P&G; Loses Diaper Duel With Kimberly-Clark
A federal judge has ruled against Procter & Gamble Co. in a patent dispute with Kimberly-Clark Corp., defeating the consumer products giant’s bid for control of the $3-billion disposable-diaper market.
Procter & Gamble had charged that the Dallas-based manufacturer of “super-absorbent” Huggies diapers had copied Procter & Gamble’s design of “super-absorbent” Pampers.
Procter & Gamble, based in Cincinnati, was seeking removal of Huggies from store shelves and unspecified monetary damages.
But U.S. District Judge Falcon Hawkins ruled Thursday that a Procter & Gamble patent for its diaper is unenforceable because the company intended to deceive a patent examiner.
Procter & Gamble spokeswoman Carol Boyd said the company plans to appeal the decision.
Procter & Gamble is the leader in the disposable-diaper industry, with 47% of the market. Kimberly-Clark is No. 2, with about 30% of the market.
At the heart of the lawsuit was a Procter & Gamble patent to combine wood pulp fluff and super-absorbent material to produce a thinner diaper.
After the application was rejected several times, Procter & Gamble was awarded a patent in 1985 based on new test data that convinced a patent examiner that the development was unique, the ruling said.
But Hawkins said Procter & Gamble did not provide the U.S. Patent Office with results of 1983 tests challenging the 1985 data and that the attorney handling the matter was “grossly negligent” for failing to do so.
“The finding of intent to deceive is bolstered by the highly material nature of the false affidavit,” the judge said in his 58-page ruling.
Procter & Gamble attorneys argued during the 17-day, non-jury trial that the firm lost $300 million a year because of the alleged patent infringement by Kimberly-Clark. The trial ended May 31.
Hawkins also ruled that an antitrust complaint filed by Kimberly-Clark against Procter & Gamble in a separate lawsuit may proceed. That case is expected to go to trial in Charleston early next year.
Kimberly-Clark operates a diaper plant in South Carolina.
