News of the Week supporting research to achieve data communications at 1.5 million bits per second for 200 to 300 U.S. research institutions. It anticipates a five-year period and .a 45 million bits-per-second backbone network. Phase 3 consists of a long-term research program aimed toward deployment within 15 years of communication and switching capabilities that support backbone transmission of 3 billion bits per second. It anticipates connections for at least 1000 sites. Besides its use to support DARPA research, DRI is intended to replace ARPANET as a test-bed for advanced networking concepts. The Defense Department points out that DARPA is working with other federal agencies to acquire a shared Research Internet Backbone rated at 45 million bits per second, and a Research Internet Gateway that will provide Ch u: may get pa ten t high-speed packet switching and connect DRI to other networks. yttrium compounds and another $1.5 James Krieger million two years after that. It is not a sure thing, however, that the University of Houston and Chu will get the patent. "We know several other patent applications have been filed," says Richard K. Quisenberry, Du Pont's Betting that the University of Hou- director of research for central R&D. ston will be granted patents covering high-temperature superconductors, Du Pont has bought the rights to commercialize the compounds. The firm has already staked $1.5 PPG Industries is strengthening its million on the deal. already heady position in U.S. paints The agreement gives Du Pont ex- and coatings. Last week, the Pittsclusive rights to commercialize burgh-based glass, paint, and chemsuperconducting materials includ- icals producer announced plans to ed in any patents granted for work acquire Grow Group for about $233 done by Houston physics professor million. The agreement has been Paul C.-W. Chu. The university has approved by both companies' boards filed broad patent applications cov- of directors. ering many compounds, including Grow Group, headquartered in the so-called " 1-2-3" superconduct- New York City, is a manufacturer ors composed of yttrium-barium- of trade paints and chemical coatcopper oxide (Y-Ba-Cu-O). Those ma- ings and private-label household terials, announced in early 1987, products. Annual sales are about were the first to be made that be- $380 million. Consultants estimate come superconducting above 77 K, that about $275 million of this total allowing cheap liquid nitrogen to is in paints and coatings. PPG had be used to cool them rather than coatings and resins sales of about expensive liquid helium. $1.80 billion in 1987. Du Pont paid the university $1.5 Grow Group stockholders will remillion when the agreement was ceive $16.625 per share of common signed last week. The company will stock. PPG also has an option to pay an additional $1.5 million when purchase 2.8 million unissued Grow Chu is issued a patent covering the shares at the same price. Before the
Du Pont gambles on superconductor patents
"We think it's worth at least $1.5 million to get the rights to those compounds before the patent has even been issued. If we had developed the compounds in our labs, it would have been well worth $1.5 million." One competing application has been filed by the University of Alabama, Huntsville, where the Y-BaCu-O superconductor was first made in the laboratory of physics professor Maw-Kuen Wu, a collaborator and former student of Chu's. Wu and Chu are two of the nine coauthors of the paper in the March 2, 1987, issue of Physical Review Letters where the work was first published. "It's clear that there is some dispute about who can claim credit for the discovery," says Robert Rieder, university counsel for Alabama. "We believe that the breakthrough was accomplished at our campus in Dr. Wu's lab." The Y-Ba-Cu-O materials may also be covered in patent applications filed by others. Both AT&T and IBM are aggressively pursuing patent claims for high-temperature superconductors, for example, although neither firm will reveal for exactly which compounds. Pamela Zurer
PPG Industries plans to acquire Grow Group
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August 29, 1988 C&EN
announcement of the acquisition, Grow issued a statement that it was negotiating with a major firm, causing a flurry of activity in Grow stock. At that time, the company's common stock had been trading in the high $ll-per-share range. Thus, the PPG offer represents a premium of more than 40% for Grow investors. Russell Banks, president and chief executive officer of Grow, says, "We are pleased that we have been able to achieve such an attractive transaction for our shareholders." The merger is conditioned on PPG's right to terminate the merger agreement, for any reason, during a 10-day due diligence period. PPG chairman and chief executive officer Vincent A. Sarni says that "Grow Group will fit exceptionally well within PPG's coatings and resins group." William Storck
