Coatings Word February 2015

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    A can of paint opens up endless possibilities for individual expression,creativity, and change. With so many options, how can your formulationstand out from the crowd? BASF offers not only a comprehensiveportfolio for the can of paint, but also formulation expertise customizedto create innovative solutions for your architectural coatings. Whetherthrough our products or our people, we can help your paint differentiate.

    At BASF, we create chemistry.

    For more information visit us at www.basf.us/dpsolutions

    or call 1-800-251-0612.

    We createchemistry

    that helps yourpaint differentiate.

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    COATINGSWORLD (ISSN 152-711-29) is published monthly by Rodman Media Corp., 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: (201) 825-2552; Fax (201) 825-0553.Periodical postage paid at Ramsey, NJ 07446 USA and additional mailing offices. Publications Mail Agreement No: 40028970. Return Undeliverable Canadian Addresses toCirculation Dept. PO Box 1051, Fort Erie, On L2A 6C7, [email protected]: Send address changes to: Coatings World, 70 Hilltop Rd. Ramsey,NJ 07446. Free subscriptions to Coatings World are available to qualified individuals. Others are as follows: U.S. one year $75; two years $120. Outside U.S. and overseas:

    one year $95 (U.S.), two years $160 (U.S.), foreign airmail: one year $195 (U.S.). 5% GST required on Canadian orders. GST #131559148. The publisher reserves the right todetermine qualification of free subscriptions. Printed in the USA. Coatings World is used under license from Whitford Worldwide. Coatings Worlds circulation is audited byBPA International.

    Table of Contents

    4 | Coatings World www.coatingsworld.com February 2015

    24 Wood Coatings Market27 Corrosion Control30 Mixing Equipment Directory37 2015 Company Capabilties: A Special Yearly Supplement

    February 2015 Vol. 20, No. 2

    ADVERTISING SECTIONSClassified Ads.......................................................80 Advertising Index................................................. 81

    COLUMNSiPaint ....................................................................16

    Going to Court: Hard Spots and Rocks!

    Business Corner ................................................... 18GrowthRemains the Keystone to Sustainable Profitability

    International Coatings Scene ............................... 19Latin America Brazilian Economy Dims Coatings Outlook

    Europe EUs New CLP Regulation on Labeling Cause

    Concern

    China Automotive Coatings Stays On Fast Growing Track

    DEPARTMENTSEditorial .................................................................6As We Go to Press .................................................7Fresh Paint ............................................................. 8New Products ...................................................... 13Market Reports .................................................... 14Industry News ...................................................... 32Suppliers Corner .................................................. 34People.................................................................. 35Meetings .............................................................. 36Final Coat ............................................................. 82

    24

    Cover and above photo courtesy of Thompsons WaterSeal.

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    What makes this the worldsNo.1 High Speed Disperser?

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    EditorsPage

    A Rodman Media Publication

    70 Hilltop Road Ramsey, NJ 07446 USA

    (201) 825-2552 Fax: (201) 825-0553

    Website: www.coatingsworld.com

    EDITORKerry Pianoforte [email protected]

    VICE PRESIDENT/EDITORIAL DIRECTORTom Branna [email protected]

    ASSOCIATE EDITORCatherine Diamond [email protected]

    ART DEPARTMENTMichael Del Purgatorio

    [email protected] Downing, [email protected]

    INTERNATIONAL CORRESPONDENTSSean Milmo (Europe)

    Charles W. Thurston (Latin America/Americas)

    CONTRIBUTING EDITORSPhil Phillips

    Steve McDanielEDITORIAL ADVISORY BOARDJim Berry (Berry Environmental)

    Joseph Cristiano (consultant)

    Thomas Frauman (consultant)

    Joseph Prane (consultant)

    Isadore Rubin (consultant)

    Richard M. Tepper (PPG Industries)

    Shelby F. Thames (University of So. Mississippi)

    PRESIDENTRodman J. Zilenziger, Jr.

    [email protected]

    EXECUTIVE VICE PRESIDENTMatthew J. Montgomery

    [email protected]

    GROUP PUBLISHER / ADVERTISING SALESDale Pritchett [email protected]

    ADVERTISING SALES (U.S.)Kim Clement Rafferty [email protected]

    ADVERTISING SALES(Europe)

    Ria Van den Bogaert, BVBA Vandenbo

    Karmelietenstraat 24 C, Box 56, 1000, Brussels, Belgium

    Tel.: +32 2 569 8905 Fax: +32 2 569 8906

    Mobile: +32 497 05 0754 [email protected]

    ADVERTISING SALES (Hong Kong, Taiwan & China)Ringier Trade Publishing Ltd

    401-405 4/F New Victory House

    93-103 Wing Lok Street, Sheung Wan, Hong Kong

    (852) 2369 8788 Fax: (852) 2869 5919

    [email protected]

    CLASSIFIED ADVERTISING SALESPatty Ivanov 631-642-2048; Fax 631-473-5694

    [email protected]

    PRODUCTION MANAGERPatricia Hilla [email protected]

    AUDIENCE DEVELOPMENT MANAGERJoe DiMaulo [email protected]

    CIRCULATION MANAGERRichard DeVoto [email protected]

    ONLINE DIRECTORPaul Simansky [email protected]

    C Wcirculation is audited by BPA Worldwide.

    This months issue of Coatings Worldcovers two key markets wood

    coatings and corrosion control.

    Associate Editor, Catherine Diamond takes a look at the Wood

    Coatings Market (page 24) in this months cover article. As a result of

    a rise in the housing market, the wood coatings market has seen steady

    gains in recent years. According to Phil Phillips, president of CHEMARK

    Consulting, a growth of about 3.1 percent over the next 15 years is ex -

    pected for the aggregate of wood protective and preservatives from $3100

    million in 2013 to $4900 million by 2028.Currently wood coatings represent 84 percent, while wood preservatives

    hold a 16 percent SOM, Phillips said. By 2023, the shares will shift three per-

    centage points to 81 percent for coatings and 19 percent for preservatives.

    The key segments for this market include siding and decking, furniture

    and cabinets. In 2013, sliding and decking made up $698 and $673 million

    (22.5 percent & 21.7 percent) of the market, while furniture made up at

    $304 million and cabinets $332 million (9.8 percent & 10.7 percent).

    Corrosion Control (page 27) covers the market for high-performing

    corrosion control technologies. These coatings are used on a number of high

    value structures such as offshore oil rigs, bridges and stadiums. These coat-

    ings must withstand harsh environments and offer long-lasting protection.

    According to Neil Wilds, technical manager, Protective Coatings atAkzoNobel, customers are asking now for guarantees up 20-30 years for off-

    shore assets. Unlike the marine market, the offshore asset does not come back

    to dock every ve years for inspection, he said. A xed-platform of FPSO

    (oating production, storage and ofoading facility) can be offshore easily for

    more than 25 years. In the North Sea, for example, there is a lot of extension of

    the lifetime of platforms and therefore a lot of maintenance painting.

    In high value infrastructure such as stadiums, airports and bridges, the

    focus is also on low-maintenance systems, as they are constantly in use by

    the public and are often very hard to access, he added. There is a large

    focus on aesthetics in this market so chemistries such polysiloxanes and

    uoropolymers are being utilized.

    Another factor is what added value a corrosion control coating bringsto the table. A good coating should add value to the customers business,

    whether this is a reduction in long-term maintenance, increased production

    speeds, lower VOCs, reduced energy use or improved hygiene, said Andreu

    Tarve, Hempel Group Assortment Manager. This value-add should be one

    of the main considerations, as it often leads to a higher long-term return

    on investment.

