SOURCE: Composite Technology Corporation

Composite Technology Corporation

August 19, 2010 08:05 ET

Composite Technology Reports That the U.S. Patent Office Reconsiders and Rejects Claims of Mercury Cable's Patent for HVCRC Conductor

IRVINE, CA--(Marketwire - August 19, 2010) -  Composite Technology Corporation (OTCBB: CPTC), through its subsidiary CTC Cable Corporation ("CTC Cable"), received notice from the United States Patent and Trademark Office ("USPTO") that the USPTO on August 6, 2010 issued an order granting CTC Cable's request for inter partes reexamination of U.S. Patent No. 7,705,242 ("the '242 patent), which is directed to Mercury Cable & Energy's ("Mercury") HVCRC conductor. With the order, the USPTO issued an Office Action rejecting each of the 33 claims of the '242 patent. No claims of the '242 patent were confirmed as being patentable by the USPTO.

In the Office Action, the Examiner adopted all eleven grounds of rejection that were asserted by CTC Cable in its reexamination request. Among the rejections adopted by the USPTO was a rejection stating that each of the three independent claims of the '242 patent, as well as fourteen of the dependent claims, are anticipated by one of CTC Cable's prior patent publications disclosing and claiming CTC Cable's ACCC® electrical conductor. The Examiner stated that "[T]he prosecution history of the ['242 patent] does not indicate that the [CTC Cable patent publication] was included for consideration by the examiner in charge of the ['242 patent]. Accordingly, [the CTC Cable patent publication] raises a substantial new question of patentability...which question has not been decided in the previous examination of the '242 patent." Mercury is afforded the opportunity to respond to this ruling, but CTC Cable is confident that the USPTO will sustain its actions to date.

CTC Cable initiated a suit against Mercury Cable & Energy in the U.S. District Court, Central District of California, on March 3, 2009, asserting infringement of two of CTC Cable's issued patents for composite core technology used in bare overhead transmission conductor (U.S. Patent No. 7,368,162 and U.S. Patent No. 7,211,319). If the federal court finds that Mercury infringes any one of the claims of these patents, Mercury will be liable to CTC Cable for damages, and the Court may also enter an injunction against Mercury prohibiting any further infringement. If the federal court finds that Mercury has willfully infringed or that the suit is exceptional, Mercury could be liable for increased damages and attorneys' fees. Any third party that makes, uses, sells, offers for sale or imports any Mercury product in the United States that is found to infringe, including third party manufacturers or customers of an installed Mercury transmission line, may also be liable for patent infringement and subject to damages and injunctive relief. 

About CTC:
Composite Technology Corporation's patented ACCC® conductor technology enables superior performance of high voltage transmission and distribution electrical grids. ACCC® conductors use CTC's proven carbon fiber core which is produced by its subsidiary, CTC Cable Corporation, at its Irvine, California headquarters and delivered to qualified conductor manufacturers who produce and distribute ACCC® conductors to operators of electrical grids worldwide. CTC's conductor technology significantly reduces thermal line sag and can replace similar diameter and weight traditional conductors with its higher capacity and more energy efficient ACCC® conductor. It is an ideal conductor for both upgrading existing power lines as well as building new lines since the technology allows for the reduction of the number of support structures and/or a reduction of their height. Since its commercial introduction in 2005, nearly 9,000 kilometers of ACCC® conductor have been installed in all environmental and operating conditions, including severe heat and ice environments, long span applications and high capacity corridors for the modern grid. ACCC® is a registered trademark of CTC Cable Corporation.

For further information, visit our website: or contact Investor Relations, James Carswell, +1-949-428-8500.

This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, resolution of pending and threatened litigation matters involving CTC or its subsidiaries, resolution of disputes with CTC's or subsidiaries' creditors competition with larger companies, development of and demand for a new technology, general economic conditions, the availability of funds for capital expenditure and financing in general by us and our customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company, including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2009 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

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