Arbitrator: Caterpillar patented another company’s diesel technology

Wednesday, Jan. 19, 2000 | 11:59 a.m.

Arbitrator Edward Costello Jr. sided with Reno-based A-55 Inc., concluding that Caterpillar "misappropriated" technology and applied for patents on products that belonged to A-55. The two companies were in a joint venture from 1994 to 1996.

At issue is a diesel blend known as PuriNox that Peoria-based Caterpillar has been marketing since August with a company called Lubrizol, a Cleveland-based supplier of chemicals for lubricants and fuels.

A-55 officials say some of the technology used to make the fuel belongs to them. They also say some of the patents were obtained during the their joint venture with Caterpillar.

Calling Caterpillar's conduct "fraudulent and deceitful," Costello called on Caterpillar to turn its patents over to A-55. He also said the company should stop selling or using the fuel technology and account "for all profits obtained from use of the disputed intellectual property." The ruling, which does not specify damages, was issued last Thursday and not announced by the companies.

A Caterpillar spokeswoman said company officials were disappointed and considering whether to challenge the arbitrator's decision.

"Caterpillar upheld the terms of our joint venture and at all times acted in good faith toward A-55," spokeswoman Marsha Hausser said.

Dan Klaich, executive vice president of A-55, said the ruling shows "we are a serious player in alternative fuels."