Better Packages, Inc. v. L. Link & Co.

74 F.2d 679, 24 U.S.P.Q. (BNA) 334, 1935 U.S. App. LEXIS 3499
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 14, 1935
DocketNo. 180
StatusPublished
Cited by8 cases

This text of 74 F.2d 679 (Better Packages, Inc. v. L. Link & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Better Packages, Inc. v. L. Link & Co., 74 F.2d 679, 24 U.S.P.Q. (BNA) 334, 1935 U.S. App. LEXIS 3499 (2d Cir. 1935).

Opinion

.SWAN, Circuit Judge.

The first question presented for consideration is the effect of the delayed disclaimer as to claim 12 of patent No. 1,194,752, hereafter for convenience referred to as the first patent, and the failure to disclaim at all as to claims held to he invalid of patent No. 1,782,123, hereafter for convenience referred to as the third patent. An interlocutory decree was entered on October 3, 1932, pursuant to an opinion of Judge Coleman reported in (D. C.) 1 F. Supp. 132. This decree found claims 14 and 15 of the first patent valid and infringed and claim 12 thereof invalid; it found all the claims in suit of the third patent to be invalid, namely, claims 2, 3;, 4, 8,10, 12, 17, 25, 28, and 30; it sustained those claims of the reissue patent which were in suit. No appeal was taken by the plaintiff from the interlocutory decree. A disclaimer as to claim 12 of the first patent was filed on January 24, 1933. No disclaimer was filed at any time with respect to the invalid claims of the third patent. Because of this delay, the defendants contend that the first and third patents are wholly invalid. On the other hand, the plaintiff argues that with respect to the third patent it was privileged to withhold any disclaimer until after the decision of this appeal from the final decree, and with respect to the first patent the delay in disclaiming was not unreasonable.

In Ensten v. Simon, Ascher & Co., 282 U. S. 445, 51 S. Ct. 207, 75 L. Ed. 453, the Supreme Court had before it the same problem as is here presented, namely, thé effect of a failure either to appeal from an interlocutory decree or to disclaim promptly the claims which that decree had held invalid. There, as here, it was argued that the patentee might await the final decree before appealing and in the meantime would be guilty of no unreasonable delay in withholding his disclaimer. But it was held that, by neither trying to vindicate his claim by appeal from the interlocutory decree nor admitting it false by promptly disclaiming, he lost the exemption from total invalidity of the patent offered by the disclaimer statute to those who act promptly (35 USCA §§ 65, 71). It is true that in the Ensten Case the defendant had appealed from the interlocutory decree so that it would have been easy and inexpensive for the plaintiff to have filed a cross-appeal; it is true also that the claim was declared invalid in a different suit, and that the plaintiff did file a disclaimer twenty-three months after the decree was entered. .But these were facts not vital to the decision, and furnish no basis for a rational distinction between it and the present case. The plaintiff’s argument that a patentee gains a'better position by filing no disclaimer at all than by disclaiming late is wholly fallacious. It is not his tardy disclaimer which forfeits the patent, but the introduction of unpatentable claims; and forfeiture for this fault is excused by a prompt disclaimer. As stated by the Supreme Court, in the Ensten opinion at page 455 of 282 U. S., 51 S. Ct. 207, 210; “good faith and the spirit of the enactment demands” that a patentee whose pretensions have been held without foundation “act with such promptness as the circumstances permit either to vindicate his position or to relieve the public from further evil effects of his false assertion.” Before appeals were permitted from interlocutory decrees, the patentee could vindicate his position only by appealing from the final decree, and therefore he did not unreasonably delay his disclaimer by awaiting the decision of such an appeal. To require it before in effect would deprive him of any appeal. See Page Machine Co. v. Dow, Jones & Co., 168 F. 703, 705 (C. C. A. 2). But now that appeals are allowed from an adverse interlocutory decree, the circumstances permit greater promptness. With respect to the third patent, we regard the case as ruled by the Ensten decision. See, also, Radio Condenser Co. v. Gen. Instrument Corp., 65 F.(2d) 458 (C. C. A. 2); Otis Elevator Co. v. Pac. Finance Corp., 68 F.(2d) 664 (C. C. A. 9). Patent No. 1,782,123 is therefore void, and the decree of dismissal as to it may be affirmed without considering the merits.

With respect to the first patent, the plaintiff contends that its filing of a disclaimer on January 24, 1933, was not unreasonably delayed. This was eighty-three days after the expiration of the thirty days allowed for an appeal from the interlocutory decree of October 3, 1932. In R. Hoe & Co. v. Goss Printing Press Co., 31 F.(2d) 565, the mandate of this court required the patentee to disclaim within thirty days after the expiration of time to petition for certiorari unless his petition should be granted. In the absence of special circumstances, such as existed in Minerals Separation v. Butte, etc., Mining Co., 250 U. S. 336, 354, 39 S. Ct. 496, 63 L. Ed. 1019, thirty days after expiration of time for appeal would seem ample time within which to prepare and file the document required by law to avoid forfeiture of the patent. Hence if the plaintiff’s time to appeal commenced to run on October 3, 1932, the disclaimer should have been filed not later [681]*681than December 2d. A contention is made that the time was extended because on December 16, 1932, a corrected interlocutory decree was entered. This was the same in all respects as the original decree of October 3d except that it omits all reference to claim 28 of reissue patent No. 18,322. This claim had been withdrawn by the plaintiff during the trial, but the decree of October 3d inadvertently included it, ■ holding it valid and infringed. After the time to appeal from the decree of October 3d had expired, the defendants, on or about November 25th, moved to correct this error pursuant to Equity Rule 72 (28 USCA § 723). The motion was granted and the corrected decree was entered. Within thirty days thereafter the defendants appealed therefrom, not questioning, of course, the elimination of said claim 28, but challenging only the order for an injunction and accounting under the other claims held valid and infringed in the original decree of October 3d. The plaintiff then moved in this court to dismiss the appeal on the ground that the defendants were really attempting to appeal from the decree of October 3d long after their time to do so had expired. This motion was granted without opinion; the order of dismissal being filed February 2, 1933. It was then our opinion, and it still is, that a motion for the correction of an accidental error, made after the time for appeal had passed, could not be used as a means to extend the defendant’s time for appeal. See Larkin Packer Co. v. Hinderliter Tool Co., 60 F.(2d) 491, 493 (C. C. A. 16). Under Equity Rule 72 (28 USCA § 723), such a correction may be made “at any time before the close of the term at which final decree is rendered.” It is inconceivable that months after the entry of an interlocutory decree a party may, by procuring the correction of an “accidental slip or omission” regain the neglected opportunity to appeal and thereby tie up the accounting which has been proceeding under the interlocutory decree. If the defendant’s time to appeal from the decree of October 3d was not extended by the decree of December 16th, a fortiori the plaintiff’s was not. Consequently the disclaimer of January 24, 1933, was unreasonably delayed and patent No. 1,194,752 also must be held invalid.

This leaves only reissue patent No. 18,322 for consideration on the merits.

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Bluebook (online)
74 F.2d 679, 24 U.S.P.Q. (BNA) 334, 1935 U.S. App. LEXIS 3499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/better-packages-inc-v-l-link-co-ca2-1935.