Court cases to stop use of INVISTA ADN technology proceed against Rhodia, partners

US Federal court denied Rhodia’s request for dismissal

French arbitration panel lacks jurisdiction over Rhodia S.A., defendant in Delaware case

Wilmington, DE - February 2, 2010 - INVISTA’s defense of its world-leading nylon technology continues in pending court cases in Delaware and New York, bolstered by a Paris arbitration panel affirming that it lacks jurisdiction over Rhodia S.A., the sole defendant in the Delaware case.

In the U.S. legal proceedings, INVISTA seeks to stop French competitor Rhodia and its potential venture partners from misappropriating INVISTA’s technology.

“Arbitration in France continues and remains a confidential proceeding,” said INVISTA spokesperson Mary Beth Jarvis, “but the panel’s preliminary findings, discussed last week in a press release by Rhodia, certainly do not give Rhodia the freedom to use the INVISTA technology that Rhodia needs to build a new ADN plant.”

“In the meantime, INVISTA’s legal actions continue against Rhodia in Delaware and against one of its potential venture partners in federal court in New York. We will continue to defend aggressively our world-leading nylon technology against any parties who attempt to use it illegally.”

INVISTA filed the Delaware case in late 2008. Rhodia sought to have the case dismissed or stayed, asserting that the issues should only be dealt with via arbitration in France. The Delaware court subsequently denied Rhodia's motion, refusing to compel arbitration and allowing INVISTA's case to proceed.

The Delaware court ruled for INVISTA on the basis that the INVISTA entities who actually own the technology are not subject to the arbitration provision included in the agreement that formed the France-based joint venture between affiliates of INVISTA and Rhodia.

The INVISTA trade secrets at issue relate to its proprietary process for producing ADN, a critical intermediate chemical used in the manufacture of nylon 6,6. INVISTA bought the original technology several years ago and has built upon that technology to earn a world-leading position in the manufacture of ADN. The Delaware suit seeks damages and declaratory and injunctive relief to halt Rhodia’s misconduct and the company’s attempt to build a new ADN manufacturing plant using INVISTA’s intellectual property.

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