    Wood Coatings andCorrosion Control

    Technologies

    [email protected]

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    AsWeGoToPress

    PPG Industries has submitted an offer to

    acquire a majority interest in the aero-

    space and automotive sealants businesses

    of Le Joint Franais (LJF). LJF is a sup-

    plier of sealants and adhesives products

    for the aerospace and automotive indus-

    tries and has been a long-term licensee of

    PPGs aerospace sealant technology.

    LJFs aerospace and automotive seal-

    ants businesses would be spun-off to

    form a new, separate entity, of which

    PPG would be the majority owner.PPG anticipates closing the transaction

    in the second half of 2015, following

    completion of the French works council

    consultation process, receipt of regula-

    tory approvals and satisfaction of other

    customary closing conditions. Financial

    terms were not disclosed.

    LJF is headquartered in France and is

    part of the Hutchinson Group, a world

    leader in sealing systems, vibration, acous-

    tic and thermal insulation, fluid transfer

    systems, transmission and mobility. LJFs

    aerospace and automotive sealants busi-

    nesses employ more than 200 people, andthe new entity would continue operations

    in Bezons, France, at the facility where

    these businesses are currently based.

    This venture is a natural progression

    for the two companies, as LJF has been a

    licensee of PPG technology for more than

    60 years. This would allow us to serve

    our aerospace and automotive customers

    with greater geographic reach and with

    a wider array of automotive products,

    said Michael McGarry, PPG chief operat-

    ing officer.

    Axalta and Kinlita FormJV to Provide Coatings toChinas Commercial TruckMarketAxalta Coating Systems and Shanghai

    Kinlita Chemical have signed an agree-

    ment to form a joint venture in China.

    Aimed at driving deep into Chinas

    burgeoning commercial truck mar-

    ket, the agreement leverages Axaltas

    position in coating technologies with

    Kinlitas position in Chinas commer-

    cial truck market to create a power-ful and compelling new presence in

    Chinas commercial truck market. The

    commercial truck industry plays a vital

    role, from facilitating the transport of

    goods to supporting the expansion of

    the nations infrastructure, in supporting

    Chinas economic development.

    We are very pleased to be sign-

    ing this joint venture agreement for

    deeper cooperation with Kinlita, said

    Michael Cash, senior vice president of

    Axalta Coating Systems and presidentof Axaltas Industrial Coatings business.

    Our agreement brings together our

    leadership position in supplying the com-

    mercial vehicle market globally with ad-

    vanced coating technologies, such as our

    environmentally responsible waterborne

    primer and basecoats that can help com-

    mercial truck manufacturers reduce their

    overall environmental footprint, and

    Kinlitas rich history and strong market

    position. This is a win-win development

    for our customers and for both of ourcompanies in China. CW

    Index to Companies

    This index gives the starting page for a department or feature with a sig-

    nificant reference to a manufacturer of paint, coatings, adhesives and sealants

    Subsidiaries are indexed under their own names.

    AkzoNobel .................................................................................................. 8,27

    Axalta Coating Systems ......................................................................7,8,27,35

    BASF ............................................................................................................... 13

    Benjamin Moore ............................................................................................. 24

    Kelly-Moore ....................................................................................................13

    Hardide Coatings .............................................................................................. 8

    Hempel ..................................................................................................8,13,27

    Henkel .............................................................................................................. 8

    Minwax .......................................................................................................... 24

    Nippon Paint..................................................................................................... 8

    Thompsons Waterseal .....................................................................................24

    PPG ..............................................................................................7, 8,27,35,82

    Sherwin-Williams ........................................................................................ 8,13

    PPG Makes Offers to Acquire Le Joint Francais

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    Fresh

    Paint

    Axalta Coating Systems is strengthen-

    ing its performance testing capability by

    opening a new product development cen-

    ter at its facility in Lionville, PA. The cen-

    ter is equipped with a Global Finishing

    Solutions professional spraybooth and

    advanced HVAC infrastructure designed

    to enable specialists to simulate a variety

    of North American climate conditions.

    The simulation will help to assess refinish

    automotive paint application.

    Now application specialists canevaluate products in extreme envi-

    ronmental conditions and fine-tune a

    products application characteristics, if

    necessary. This should help us make a

    more robust product and get it to the

    customer faster, said Stefan Reinartz,

    Axalta National Refinish product man-

    ager. Opening this facility is a testament

    to Axaltas commitment to be the leader

    in product innovation and technology.

    Axaltas refinish coatings range from

    surface preparation to undercoats,basecoats and high gloss clearcoats

    across a portfolio of brands that include

    Cromax, Standox, Spies Hecker, Nason,

    and Imron PowerTint. Each product is

    formulated to be effective in different

    climates and when coating various sub-

    strates such as metals, plastics and com-

    posite materials.

    The facility is engineered to enable a

    quick turnaround from product devel-

    opment to launch. A more refined pro-

    totype helps to eliminate some of theiterative processes in field testing and

    should ultimately shorten the time to get

    a finished product to market, said Burt

    Palmer, Axalta product manager.

    Hempel Acquires DutchCoatings ManufacturerSchaepmanHempel has acquired Schaepmans

    Lakfabrieken B.V, a leading Dutch sup-

    plier of specialized industrial, protective

    and decorative coatings. The acquisi-tion is part of Hempels five-year growth

    strategy, One Hempel One Ambition,

    and supports its goal of becoming one of

    the worlds top 10 largest coatings suppli-

    ers by the end of 2015.

    Hempels group president and CEO

    Pierre-Yves Jullien said, We are focused

    on developing or acquiring new solu-

    tions that add real benefits to our cus-

    tomers. Schaepman represents what we

    were looking for. It has a solid position

    on the local market, a strong brand, in-

    novative R&D and specialist productsthat will enrich our global assortment.

    In addition, Schaepmans expertise in

    the industrial coatings segment will

    help open new business possibilities for

    Hempel in this market.

    Schaepmans management said it is

    excited about the acquisition. With

    Hempel we have found the perfect match.

    Like Schaepman, Hempel, has many

    years of experience and a strong focus

    on R&D. Furthermore, Hempels solid

    global presence will allow us to broadenour customer, geographical and techno-

    logical base, said Berend ten Doeschate,

    Schaepmans CEO.

    Hempel acquired the U.S.-based pro-

    tective coatings manufacturer Blome

    International Inc. in 2012. Hempel has

    seen significant growth in the Americas

    as a result and many Blome products

    are now available to Hempels global

    customers. Hempel said it expects to

    continue increasing its market presence

    through strategic acquisitions within itskey segments.

    PPG Plant in Bangplee,Thailand Recognized forZero Workplace AccidentsPPG Industries coatings manufactur-

    ing facility in Bangplee was recently

    recognized with a Zero Accident

    Award by Thailands Department

    of Labor Protection and Welfare,

    Ministry of Labor.

    The Zero Accident Award honorscompanies that demonstrate excellence in

    prevention of workplace accidents. It is a

    benchmark for environment, health and

    safety programs (EHS) in Thailand.

    The plant received a bronze-level

    award from Permanent Secretary of the

    Ministry of Labor Jirasuk Sugandhajati

    for achieving between 1 million and

    2.99 million personnel hours worked

    from January 2012 through July 2014

    with no occupational accidents causing

    workday loss.

    We are proud to be recognized forour commitment to safety within PPG

    Thailand, said Kiat Wisanrakkit, plant

    manager, Bangplee. We aim to engage

    all of our employees in creating a safe

    work environment, and we operate and

    invest in equipment to provide a high

    level of safety.

    The plant uses a near-miss accident

    reporting system, employs a management

    intervention program and recognizes

    employees for strong safety practices.

    Wisanrakkit said these practices help theplant run smoothly and promote a cul-

    ture of safety there.

    PPG Offers Paper ColorSamples for Select DuranarCoatingsPPG Industries coil and building prod-

    ucts group is now offering 10-by-10-inch

    paper color samples of 10 Duranar coat-

    ings through www.requestppg.com, its

    on-demand sample- and literature-order-

    ing portal.Sharon Bird, PPG marketing communi-

    cations manager, industrial coatings, said

    the new paper cards are designed to satisfy

    requests from architects and designers for

    large color samples that more closely ap-

    proximate actual metal panel sizes.

    We are always seeking new ways to

    make it easier for building profession-

    als and their customers to visualize how

    coatings will look on a finished project,

    Bird explained. The new 10-by-10-inch

    color samples provide a cost-effectiveway to do so.

    Axalta Opens NewU.S. Product Development Center

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    Fresh

    Paint

    PPG currently offers 10 of the most

    popular Duranar coatings colors in the

    10-by-10-inch paper format. They are

    Black, Bone White, Bright White, Colonial

    White, Champagne Gold, Pewter, Silver,

    Silversmith, Silver Storm and Steel-CitySilver. Architects and designers may also

    select from 90 color samples on 3-by-3-

    inch metal panels.

    PPG also publishes the Building

    Products Coil Coatings Color Guide, an

    eight-page booklet with 100 coatings

    color chips categorized by product brand,

    including Duranar, Duranar Ultra-Cool,

    Duranar Vari-Cool, DuraForm, DuraStar,

    Environ and Plasticron coatings.

    Duranar coatings are formulated

    with a proprietary combination of res-ins, pigments and solvents. As one of

    the industrys best-known and most

    trusted brands, Duranar coatings have

    provided exceptional beauty, color and

    long-term protection of metal compo-

    nents on buildings around the world for

    nearly 50 years.

    AkzoNobel Signs GlobalSupply Agreement withDaimler AGDaimler AG has signed an agreement

    with AkzoNobel Performance Coatings

    making the company one of the ap-proved suppliers of vehicle refinishes

    to Daimler dealerships and approved

    bodyshops worldwide.

    The contract covers the supply and

    support of AkzoNobels Sikkens brand to

    the companys dealership network includ-

    ing Mercedes-Benz, Smart and Mercedes-

    Benz commercial vehicles.

    We are delighted to have been ap-

    proved as a global supplier for one of

    the worlds leading automotive com-

    panies, said Jrg Anders, a key ac-count manager in AkzoNobels Vehicle

    Refinishes business. The deal reflects

    the industrys trust in our products and

    services, our strength in product inno-

    vation and color matching, and in par-

    ticular the range of services and support

    that we offer our customers.

    The approval was achieved

    after extensive analysis and

    tests of Sikkens products and

    a thorough investigation of in-

    dustrial and business processes run at

    AkzoNobel, which demonstrated com-pliance with the highest automotive in-

    dustry standards.

    Daimler said the partnership with

    AkzoNobel will support the com-

    panys growth plans in the worldwide

    body and paint business. It added that

    AkzoNobels product range and product

    quality is greatly respected by the indus-

    try and is delivered with a high level of

    service and support.

    Simon Parker, managing director of

    AkzoNobels Vehicle Refinishes busi-ness added: This is a very significant

    partnership with a leading global man-

    ufacturer. We were able to achieve this

    because of our truly global supply posi-

    tion, along with our strength and depth

    in innovation, color and peerless cus-

    tomer service.

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    Fresh

    Paint

    PPG EntersInto ExclusiveNegotiations toAcquire Revocoat

    PPG Industries has announced that it has

    entered into exclusive negotiations withthe Axson Group to acquire Revocoat,

    a global supplier of sealants, adhesives

    and damper products for the automotive

    industry. PPG expects the transaction to

    close in the first quarter 2015, following

    the French works council consultation

    process, regulatory approvals and other

    customary closing conditions. Financial

    terms were not disclosed.

    Revocoat, headquartered in France, is

    part of the Axson Group, a world leader

    in high-performance operational polymerformulation. Revocoat employs more

    than 500 people and operates seven man-

    ufacturing facilities and one research and

    development center.

    Acquiring Revocoat will enable PPG

    to continue to strengthen its specialty

    materials offerings to global automotive

    customers, said Cynthia Niekamp, PPG

    senior vice president, automotive coat-

    ings. The business represents a true adja-

    cency with our core automotive original

    equipment manufacturer (OEM) coatingsbusiness, strengthening PPGs existing of-

    fering of sealant and adhesive products

    for this industry.

    Combining the expertise of the

    Revocoat team with PPGs footprint will

    enable us to serve our customers around

    the world with an enhanced product

    portfolio, said Jean-Marie Greindl, pres-

    ident, PPG Europe, and vice president of

    PPGs automotive OEM coatings business

    in Europe, the Middle East and Africa.

    During the last six years, themanagement team and employees of

    Revocoat have driven the business to be-

    come a strong global competitor in the

    automotive OEM adhesives and sealants

    market, said Charles Churet, Axson

    president. PPGs automotive OEM

    coatings business is the best possible

    vehicle to bring Revocoat to the next

    level of performance, providing custom-

    ers with a broader and stronger product

    offering and Revocoat employees with

    more opportunities for growth and per-sonal development.

    Nippon Paint LaunchesSociety Care Programsto Boost CSR Program inChinaNippon Paint China boosted its Corporate

    Social Responsibility (CSR) programin 2014, with the launch of its Society

    Care programs in nine big cities around

    China. These charitable programs drew

    the participation of over 1,000 voluntary

    staff members from seven different busi-

    ness sectors of Nippon Paint China, who

    embodied the companys spirit in their

    selfless work.

    As one of Asias leading paint

    manufacturers, Nippon Paint China

    began their steps towards develop-

    ing a social public welfare programback in 2009, when they initiated the

    Color, Way of Love program, which

    renovates and improves the learning

    environment of schools in rural deso-

    lated areas in China. They have also

    developed several social interest ac-

    tivities, which included establishing

    a special fund together with China

    Youth Development Foundation and

    Shanghai United Foundation, for

    Color, Way of Love; donating the

    establishment of Nippon Paint ChinaHappy Art Class; launching training

    programs for school teachers and pro-

    viding teaching opportunities for col-

    lege students.

    Nippon Paint Chinas constant com-

    mitment to social interests has gained

    positive feedback from the public. Over

    200 teachers and volunteers have partic-

    ipated in their social interests program

    and the company has received up to 350

    million hits on their online community

    platform. Most importantly, over 60,000students from rural areas have received

    benefits from the companys help and

    support programs.

    As one of the five CSR programs

    of Nippon Paint China, the companys

    Society Care program provides help

    for the vulnerable groups of society,

    which include lonely elders, and dis-

    abled and poor students. The company

    has so far launched 15 activities under

    the Society Care program in nine cit-

    ies, which help repair schools, renovateresidences for elders, offering care to the

    Amyotrophic Lateral Sclerosis (ALS) pa-

    tients, and building houses for the poor

    villagers in Sichuan Province. They have

    achieved this with the support of China

    Youth Development Foundation, China

    Foundation for Poverty Alleviation,Shanghai United Foundation, Habitat

    for Humanity China and China Next

    Generation Education Foundation.

