Opinion ID: 209019
Heading Depth: 1
Heading Rank: 1

Heading: The three contracts for the '553 patent and four patent applications

Text: It has long been known that metals such as zinc, when deployed in steel-reinforced concrete, can reduce corrosion of the steel by galvanic cathodic protection. [1] Relevant to this dispute are two forms of this technology. In the first form, called metallized or distributed zinc anode technology, the zinc anode is distributed over the surface of the steel-reinforced concrete. This technology, as enhanced by use of lithium nitrate and lithium bromide, is the subject of the '553 patent, issued on March 7, 2000 to Jack Bennett. The second form is called embedded or discrete zinc anode technology, wherein discrete anodes are embedded in the steel-reinforced concrete. This technology, with lithium nitrate and lithium bromide enhancement, is the subject of U.S. Patent No. 6,217,742 (the '742 patent), issued on April 17, 2001 to Jack Bennett. The '742 patent is identified as a continuation-in-part of the '553 patent, and contains new matter describing and claiming the lithium-enhanced embedded zinc anode technology. On December 20, 2001 Mr. Bennett entered into three agreements with the Vector companies. Mr. Bennett is described as a leader in the field of galvanic protection and an independent contractor of substantial reputation. Euclid App. Br. at 2. He has had business dealings with both Euclid and Vector. Each of the three agreements lists the '553 patent and four patent applications, and describes the transferred subject matter as the specific use of LiNO3 and LiBr to enhance the performance of metallized zinc anodes. The '742 patent excludes metallized zinc anodes from the scope of its claims. The first agreement between Mr. Bennett and Vector, entitled Patent Transfer Agreement, states the transaction as follows: TRANSFER OF PATENTS AND PATENT APPLICATIONS APPOINTMENT 2. The Transferor hereby sells, transfers and assigns to the company all of his interest in the following patents and patent applications (all of which, and all rights, title and interests thereto, being collectively referred to in the Agreement as the Patents): 1. Issued U.S. Patent 6,033,553. This patent claims the specific use of LiNO3 and LiBr to enhance the performance of metallized zinc anodes; 2. US Application No. 08/839,292 filed on April 17, 1997, 3. US Application No. 08/731,248, filed on October 11, 1996 (now abandoned), 4. EPO Application No. 99122342.1, filed November 9, 1999, and 5. Canadian Application No. 2288630, filed November 8, 1999. The only issued patent on this list is the '553 patent. There is no mention of the '742 patent which had issued eight months before the contract was executed, no mention of embedded zinc anodes, and no end-clause referring to continuing applications, as in the third agreement. The second agreement, entitled Consulting Agreement, lists the same issued U.S. patent 6,033,553, again describes it as relating to metallized zinc anodes, and provides for consulting services for the subject technology. The agreement states in relevant part: SERVICES 2. The Consultant agrees that the services to be provided under this consulting agreement will be provided personally by JACK BENNETT. The Consultant further agrees that he will provide consultation to the Company relating to the application of the technology as described in the US, Canadian and European applications for patents and issued U.S. patent as follows: 1. Issued U.S. Patent 6,033,553. This patent claims the specific use of LiNO3 and LiBr to enhance the performance of metallized zinc anodes; 2. US Application No. 08/839,292 filed on April 17, 1997, 3. US Application No. 08/731,248, filed on October 11, 1996 (now abandoned), 4. EPO Application No. 99122342.1, filed November 9, 1999, and 5. Canadian Application No. 2288630, filed November 8, 1999. Services shall include transfer of technology, assistance with marketing and data, training, assistance with field applications, and any other questions relating to the subject technology that falls within the expertise and knowledge of the Consultant as of the date of execution of this Agreement. Again, no mention is made of Bennett's separately patented process for lithium-enhanced embedded anodes, the subject of the '742 patent, and there is no end-clause as appears in the third agreement, entitled Patent Assignment, following in its entirety: