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Slashnuts

04/23/13 3:48 PM

#34333 RE: radcardnel #34319

GERS' patented process does not simply grind or squeeze the oil out with a press. The process involves mechanically processing stillage so that the stillage is condensed in an evaporator to form concentrated stillage. A product that's mostly oil is then centrifuged from the syrup. This product contains mostly oil with some solids and water. Looking at the "AOS" the "emulsion stream" they claim is oil plus water and solids. What's funny is the old Tricanter diagram on their website named the very same "emulsion stream" as oil. Clearly the same process patented by GERS' and clearly the process ICM and PEIX are infringing as the good judge interpreted this stream to be mostly oil with solids and water.(water and oil form an emulsion).

I spoke with PEIX management. They confirmed they're not licensed with the patent holder, GERS. He said, "We don't believe we need to be." PEIX made the same mistake as ICM, which is not a coincidence. In fact, ICM was instrumental in PEIX's beliefs.

The reason PEIX believed they didn't need to be licensed is due to what ICM told them. ICM said, under a proper interpretation of GERS' patents, the oil systems don't infringe. ICM's intention was to limit GERS' patents to a recovery of more than 95% of the oil. The judge disagreed with what ICM believed, no particular percentage of oil is required to be extracted, and no limits were placed on the patents claims as ICM had hoped.

Keep in mind, PEIX told me this before the major ruling against ICM. What this means is since the judge interpreted ICM's belief's to be false, PEIX's belief's are also false. I have not seen a PR from PEIX stating they're licensed so I can only assume they're still infringing.

ICM is in serious trouble here. They've laid off more than 50% of their workforce since the lawsuits began. They have failed to win a single ruling. Their "lawsuit" against GERS' was dismissed and they failed to get DVG out from under the liability of the lawsuits.
Unfortunately for PEIX, they did a deal with the devil. ICM gave them the oil system for free, up front, and PEIX is to pay for the equipment out of corn oil revenues.

ICM likely got PEIX to agree not to license with GERS in exchange for the corn oil system in advance of payment. ICM is trying to squeeze GERS out by doing dirty deals like this. GERS' shareholders are simply sqeezing PEIX for stealing our patented technology. Does ICM care? Not really. ICM does not indemnify against damages the publicly infringing companies are enduring as a result of lost market capitalization as the news of infringement spreads.
I think ICM is in so deep, they had nothing to lose. When the court's order them to pay past damages of several hundred million, ICM will file for bankruptcy and the remaining infringing producers, like PEIX, will get stuck holding the bag.

There is no doubt what ICM led PEIX to believe was wrong. Don't take my word for it, read the judge's ruling. PEIX is infringing GERS' patents, and will be sued if it continues.

PEIX is infringing GERS' patents by mechanically seperating a product that's mostly oil from concentrated stillage. It's fine to use an additive, but that doesn't negate the fact the infringers are practicing GERS' patented method to begin with. The additives have no use without GERS' pioneering methods.