    Social interest activities are also a ma-

    jor focus of Nippon Paint Chinas CSR

    program, with the company organiz-

    ing activities like the Shanghai United

    Walkathon- a long distance walking

    activity for collecting funds for children,

    and spending the Mid-Autumn Festival

    with children suffering from autism.

    These activities have not only helpedthe vulnerable groups, but also given the

    volunteers touching memories and the

    chance for growth.

    Liu Wei, the general manager of

    Nippon Paint Chinas LangFang office,

    has participated in visiting visual-im-

    paired children in a local nursery center

    for disabled children in Beijing, empha-

    sizing the importance of everyone tak-

    ing part.

    Compared with last year, the Society

    Care has seen a considerable growth inthe increasing numbers of cities and peo-

    ple that are involved. Ariel Wu, CSR, PR

    and brand communications director of

    Nippon Paint China, once interpreted the

    companys social interest activities in the

    following way: One act of kindness is

    not difficult, what is difficult is to keep on

    doing it and spreading it. Having every-

    one from Nippon Paint China carry out

    the social interest activities, to contribute

    whatever they can and learn from each

    other, to bring colorful lives and dreamsto vulnerable groups, for them to become

    a person of responsibility and kindness is

    never too hard, said Wu.

    Henkel Opens Asias firstLoctite ImpregnationService Center in ChinaHenkel opened its first Asia-Pacific

    Loctite Impregnation Service Center

    in Suzhou, China. With this new ser-

    vice center, Henkel brings its leading

    and innovative impregnation technol-ogy from Europe into Asian and other

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    Fresh

    Paint

    emerging markets.

    The Suzhou Loctite Impregnation

    Service Center (LIS) is a modern 1,000

    square meter workshop located in the

    center of Suzhou Industrial Park which

    is 50 km from Shanghai. This servicecenter, located in the vicinity of major

    automotive manufacturers and their

    suppliers, means reduced transporta-

    tion distances equating to time and

    cost savings.

    Staffed with in-house technical ser-

    vice engineers, LIS offers a world class

    level of quality and service with maxi-

    mum flexibility to increase efficiency in

    customers processes.

    Loctite is a standardized process flow,

    quality system, fully automated com-puter controlled impregnation system,

    and high-tech resins deliver consistent

    quality and sealing performance. Once

    parts are returned, customers can expect

    maximum sealing rates, zero damage,

    and zero distortion, clean and ready to

    use parts for the subsequent processing

    steps, the company stated. The highly

    efficient design of Loctite impregnation

    service enables customers to achieve

    greater levels of sustainability by mini-

    mizing wasted resin and shortening theprocessing time.

    Loctite Impregnation solutions

    reliably seal all forms of porosity

    in many automotive parts, such as

    cylinder heads, water pumps and

    compressors.

    Since its establishment, Henkel has

    hosted experts from foundries, automo-

    bile manufacturers, and machining indus-

    tries. Henkel plans to further expand theLoctite Impregnation Service Center in

    the coming years in order to accommo-

    date an increasing need for quality and

    innovative technologies from the Asian

    automotive market.

    PPG Industries FoundationDonates More than $55,000to Educational Programs inPittsburgh AreaThe PPG Industries Foundation recently

    donated more than $55,000 to sevenorganizations for education-related ini-

    tiatives in the Greater Pittsburgh area,

    where the company maintains its global

    headquarters and several facilities. The

    grants highlight PPG Industries com-

    mitment to supporting its local commu-

    nities and align with the PPG Industries

    Foundations priority of enhancing edu-

    cational opportunities.

    The recent grants funded:

    The Pittsburgh Section of the

    American Chemical Society for sup-port of National Chemistry Week

    2014;

    Carnegie Science Center for STEM

    Center support and sponsorship

    of SciTech Days, where

    middle- and high-school

    students connect with sci-

    entists and technologists

    at the center;

    Childrens Museum of Pittsburgh forPPG Color Weeks, which introduce

    children to the science behind color

    through hands-on activities;

    Support for pre-K to 8th-grade

    students through the Extra Mile

    Education Foundation;

    Pirates Charities for the Pittsburgh

    Pirates Education Days program;

    Operating support for Reading Is

    FUNdamental Pittsburgh to help

    foster a lifelong love of reading in

    children from low-income families;and

    Support with the Rooney Foundation

    to make the national Academics in

    Motion program available in two

    Pittsburgh-area high schools.

    The PPG Industries Foundation is

    proud to support many great educa-

    tion programs that operate close to our

    home, said Sue Sloan, executive director,

    PPG Industries Foundation. These ini-

    tiatives all encourage students to explore

    their world, and many emphasize the sci-ence, technology, engineering and math

    disciplines that are so important to the

    future success of advanced manufactur-

    ing companies.

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    Fresh

    Paint

    Sherwin-WilliamsOpens 4,000thRetail Location inU.S., Canada and

    Caribbean

    Sherwin-Williams has opened its 4,000thretail location in the U.S., Canada and

    Caribbean. The nations largest spe-

    cialty retailer of paint and painting sup-

    plies has opened its newest location in

    Sewickley, Pennsylvania.

    The opening of Sherwin-Williams

    4,000th store is a landmark occasion

    for our company, said Chris Connor,

    chairman and chief executive officer,

    Sherwin-Williams. Sherwin-Williams

    is committed to delivering an exception-

    al painting experience to homeownersand professionals alike. We also believe

    in making a positive difference in the

    communities we serve and look forward

    to showing our support for Sewickley

    and the surrounding boroughs in the

    coming years.

    In honor of the 4,000th store open-

    ing, Sherwin-Williams will donate

    $40,000 to Austins Playroom Project,

    an initiative of the Mario Lemieux

    Foundation. The funds will furnish in-

    teractive iPad tables in 10 hospital play-rooms in the Pittsburgh area and across

    the country. Austins Playroom Project

    seeks to benefit families and improve

    the quality of a childs hospital experi-

    ence whether as a visitor or patient

    by furnishing cheerful playrooms

    that are safe, calming and comfort-

    able. The playrooms feature Sherwin-

    Williams paints, such as Optimistic

    Yellow (SW 6900), Sundance (SW

    6897) and Exciting Orange (SW 6647).

    Sherwin-Williams will also donate

    $4,000 to the Sewickley Civic Garden

    Council for the construction of a new

    gazebo in Wolcott Park. The current ga-zebo is a celebrated cornerstone of the

    Sewickley community.

    H.B. Fuller Company Agreesto Acquire ContinentalProducts LimitedH.B. Fuller Company has announced that

    it has signed an agreement to purchase

    Continental Products Limited, a pro-

    vider of industrial adhesives in East and

    Central Africa. This business will gener-

    ate approximately 2.3 million in revenuefor the 2014 fiscal year. Based in Nairobi,

    Kenya, Continental will be included in

    H.B. Fullers Europe, India, Middle East,

    Africa (EIMEA) operating segment.

    With this acquisition, we will take

    a significant step forward in our plan

    to grow in Africa, said Steve Kenny,

    senior vice president, EIMEA, H.B.

    Fuller. H.B. Fuller has a strategic fo-

    cus on growth in emerging markets,

    and the Continental business will

    enable us to deliver specialty adhe-sive products to key customers in the

    East and Central African regions. The

    Continental team has developed ex-

    tensive market knowledge and excep-

    tionally strong customer relationships,

    and coupled with their local manufac-

    turing capabilities, H.B. Fuller will be

    able to further enhance partnerships

    with its customers to develop and

    produce new and better products for

    their customers.

