Velocys, the company behind smaller scale gas-to-liquids (GTL), announces that the UK High Court has ruled in its favour in the patent infringement case it brought against CompactGTL Ltd.

The case, filed by Velocys in March 2013, concerns infringement by CompactGTL in relation to its smaller scale Fischer-Tropsch (FT) technology. (FT is regarded as the core process in any gas-to-liquids plant).

The judgment upheld the validity of the two patents in suit (known as ‘508 and ‘509), and found CompactGTL to be infringing both patents – six separate patent claims in total – based on CompactGTL’s sworn statements to the court concerning their technology and its intended use. (A copy of the judgement can be obtained from the Courts Recording and Transcription Unit of the Royal Courts of Justice).

Velocys has a very substantial patent portfolio comprising more than 900 patents, covering a broad range of countries, which protects key inventions relevant to smaller scale GTL. The company also holds a significant inventory of trade-secrets which it has gained through years of development and practice. Moreover, Velocys actively ensures it maintains strict freedom to operate for its own business.

Equivalents of the two patents in this case have also been approved in numerous other jurisdictions around the world, including places where smaller scale GTL might be deployed, such as the United States and Canada, and countries where FT reactors and other associated equipment might be manufactured, such as Japan and South Korea.

A judgement hearing has been set for 2nd October to deal with issues arising out of this decision, including relief from infringement, damages to Velocys, and reimbursement of Velocys’ legal costs.

Roy Lipski, CEO of Velocys, said, “Velocys is pleased by today’s judgement in its favour against CompactGTL. We have demonstrated our resolve to protect our shareholders’ interests and defend our intellectual property, which includes many valuable patents relevant to smaller scale gas-to-liquids production and its associated supply chain. This ruling provides important guidance to the industry, just when the market for smaller scale GTL begins taking off.”

“Velocys is entering an exciting phase of growth as it continues to strengthen its leading market position and maximise its healthy pipeline of opportunities. Our technology is the basis for the construction of a commercial small scale GTL plant, the first of its kind in the US, which has now begun at Waste Management’s East Oak landfill site in Oklahoma.”

“It’s a great time to be in our business – we’re witnessing the birth of a whole new industry.”