Bullock Electric Mfg. Co. v. Crocker-Wheeler Co.

141 F. 101, 1905 U.S. App. LEXIS 4876
CourtU.S. Circuit Court for the District of New Jersey
DecidedSeptember 19, 1905
StatusPublished
Cited by5 cases

This text of 141 F. 101 (Bullock Electric Mfg. Co. v. Crocker-Wheeler Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bullock Electric Mfg. Co. v. Crocker-Wheeler Co., 141 F. 101, 1905 U.S. App. LEXIS 4876 (circtdnj 1905).

Opinion

LANNING, District Judge.

The complainants seek an injunction to restrain the defendant from an alleged infringement of patent No. 478,344, granted to the complainant Harry Ward Leonard July 5,-1892, of which he is the present owner, and under which the other complainant, Bullock Electric Manufacturing Company, claims to be sole licensee. The defenses are that the defendant has a license to do the acts complained of under a contract between Leonard and it dated May 5, 1896, that the patent is invalid, and that the defendant does not infringe.

First, as to the alleged license. This defense was set up by a plea to the bill, and, on a replication thereto and proofs, was overruled by the late Judge Kirkpatrick, whose opinion will be found in 126 Fed. 375. His order overruling the plea provided that the defendant “have leave to file such answer as it may be advised on or before rule day in January, 1904.” Under the supposed authority of this provision this -defense is now presented a second time, and the defendant requests the court to consider it, because, it is said:

“New matter has been introduced into the present record that was not before Judge Kirkpatrick, and therefore the question as to whether the defendant is licensed under the patent in suit' should be considered and determined in view of the further light thrown upon the proper construction of the license.”

[102]*102Waiving the question concerning the regularity of such practice, I have complied with the request. The contract of May 5, 1896, recites that the Crocker-Wheeler Electric Company, then the owner of certain applications for patents specifically described in the recitals, had by an agreement of that date assigned those applications, and the patents to be obtained thereon, to the complainant Harry Ward Leonard, and that Leonard was then the owner of certain other patents and applications for patents, also specifically described in the recitals, amongst which latter were mentioned:

“No. 463,802 for electrical transmission of power, granted to said Harry Ward Leonard November 24, 1891; * * * No. 476,544 for a system of electrical distribution, granted to said Harry Ward Leonard June 7, 1892; and No. 478.344, for a system of electrical distribution, granted to tbe said Harry Ward Leonard July 5, 1892.”

After its recitals, the agreement proceeds thus:

“Now, therefore, in consideration of the said assignment of the said Crock-er-Wheeler Electric Company to the said H. Ward Leonard, the undersigned, the said H. Ward Leonard, grants to the said Crocker-Wheeler Electric Company a nonexclusive, nonassignable license, .without limitation or condition or royalty to be paid by it or the purchasers of the apparatus, except as hereinafter specified, to make, use, sell, and practice for the regulation or control of dynamo electric machinery, for the purpose, except respecting patent No. 478.344, of regulating or controlling electric motors of its own manufacture, and for no other purpose, except as hereinafter provided in section 1, page 4, throughout the United States and the territories thereof, any of the inventions aforesaid, whether assigned by the said Crocker-Wheeler Electric Company to the said Leonard, or already owned by him, the said license being given under the aforesaid applications and patents, and any patents, reissues, or extensions which may be hereafter granted upon the said inventions, or any of them, for the full term or terms of the said patents, reissues, and extensions.”

By Judge Kirkpatrick’s construction of this contract it was held that the license thereby granted did not include patent No. 478,344. The “new matter” now presented is a tripartite agreement dated April 27, 1896, and executed by Harry Ward Leonard, the Crocker-Wheeler Electric Company, and Otis Bros. & Co. By this agreement it was .declared that, “if this contract can be consummated within one month, the Crocker-Wheeler Company will assign all applications and inventions of Granville T. Woods assigned to it, to H. Ward Leonard, provided that the said Woods shall consent thereto in writing for the cash sum of $2,400, or less, in lieu of all sums and other considerations which are due or may become due to him as royalties or otherwise under a certain contract between him and the Crocker-Wheeler Company dated October 5, 1896.” The agreement further declared that, subject to its conditions, Leonard would give to the Crocker-Wheeler Electric Company "a nonassignable, nonexclusive license without royalty and without limit to the extent of the employment thereof by the said Crocker-Wheeler Company, and its successor or successors in business, to make, use, and sell any of the inventions covered by the existing patents or applications to the said H. Ward Leonard,” etc. The final paragraph of the agreement is as follows:

[103]*103“And this agreement is further conditioned on the said Woods agreeing to transfer to the said Leonard all records relating to the matter in controversy In certain interferences relating to motor regulations now in possession of the Crocker-Wheeler Company, or its attorneys, or of the said Woods, and on the'said Woods agreeing not to set up any date prior to the date'of the transfers made to H. Ward Leonard in pursuance of this agreement in any controversy relating to motor regulations.”

That this language was broad enough to require Leonard to include in his license to the Crocker-Wheeler Electric Company his patent No. 478,344, upon the performance of the conditions precedent in ° the agreement mentioned, is clear. But the proofs show that. Woods never agreed to what the conditions called for. Furthermore, a comparison of the two agreements of April 27, 1896, and May 5, 1896, discloses such material differences between them as to dispel the idea that the later agreement was intended by the parties to it to be a carrying out of the former agreement. The agreement of May 5, 1896, must therefore be construed in the light of the’evidence that was before Judge Kirkpatrick. I concur in his construction that that agreement does not include a license to use patent No. 478,344.

The defendant also contends that it is'entitled to do'the acts complained of as licensee under Leonard’s patents, ¡Nos; 463,802 and 476,544, both of which it is clearly entitled to úse uhder ithe agreement of May 5, 1896. But, in view of the fact that by the construction above given the patent in suit is expressly excluded from the list of patents to which the license applies, the contention, if the patent in suit is to be deemed a valid one, cannot be sustained.

The second defense is that the patent in suit is invalid.! In the specification of this patent Leonard says:

“My invention relates in part to the operation and regulation of electric motors. In my application filed August 14, 1891, serial No. 402,651” (for which patent No. 463,802 was granted on November 24, 1891, being the same date on which the application for the patent in suit was signed and sworn to, though it was not filed until November 27, 1891). “I have set forth a method of operating electric motors at any speed or any torque desired, and at the same efficiency under all conditions; such method consisting generally in maintaining the field magnet of the motor at a constant strength and varying the volts on the armature circuit to vary the speed, and the amperes on such circuit to vary the torque.

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Bluebook (online)
141 F. 101, 1905 U.S. App. LEXIS 4876, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bullock-electric-mfg-co-v-crocker-wheeler-co-circtdnj-1905.