Bruce A. Kock v. The Quaker Oats Company

681 F.2d 649, 215 U.S.P.Q. (BNA) 200, 1982 U.S. App. LEXIS 17428
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 15, 1982
Docket80-4072
StatusPublished
Cited by12 cases

This text of 681 F.2d 649 (Bruce A. Kock v. The Quaker Oats Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bruce A. Kock v. The Quaker Oats Company, 681 F.2d 649, 215 U.S.P.Q. (BNA) 200, 1982 U.S. App. LEXIS 17428 (9th Cir. 1982).

Opinions

KENNEDY, Circuit Judge:

The appeal comes from a patent infringement suit where the trial court, within the confines of a summary judgment motion, determined the patent invalid. The court ruled that 35 U.S.C. § 102(b) (1976) operates to invalidate the patent because the invention had been on sale for longer than one year before the date of the patent application. All concede that certain rights to the invention were transferred by an agreement executed more than a year before the patent application. The inventor argues that the transfer was for an experimental purpose and so not within the bar of the cited statute, while the defendant in the infringement suit argues the contract was a sale not limited to that purpose. We agree that summary judgment must be entered for the defendant below based on the cited statute, although on reasoning somewhat different from that of the court below, and we affirm.

Bruce A. Kock, the inventor in this case, was the plaintiff below and is appellant here. Kock undertook a project for Merry Manufacturing Company (Merry). Kock was to be paid one thousand dollars “for the development and building of one working prototype toy watch movement, exclusively for Merry Manufacturing Company.” The toy watch had to be accurate, tick when running, run for one hour per winding, be easily assembled, and be marketable at one dollar retail, allowing for a thirty percent profit margin.

Kock came up with a prototype he thought met these specifications. On April 28,1967, Kock and the Company signed the agreement here in question.1 One clause [652]*652states, “The INVENTOR hereby sells, assigns and transfers all rights to his novelty toy watch movement and any invention embodied therein to the [Merry] COMPANY.” The agreement supplies the basis for the contention of the alleged patent infringers that the patent was void under section 102(b). The district court granted summary judgment for the defendants, reasoning, first, that under Robbins Co. v. Lawrence Mfg. Co., 482 F.2d 426 (9th Cir. 1973), the court may not look beyond the four corners of the written contract in search for an experimental purpose, and second, that the experiments undertaken by Merry were commercial and so not the sort within the experimental purpose exception to the on sale bar of section 102(b).

We begin by exploring the history and rationale of the on sale bar and the experimental purpose exception to it.

35 U.S.C. § 102(b) (1976) states:

.A person shall be entitled to a patent unless . . . (b) the invention was patented or described in a printed publication in this or a foreign country or in public use or on sale in this country, more than one year prior to the date of the application for patent in the United States. (Emphasis added.)

The public use or on sale bar has been part of patent law in some form since 1836. The last amendment to section' 102(b) occurred in 1939, when Congress shortened the grace period from two years to one year. Act of August 5, 1939, ch. 450, § 1, 53 Stat. 1212. See generally 2 D. Chisum, Patents: A Treatise on the Law of Patenta-bility, Validity and Infringement § 6.02 (1979) at 6-5 to 6-16.

The one year grace period gives inventors an incentive to pursue diligently the patent process after their invention is ready for commercial application. This serves to limit the monopoly to the statutory period, Pickering v. Holman, 459 F.2d 403, 406 (9th Cir. 1972), and also encourages inventors to place their handiwork in the public domain as soon as possible so all may benefit from it. Pennock v. Dialogue, 27 U.S. (2 Pet.) 1, 19, 7 L.Ed. 327 (1829); Gould Inc. v. United States, 579 F.2d 571, 580 (Ct.Cl.1978); Atlas v. Eastern Air Lines, Inc., 311 F.2d 156, 159 (1st Cir. 1962), cert. denied, 373 U.S. 904, 83 S.Ct. 1290, 10 L.Ed.2d 199 (1963). See also Note, New Guidelines for Applying the On Sale Bar to Patentability, 24 Stan.L.Rev. 730, 732-736 (1972).

Not all transfers from an inventor to a third party trigger the bar of section 102(b). If a transfer is made for the dominant purpose of experimentation, that is, to perfect the invention, and only incidentally for the profit of the inventor, then there is no public use or sale within the meaning of the statute.

The classic case for the experimental use exception is City of Elizabeth v. American Nicholson Pavement Co., 97 U.S. 126, 24 L.Ed. 1000 (1878):

It is sometimes said that an inventor acquires an undue advantage over the public by delaying to take out a patent, inasmuch as he thereby preserves the monopoly to himself for a longer period than is allowed by the policy of the law; but this cannot be said with justice when a delay is occasioned by a bona fide effort to bring his invention to perfection, or to ascertain whether it will answer the purpose intended . .. [I]t is the interest of the public, as well as himself, that the invention should be perfect and properly tested, before a patent is granted for it. [653]*653Any attempt to use it for a profit, and not by way of experiment, for a longer period than two years [the grace period at that time], would deprive the inventor of his right to a patent.

Id. at 137. Thus, City of Elizabeth held that “the use of an invention by the inventor himself, or of any other person under his direction, by way of experiment, and in order to bring the invention to perfection” was not a public use within section 102(b). Id. at 134.

The experimental purpose exception applies to the sale of an invention under § 102(b), just as it does to its use. Although the Supreme Court has never had occasion to so hold, we think the law is clear on the point. Robbins Co. v. Lawrence Mfg. Co., 482 F.2d 426, 430 (9th Cir. 1973); Red Cross Mfg. Corp. v. Toro Sales Co., 525 F.2d 1135, 1144 (7th Cir. 1975); In re Yarn Processing Patent Validity Litigation, 498 F.2d 271, 277 (5th Cir. 1974), cert. denied, 419 U.S. 1057, 95 S.Ct. 640, 42 L.Ed.2d 654 (1974); see generally Chisum, supra, section 6.02[6], [7].

To insure that abuses section 102(b) is designed to prevent do not arise, the burden of proof that sale is for an experimental purpose is on the inventor. The Supreme Court so indicated in Smith & Griggs Mfg. Co. v. Sprague, 123 U.S. 249, 8 S.Ct. 122, 31 L.Ed. 141 (1887):

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Bruce A. Kock v. The Quaker Oats Company
681 F.2d 649 (Ninth Circuit, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
681 F.2d 649, 215 U.S.P.Q. (BNA) 200, 1982 U.S. App. LEXIS 17428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bruce-a-kock-v-the-quaker-oats-company-ca9-1982.