8/19/08 Chemweek's Business Daily

Koch Industries ' (Wichita, KS) fibers subsidiary Invista has filed a lawsuit against DuPont and Rhodia, alleging that the two companies have "teamed up to steal" Invista's butadiene-based adiponitrile (ADN) technology. Koch acquired the ADN technology from DuPont as part of its 2004 purchase of DuPont's nvista textiles business. The lawsuit is necessary to "stop Rhodia and DuPont from unlawfully using Invista's intellectual property to build an ADN manufacturing plant in Asia or elsewhere," Invista says. "DuPont recently disclosed that it is an investor in Rhodia's ADN expansion plans," Invista says.

ADN is an intermediate chemical used in the manufacture of nylon-6,6. DuPont says there is "no factual basis for Invista's claim. DuPont will vigorously defend ourselves against this action." DuPont says it "takes great care to protect its intellectual property, and to respect the intellectual property rights of others." Invista's lawsuit seeks an injunction "preventing Rhodia and DuPont from using and disclosing Invista trade secret information in developing their own plant or using that trade secret information to compete unfairly in the marketplace." The suit also seeks damages. Rhodia chairman and CEO Jean-Pierre Clamadieu recently told CW that the company was evaluating a worldscale ADN and hexamethylenediamine (HMD) unit to supply Asian markets, and is
considering building the plant in the Mideast. Rhodia expects to make a final decision on the project by year-end and complete it in about 2013. Invista's lawsuit also says that DuPont signed a non-compete agreement prohibiting it from competing against Invista in ADN and through April 2011. DuPont and Invista have an HMD supply agreement that expires in 2012, according to Invista. The lawsuit says that Rhodia obtained unlawful access to the trade secrets through the Butachimie ADN joint venture between Invista and Rhodia in Chalampe, France, Invista says. Koch acquired its stake in Butachimie from DuPont as part of its 2004 acquisition of Invista. This is the second lawsuit Invista has filed against DuPont this year involving the $4.2 billion purchase of the fibers business. Invista in March sued DuPont, seeking more than $800 million in punitive and compensatory damages for alleged regulatory deficiencies associated
with plants included in purchase. Invista alleges that the acquired plants had more than 600 instances of regulatory noncompliance.