Anderson Co. v. Trico Products Corp.

237 F. Supp. 834, 144 U.S.P.Q. (BNA) 185, 1964 U.S. Dist. LEXIS 9130
CourtDistrict Court, W.D. New York
DecidedDecember 31, 1964
DocketCiv. No. 5677
StatusPublished
Cited by1 cases

This text of 237 F. Supp. 834 (Anderson Co. v. Trico Products Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson Co. v. Trico Products Corp., 237 F. Supp. 834, 144 U.S.P.Q. (BNA) 185, 1964 U.S. Dist. LEXIS 9130 (W.D.N.Y. 1964).

Opinion

HENDERSON, District Judge.

Plaintiffs, The Anderson Company (“Anco”) and Productive Inventions, Inc. (“Productive”), are Indiana corporations with a principal place of business in Gary, Indiana. Defendant, Trico Products Corporation (“Trico”), is a New York corporation doing business in Buffalo, New York.

The jurisdiction of this court is based upon the fact that this is a suit in equity arising under the patent laws of the United States. Jurisdiction over the parties is admitted or waived.

The controversy between the parties arises out of plaintiffs’ assertion that defendant has infringed claims 6, 8, 15 and 17 of United States Patent No. 2,596,063 on a “Windshield Wiper Blade Linkage Assembly.” Such patent was applied for December 13, 1945 and issued on May 6, 1952 to John W. Anderson (“Anderson”). On issuance the patent was assigned to Productive which corporation was wholly owned by Anderson. Productive granted an exclusive license under the patent to Anco, also substantially wholly owned by Anderson. During the pendency of these proceedings Productive was merged into Anco which is now the sole owner of Patent No. 2,596,063 and all rights thereunder.

This is a retrial of an action instituted in 1953. The case was originally set down for trial before Judge John Knight but, following his decease, was eventually tried in 1956 before the late Judge Justin C. Morgan. On January 17, 1958, Judge Morgan held the patent invalid by reason of the prior public use and offer for sale in 1941 by The Zaiger Corporation (then known as Lion) of an anticipatory wiper blade identified in these proceedings as Exhibit D-15 (162 F. Supp. 224). That decision was initially affirmed by the Court of Appeals for the Second Circuit on April 24, 1959 (267 F. 2d 700).

The patent in suit has also been the subject of litigation in the United States District Court for the Northern District of Illinois in a suit entitled The Anderson Company v. Sears Roebuck & Co. and The Zaiger Corporation, Civil Action 56 C 463 (“the Chicago case”). There the Trial Court rejected the Zaiger blade prior use defense and found the patent valid over the prior art (165 F. Supp. 611). The Court of Appeals for [836]*836the Seventh Circuit affirmed on April 14, 1959 (265 F.2d 755).

On June 26, 1959, the Court of Appeals for the Second Circuit, acting on plaintiffs’ petition for rehearing, and making reference to the contrary decision in the Chicago case on the issue of the Zaiger blade prior use, withdrew its earlier opinion, reversed the judgment below, and remanded the case to this court for a new trial (Anderson Co. v. Trico Products Corp., 267 F.2d 700, 702).

The issues on this retrial arise out of plaintiffs’ contentions that the patent in suit is valid, infringed and enforcible, and defendant’s opposing contentions that the patent (1) is unenforcible because misused by plaintiffs, (2) is invalid because the specification failed to set forth the “best mode” contemplated by the inventor, at the time the application was filed, of carrying out his invention, as required under statutes in effect both then and now, (3) is invalid in view of the prior public use and offer for sale of the Zaiger D-15 blade, and moreover is unenforcible because of Anderson’s efforts to suppress evidence of such prior public use and his false testimony concerning certain of such efforts, (4) embodies no invention, irrespective of the D-15 blade, (5) has not been infringed, (6) is unenforcible because of Anderson’s unclean hands in misrepresenting the date and other circumstances of the alleged invention, and (7) is invalid because if there was any invention it was made by one Krohm who did not apply or join in the application for the patent.

No issue was ruled upon at the first trial except the prior public use issue. The “misuse” and “best mode” defenses were not in issue at that trial. At the trial of the Chicago case only the defenses of prior public use and invalidity over the prior art were in issue. Only the latter issue was there argued on appeal.

THE DEFENSE OF MISUSE

“A patent operates to create and grant to the patentee an exclusive right to make, use and vend the particular device described and claimed in the patent. But a patent affords no immunity for a monopoly not within the grant, [cases cited], and the use of it to suppress competition in the sale of an unpatented article may deprive the patentee of the aid of a court of equity to restrain an alleged infringement by one who is a competitor.” 1

To establish the defense of misuse the defendant relies upon a contract entered into by Anco and Chrysler Corporation and the plaintiffs’ subsequent conduct in enforcing that agreement.

Entered into on August 3, 1950, the agreement took the form of a patent claim release and requirements contract. This form, apparently sought by Chrysler, aptly has been characterized as a “left-handed license.” Clearly anticipating the windshield wiper blade for the curved windshield, Anco succeeded in having the agreement prefaced as follows :

“In consideration of your standardizing on our design of connections of arm-and-blade and arm-and-motor-pivot-shaft for windshield wipers * *

In the future Anco was to require “standardization” under threat of cancellation of the agreement. Anderson characterized the provision as “a pivotal consideration” for the agreement.

The defendant claims that the provision, calling for standardization of wiper arm connections on Anco’s design, was intended to and did suppress competition with Anco’s wiper arms.

In deciding the issue of misuse the court is guided by the inquiry of the United States Supreme Court in Morton [837]*837Salt Co. v. Suppiger Co., 314 U.S. 488, 490, 62 S.Ct. 402, 404 (1942):

“The question we must decide is not necessarily whether respondent has violated the Clayton Act, but whether a court of equity will lend its aid to protect the patent monopoly when respondent is using it as the effective means of restraining competition with its sale of an unpatented article.”

Of particular aid in this case is the Supreme Court’s further observation in United States v. Univis Lens Co., 316 U.S. 241, 251, 62 S.Ct. 1088, 1094, 86 L.Ed. 1408 (1942):

“In construing and applying the patent law so as to give effect to the public policy which limits the granted monopoly strictly to the terms of the statutory grant, Morton Salt Co. v. G. S. Suppiger Co., 314 U.S. 488 [62 S.Ct. 402, 86 L.Ed. 363], the particular form or method by which the monopoly is sought to be extended is immaterial.”

The plaintiffs argue that the fact that Chrysler could buy arms bearing the standardized connections from any source, precludes a finding of misuse. In quite different circumstances this might be true. They also point to the advantages of standardization and claim that such benevolent considerations motivated their actions.

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Bluebook (online)
237 F. Supp. 834, 144 U.S.P.Q. (BNA) 185, 1964 U.S. Dist. LEXIS 9130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-co-v-trico-products-corp-nywd-1964.