DCT
2:20-cv-20131
SPG Dry Cooling USA LLC v. Evapco Dry Cooling Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: SPG Dry Cooling USA LLC (Delaware)
- Defendant: Evapco Dry Cooling, Inc. (Maryland)
- Plaintiff’s Counsel: Gibbons P.C.
- Case Identification: 2:20-cv-20131, D.N.J., 06/04/2021
- Venue Allegations: Venue is alleged to be proper as Defendant maintains a principal place of business and a regular and established place of business in the District of New Jersey.
- Core Dispute: Plaintiff alleges that Defendant’s Advanced Technology Air Cooled Condenser products infringe patents related to modular air-cooled condenser designs that improve thermal efficiency and reduce installation costs.
- Technical Context: The technology concerns large-scale industrial air-cooled condensers, used in power generation and other industries, which dissipate heat by condensing steam within arrays of finned tubes.
- Key Procedural History: The complaint alleges that Plaintiff notified Defendant of its patents and pending applications beginning in January 2019. In subsequent correspondence, Defendant allegedly denied infringement but acknowledged it was monitoring the prosecution of the application that would later issue as one of the patents-in-suit. The complaint also notes that all three asserted patents have undergone a Certificate of Correction process after issuance.
Case Timeline
| Date | Event |
|---|---|
| 2012-05-23 | Earliest Priority Date for '126, '354, and '532 Patents |
| 2017-01-24 | U.S. Patent No. 9,551,532 ('532 Patent) Issued |
| 2019-01-28 | Plaintiff allegedly notified Defendant of '532 Patent and pending applications |
| 2019-02-15 | Defendant allegedly responded, denying infringement and acknowledging monitoring of pending application |
| 2020-01-07 | U.S. Patent No. 10,527,354 ('354 Patent) Issued |
| 2020-02-04 | U.S. Patent No. 10,551,126 ('126 Patent) Issued |
| 2021-02-16 | Certificate of Correction issued for '354 Patent |
| 2021-02-16 | Certificate of Correction issued for '532 Patent |
| 2021-05-04 | Certificate of Correction issued for '126 Patent |
| 2021-06-04 | First Amended Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 10,551,126 - Modular Air Cooled Condenser Apparatus and Method
The Invention Explained
- Problem Addressed: The patent describes conventional air-cooled condensers as being labor-intensive to assemble on-site, which is costly and time-consuming (’126 Patent, col. 2:8-19). Additionally, achieving uniform steam distribution and minimizing pressure drop across large condenser surfaces presents a significant engineering challenge, impacting the overall efficiency of the power plant (’126 Patent, col. 2:1-7).
- The Patented Solution: The invention proposes a modular design where multiple, relatively compact condenser "bundle panels" are pre-assembled at a factory and shipped in standard containers for final assembly on-site (’126 Patent, col. 5:55-63; Fig. 5). These pre-fabricated modules are then arranged into A-frame "delta" configurations, with multiple deltas positioned consecutively over a single, large fan (’126 Patent, col. 4:50-54; Fig. 1). This modularity is intended to simplify and speed up on-site construction while the specific geometric arrangement aims to improve thermal performance by reducing steam pressure drop (’126 Patent, col. 5:25-31).
- Technical Importance: This modular approach allows for more efficient heat transfer and a substantial reduction in on-site assembly and installation costs compared to traditional, less-modular designs (Compl. ¶¶ 18, 20).
Key Claims at a Glance
- The complaint asserts independent claim 20.
- Essential elements of independent claim 20 (an apparatus claim) include:
- A condenser module with multiple condenser bundles (first, second, third, fourth) arranged consecutively.
- The second and third condenser bundles are positioned in a way that their condensate headers are in the same plane.
- The second and third bundles are positioned at opposing angles from a vertical axis.
- A shroud housing a single fan positioned to create a draft over all four condenser bundles.
- A support frame for the bundles.
- The complaint does not explicitly reserve the right to assert dependent claims but makes general allegations of infringement of "one or more claims" (Compl. ¶57).
U.S. Patent No. 10,527,354 - Modular Air Cooled Condenser Apparatus and Method
The Invention Explained
- Problem Addressed: Similar to the '126 Patent, the '354 Patent addresses the high labor costs and assembly time for large air-cooled condensers, as well as the technical challenge of managing steam pressure drop to maintain plant efficiency (’354 Patent, col. 2:3-19).
- The Patented Solution: The invention describes an air-cooled condenser built from multiple "exchanger pairs." Each pair consists of two condenser bundles angled relative to each other to form an A-frame or "delta" shape (’354 Patent, col. 8:59-9:4). The key is the arrangement of multiple such pairs relative to one another and a single fan, creating a modular system (’354 Patent, Abstract). The specification emphasizes that pre-manufacturing the tube bundles reduces on-site labor and that the specific arrangement of multiple, smaller condenser bundles improves heat exchange efficiency (’354 Patent, col. 5:46-50; col. 6:25-31).
- Technical Importance: The claimed configuration of multiple "exchanger pairs" over a single fan allows for a more compact and thermally efficient design with lower installation costs than prior art single A-frame-per-fan systems (Compl. ¶¶ 18, 20).
