By the OGJ Online Staff

HOUSTON, Oct. 26 -- ExxonMobil Chemical Co. said Wednesday a federal appeals court has upheld its patent for a polyethylene manufacturing process.

The company also announced a cross licensing deal with Chevron Phillips Chemical Co., a joint venture between Chevron Corp. and Phillips Petroleum Co.

The appeals court confirmed ExxonMobil's patent on metallocene catalysts used to manufacture polyethylene, overruling a decision by a Houston US District Court judge.

ExxonMobil and Chevron Phillips said the license deal settled all patent disputes between the two companies related to metallocene catalysts.

Under agreement, Chevron Phillips obtained a license to use the "loop slurry process" of Univation, a joint venture between ExxonMobil Chemical and Dow Chemical Co. for polyethylene manufacturing. Terms were not disclosed.

Metallocene catalysts are used to make products ranging from automotive parts to diaper components.