5, 10

Donaldson Co Inc

11

NEWS

Donaldson Filtration Deutschland GmbH

13

The Dow Chemical Co

13

Ecosphere Technologies

16

Ebert Composites Corp

3

Fleetguard Inc

4

General Electric Co

2

Groupe Laperrière & Verreault Inc

4

GUD Holdings Limited

11

H20

2

HydroFlo Inc

4

ITT Industries Inc

9

Jasun Filtration plc

7

JBIC

3

Larox

13

Mann + Hummel 14 MARTI

4

Membrana-Charlotte

4

Millipore Corp

13, 14

Mykrolis Inc

12

NCSRT Inc

13

NETZSCH

14

Pall Corp

13, 14

Peerless Mfg Co

3

Procter & Gamble Co

13

Safety Scan Technology Inc Sartorius AG SPX Corp

4

12, 13 3

Taweelah Asia Power Co

3

USFilter Zimpro Systems

4

USFilter

14

Vivascience AG

13

Westfalia Separator

14

Whatman plc

14

Zenon

2

2, 4

ZENON GETS VERDICT IN US COURT RULING Zenon Environmental Inc of Oakville, Ontario, Canada, has cleared a major hurdle in its lawsuit with USFilter. The US District Court for the Southern District of California has ruled that US Patent 6 620 319, the subject of a patent infringement suit brought by Zenon against USFilter, continues to be presumed valid. On 8 October 2003, Zenon filed a patent infringement action against USFilter, complaining of infringement of three of its patents relating to water treatment, but most importantly US Patent 6 620 319 on membrane module construction. In the course of these proceedings, USFilter alleged, among other things, the invalidity of the patent which, if successful, would have affected other patents in the same patent family. The parties recently agreed to a bench trial on the issue of the validity of the patent. The trial was conducted in San Diego during April 2005. On 5 May 2005 the court ruled in favour of Zenon strongly refuting all of defendant USFilter’s contentions. Zenon’s Chief Executive Officer Andrew Benedek stated: “The decision clears perhaps the single most significant hurdle in our path towards proving our claims and our request for an injunction to stop infringement by USFilter. We respect the intellectual property rights of others and expect our principles to be reciprocated.” While the infringement of the patent is no longer an immediate issue because of an adverse ruling made in November 2004, which Zenon will appeal, the Canadian firm filed a further patent infringe-

ment action against USFilter during January 2005, on its US patent 6 682 652, which is part of the same family as the US patent 6 620 319. US patent 6 682 652 is now the primary focus of Zenon’s infringement action and the company says the merits of that case are greatly strengthened on the basis of this ruling. A full trial on the US patent 6 682 652 is expected during 2006.

GE LAUNCHES ‘ECOMAGINATION’ INITIATIVE US-based General Electric Co has launched an initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges. Referred to as ‘ecomagination’, GE says that the initiative represents its commitment to address challenges such as the need for cleaner, more efficient sources of energy, reduced emissions (greenhouse gas emissions) and abundant sources of clean water. “Ecomagination is about the future,” said Jeff Immelt, the company’s Chairman and Chief Executive Officer. “We will focus our energy, technology, manufacturing and infrastructure capabilities to develop tomorrow’s solutions such as solar energy, hybrid locomotives, fuel cells, loweremission aircraft engines, lighter and stronger materials, efficient lighting and water purification technology.” Immelt says that GE will establish partnerships with its customers to tackle their most pressing environmental challenges, and double its research spending to develop the products and services they need. Furthermore, the company will also use these technologies to improve its own energy effi-

ciency and environmental performance. Jonathan Lash, President of the World Resources Institute, based in Washington, USA, said: “This is a hugely important step by one of the world’s most important companies. It is particularly encouraging that GE is focusing its research on cleaner technologies and making a serious, meaningful and accountable commitment to achieve stabilisation of greenhouse gases that contribute to climate change.” GE has initially identified 17 products that meet its ‘ecomagination’ criteria. It says these must significantly and measurably improve customers’ environmental and operating performance. GreenOrder, an environmental consulting firm, has provided independent, quantitative environmental analysis of the products and verified what they aim to achieve.

H2O INNOVATION TO ACQUIRE BIOSOR TECHNOLOGIES In Canada, H2O Innovation (2000) Inc has signed an agreement in principle to acquire all outstanding shares of Biosor Technologies Inc, which specialises in the development of wastewater treatment systems and products. Under the agreement, H2O is set to acquire the exclusive rights to BIOSOR, a technology developed over the last ten years by the Centre de Recherche Industrielle du Québec (CRIQ), and certified standard by the Ministère du Développement Durable, de l’Environnement et des Parcs (MDDEP). H2O says that the transaction involves a consideration, payable in its shares at a minimum price of C$0.15 per share, varying from C$325 000