MOR-FLO <MORF> LOSES INFRINGEMENT APPEAL
Mo-Flo Industries Inc said the
federal appeals court has affairmed a trial court ruling that
Mor-Flo infringed on patents held by <State Industries Inc> for
insulating gas water heaters with polyurethane.
    Mor-Flo said it intends to seek a rehearing of the
decision. If the rehearing is denied, further proceedings
before the trial court will be held to determine damages.
    The company said it made provision for a potential award
and related litigation expenses by taking an after-tax charge
of 384,000 dlrs, or 15 cts a share, against 1986 earnings.
 Reuter
