Stephen D. Podd - Page 9

                                        - 9 -                                         
               During the 1970's and through May 1983, Sea-Land licensed the          
          exclusive rights to manufacture, market, and sell products covered          
          by the Sea Bulk patents to Tri-Wall Containers (Tri-Wall).  The             
          terms of the license agreement provided that Tri-Wall would pay             
          royalties to Sea-Land at an initial rate of 8 percent of net sales          
          of Sea Bulk liners for the first year of the agreement, 9 percent           
          for the second year, and 10 percent thereafter.                             
               In March 1981, Raymond Stopper founded Insta-Bulk, Inc.,               
          (Insta-Bulk) in Houston, Texas.  Insta-Bulk, like Powertex, was             
          engaged in the business of manufacturing and selling intermodal             
          container liners for use in the transportation industry.  During            
          1982, a dispute developed between Insta-Bulk, Sea-Land, and Tri-Wall        
          concerning whether Insta-Bulk was manufacturing and selling liners          
          which infringed upon the Sea Bulk patents.  During 1982, Insta-Bulk         
          filed a request for declaratory judgment with the United States             
          District Court in New York alleging that the Sea Bulk patents were          
          invalid and unenforceable and that it was not infringing upon the           
          Sea Bulk patents.  Sea-Land and Tri-Wall counterclaimed for damages         
          resulting from Insta-Bulk’s alleged disclosure of Tri-Wall’s trade          
          secrets and for infringement of the Sea Bulk patents by Insta-Bulk.         
               Sea-Land eventually became dissatisfied with Tri-Wall’s                
          performance and therefore terminated its license agreement during or        
          around May 1983.  On May 5, 1983, Powertex entered into an exclusive        
          license agreement with Sea-Land for use of the Sea Bulk patents             
          (Sea-Land license agreement).  The Sea-Land license agreement               

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011