    Hardide CoatingsBoosts UK Facility for

    Nanostructured TungstenCarbide CoatingsHardide Coatings has invested a six-

    figure sum in its UK manufacturing facil-

    ity increasing its installed capacity by

    nearly 50 percent to deal with growing

    demand for its range of nanostructured

    tungsten carbide coatings.

    The installation of a third large ca-

    pacity reactor is part of an investment

    program which will also recruit up to

    three additional operations staff to

    meet increasing demand from exist-ing and new customers at its plant in

    Bicester, Oxfordshire.

    PPG Foundation SupportsElementary School Programin IllinoisChris Campbell, facility manager at PPG

    Industries industrial coatings manufac-

    turing facility in Mount Vernon, Illinois,

    has presented PPG Industries Foundation

    checks totaling nearly $4,000 to North Side

    Elementary School Teachers Brenda Slover,Kerri Meritt, Zack Holtz and April Smith.

    These checks supported programs to

    teach third-grade students about robotics,

    to provide phonetic readers to kindergar-

    ten students, to introduce a color-coded

    approach to enhancing oral and written

    language, and to provide math journals

    and guidance for students in kindergarten

    through third grade. CW

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    New

    Products

    Kelly-Moore UnveilsSuper Premium Matte Finish

    Kelly-Moore Paints has released its

    newest paint finish for its super pre-

    mium interior paint line, DuraPoxy.

    A flat matte finish will be available in

    DuraPoxy in April.

    Just as the entire DuraPoxy family, the

    new Matte is a 100 percent acrylic formu-

    lation, low VOC with easy water cleanup

    and contains an anti-microbial agent

    to ensure very low odor. The DuraPoxy

    Matte Interior Paint also is stain and mil-

    dew resistant and was crafted to provideoutstanding adhesion.

    Available at Kelly-Moore retailers be-

    ginning April 1st, DuraPoxy Matte is of-

    fered in four bases, in gallons, quarts and

    fives, and is designed for both residential

    land commercial applications.

    BASF LaunchesMasterProtect C 350, aHydrophobic Wall CoatingBASF launched a new wall coating in

    the U.S. and Canada, engineered forenhanced protection of vertical con-

    crete, concrete masonry units (CMU)

    and masonry.

    MasterProtect C 350 hydropho-

    bic coating is the latest addition to the

    MasterProtect line of protective coatings,

    part of BASFs Master Builders Solutions

    brand. The hydrophobic properties of

    MasterProtect C 350 provide an attrac-

    tive finish which resists dirt pick-up, and

    requires only rainfall or rinsing with

    water to remove any dirt which does ac-cumulate, helping reduce exterior main-

    tenance costs, according to the company.

    MasterProtect C 350 can be applied

    as a restoration topcoat or to new verti-

    cal construction. It is designed to with-

    stand wind driven rain as well as heavy

    UV exposure, resulting in long-lasting

    color retention.

    MasterProtect C 350 is avail-

    able in four tintbases, with formula-

    tions to match the 50 colors in the

    MasterProtect Color Portfolio. Customcolors are also available.

    Sherwin-Williams AddsThree Finishes to KEM

    Aqua Building Products LineSherwin-Williams recently added Kem

    Aqua SoPro, Kem Aqua Wood Grain and

    KEM Aqua Earth Tones exterior siding

    topcoats to its Kem Aqua family of fin-

    ishes. Along with Sherwin-Williams KEM

    Aqua BP Siding Plus, these finishes pro-

    vide quality and value in a broad range

    of colors to professional prefinishers, ac-

    cording to the firm.Kem Aqua SoPro, Kem Aqua Wood

    Grain and Kem Aqua Earth Tones were

    formerly offered as the Duckback-

    branded products SoPro, Wood Grain

    Natural Toners, and Wood Grain Earth

    Tones, which Sherwin-Williams acquired

    in September 2013.

    Products available to siding and trim

    manufacturers include:

    KEM Aqua BP Siding Plus a self

    cross-linking monochromatic system that

    provides consistent performance acrossall substrates, eliminating the need to

    stock different coatings for each sub-

    strate. Production time is saved and color

    consistency enhanced through one-coat

    application, including dark, bold shades

    that are available in solar reflective tints.

    Fast cure times allow fast slip-sheeting

    and packaging. Enhanced adhesion prop-

    erties increase durability and reduce on-

    site installation issues.

    KEM Aqua SoProTopcoat a 100

    percent acrylic latex finish that providesexcellent adhesion to primed fiber ce-

    ment, composite wood and hardboard

    siding and trim. It offers exceptional hid-

    ing and color retention. The finish also

    provides outstanding color matching.

    SoPro provides an eggshell sheen that is

    hard, yet flexible, for enhanced durabil-

    ity. KEM Aqua SoPro is available in 145

    colors as well as custom matched colors.

    KEM Aqua Wood Grain a two-

    part system for fiber cement and compos-

    ite siding and trim, comprised of a basecoat that reduces efflorescence and adds

    protection against UV rays and moisture.

    The top coat provides a uniform wood-

    like finish, accentuating the natural grain

    patterns of the siding and trim. Six colors

    are available.

    KEM Aqua Earth Tones a blend of

    two tones that creates a multi-hued, natu-

    ral look rather than a flat painted surface.

    Designed for application on composite

    and fiber cement siding and trim, it is

    available in 21 colors.

    Hempel Launches Two NewPure Epoxy CoatingsHempel has announced the launch of

    two new pure epoxy coatings, Hempadur

    15600 and Easy 47700.

    An addition to the HEMPADUR

    range, HEMPADUR 15600 is a IMO

    PSPC cargo oil tank compliant, pure ep-

    oxy tank coating resistant to continuous

    immersion in a range of chemicals, in-

    cluding crude oil up to 80 C/176 F, ac-

    cording to Henkel.In addition, this new pure epoxy coat-

    ing incorporates high cross-link density

    technology on level with a phenolic ep-

    oxy coating, which gives added chemi-

    cal and corrosion resistance and a hard,

    smooth and glossy surface for easy clean-

    ing. HEMPADUR 15600 is also suitable

    for grey and black water tanks, mud and

    brine tanks, refrigerated seawater fish

    tanks and other vessel tanks.

    HEMPADUR EASY 47700 is a new

    pure epoxy all seasons primer designedfor the marine maintenance market. It

    was developed in response to demands

    for a reliable, user friendly and flexible

    coating for use in dry-dock under all cli-

    mate conditions. This new coating can

    be used on almost all vessel surfaces and

    was designed to deliver high surface tol-

    erance and reliability across the tempera-

    ture scale. HEMPADUR EASY 47700

    can be applied at temperatures as low as

    -10C/50 F and up to +40 C/104 F which

    allows it to be used in most dry docks andat most times of the year. CW

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    MarketReports

    IRL has launched a new edition of its

    regional title, A Profile of the Eastern

    European Paint Industry. This fully up-

    dated report provides market data for

    2013 and forecasts for 2018, and gives

    an overview of the paint industry trends

    across ten countries in the region.

    The total market for paints and coat-

    ings in Eastern Europe was more than

    2.8 million tons in 2013, and is forecast

    to rise to more than 3.3 million tons by

    2018. This is equivalent to an average an-nual growth rate of 2.7 percent.

    On a country-by-country basis,

    Russia is by far the largest national mar-

    ket, accounting for approximately 54

    percent of total demand. The Russian

    paints and coatings market is forecast to

    grow at a modest rate due to the slow-

    down of the Russian economy caused by

    a drop in oil prices, high interest rates

    and Western sanctions.

    The second largest paint market of

    Turkey will enjoy the highest growth rateover the next few years, underpinned by

    increasing domestic demand for locally-

    manufactured goods and increasing in-

    come of the Turkish population.

