Canadian Manufacturing

Oil-field equipment firm loses $19.4 million patent suit

Pason Systems Inc. has been ordered to pay US$19.4 million in damages



CALGARY— Oil drilling equipment provider Pason Systems Inc. has been ordered to pay US$19.4 million in damages in a patent infringement case.

The company says it will appeal the U.S. ruling, which awards the damages to an unnamed complainant in the patent infringement lawsuit over its automatic driller.

The case against Calgary-based Pason, which rents specialized equipment for the oil and gas industry, has been ongoing since 2003.

Pason said its claim of inequitable conduct was dismissed by a judge and a prior award of US$14.3 million from 2008 was upheld.

The company also must pay US$5.1 million in post-verdict damages.

Pason said it will increase its accrual to reflect the updated amount and the charge will be recorded in its second-quarter results.

The company said it plans to renew its appeal of the judgment and maintains that its automatic driller does not infringe the patent in question, and that the results of this decision will have no impact on the company’s operations.”

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