Royal Dutch Shell Group .com Shell Oil Must Pay $153.6 Mln Award to Union Carbide (Update1)


Posted 17 June 2004


June 16 (Bloomberg) -- Shell Oil Co., a unit of Royal Dutch/Shell Group, Europe's second-largest oil company, must pay Dow Chemical Co.'s Union Carbide Corp. $153.6 million in damages for infringing a patent for catalysts, a federal judge ruled.


Chief U.S. District Judge Sue L. Robinson in Wilmington, Delaware, added more than $40 million in interest to an original judgment of about $112 million that was imposed during a 2003 jury trial, according to court papers.


``Shell has failed to prove by clear and convincing evidence'' that it shouldn't be held liable in the case, Robinson said in entering the new judgment June 9 following post-trial motions.


Union Carbide sued Shell in 1999, saying it copied catalytic processes to make ethylene oxide, which is used in shampoo, toothpaste, polyester fibers and antifreeze. A jury in 2001 decided Shell didn't infringe. In 2002 the U.S. Court of Appeals for the Federal Circuit reversed the verdict and ordered a re- trial.


Shell spokesman Johan Zaayman in Houston said the company is ``deeply disappointed with the decision'' and plans to appeal.


Union Carbide spokesman Scot Wheeler said the company is ``pleased that the court decided certain Shell catalysts infringed a Union Carbide patent'' and said the company is confident it will win an appeal.


New York Shares of The Hague, Netherlands-based Royal Dutch Petroleum, which reported $120.8 billion in sales last year, rose 91 cents to $51.33 in New York Stock Exchange composite trading.


Shares of Midland, Michigan-based Dow, the largest U.S. chemical maker, with $32.6 billion in sales last year, fell 1 cent to $39.22 on the New York Stock Exchange.


The case is Union Carbide Chemicals & Plastic Technology Corp., et. al., v. Shell Oil Company, et. al., C.A. No. 99-274- SLR.


To contact the reporter on this story:

Phil Milford in Wilmington, Delaware,


To contact the editors responsible for this story:

Patrick Oster at


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