    Architectural and decorative coatings

    for consumer and professional uses ac-

    count for around 59 percent of the total

    market, although this proportion var-

    ies from country to country. Growth is

    forecast to be the highest in the industrial

    wood and powder coatings segments. The

    growth in the demand for industrial woodcoatings is influenced by the dominant

    market of Turkey, the furniture produc-

    tion of which is currently booming due to

    high domestic and international demand

    for Turkish-made furniture. The most at-

    tractive opportunities for the supply of

    powder coatings to the East European

    region exist, predictably, in Russia and

    Turkey, where the demand for them is,

    firstly, driven by their product advantages

    over their liquid analogs.

    A Profile of the Eastern EuropeanPaint Industry gives an insight into the

    market changes in the past few years, as

    well as outlining the key trends affect-

    ing the decorative and industrial coat-

    ings segments for each individual country

    covered. The scope of the study cov-ers Armenia, Belarus, Estonia, Georgia,

    Latvia, Lithuania, Moldova, Russia,

    Turkey and the Ukraine. It provides 2013

    market data on nine mainstream paints

    and coatings segments: architectural/

    decorative, industrial wood coatings,

    protective coatings, marine coatings,

    automotive OEM coatings, automotive

    refinishes, powder coatings, general in-

    dustrial coatings and plastic coatings.

    Forecasts on these are also presented for

    the year 2018. The cost of the full reportis 3,950.

    Sections of the report, priced individu-

    ally, are available to purchase online at

    www.informationresearch.co.uk.

    Kusumgar, Nerlfi &Growney Announce FifthU.S. Paint & CoatingsIndustry StudyKusumgar, Nerlfi & Growney has an-

    nounced the commencement of its fifth

    U.S. Paint & Coatings Industry study.

    According to the firm, the industry is

    continuing its recovery from the global

    recession of 2008-2009. Consumption

    is projected to be 8.8 billion dry pounds

    (excluding water and solvent) in 2015

    valued at some $28 billion. Despite be-ing a mature industry, coatings continue

    IRL Publishes Profile of theEastern European Paint Industry

    http://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=14&exitLink=http%3A%2F%2Fwww.coatingsworld.comhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=14&exitLink=http%3A%2F%2Fwww.informationresearch.co.ukhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=14&exitLink=http%3A%2F%2Fwww.informationresearch.co.ukhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=14&exitLink=http%3A%2F%2Fwww.coatingsworld.com
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    MarketReports

    to evolve to meet the challenges of reg-

    ulations, growing consumer demands,

    increased emphasis on sustainable prod-

    ucts, globalization, cost pressures, etc.

    The recent sharp drop in oil prices could

    force coating prices lower if continued. Architectural coatings are projected to

    capture just over one-half of the pounds

    in 2015. Volume is still somewhat below

    the peak level of 2006 but has grown

    modestly in recent years. Pricing is up as

    material costs have increased and prod-

    ucts have become more sophisticated.

    Original equipment manufacturer

    (OEM) coatings are forecast to take

    one-quarter of the volume in 2015.

    OEM coating growth varies among the

    end uses with automotive and aerospacegrowing strongly in recent years. Special

    purpose coatings are expected to be 24

    percent of the 2015 volume. Industrial

    maintenance and specialty roof coatings

    are end uses which have grown with the

    economic recovery and increased con-

    struction spending.

    Water-based technology is forecast

    to be 58 percent of the volume in 2015,

    up from a 48 percent share in 1996.

    Architectural paints are 71 percent of

    the WB pounds and industrial coatings,which includes both OEM and special

    purpose, represent 29 percent. Solvent-

    based technology is projected to cap-

    ture 30 percent of the 2015 pounds

    which is down from a 42 percent share

    in 1996. Just over 70 percent of the sol-

    vent-based coating in 2015 will be used

    in industrial applications.

    Powder, radcure and other 100 per-

    cent solids technologies are nearly exclu-

    sively confined to the industrial coatings

    segment. They are projected to garner 11percent of the coating pounds in 2015.

    These technologies represent roughly 40

    percent of the OEM volume and 5 perce

    nt of special purpose coatings. Powder

    has grown from 14 percent of the OEM

    coating volume in 1996 to just over a 20

    percent share in 2015.

    The U.S. Paint & Coatings Industry,

    2015-2020 will be published in 2016

    and is available through subscription.

    Interested parties are invited to contact

    the company by calling 201-773-0785 orby e-mail at [email protected].

    Study on World Demandfor Decorative LaminatesGlobal demand for decorative laminates

    is expected to rise 5.6 percent per

    year to 10.7 billion square meters in

    2018, valued at $40.8 billion. Demandwill benefit from expected increases

    in the manufacture of products such

    as cabinets, ready-to-assemble (RTA)

    furniture, and flooring, which are

    often made from engineered wood and

    laminated. Gains will also be driven

    by increased market penetration at the

    expense of other surfacing materials

    (wood veneer and paint) due to cost and

    performance benefits. Furniture and

    cabinets were the largest markets for

    decorative laminates in 2013, accountingfor nearly 70 percent of total demand.

    These and other trends are presented

    in World Decorative Laminates, a

    new study from The Freedonia Group,

    Inc., a Cleveland-based industry market

    research firm.

    The Asia/Pacific region was the largest

    market for decorative laminates in 2013,

    with nearly 50 percent of the global to-

    tal. Analyst Pam Safarek notes that, the

    region benefits from its leading position

    in engineered wood production, particu-larly particleboard and medium density

    fiberboard (MDF), which are often given

    a laminate layer at the point of produc-

    tion. Advances for laminates will be

    propelled by the continuing develop-

    ment of the large Chinese market, which

    alone accounted for 31 percent of global

    demand in 2013. China is the worlds

    largest producer of RTA furniture and

    laminate flooring. Manufacturing ca-

    pacity for laminated boards continues

    to expand in China. India is expectedto post the most rapid gains in laminate

    demand worldwide through 2018. The

    country continues to rapidly develop its

    manufacturing sector, including cabinets

    and RTA furniture, and to increase its

    capacity to produce particleboard and

    MDF as a way to more efficiently use lo-

    cal wood resources.

    Well-established decorative laminate

    industries are found in Western Europe

    and the U.S., where engineered wood and

    paper industries are highly developed.Despite an ongoing shift in production

    of many laminated engineered

    wood products toward China,

    India, and other developing ar-

    eas, demand for laminates in

    Western Europe is still significant, as the

    region maintains large RTA furniture andlaminate flooring industries. Germany,

    France, and Sweden are regional leaders

    in the production of RTA furniture. The

    U.S. also maintains significant production

    capacity for RTA furniture, cabinets, and

    laminate flooring.

    Smart Coatings Market toReach $5.8 Billion by 2020NanoMarkets has announced the release

    of a new report titled, Smart Coatings

    Markets 2015-2022, a report that con-tinues the firms coverage of the smart

    coatings market dating back to 2010.

    The report shows that the smart coatings

    market will grow from around $610 mil-

    lion in 2015 to $5.8 billion in 2020.

    The report analyzes the markets for

    smart coatings in key sectors of the

    economy including construction, en-

    ergy, automotive, healthcare, consumer

    electronics, textiles and the military.

    Coverage includes relatively mature

    smart coatings (e.g., self-cleaning coat-ings), along with latest materials such as

    smart multi-layer coatings.

    The report also provides detailed

    eight-year forecasts in both volume and

    value terms and for each end-user sector

    and includes separate forecasts for all the

    main classes of smart coatings as well as

    for the underlying oxides, polymers, etc.,

    from which they are fabricated.

