Metso Wins Patent Infringement Case

(The original story has been amended to include a statement made by Terex Corp.)

Metso Oyj, a Finland-based industrial machinery company, has reported that it could obtain $16 million in damages in a patent infringement case against three competitors: Powerscreen International Distribution Ltd., Terex Corp. and Emerald Systems Inc. The three companies are based in the United States.

According to a press release issued by Metso, the District Court for the Eastern District of New York found that Metso's lateral folding conveyor patent is valid, and the defendants have infringed it willfully since 2000.

The press release also states that Metso expects to receive the court ruling in spring 2011 due to possible post-trial motions and then will know the total compensation for damages. If the defendants appeal the court ruling, the company expects a final outcome by 2012.

Subject to post-trial motions, a court ruling is expected to be received in spring 2011 at which point total compensation for damages payable to Metso will be known. In the event the court ruling is appealed, the final outcome of the lawsuit would be expected by 2012. Metso will book the compensation in its financial results only when the final outcome of the lawsuit is clear, earliest in 2011.

Following the court decision, Terex issued the following statement:

“Terex and Powerscreen are disappointed by the adverse jury verdict Monday (Dec. 6) in the lawsuit brought by Metso Minerals against Powerscreen and Terex. The lawsuit involved the claim by Metso Minerals that the folding side conveyor of Powerscreen screening plants violates a patent held by Metso in the United States. We do not agree that the accused Powerscreen mobile screening plants or their folding conveyor infringe the subject patent held by Metso Minerals. These types of patent cases are very complex and we strongly believe that verdict is contrary to both the law and the facts. Accordingly, Terex and Powerscreen will be appealing the verdict and believe that we will ultimately prevail on appeal.

“It is important to note that this verdict only relates to certain models of Powerscreen mobile screening plants with the alleged infringing folding side conveyor design sold in the United States. Year to date through the end of October revenues from sales in the United States for 2010 of the Powerscreen mobile screening plants alleged to infringe the Metso Minerals patent were approximately $10.4 million. The verdict does not affect the continued use of any Powerscreen mobile screening plants currently in operation in the United States, the sales of any Powerscreen mobile screening plants outside of the United States, or the sale of any other screening plants sold by Powerscreen in the United States or elsewhere.

The verdict does not affect the sale of any other products manufactured by Terex or any of its subsidiaries. Accordingly, Terex does not expect this verdict will have a material impact on Terex’s consolidated business or overall operating results.”

To read the full statement, click here -- Terex Statement