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Court Grants ACE DuraFlo Attorney Fees in ''Exceptional Case'' Patent Dispute

IRVINE, Calif., July 09, 2007 (BUSINESS WIRE)--In the matter involving ACE DuraFlo Systems, LLC (ACE) and 8 defendants including: Bill Howe Plumbing, Inc of San Diego, Nu Flow America Inc, American Pipe Lining Inc (APL), Bill Howe Sr., Bill Howe Jr. and Steve Howe, the United States District Court, Central District California, on June 19, 2007 granted ACE’s Motion for attorney fees. Case No SA CV 05-01039 DDP (Ctx).

The legal standard in patent matters (35 U.S.C.§ 285) sets that a court is permitted to award attorney fees to the prevailing party in “exceptional cases”. Exceptional cases for example include “those involving fraud, calculated recklessness, bad faith and conduct short of fraud but in excess of negligence.” The court found that the APL’s conduct in this case placed them squarely within the range of cases in which courts grant attorney fees.

In April, the U.S. District Court for the Central District of California denied APL’s request that the Court reconsider its January 29, 2007 ruling in favor of ACE, for summary judgment in which it found that ACE had not infringed, induced others to infringe or contributed to the infringement of United States Patent No. 5,707,702 (the “702 patent”).

The ’702 patent generally involves a method for manufacturing an epoxy pipelining composition. The ‘702 patent, owned by the US, is licensed to APL and sublicensed to Nu Flow America, Inc. ACE had originally sought a declaration of non-infringement as part of an ongoing dispute with APL, Nu Flow America, Inc, Nu Flow 2000, Bill Howe Plumbing Inc., Steve Howe and others. In the Court’s original findings, the court found that APL had not presented any evidence from which a reasonable fact-finder could find that ACE infringed the ‘702 patent. APL failed to provide any evidence of infringement.

About ACE DuraFlo.

Headquartered in Irvine, California, ACE DuraFlo's, patented "in-place" pipe restoration technology, restores failing copper and encrusted galvanized piping systems, generally without the extensive demolition that accompanies a traditional plumbing repipe. The process involves the application of an epoxy barrier coating to the inside of a pipe, resulting in a restored epoxy lined plumbing system called ePIPE(tm). ACE DuraFlo's ePIPE offers a complete solution for pinhole leaks, corrosion control and as an added benefit stops the leaching of metals from pipes such as copper and lead from entering the water supply. ACE provides services in the US, Canada and Europe.

For more information on ePIPE, pipe restoration contact ACE DuraFlo Systems, (800) 977-5325 or visit them at www.fixmyleaks.com
Contacts

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8935 Research Suite 200
Irvine, CA 92618
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949-502-7750 x.202

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