    Firms addressed in the report include:

    3M, AK Coatings, AkzoNobel, Axalta,

    BASF, Clariant, Corning, Debiotech, DowChemical, Dow Corning, DSM, Dunmore,

    Duco, DuPont, GE, Gentex, Hempel,

    Hypho Technology, Industrial Nanotech,

    IngeniaTouch, Jotun, Lonza Industrial

    Solutions, Lubrizol, Nanovations, Nano

    Lab, nGimat, NSG, P2i, Pilkington,

    Pleotint, PPG, Research Frontiers, Ross

    Technology, Sage Electrochromics, Saint-

    Gobain, SeePoint Technology, Seagate,

    Senseg, Silco Tek, Sherwin-Williams,

    Specialty Coating Systems, SRI, Svaya,

    SWITCH Materials, Tesla Nanocoatings,Toyota and Valspar. CW

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    IPaint Protecting the P&C Industrys Intellectual Assets

    by Steve McDaniel and Jon Hurt

    Technology Litigators

    Civil court is a double-edged sword

    that can cut you pretty badly

    when trying to keep your trade

    secrets actually Secret. You can go to

    court specifically to stop use or disclosure

    of your proprietary information, or even

    for some reason not related to trade se-

    cret misappropriation. But, if you are notvery careful, the generally noble-minded

    tendency of courts to be open forums

    can lead to the destructive release of your

    trade secrets into the public domain.

    There are several legal maneuvers gen-

    erally available to help protect you from

    unintentionally disemboweling yourself

    on the blade of justice.

    The overall goal of your efforts is to

    establish that you took reasonable mea-

    sures to maintain the secrecy of your

    trade secrets. This includes reasonableefforts to do so during court proceed-

    ings. It allows you the best chance of per-

    suasively arguing that the court records

    should be sealed after trial is complete.

    And, subsequently, to show that you have

    not lost your trade secrets property rights

    during a court proceeding. Failure to do

    so may (assume will) result in the loss of

    your trade secrets.

    The first thing you should seek is a

    protective order where any proprietary

    information is filed with the court underseal. Typically, you negotiate a confiden-

    tiality agreement with your adversary as

    early as possible during discovery stating

    that certain information should remain

    confidential, and then you ask the court

    to issue a protective order modeled on the

    agreement.

    A protective order may stipulate, for

    instance, that only the counsel (and pos-

    sibly the parties and/or experts) may have

    access to proprietary information in the

    discovery process, what documents arefiled under seal, and how the documents

    are to be handled after trial to maintain

    confidentiality. This path avoids asking

    the court for protection to keep under

    seal each separate filing having propri-

    etary information. But, it may be hard to

    implement a protective order if both par-

    ties and the court cant achieve agreement

    regarding the bounds of the order.

    One party may want information to

    be fully available to witnesses during

    trial, or may just not want to make life

    easy for the other guy by acknowledg-ing information to be confidential (Do

    you really want to pursue this court case

    and possibly exposure your trade secrets,

    pal?). And some courts may be less than

    enthused by the extra work in segregating

    unsealed and sealed records, in addition

    to undermining the tradition of transpar-

    ent court proceedings. Be prepared to

    demonstrate the necessity of these actions,

    including arguing that alternatives such

    as redacting documents would not be ef-

    fective in maintaining the necessary levelof secrecy. And, of course, follow all the

    guidelines we have discussed concerning

    reasonable efforts to maintain your trade

    secrets OUTSIDE the courtroom (http://

    www.coatingsworld.com/issues/2012-09/

    view_ipaint/the-wall-of-your-trade-se-

    cret-vault-is-made-of-paper/).

    Even with a protective order in place

    regarding public access to documents,

    what about members of the public (i.e.,

    competitors seeking the trade secrets)

    simply attending the trial and payingclose attention? A lot can be said during

    live oral testimony, and key information

    can be displayed using giant flash cards

    or other audio visual memory aids called

    exhibits. What is heard cannot be un-

    heard, what is seen cannot be unseen.

    And your less than friendly opposition

    will likely be keenly aware of this issue.

    For example, in The Gates Rubber Co. v.

    Bando Chemical Industries Ltd. (9 F.3d

    823, 28 USPQ2d 1503), the defendant

    argued that a permanent injunction wasinappropriate to protect the plaintiffs

    trade secrets as they were no longer trade

    secrets after disclosure during the perma-

    nent injunction hearing. Wow, talk about

    a damned if you do damned if you dont

    argument! Fortunately, as the attorney

    for the plaintiff monitored the presence

    of observers in the courtroom during the

    hearing, and sought that the record of the

    hearing was subsequently placed under

    seal, it was deemed to be reasonable ef-

    forts to maintain the trade secrets secre-

    cy. Do not forget that anywhere sworn

    testimony is given (i.e., a deposition of

    your CEO at your own lawyers fancy

    Ming-vase bedecked conference room),

    there is substantial risk of inadvertent

    disclosure of your trade secrets.

    But to really cover this issue, you may

    consider getting a court order to close theproceedings to the public before words

    Going to Court: Hard Spots and Rocks!

    http://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.comhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com%2Fissues%2F2012-09%2Fview_ipaint%2Fthe-wall-of-your-trade-secret-vault-is-made-of-paper%2Fhttp://coatingsworld.texterity.com/coatingsworld/february_2015/TrackLink.action?pageName=16&exitLink=http%3A%2F%2Fwww.coatingsworld.com
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    IPaintProtecting the P&C Industrys Intellectual Assets

    start to fly. Good luck with that. You

    will need to convince the court something

    along the lines that no reasonable alter-

    native exists to protect the trade secret

    holder from the harm that would occur

    due to disclosure in a public court setting.It is not unheard of to get a closed court

    proceeding, but the existence of trade se-

    crets in the case does not get an automatic

    grant to close the court. It may be wise

    to sharpen your arguments as to the exis-

    tence and value of your trade secrets far

    in advance of any potential legal action to

    convince the court to do what is needed

    to protect your property. And, if you have

    paid attention to our admonishments in

    iPaint (http://www.coatingsworld.com/is-

    sues/2013-01/view_ipaint/how-much-is-

    that-trade-secret-worth/), you will have

    a ready list and valuation that you have

    frequently updated (of course you have!).

    If you are slow to parry your op-

    ponents slight of legal hand in keeping

    court proceedings tightly under wraps,

    then the bleeding out of your trade secretsstarts. In Littlejohn v. Bic Corp. (697

    F.Supp. 192 (1988)), a product liability

    case about Littlejohn accidentally getting

    burned by a Bic lighter, a protective order

    was in place to protect Bic Corps trade

    secrets. Unfortunately, Bic Corps counsel

    did not object to exhibits introduced attrial that disclosed trade secrets covered

    by the order. A post-trial attempt by Bic

    to get the Court to seal the trial record

    was not granted, and it was found that

    failure to raise the issue of confidential-

    ity regarding the exhibits and seeking an

    order sealing the record during the trial

    constituted a waiver of rights granted by

    the protective order. Oops!

    You can learn a lot on what you

    should do based on the reasoning courts

    use to deny a request for sealing the caserecord. In Carnegie Mellon University v.

