Monday, August 18, 2008, 8/18/2008 08:17:00 AM

Chemical Biggies in Trade Secrets Spat

Dow Jones, via CNN.money, reports on a trade secrets actions in federal court in the Southern District of New York between Koch Industries subsidiary, Invista, and DuPont and Rhodia.

The claims relate to alleged theft of Invista's trade secrets concerning proprietary technology for the production of adiponitrile, a chemical used in the manufacture of nylon.

According to Invista's allegations, "[u]nable to develop its own comparable technology, Rhodia has decided to take it from Invista and has enlisted the financial, technical and other support of DuPont in its illegal scheme."

Invista claims it bought the core technology as part of $4.1 billion sale of DuPont's fibers business in 2004.

As part of the transaction, DuPont agreed to prohibitions that barred it from competing against Invista and from disclosing the technology and any third party, according to the lawsuit.
The complaint alleges Rhodia obtained unlawful access to the trade secrets through a joint venture between affiliates of Invista and Rhodia.

The lawsuit claims DuPont has joined forces with Rhodia as Rhodia seeks to build an adiponitrile plant in Asia and compete unfairly against Invista.

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