Key Claims at a Glance
- The complaint asserts independent claim 6.
- Essential elements of independent claim 6 (an apparatus claim) include:
- A heat exchange module with a plenum and a support frame.
- A "first exchanger pair" including a first and second condenser bundle, positioned at angles relative to a vertical axis.
- A "second exchanger pair" including a third and fourth condenser bundle, also positioned at angles.
- The condensate headers of the bundles are separated by specific relative distances.
- A single fan generates an air current over both exchanger pairs.
- The complaint alleges infringement of "one or more claims" but specifically provides a claim chart for claim 6 as an illustrative example (Compl. ¶¶ 69, 71).
U.S. Patent No. 9,551,532 - Modular Air Cooled Condenser Apparatus and Method
- Technology Synopsis: The '532 Patent describes a method for assembling a modular air-cooled condenser. The method involves pre-assembling condenser bundles, shipping them to a site, and then assembling them into "heat exchange deltas" (A-frame structures) that are positioned on a modular tower frame (’532 Patent, col. 2:27-44). The focus is on the efficiency gains from pre-fabrication and a simplified, modular on-site assembly process (’532 Patent, col. 2:8-20).
- Asserted Claims: Independent method claim 1 is asserted (Compl. ¶83).
- Accused Features: The accused features are Defendant's methods of making, using, and selling its AT-ACC products, which allegedly involve the pre-assembly and on-site construction steps recited in the claims (Compl. ¶¶ 29-31, 46).
III. The Accused Instrumentality
Product Identification
- Defendant's "Advanced Technology Air Cooled Condenser" products, also referred to as "AT-ACC" (Compl. ¶27). The heat exchanger component is also marketed under the name "nuCore Heat Exchanger" (Compl. ¶32).
Functionality and Market Context
- The complaint alleges that the AT-ACC employs a modular design that includes "multiple heat exchange deltas arranged consecutive to one another" over which a single fan generates airflow (Compl. ¶27). The complaint includes a screenshot from Defendant's promotional video showing the assembly of a "heat exchanger section" from multiple pre-assembled cells. (Compl. ¶29, p. 9). This visual depicts multiple A-frame structures being craned into place on a larger frame, allegedly showing the formation of multiple deltas. Another visual shows a "fan plenum section" being assembled over the multiple deltas to direct airflow (Compl. ¶31, p. 10).
- The complaint alleges that Defendant markets the AT-ACC as a "new" technology centered on a "modular construction concept" that improves labor efficiency and reduces installation time by allowing more work to be performed at grade before final erection (Compl. ¶¶ 28, 33). Plaintiff alleges these are the same benefits derived from its patented technology (Compl. ¶29).
IV. Analysis of Infringement Allegations
'126 Patent Infringement Allegations
| Claim Element (from Independent Claim 20) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a condenser module including: a first condenser bundle having a first set of tubes... | The accused AT-ACC is a condenser module that includes condenser bundles (Compl. ¶30). | ¶30 | col. 10:22-26 |
| a second condenser bundle consecutive to the first condenser bundle in the condenser module... | The AT-ACC is alleged to employ multiple "heat exchange deltas" arranged "consecutive to one another" (Compl. ¶27). | ¶27 | col. 10:27-35 |
| a third condenser bundle consecutive to the second condenser bundle in the condenser module... | The AT-ACC is alleged to employ multiple "heat exchange deltas" arranged "consecutive to one another" (Compl. ¶27). | ¶27 | col. 10:36-44 |
| a fourth condenser bundle consecutive to the third condenser bundle in the condenser module... | The AT-ACC is alleged to employ multiple "heat exchange deltas" arranged "consecutive to one another" (Compl. ¶27). | ¶27 | col. 10:51-59 |
| a shroud that houses a single fan, the single fan positioned to create a draft to flow over the first... second... third... and... fourth condenser bundle... | A "fan plenum section" is assembled to generate airflow over the multiple deltas of the heat exchanger section (Compl. ¶31). | ¶31 | col. 11:2-8 |
| a support frame that supports the first, second, third, and fourth condenser bundles. | The AT-ACC is built upon a support structure onto which the condenser bundles and fan plenum are assembled (Compl. p. 9 visual). | ¶29 | col. 11:9-11 |
- Identified Points of Contention:
- Scope Questions: A central question will be whether the accused AT-ACC's "pairs of heat exchanger bundles" (Compl. ¶30) meet the claim limitation of four distinct "condenser bundles" that are "consecutive." The complaint alleges Defendant previously denied that its products "include assembly of condenser bundles into heat exchange deltas" (Compl. ¶40), suggesting the definition and identification of these structures will be a key point of dispute.
- Technical Questions: The claim requires a specific spatial relationship where the second and third bundles are at opposing angles and their condensate headers are in the same plane. The court will need to examine evidence regarding the precise geometry and construction of the AT-ACC to determine if it meets these structural limitations.
