Battelle Memorial Institute v. Green

93 Ohio Law. Abs. 516, 29 Ohio Op. 2d 388, 1962 Ohio App. LEXIS 726
CourtOhio Court of Appeals
DecidedFebruary 13, 1962
DocketNos. 6704, 6705
StatusPublished
Cited by2 cases

This text of 93 Ohio Law. Abs. 516 (Battelle Memorial Institute v. Green) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Battelle Memorial Institute v. Green, 93 Ohio Law. Abs. 516, 29 Ohio Op. 2d 388, 1962 Ohio App. LEXIS 726 (Ohio Ct. App. 1962).

Opinion

Rutherford, J.

Two separate appeals having been combined for hearing, we will consider both in this opinion.

The first is an appeal on questions of law from a judgment in case No. 197,718 in the Common Pleas Court of Franklin County, Ohio (84 Ohio Law Abs., 353), and is here on appeal as case No. 6704. This case was brought by Battelle Memorial Institute v. Merritt W. Green, and thirty other persons, being the duly appointed, authorized and acting members of the Unauthorized Practice of Law Committee of the Ohio State Bar Association and as representatives of Ohio lawyers so numerous that it is impractical to bring them all before the court. In this action Battelle Memorial Institute sought a declaratory judgment declaring that services performed by Battelle through members of its patent section do not constitute the unauthorized practice of law.

The second appeal is also on questions of law, being from a judgment in case No. 196819 in the Common Pleas Court of Franklin County, Ohio (84 Ohio Law Abs., 161), and is here on appeal as case No. 6705. This case, which is captioned “In the Matter of the Unauthorized Practice of Law in Franklin County, Ohio; In re: Battelle Memorial Institute,” was commenced upon application to the Court of Common Pleas of Franklin County, by a committee appointed by said court with instructions to make an inquiry and investigation as to whether persons, firms or corporations are engaged in the unauthorized practice of law in Franklin County.

The charge, as contained in the application, is that Battelle Memorial Institute, although not qualified to practice law and not admitted to the practice of law in Ohio, is, nevertheless, engaged in the practice of law in Ohio; wherefore, it was prayed that the court issue an order restraining and enjoining said Battelle Memorial Institute from engaging in the practice of law.

In each case the opinion, as rendered by the Common Pleas Court, has been published. One opinion appears in 84 Ohio Law Abs., 161, and the other in 84 Ohio Law Abs., 353. Pertinent facts, as set forth by the Common Pleas Court, and as [520]*520disclosed by the evidence, concerning the organization of Battelle are:

Battelle is a nonprofit corporation, organized to conduct scientific research for itself, for the United States Government, and for clients engaged in private industry, called ‘ ‘ Sponsors. ’ ’ The complaint of -unauthorized practice of law is limited to acts performed in connection with such ‘ ‘ Sponsors, ’ ’ and solely to acts relating to patents.

Battelle has a staff of some 2,300 employees, about 1,200 of whom are scientists. It has some fifty divisions divided into seven departments. Its total business in 1959 was about $23,-000,000.

The legal department of Battelle consists of seven members. Five members of this department are licensed to practice law in Ohio, and one is a lawyer admitted to practice in Colorado.

The legal department contains a patent section which specializes in the field of inventions and patents. Four men devote all their time to patent matters, and two devote about half of their time. Four members of the legal department (all attorneys) are registered in the U. 8. Patent Office under the firm name of Gray, Mase and Dunson.

Because of the possibility that research of any kind might, and often does, include the possibility of a new invention and the obtaining of a new patent, every employee of Battelle, before being hired, is required to sign an agreement which obligates the employee to assign any and all inventions made by such employee to Battelle.

Every agreement with an industrial sponsor refers to Battelle’s agreement with its employees, which requires them to assign their inventions to Battelle, and includes (in the agreement with such sponsor) a provision that if an invention is made during the course of the research on sponsor’s project Battelle will notify the sponsor of this fact and permit the sponsor, at its election, to have such application and all rights to the invention assigned by Battelle to such sponsor. If the sponsor does not elect to exercise its option, Battelle remains the owner of the invention (after assignment by the inventor) and would normally complete the patent. The patent section [521]*521files and processes tbe application for a patent until sucb time as a sponsor elects to take an assignment thereof. In such event, the sponsor has the option of permitting Battelle to continue until the patent is obtained and actually assigned to the sponsor or of further processing the application with counsel of its own choosing.

The members of the legal department of Battelle are paid salaries by Battelle. By agreement with each sponsor, the expense of each project is paid by the sponsor. The time spent by each staff member of Battelle on each project, including scientists and members of the patent section, is kept and charged to the sponsor at a rate based upon the salary being paid to the persons performing the services.

The only tribunal in which members of the patent section work is the U. S. Patent Office. They appear in no courts of law, nor do they participate in any court proceedings.

The Common Pleas Court, in the declaratory judgment action, first found that a justiciable controversy did exist and then rendered judgment declaring as follows:

“(1) When salaried members of the legal department or patent section of Battelle, who are employed to perform recognized legal services for Battelle in connection with applications for, or work in connection with, the obtaining of patents or inventions, cease to perform such legal services exclusively for Battelle and perform them for industrial sponsors of Battelle, this constitutes an unauthorized practice of the law.
(2) When salaried members of the Legal Department or Patent Section of Battelle perform legal services in connection with an application for, or work in connection with, the obtaining of a patent or invention after an industrial sponsor of Battelle has requested an assignment of any such patent or invention under the terms of the sponsor-Battelle contract, whether by execution of a formal written election or by any other form of expressing its intent to acquire such patent or invention, they are no longer performing such legal services exclusively for Battelle but are in fact performing such legal services for such industrial sponsor, which constitutes an unauthorized practice of the law.
(3) Prom the evidence adduced at the hearing of this cause, [522]*522tbe Court finds tbat certain of tbe salaried members of tbe Legal Department or Patent Section of Battelle bave performed legal services in connection witb applications for, or work in connection witb, tbe obtaining of patents or inventions after an industrial sponsor of Battelle bas expressed its intent to seek an assignment of sucb patents and inventions under tbe terms of tbe sponsor-Battelle Contract, and tbat sucb legal services are for tbe industrial sponsors and constitute tbe unauthorized practice of law.
(4) Tbe power to determine wbat persons may practice in tbe U. S. Patent Office is exclusively a power vested in Congress.

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Bluebook (online)
93 Ohio Law. Abs. 516, 29 Ohio Op. 2d 388, 1962 Ohio App. LEXIS 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/battelle-memorial-institute-v-green-ohioctapp-1962.