    Marvell Technology Group, Civ. Action

    No. 09-290 (W.D. Pa. Mar. 29, 2013),

    the court found that a partys confiden-

    tiality interest in its trade secrets were

    waived by failing to take the following

    actions during trial: seek a protective

    order, request a closed proceeding after

    the courts warning, make submissions

    regarding confidential information in

    the judges chambers before introduction

    into the public record, and moving to sealthe records. The court also noted that

    evidence of harm by public disclosure at

    trial was not presented. The point being,

    if you wind up in court, be prepared for

    the eventuality that despite your good but

    not perfect efforts, you still may wind up

    having your trade secrets exposed.

    Even if you succeed in having the court

    records sealed, that does not mean they

    cant be unsealed during appeal. Apple

    Inc. found this out as public sources were

    cited as disclosing the trade secrets subjectto seal, leading the U.S. Court of Appeals in

    San Francisco (9th Cir.) to state that Apple

    cannot have this court seal information

    merely to avoid confirming that the pub-

    licly available sources got it right. So, if

    there was a question in the minds of your

    competitors as to whether your trade secret

    was even partly reversed engineered, you

    can put that issue to rest to their advantage

    by disclosing the trade secret in court, even

    when you thought you were protected.

    Well, what recourse do you have af-ter loss of your trade secrets due to

    litigation? Can you recover financial

    losses from the state or Federal gov-

    ernment? Probably not, but the idea is

    something to keep an eye on as case law

    progresses over time. The federal Takings

    Clause states that nor shall private prop-erty be taken for public use, without just

    compensation, and as trade secrets have

    been held to qualify for this protection

    by the Supreme Court in Ruckelshaus

    v. Monsanto Co. The Courts position

    was that a government agencys disclo-

    sure of a trade secret that interferes with

    reasonable investment-backed expecta-

    tions could qualify as a taking, and

    thus make governmental compensation

    possible. And it has been speculated in

    legal circles that a courts refusal to or-der protective measures could amount to

    a taking when trade secrets are lost by

    disclosures at trial.

    But given various courts view from

    the decisions discussed above that the

    burden is on you to take reasonable

    measures to protect your trade secrets,

    trying to switch that attitude 180 while

    blazing new legal trails will likely be an

    uphill battle.

    Is there an alternative to the court

    process that is any better? Well, thereis state-run arbitration, which was sup-

    posed to be a more confidential way

    to resolve business disputes, but the

    Supreme Court recently let stand a rul-

    ing that Delawares arbitration system

    must be open to the public like civil

    trials. Ok, what about private arbi-

    tration? The Supreme Court has de-

    scribed private arbitration as able to

    be designed by the parties so that pro-

    ceedings be kept confidential to protect

    trade secrets. So, if you are on goodenough terms with the opposition to

    reach a mutual agreement to a confi-

    dential arbitration proceeding, it is an

    avenue to be considered.

    Ok, lets face it: this whole situation

    is rife with peril! But, sometimes you

    gotta do what you gotta do. Failure to

    aggressively protect against theft of your

    trade secrets is a death knell for their con-

    tinued existence. Failure to keep up the

    hard work of protecting them in a court

    proceeding is just as much a requirement.Hard spots and rocks. CW

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    Business Corner Strategies & Analysis

    by Phil Phillips, PhD

    Contributing Editor

    [email protected]

    In 2007 & 2008, our industry was negatively affected by a se-

    vere general economic recession. We all know the symptoms .

    . . major multi-industry wide job losses in concert with signif-

    icant budget cuts. In these very bad times, basically to satisfy the

    oft-times abstract thinking stakeholders, personnel cuts are made

    on the short-term that are either the wrong ones or they are too

    deep or . . . . many times . . . both. In the present relatively goodtimes, we need to remember some of the practices that kept us

    in positive positions as well. In a recent article by Dr. Rosabeth

    Moss Kanter, she stated that in a recession, put everyone in

    marketing. Dr. Kanter delineates five suggestions:

    1. Increase customer contact & communications: Customers

    cannot play second fiddle to support elements

    2. Start looking for new markets now: All companies need the

    flexibility to move quickly into promising markets. Adjacent

    markets where technologies can match and growth is greater

    than the incumbent segments.

    3. Invest in employee morale: When morale is down, fear sits

    in and worries reduce productivity4. Emphasize & reward small wins: Everyone should be in-

    volved in undertaking small improvement that can become

    large positive impacts taken together

    5. Stick with our values: Cutting corners with customers

    doesnt work. Marginal ethical tactics such as gifts to a

    purchasing agent are short-lived tactics that many times

    have a reverse impact on the relationship. (1)

    Loyalty & GrowthWhat is loyalty? Loyalty is the willingness of someone (cus-

    tomer, employee, or friend) to make an investment or personal

    sacrifice in order to strengthen a relationship. For a customer, itcan mean staying with a supplier who treats him well and gives

    him good value over the long term even if the supplier does not

    offer the best price in a particular deal.

    True loyalty undoubtedly affects profitability. While regular

    customers arent always profitable, their choice to stay with a

    product/service typically reduces the customers acquisition

    costs. Loyalty also drives top line growth. Customers who are

    truly loyal tend to buy more over time, as their company in-

    comes grow or they devote a larger share of their wallets to a

    supplier they feel good about.

    Loyal customers spread the word about their supplier.

    Word-of-mouth recommendations are one of the best indica-tors of loyalty because of the customers sacrifice in making the

    recommendation. That is, in making a voluntary positive state-

    ment about a supplier is figuratively the equivalent to giving a

    part of the recommenders heart and soul to another part of the

    value chain. They put their reputations at risk in acting in this

    manner. So, the important question is, when will a loyal customer

    place their reputations at risk? They will do so only when they

    feel intense loyalty. Intense loyalty by a customer can provide the

    supplier with the opportunity to gain new customers which is

    particularly beneficial as a supplier grows.

    Because loyalty is so important to profitable growth, measur-ing and managing it makes good sense. It is, however, unfortu-

    nate existing approaches miss the mark and fail to accuratelyaccount for the true measure of loyalty, therefore, leading to

    unsound results. Conventional customer-satisfaction measures

    lack a consistently viable connection to actual customer behav-

    ior and growth. It is difficult to determine a strong correlation

    between high customer satisfaction scores and outstanding sales

    growth. In fact, in some cases, the reverse is true. K-Mart is an

    outstanding example of high satisfaction scores simultaneous

    with its sales revenue going into free-fall. The auto industry

    dealership surveys are replete with these same results.

    If one buys into the concept that intense loyalty by a cus-

    tomer provides a supplier with extraordinary competitive advan-

    tages leading to greater profitable growth, then keeping it simple,is the key rule of engagement in customer-satisfaction surveys.

    A guideline stating that you must ask the right questions in a

    Customer-Satisfaction-Survey, seems like a dah, thats so un-

    derstood! Well, it just hasnt been understood so well in the past.

    According to F.F. Reichheld of Bain & Company, Here are

    the top-ranked RIGHT questions which provide the most ac-

    curate measure of loyalty:

    How likely is it that you would recommend (company x)

    to others?

    How strongly do you agree that (company x) deserves

    your loyalty?

    How likely is it that you will continue to purchase prod-ucts/services from (company x)?

    In challenging times, dont just rely on your marketing depart-

    ment to market but instead, bring into play your company

    and especially, use the top executives as market-facing selling

    tools.When contemplating customer-satisfaction surveys, keep

    it simple . . . . you just might be better off by employing only

    three questions Reichheld depicts as the most important . . . . all

    else may be unnecessary. CW

    1. Dr. R. Moss Kanter, In a Recession, Put Everyone in Marketing,

    HBR, April, 2009

    2. Mr. Frederick F. Reichheld, The One Number You Need toGrow, HBR, December, 2003

    Growth . . . . Remains the Keystoneto Sustainable Profitability

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