German District Court Rules in Honeywell's Favor in Patent Infringement Suit
BRUSSELS, Belgium--April 11, 2002--BorgWarner Turbosystems and 3K-Warner Turbosystems Ordered to Stop Production of Certain Models of Their Variable Geometry Turbochargers
Honeywell announced today that a District Court in Dusseldorf, Germany ruled that BorgWarner Turbosystems Worldwide Headquarters GmbH and 3K-Warner Turbosystems GmbH (collectively, "3K-Warner") must stop producing and selling certain models of their variable turbine geometry (VTG) turbochargers in and from Germany.
Honeywell's action has been directed at the first production models of 3K-Warner's "KP39-VTG" turbochargers. In papers that 3K-Warner filed with the District Court, they confirmed that they have been supplying these turbochargers since the beginning of 2000. In Honeywell's filings with the same court, the Company alleged that over EUR 20 million is at stake in the litigation.
The District Court's ruling prevents 3K-Warner from continuing to offer a product that is covered by one of Garrett's many innovative patents in the area of variable geometry turbocharger technology. The ruling applies to 3K-Warner's conduct in Germany; Honeywell is pursuing similar actions in other European jurisdictions.
Honeywell first filed its lawsuit at the District Court in Dusseldorf on December 14, 2001, after becoming aware that 3K-Warner had been selling a product that looked to Honeywell to be strikingly similar to the GT-17 VTG turbocharger that Honeywell's Garrett unit developed and produced years earlier. In January 2002, Honeywell filed additional lawsuits against 3K-Warner in Italy and against 3K-Warner Turbosystems and its national affiliate in France. These actions are based on Honeywell's European Patent 022644 B1.
On February 14, 2002, 3K-Warner admitted without reservation each of the claims brought by Honeywell in the Dusseldorf District Court. The District Court then pronounced its ruling in Honeywell's favor on February 26, 2002. At about the same time that 3K-Warner admitted Honeywell's claims to the court in Germany, they filed a negative declaratory litigation against Honeywell in Rome, Italy.
3K-Warner's negative litigation asserts that the Italian portion of Honeywell's patent should be declared invalid, and that 3K-Warner has begun production of an altered VTG turbocharger that allegedly does not infringe the patent's claims. Based on a detailed description and photograph that 3K-Warner provided to the Italian court, Honeywell and its patent attorneys believe that the altered model is not substantially different from the first production models of 3K-Warner's KP39-VTG. Honeywell therefore promptly brought additional infringement proceedings in Germany, France and Italy, asserting that the altered model also infringes European Patent 022644 B1.
Honeywell's Garrett, which has a long-standing reputation as a leading innovator of turbocharging technology, helped pioneer variable geometry turbocharging in the mid-to-late 1980s.
Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 115,000 people in 95 countries and is traded on the New York Stock Exchange under the symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. Additional information on the company is available on the Internet at www.honeywell.com.
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