'354 Patent Infringement Allegations
| Claim Element (from Independent Claim 6) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a first exchanger pair that includes: a first condenser bundle positioned at a first angle... and a second condenser bundle positioned at a second angle... | The accused AT-ACC is alleged to include "pairs of heat exchanger bundles" where bundles are placed in a "delta configuration" (at an angle) (Compl. ¶¶ 29-30). | ¶29, ¶30 | col. 8:60-9:4 |
| a second exchanger pair that includes: a third condenser bundle... and a fourth condenser bundle... | The AT-ACC allegedly employs "multiple heat exchange deltas" which suggests multiple "exchanger pairs" (Compl. ¶27). | ¶27 | col. 8:14-20 |
| a fan to generate an air current over both the first exchanger pair and the second exchanger pair. | A single "fan plenum section" is allegedly assembled to generate airflow over the "multiple deltas" of the heat exchanger section (Compl. ¶31). | ¶31 | col. 8:39-42 |
| a support frame that supports the plenum, the first exchanger pair, and the second exchanger pair... | The AT-ACC is built upon a support structure that holds the fan plenum and the multiple heat exchange pairs (Compl. p. 9 visual). | ¶29 | col. 8:36-38 |
- Identified Points of Contention:
- Scope Questions: The dispute may center on the definition of an "exchanger pair." Defendant's alleged pre-suit denial of forming "heat exchange deltas" (Compl. ¶40) suggests it may argue its product architecture does not map onto the claim's specific "first exchanger pair" and "second exchanger pair" structure.
- Technical Questions: The claim recites specific spatial relationships, such as the separation between condensate headers ("separated by a first distance," "separated by a second distance, the second distance less than the first"). Infringement will depend on whether the physical dimensions and layout of the accused AT-ACC satisfy these precise geometric constraints.
V. Key Claim Terms for Construction
Term: "condenser bundle" (from '126 Patent, Claim 20 and '354 Patent, Claim 6)
- Context and Importance: This term is the fundamental building block of the claimed inventions. The dispute hinges on whether the components of the accused AT-ACC constitute "condenser bundles" arranged into the claimed "consecutive" or "paired" configurations. Defendant’s alleged denial of forming "heat exchange deltas" (Compl. ¶40) directly implicates the definition of this term and how these units are assembled.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification describes a bundle assembly broadly as comprising "a riser to header transition piece 26, steam manifold 24, finned tubes 25, and steam condensate headers 27" (’126 Patent, col. 5:16-19). This definition is primarily functional, which may support an interpretation covering various physical forms that perform these functions.
- Evidence for a Narrower Interpretation: Figure 4 of the patents shows a specific embodiment of a "bundle assembly 28" as a discrete, self-contained panel-like unit. A party might argue the term is limited to structures that closely resemble this depicted embodiment, particularly the pre-fabricated, transportable nature shown in Figure 5 (’126 Patent, Fig. 4, Fig. 5).
Term: "consecutive" (from '126 Patent, Claim 20)
- Context and Importance: Claim 20 requires a first, second, third, and fourth condenser bundle arranged "consecutive" to one another. The meaning of "consecutive"—whether it implies simple adjacency, a specific linear sequence, or a particular physical interface—will be critical to determining if the "multiple heat exchange deltas" of the accused product (Compl. ¶27) meet this limitation.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification does not provide an explicit definition. A party could argue for its plain and ordinary meaning, such as "following one after another in a sequence," which might be met by any side-by-side arrangement of the condenser delta units.
- Evidence for a Narrower Interpretation: Figure 1 of the patent shows five delta structures (18) arranged immediately adjacent to each other in a row within a single plenum (12) (’126 Patent, Fig. 1). A party could argue that "consecutive" requires this specific arrangement—direct physical abutment or a repeating pattern within a single, continuous housing.
VI. Other Allegations
- Indirect Infringement: The complaint alleges that by "selling and/or installing at customer sites the Accused Products," Defendant has knowingly and intentionally encouraged and aided its customers to directly infringe the patents (Compl. ¶¶ 61, 73, 95).
- Willful Infringement: Willfulness is alleged based on pre-suit knowledge. The complaint states Plaintiff notified Defendant of the '532 patent and related pending applications on January 28, 2019 (Compl. ¶39). It further alleges that Defendant's counsel responded on February 15, 2019, acknowledging awareness of the pending application that issued as the '126 patent and stating an intent to "monitor" its prosecution (Compl. ¶40). This alleged monitoring is presented as evidence of knowledge and deliberate infringement after the patents issued (Compl. ¶¶ 50, 64, 76).
VII. Analyst’s Conclusion: Key Questions for the Case
The resolution of this case appears to depend on the answers to two primary questions:
A core issue will be one of definitional scope: Can the term "condenser bundle," as defined and depicted in the patents, be construed to read on the specific "heat exchanger" components used in Defendant's AT-ACC? This question is central, as Defendant’s pre-suit position allegedly denies that its components are assembled into the claimed "heat exchange deltas."
A key evidentiary question will be one of structural and geometric correspondence: Does the physical arrangement of the accused AT-ACC meet the specific geometric and sequential limitations of the asserted claims? This will require a factual comparison of the accused product’s architecture against claim requirements such as the "consecutive" placement of four bundles ('126 Patent) and the precise relative distances between "exchanger pairs" ('354 Patent).