Saint-Gobain Supports Xinyi Stay of Execution Under Certain Conditions, According to Court Documents

April 23, 2010

Saint-Gobain Autover USA Inc. has filed a response in support of Xinyi’s motion for a stay of execution of its judgment, under the condition that Xinyi does not “place assets beyond the effective power of this Court or … beyond the ability of Saint-Gobain to reach.” Xinyi had recently filed a motion in the patent infringement suit against it for a stay until May 31 while it seeks financing. The company owes Saint-Gobain damages of approximately $22 million, along with attorney’s fees of nearly $2 million and court costs totaling $384,882.99—for a total of more than $24 million, as a result of a recent ruling. (CLICK HERE for related story.)

“If Xinyi is not willing to agree to such a condition, it is respectfully requested that the Court order that Xinyi comply with that condition during the interim between the date of the order and May 31,” writes Saint-Gobain Autover. “In the absence of an agreement by Xinyi or an order by the Court as described above, Saint-Gobain submits that Xinyi’s motion should be denied.”

The two companies together filed a proposed order yesterday with Xinyi accepting these conditions in order to obtain the May 31 extension.

“Xinyi has agreed that, during the requested stay period, it will maintain the status quo of its current business operations and will not take any actions with respect to its assets that are outside the normal course of its business or that are designed to place those assets outside the reach of Saint-Gobain or the Court,” reads the joint proposed order, signed by counsel for both companies. At press time, the judge overseeing the case, Judge Sara Lioi, had not signed the proposed order.

Saint-Gobain filed the original suit in 2006, alleging that Xinyi infringed on two of its patents, one titled "Spacer for Windshield Bracket" (known in court documents as the '669 patent) and one titled "Method of Centering Windshield Glazings" (referred to as the '395 patent). Both patents involve windshields equipped with "an extruded profiled spacer," according to a November statement from Saint-Gobain Autover.


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