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3M Files Suit Against Chinese Firm for Patent Infringement
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Diversified conglomerate 3M Company (MMM - Free Report) has over 109,000 patents in various categories across its product portfolio. Over the years, the company has successfully enforced its patent rights against unauthorized uses and filed legal suits against firms that infringed them.
The latest of such litigations is a patent infringement suit against China-based manufacturing firm, Phoenix Automotive Refinishing and California-based marketing firm, K2 Concepts. In the lawsuit filed in the Central District of California, 3M alleged that Phoenix violated seven patents, manufacturing some automotive painting spray gun cup products in China and selling them in the U.S. through K2 Concepts. The infringed patent relates to 3M’s PPS technology that facilitates the efficient mixing and spraying of coatings for automotive collision repair.
With over 1,000 different paint products for various interior and exterior applications, 3M offers numerous paint protection film products to the automotive industry. These products form an integral part of its Industrial segment, which serves a broad range of markets, such as, automotive original equipment manufacturer and automotive aftermarket (auto body shops and retail), electronics, appliance, paper and printing, packaging, food and beverage, and construction.
The products from this segment include tapes, a wide variety of abrasives, adhesives, advanced ceramics, sealants, specialty materials, filtration products, closure systems for personal hygiene products, acoustic systems products. It also includes components and products that are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles.
With a wide array of products for diverse businesses, 3M outperformed the Zacks categorized Diversified Operations industry in the last three months with an average return of 7.2% compared with a paltry 0.7% gain for the latter. The Automotive Aftermarket Division of 3M offers a comprehensive portfolio of products and solutions for the collision repair industry. Based on the indigenous PPS technology, these products enable less paint wastages as painters mix the optimum paint with solvent for an effective cleanup procedure. The 3M PPS System is a disposable mixing and filtering system that eliminates the need for separate mixing cups and filters. In addition, only the spray gun channel and adapter need cleaning since the paint never comes into contact with the pot and collar. A range of threaded adapters for different spray guns provide painters the ability to attach the 3M system to any spray gun.
This revolutionary technology reportedly led to about 70% reduction in the use of cleaning solvents, which translates to a reduction of an estimated 46.2 million gallons of solvents. Consequently, global VOC (volatile organic compound) emissions are reduced, thereby promoting a safer and healthier workplace since operators are exposed to smaller amounts of solvent vapors. These eventually translated to savings of more than $330 million in solvent cost and solvent disposal cost, over the past decade.
Furthermore, the PPS system allows operators to mix smaller quantities of paint or to easily switch colors between repairs without disposing of the paint. This can help reduce the amount of paint required for a job by as much as two to four ounces per mix, leading to significant cost and waste reductions.
With long-term earnings growth expectations of 10.1%, Crane is a star performer in the industry. The stock has a solid earnings history, beating earnings estimates in each of the trailing four quarters with an earnings surprise of 8.9%.
Danaher has a long-term earnings growth expectation of 11.8%. The stock has a positive earnings history, beating earnings estimates in each of the trailing four quarters with an earnings surprise of 6.6%.
LSB Industries has a long-term earnings growth expectation of 12%.
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3M Files Suit Against Chinese Firm for Patent Infringement
Diversified conglomerate 3M Company (MMM - Free Report) has over 109,000 patents in various categories across its product portfolio. Over the years, the company has successfully enforced its patent rights against unauthorized uses and filed legal suits against firms that infringed them.
The latest of such litigations is a patent infringement suit against China-based manufacturing firm, Phoenix Automotive Refinishing and California-based marketing firm, K2 Concepts. In the lawsuit filed in the Central District of California, 3M alleged that Phoenix violated seven patents, manufacturing some automotive painting spray gun cup products in China and selling them in the U.S. through K2 Concepts. The infringed patent relates to 3M’s PPS technology that facilitates the efficient mixing and spraying of coatings for automotive collision repair.
With over 1,000 different paint products for various interior and exterior applications, 3M offers numerous paint protection film products to the automotive industry. These products form an integral part of its Industrial segment, which serves a broad range of markets, such as, automotive original equipment manufacturer and automotive aftermarket (auto body shops and retail), electronics, appliance, paper and printing, packaging, food and beverage, and construction.
The products from this segment include tapes, a wide variety of abrasives, adhesives, advanced ceramics, sealants, specialty materials, filtration products, closure systems for personal hygiene products, acoustic systems products. It also includes components and products that are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles.
With a wide array of products for diverse businesses, 3M outperformed the Zacks categorized Diversified Operations industry in the last three months with an average return of 7.2% compared with a paltry 0.7% gain for the latter. The Automotive Aftermarket Division of 3M offers a comprehensive portfolio of products and solutions for the collision repair industry. Based on the indigenous PPS technology, these products enable less paint wastages as painters mix the optimum paint with solvent for an effective cleanup procedure. The 3M PPS System is a disposable mixing and filtering system that eliminates the need for separate mixing cups and filters. In addition, only the spray gun channel and adapter need cleaning since the paint never comes into contact with the pot and collar. A range of threaded adapters for different spray guns provide painters the ability to attach the 3M system to any spray gun.
This revolutionary technology reportedly led to about 70% reduction in the use of cleaning solvents, which translates to a reduction of an estimated 46.2 million gallons of solvents. Consequently, global VOC (volatile organic compound) emissions are reduced, thereby promoting a safer and healthier workplace since operators are exposed to smaller amounts of solvent vapors. These eventually translated to savings of more than $330 million in solvent cost and solvent disposal cost, over the past decade.
Furthermore, the PPS system allows operators to mix smaller quantities of paint or to easily switch colors between repairs without disposing of the paint. This can help reduce the amount of paint required for a job by as much as two to four ounces per mix, leading to significant cost and waste reductions.
3M currently has a Zacks Rank #2 (Buy). Some other top stocks in the industry include Crane Co. (CR - Free Report) , Danaher Corporation (DHR - Free Report) and LSB Industries, Inc. (LXU - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With long-term earnings growth expectations of 10.1%, Crane is a star performer in the industry. The stock has a solid earnings history, beating earnings estimates in each of the trailing four quarters with an earnings surprise of 8.9%.
Danaher has a long-term earnings growth expectation of 11.8%. The stock has a positive earnings history, beating earnings estimates in each of the trailing four quarters with an earnings surprise of 6.6%.
LSB Industries has a long-term earnings growth expectation of 12%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>