Bonito Boats v. Thunder Craft Boats

515 So. 2d 220, 56 U.S.L.W. 2348, 12 Fla. L. Weekly 570, 5 U.S.P.Q. 2d (BNA) 1124, 1987 Fla. LEXIS 2542
CourtSupreme Court of Florida
DecidedNovember 12, 1987
Docket68829
StatusPublished
Cited by3 cases

This text of 515 So. 2d 220 (Bonito Boats v. Thunder Craft Boats) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bonito Boats v. Thunder Craft Boats, 515 So. 2d 220, 56 U.S.L.W. 2348, 12 Fla. L. Weekly 570, 5 U.S.P.Q. 2d (BNA) 1124, 1987 Fla. LEXIS 2542 (Fla. 1987).

Opinion

515 So.2d 220 (1987)

BONITO BOATS, INC., Appellant,
v.
THUNDER CRAFT BOATS, INC., Appellee.

No. 68829.

Supreme Court of Florida.

November 12, 1987.

John S. Schoene of Baker & Hostetler, Orlando, for appellant.

Hal K. Litchford of Litchford, Christopher & Milbrath, P.A., Orlando, for appellee.

Tomas M. Russell and John A. Heller of Hopkins & Sutter, Chicago, Ill., amicus curiae for Nat. Marine Mfrs. Ass'n.

CORRECTED OPINION

GRIMES, Judge.

We have for review Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 487 So.2d 395 (Fla. 5th DCA 1986), in which the district court found section 559.94, Florida Statutes (1985),[*] unconstitutional. We have jurisdiction. Art. V, § 3(b)(1), Fla. Const.

*221 Bonito filed suit alleging that Thunder Craft unlawfully duplicated an unpatented Bonito boat design using the direct molding process in violation of section 559.94. The trial court dismissed the complaint, finding section 559.94 preempted by federal patent law. The district court affirmed, finding that federal patent law permits unrestricted copying of unpatented articles, relying on Sears, Roebuck & Co. v. Stiffel Co., 376 U.S. 225, 84 S.Ct. 784, 11 L.Ed.2d 661 (1964), and Compco Corp. v. Day-Brite Lighting, Inc., 376 U.S. 234, 84 S.Ct. 779, 11 L.Ed.2d 669 (1964).

In Sears, Sears, Roebuck and Company had copied and sold pole lamps which had been originally designed and marketed by Stiffel Company. In reversing a ruling that Sears was guilty of unfair competition under Illinois law, the Court said:

In the present case the "pole lamp" sold by Stiffel has been held not to be entitled to the protection of either a mechanical or a design patent. An unpatentable article, like an article on which the patent has expired, is in the public domain and may be made and sold by whoever chooses to do so. What Sears did was to copy Stiffel's design and to sell lamps almost identical to those sold by Stiffel. This it had every right to do under the federal patent laws. That Stiffel originated the pole lamp and made it popular is immaterial. "Sharing in the goodwill of an article unprotected by patent or trade-mark is the exercise of a right possessed by all — and in the free exercise of which the consuming public is deeply interested." Kellogg Co. v. National Biscuit Co., supra, 305 U.S. 111 at 122 [59 S.Ct. 109 at 115, 83 L.Ed. 73 (1938)]. To allow a State by use of its law of unfair competition to prevent the copying of an article which represents too slight an advance to be patented would be to permit the State to block off from the public something which federal law has said belongs to the public.

376 U.S. at 231-32, 84 S.Ct. at 789. In Compco, which involved a similar issue with respect to a lighting fixture, the Court observed:

Today we have held in Sears, Roebuck & Co. v. Stiffel Co., [376 U.S. 225, 84 S.Ct. 784], that when an article is unprotected by a patent or a copyright, state law may not forbid others to copy that article. To forbid copying would interfere with the federal policy, found in Art. I, § 8, cl. 8, of the Constitution and in the implementing federal statutes, of allowing free access to copy whatever the federal patent and copyright laws leave in the public domain. Here Day-Brite's fixture has been held not to be entitled to a design or mechanical patent. Under the federal patent laws it is, therefore, in the public domain and can be copied in every detail by whoever pleases.

376 U.S. at 237-38, 84 S.Ct. at 782.

The suggestion that a trio of more recent Supreme Court cases has modified the Sears/Compco doctrine cannot withstand a careful analysis.

The issue in Goldstein v. California, 412 U.S. 546, 93 S.Ct. 2303, 37 L.Ed.2d 163 (1973), was the constitutionality of a California statute that imposed criminal penalties for the duplication of recorded musical performances known as record piracy. Thus, the federal copyright laws rather than the federal patent laws were implicated. The then existing copyright act did not expressly deal with record piracy. Therefore, the Supreme Court concluded that Congress' silence in this respect freed the states to regulate in that area. However, the Court was careful to distinguish "mechanical configurations" protected by the *222 patent law and "writings" which were subject to the copyright law, when it said:

In regard to mechanical configurations, Congress had balanced the need to encourage innovation and originality of invention against the need to insure competition in the sale of identical or substantially identical products. The standards established for granting federal patent protection to machines thus indicated not only which articles in this particular category Congress wished to protect, but which configurations it wished to remain free. The application of state law in these cases to prevent the copying of articles which did not meet the requirements for federal protection disturbed the careful balance which Congress had drawn and thereby necessarily gave way under the Supremacy Clause of the Constitution. No comparable conflict between state law and federal law arises in the case of recordings of musical performances. In regard to this category of "Writings," Congress has drawn no balance; rather, it has left the area unattended, and no reason exists why the State should not be free to act.

Id. at 569-70, 93 S.Ct. at 2316 (footnote omitted).

The question before the Court in Kewanee Oil Co. v. Bicron Corp., 416 U.S. 470, 94 S.Ct. 1879, 40 L.Ed.2d 315 (1974), was whether state trade secret protection is preempted by operation of the federal patent laws. Trade secret protection can only arise in a private context before an article is placed in the public domain. This protection operates only against a limited number of insiders who have gained exposure to the secret during the development of the article. Trade secret laws do not purport to give the owner or exploiter the right to restrain other competitors from copying the secret once it is placed in the public domain. Kewanee held only that neither federal patent laws nor their underlying policies mandated that the holder of a trade secret must be subjected to the risk of its disclosure and use by the insiders with whom he deals. The Court stated:

[T]he policy that matter once in the public domain must remain in the public domain is not incompatible with the existence of trade secret protection. By definition, a trade secret has not been placed in the public domain.

416 U.S. at 484, 94 S.Ct. at 1887 (footnote omitted). Section 559.94, Florida Statutes (1984), is not directed to trade secrets but rather operates to impede the right of competitors to duplicate an unpatented article in the public domain.

Aronson v. Quick Point Pencil Co., 440 U.S. 257, 99 S.Ct.

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Related

Bonito Boats, Inc. v. Thunder Craft Boats, Inc.
489 U.S. 141 (Supreme Court, 1989)

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515 So. 2d 220, 56 U.S.L.W. 2348, 12 Fla. L. Weekly 570, 5 U.S.P.Q. 2d (BNA) 1124, 1987 Fla. LEXIS 2542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonito-boats-v-thunder-craft-boats-fla-1987.