Infringer Of Invalid Patent Must Still Pay, UK Court Rules

by Robin Pilgrim, LawAndTax-News.com, London

15 March 2004

The UK Court of Appeal has ruled that oil firm Stolt Offshore must pay for its infringement of an oil industry patent, despite the fact that it was subsequently declared invalid.

In 1996, the holder of the patent for laying "flowlines" on the ocean floor, Coflexip SA sued Stolt for infringement. Claiming that the patent was invalid on the grounds of prior art, Stolt appealed a ruling against it, going on to issue several other unsuccessful challenges to Coflexip's £80 million damages claim.

Although the patent was declared invalid in 2002 following a prior art challenge mounted by Rockwater Limited, ruling late last month at the Court of Appeal, Lord Justice Peter Gibson and Sir Martin Nourse argued that Stolt was still liable to pay damages to Coflexip. They explained that if the firm's latest appeal is allowed to proceed, it will reverse the principle of finality in litigation which provides that once a case has been decided, it cannot be reopened.

In their ruling, the judges announced that:

"We, of course, take note of the very substantial sum claimed by Coflexip in the inquiry, but against the private interest of Stolt must be set the public interest in finality of legislation."

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