American Radium Co. v. Hipp. Didisheim Co.

279 F. 601, 1921 U.S. Dist. LEXIS 848
CourtDistrict Court, S.D. New York
DecidedMarch 5, 1921
StatusPublished
Cited by3 cases

This text of 279 F. 601 (American Radium Co. v. Hipp. Didisheim Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Radium Co. v. Hipp. Didisheim Co., 279 F. 601, 1921 U.S. Dist. LEXIS 848 (S.D.N.Y. 1921).

Opinion

MAYER, District Judge.

The suit is the usual patent infringement suit for an injunction and accounting. The invention is for “certain new and useful improvements relating to improved luminous substance fer indicators containing radium for the indicating members of clocks, speed gages, and the like,” and the claims are:

“1. In a clock, speed gage or otlier similar device an indicator liaving a recess and a luminous compound in said recess.
•‘2. In a clock, speed gage or other similar device an indicator formed of tvso wires fixed together and between them a luminous compound.
‘3. In a clock, speed gage or other similar device an indicator having a longitudinal aperture and a luminous compound in said aperture.
‘4. In a clock, speed gage or other similar device an indicator having at its outer surface a luminous compound in combination with a dial or the lili e having its figures or indicating divisions provided with a luminous compound.
‘5. A clock, speed gage, or other similar device having a dial provided with a luminous compound in the form of fields or spaces of dotted form located at the figures of the dial, and having an indicator or pointer constructed of two wires fixed together to form between them a longitudinal aperture or recess, such aperture or recess extending substantially the length of the indicator or pointer, and a luminous compound in said recess extending to the outer surface of the pointer.”

The radiumized or luminous watch came into vogue in this country when the American troops went to the Mexican border in 1916. The demand for this kind of watch grew greater and greater as the World War progressed, until the business in watches of this character became wide in extent and great in volume. Hence this case, in some of its aspects, is of importance, not only to these litigants, but to the ■ trade at large.

[1] At the threshold is an important, and in some respects novel, question of res adjudicata. In the spring of 1911, the firm of Hipp. Didisheim & Bro. received from their European agents, without solicitalion on their part, a consignment of a snlall number of cheap watches having a luminous composition of some kind applied in some way to their hands and dials. Shortly after the receipt of those watches, this firm was sued by Junghans, the then owner of the patent here in suit, for infringement of the patent. The Didisheim firm turned the matter over to their counsel, with instructions to dispose of. the suit with as lit'le cost to them as possible, and pursuant to these instructions the su t was settled with the entry of a consent decree against Hippolyte and Bernard 'Didisheim for an injunction, but with no provision for profits or damages.

The decree, dated August 26, 1911, adjudged (1) that the patent to Junghans was valid; (2) that “the complainant herein is entitled to the exclusive rights in and to said letters patent,” and that the title to the patent was “duly vested in the complainant” Junghans; (3) that “the [603]*603defendants have infringed upon the said letters patent”; and (4) that a perpetual injunction issue.

Subsequent lo 1911, the following events occurred: (1) On September Id. 1912, Junghans assigned the patent in suit to plaintiff, and the assignment was recorded on July 24, 1913. (2) Prior to the commencement of this suit, junghans died. (3) On April 29, 1919, I-Jipp. Didisheim Company, Inc., was incorporated and all the assets of the Didisheim finn were transferred to the corporation. The firm consisted of Hlpnolyte and Bernard Didisheim. Henri Didisheim in 1911 u?as quite young and an employe of the firm, and 'not a partner.

The three Didisheims own'all the stock of the corporation and are its directors and officers. Nothing in the record indicates that the change from firm to corporation had any relation to the subject-matter of this suit. It was apparently an ordinary business change from a partnership tu a corporation. Junghans was a manufacturer of watches in Switzerland. Plaintiff never manufactured nor sold watches. The Didisheim firm and corporation were and. are large importers and dealers iii watches.

If jutiglians were the plaintiff, he could, of course, enforce the injunction against the Didisheims. Being himself a manufacturer, that might have been all that would have been necessary for his pur ■ poses. He is dead, and no one can say whether or not he would have sought an accounting. Nothing in the consent decree provided that its benefits should run to the assigns of Junghans, nor did the decree run against the successors or assigns of the two Didisheims. Defendants do not press the latter point, and it may well be that equity would brush it aside.

But now a different plaintiff appeals to a court of equity to piece out the decree and give to it a valuable right; i. e., an accounting, which was not accorded to Junghans, nor reserved by him for his assigns. Kven if there were no authority on the point, I think it is clear that the terms of a decree such as this cannot, in effect, be now changed, so as to be available lo a new plaintiff, other than, perhaps, to the legal representative; i. e., executor or administrator of a deceased patentee. But this plaintiff goes even further. In a new suit, it asks for an accounting, when the decree sought to be set up as res ad judicata failed to decree an accounting. Yet, even in contested cases, the right to an accounting is alwajs determined independent of the questions of validity or infringement ; and, of course, many decrees fail to award an accounting because, for instance, of laches.

Consent decrees, as their name implies, are the result of an agreement, sometimes precedeutly expressed in formal stipulation, and sometimes, as here, solely in the decree itself. They are to be read within their four corners, and especially so because they represent the agreement of the parties, and not the independent examination of the subject-mat ter by the court. They are binding only to the extent to which they go. Neither court nor party can write in them what is not there, and thus change what was agreed upon between the parties.

An alleged infringer, to secure freedom from litigation, might readily consent to a decree for an injunction, but bitterly contest the suit, [604]*604ii an accounting were sought. On the other hand, the relief desired may well vary with the requirements of the plaintiff. A manufacturer o: dealer, owning the patent, may be satisfied if he can stop competition by injunction, and thus retain for himself and practice his lawful moil Dpoly for his sole benefit. An owner of a patent, who is not a manufacturer nor dealer, and who is interested only in royalties, might have 11 :tle use for an injunction, unaccompanied with an accounting.

The case at bar is thus a striking illustration of the principles laid diwn in Lawrence Manufacturing Co. v. Janesville Cotton Mills, 138 U. S. 552, 11 Sup. Ct. 402, 34 L. Ed. 1005, and indeed, I think, the facts here present, if anything more persuasive reasons why the Lawrence Case should apply than did the Lawrence Case, itself. The very careful analysis of that case by the learned counsel for plaintiff has not succeeded either in impairing its vigor or its applicability to tl e case at bar. See also Gay v.

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Cite This Page — Counsel Stack

Bluebook (online)
279 F. 601, 1921 U.S. Dist. LEXIS 848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-radium-co-v-hipp-didisheim-co-nysd-1921.