Cahill v. Regan

4 A.D.2d 328, 165 N.Y.S.2d 125, 115 U.S.P.Q. (BNA) 59, 1957 N.Y. App. Div. LEXIS 4729
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 15, 1957
StatusPublished
Cited by2 cases

This text of 4 A.D.2d 328 (Cahill v. Regan) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cahill v. Regan, 4 A.D.2d 328, 165 N.Y.S.2d 125, 115 U.S.P.Q. (BNA) 59, 1957 N.Y. App. Div. LEXIS 4729 (N.Y. Ct. App. 1957).

Opinions

Ughetta, J.

It will be convenient to refer to the appellants as the employer ” and to the respondent as the “ employee.” The action is by the employer for a judgment declaring it to be the owner of United States Patent No. 2,602,565 issued to the employee, to direct an assignment of said patent accordingly, and for other further and different relief ”.

Few of the facts are seriously disputed. The patent covers a reusable screw-top can. The device was developed by the employee in the course of his employment and at the employer’s expense. It was manufactured and sold by the employer with the employee’s knowledge, under the employee’s direction, and without any claim for special compensation therefor while the employer-employee relationship continued. After the employer had manufactured and sold the device in quantity over a period of more than a year, the employee applied for a patent without the employer’s knowledge. Several months later the employee quit his job. Subsequently the patent was issued to him.

After trial the Special Term held that the employee was employed solely as manager or superintendent of a factory, that he was not employed to invent, and that, absent an express agreement to assign his invention to the employer, there was no duty to do so. Judgment was granted dismissing the employer’s complaint.

Fundamentally, an invention belongs to the inventor, and his ownership persists in the absence of an agreement to assign (General Time Corp. v. Padua Alarm Systems, 199 F. 2d 351, 355). The mere fact that the inventor is employed by another and makes an invention during such employment does not change these rules. (Hapgood v. Hewitt, 119 U. S. 226.) Even employment to devise methods of manufacture does not of itself require an assignment of resulting inventions to the employer. (United States v. Dubilier Condenser Corp., 289 U. S. 178.)

On the other hand, if the employee is hired to invent, or is assigned the duty of devoting his efforts to a particular problem, a resulting invention belongs to the employer. (Marshall v. Colgate-Palmolive-Peet Co., 175 F. 2d 215, 217.) The general duties of the employee are immaterial. If he be assigned to [330]*330experimental work and if he be paid for such work, it is his duty to disclose to the employer the results of his experiments, and the accomplishment belongs to the employer. (Houghton v. United States, 23 F. 2d 386, 390.) A different result might follow if the employee be an outside salesman, not employed in the factory. In such case, if he conceives an idea outside his hours of employment, and does not use the employer’s tools and materials in developing the invention, the accomplishments are his. (McNamara v. Powell, 256 App. Div. 554, 558.)

In the present case, it must be found that the employee was hired to be manager and superintendent of the employer’s can factory. He entered upon and performed such duties. After more than a year of such performance the employee conceived the idea for a reusable can. This followed a conversation with officials of the Navy Department in Washington, D. C., where he had gone in connection with the employer’s business. From his own testimony it appears that, in discussing the question of a reusable can, he told the employer he thought he had an answer to the question, and the employer said “ All right, go ahead.” The employee made sketches of a can, and had professional drawings made at the employer’s expense. He made sample cans in the employer’s shop, parts for which were made by outside factories at the employer’s expense. Eventually dies were made also at the employer’s expense. The dies were attached to the employer’s machines and under the employee’s direction cans were produced and sold by the employer. During all such times the employee was paid his regular salary. The cans thus conceived, manufactured, and sold, were substantially similar to the can upon which the patent was subsequently issued to the employee.

There is no evidence of any agreement under which the employee was to receive royalties or other special compensation from the employer for the manufacture and sale of the cans. Ooncededly, the employee continued his employment for more than a year during which the employer manufactured and sold thousands of reusable cans under the employee’s direction and supervision. The employee left the employment in the Fall of 1950. A few months prior to leaving he had, without the employer’s knowledge, filed his application for a patent on the reusable can. The patent was issued on July 8, 1952. The employer first learned of the patent in 1953.

On the foregoing facts a close question is presented as to whether the invention and the patent are the property of the employer. Eesolution of this question depends largely upon’ the testimony of the employee himself. Admittedly, he discussed [331]*331the question of a reusable can with the employer, who told him to go ahead. He did so, and the invention resulted. We are constrained to interpret the evidence so that the invention, insofar as it is a mental concept, was in full bloom at the time the employee spoke of it to the employer and the employer’s directions to “ Go ahead ” referred to the work of making a physical embodiment of the mental concept, and that this was not a case of an employee being set to work upon a particular task which resulted in an invention.

An invention has been defined as consisting of two parts: a mental concept plus an embodiment, such as a physical device. If the mental concept is that of an employee (not expressly paid to invent) and he merely uses the employer’s time, money, and materials to produce the physical embodiment of the invention, the courts are reluctant to hold that the invention is the absolute property of the employer. That seems to be the force of the statements by Mr. Justice Roberts in the Dubilier case (United States v. Dubilier Condenser Corp., 289 U. S. 178, 188, supra), as follows: ‘‘ The reluctance of courts to imply or infer an agreement by the employee to assign his patent is due to a recognition of the peculiar nature of the act of invention, which consists neither in finding out the laws of nature, nor in fruitful research as to the operation of natural laws, but in discovering how those laws may be utilized or applied for some beneficial purpose, by a process, a device or a machine. It is the result of an inventive act, the birth of an idea and its reduction to practice; the product of original thought; a concept demonstrated to be true by practical application or embodiment in tangible form.” .

Our interpretation of the present record is that the employee had the invention fully in mind before he disclosed it to his employer and that the employer’s direction to “ Gro ahead” meant to use the employer’s facilities and money to produce a physical embodiment of the invention, an actual reusable can. The question is close, dependent not on a choice of conflicting testimony but on an interpretation of undisputed evidence given mostly by the employee himself. We are constrained to abide by the rule that courts are reluctant to find that by implication an agreement was made to give the invention to the employer.

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4 A.D.2d 328, 165 N.Y.S.2d 125, 115 U.S.P.Q. (BNA) 59, 1957 N.Y. App. Div. LEXIS 4729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cahill-v-regan-nyappdiv-1957.