Atlas Press Co. v. Eames

173 N.W. 344, 206 Mich. 588, 1919 Mich. LEXIS 699
Michigan Supreme Court·Decided July 17, 1919·No. Docket No. 27·Published·Cited by 4 cases

Opinion

Bird, C. J.

Gardner T. Eames, of Kalamazoo, the defendant herein, is an inventor. In 1911 he brought to the patentable stage an arbor or mandrel press, a device used in the mechanical world to remove wheels or pulleys from line shafts and for similar operations. Like most inventors, he was without means to secure and promote his invention. He applied to, and received the aid of, Herbert H. Everard, of his city, in consideration of a one-half interest in the invention. [589] The patent was secured and a company .organized to manufacture and place the press upon the market. The name given to the corporation was the “G. T. Eames Company.” To this company both Eames and Everard joined in an assignment of the patent. They conveyed “the full and exclusive right to said invention and to all improvements, present and future, which may be developed thereon.” The company began manufacturing, advertising and selling the presses to the trade, under the name of “Eames Presses.” It gave evidence of being a success. In 1913, Mr. Everard, who had given the defendant and the company such generous financial and business assistance, died, and his interest passed to his daughter, Mrs. John H. Penniman. Mr. Penniman, her husband, succeeded Mr. Everard in the business management. Differences soon arose between Mr. Penniman and Mr. Eames and this resulted in taking the keen edge off from the business. Debts accrued with no funds to pay them. Legal proceedings were threatened by creditors. Finally matters became so acute that Eames sold and transferred his interest in the G. T. Eames Company to Penniman for $5,000. Penniman then moved the plant to another location in the city of Kalamazoo, and changed the name of the corporation to the “Atlas Press Company.” Following this Eames opened a machine shop in the old quarters where he manufactured other devices which he owned. In a few months he received a patent on another arbor press. He then organized a new corporation, taking the abandoned name of the old company. Located in the old quarters, at 410 Oakland drive, with the old corporate name, he began to manufacture, advertise and sell his new press under the old name of “Eames Presses.” In a short time this resulted in friction between the companies, and much confusion and mixing of their mail. To settle the controversy plaintiff company filed this [590] bill praying for an injunction against unfair trade competition by defendant, and further to compel him to transfer his new or improved, patent to plaintiff under his original assignment. The hearing resulted in- a decree granting plaintiff relief from the unfair trade competition but refusing to compel defendant to transfer the patent. Plaintiff appeals from that portion of the decree refusing specific performance.

' The contentions of the parties present the question for solution, whether the new press of defendant is, within the meaning of the contract, an improvement on the old one, or whether it is such a mechanical departure from the old machine as to make it a new or independent invention.

In the new patent defendant has described the objects as follows:

• (1) To provide a mandrel press having an improved ram driving mechanism.

(2) To provide an improved mandrel press which is comparatively economical in structure, is very powerful, and one in which the parts are so disposed that the strain thereon is very effectively distributed and well balanced.

In his testimony defendant describes the difference between the two as follows:

“I made this more powerful, the ram is driven by a more powerful arrangement of the parts, and that consists of these exposed gears. I added to the art this chain of gears over the other patents. I presume the earlier art had frames like the frame in my invention, or similar ones. Instead of using one lever and a broken pin as a bearing for the two movements, I put on a second lever. I think that was old in the art. The chain of gears as here applied is the new thing I put in. I put another set of teeth in the ram part. When it operated as in the old invention with one set of teeth, it gave power enough to the ram, but put too much friction on it: too much friction of the ram [591] against the face or plate so instead of that I put a chain of gears in there on this frame. I think that was an improvement over this.”

The witness Collins testified that:

“The mechanical purpose of the chain of gears in this patent is to obtain power. In our old patent we obtain power by compounding the leverage. He compounds the leverage the same way we do and he has the added feature of the gear.”

Mr. Otis Earl, defendant’s patent attorney, testified:

“It was a combination patent and so was the other. In the other they combined the whole mechanism, the ram' and all those things. The art was old when the inventor applied for his first patent, and was still old when he applied for the second; deals largely with specific details of each inventor; there is nothing broadly involved in either one of them. This one (meaning the latter) is an improvement, in the sense it appears to have some added points over the earlier one; some improvements over the other.”

He further testified that:

“Mandrel or arbor machines have been in use probably thirty or forty years. There are several types of mandrel presses. They have long standing in the literature of the profession and the literature of the art. A mandrel is not a new invention and the several mandrels that have been made subsequently are all a culmination of new ideas that are used in connection with the old machine, some new power or table, or something of that sort.”

Mr. Taylor, another witness of defendant, testified that:

“The increased power in the last invention is attributable entirely to this chain of gears. * * * The practical difference between the two resides in this chain of gears; that is where they get the compound. There is no compound in the other, and, of course, they have cogs on the ram. * * * My opinion would be [592] this is an improvement over that; you would get more power exerted on the end of your ram.”

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Atlas Press Co. v. Eames, 173 N.W. 344, 206 Mich. 588, 1919 Mich. LEXIS 699 (Mich. 1919).

173 N.W. 344 (Atlas Press Co. v. Eames) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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