Xinyi Given Until May 31 to Secure Financing for Debt to Saint-Gobain

April 28, 2010

The U.S. Court for the Northern District of Ohio has granted Xinyi North America Inc. a stay until May 31 while it secures financing to pay damages in the patent infringement suit filed against it by Saint-Gobain and its related companies. The company had filed a request for this, saying that it needed "this additional time in order to secure an appropriate bond." (CLICK HERE for related story.)

Xinyi 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.)

In order for the stay to be granted, Xinyi had to agree that, during the 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," according to court documents.

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. Though a jury ruled in favor of Xinyi in November 2009, the final judgment, including damages, was just issued by the court last month.

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