Cahoone Barnet Manuf'g Co. v. Rubber & Celluloid Harness Co.

45 F. 582, 1891 U.S. App. LEXIS 1800
CourtU.S. Circuit Court for the District of New Jersey
DecidedMarch 24, 1891
StatusPublished
Cited by17 cases

This text of 45 F. 582 (Cahoone Barnet Manuf'g Co. v. Rubber & Celluloid Harness 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
Cahoone Barnet Manuf'g Co. v. Rubber & Celluloid Harness Co., 45 F. 582, 1891 U.S. App. LEXIS 1800 (circtdnj 1891).

Opinion

Green, J.

The bill of complaint in this case was filed to enjoin an alleged infringement of design patent No. 16,114, granted to Samuel E. Tompkins and John E. Goodsell, assignors to the complainant, for a design for the ornamentation of harness. The letters patent bear date May 26, 1885, and the claim of the patentees is stated to be “for a design for the ornamentation of harness, consisting of a piece of harness having thereupon the flattened spiral convolutions overlapping and resting upon each other, and placed at a slight distance' from the edge of the piece, so that both the plain edge of the piece and the scalloped edge of the [583]*583spiral show out in contrast;” or, as stated in the specification, “the design consists of a spiral flattened, as shown, so that the individual coils or helices thereof lap over and rest upon each other.” With the application for letters patent were filed certain drawings more fully illustrating the nature, object, and use of the design, — thus Figs. 1 and 3 were edge views of brow-bands of bridles; Fig. 2 showed a, harness rosette; Fig. 4. was the plan of a pad-housing; anil Fig. 5 was a bridle-winker; each ornamented by the coils of spiral wire, flattened and arranged, as above stated, and illustrating the effect produced by the use of the design in the manner prescribed. The bill charges that the defendants arc actually engaged in manufacturing, and in putting on the market for sale, at a lower price than that fixed by the complainant, harness trimmed and ornamented with designs, in all material respects a copy of and an infringement upon the design secured to them by letters patent, as heretofore stated; and an injunction is prayed for, with the usual reference for computation of damages already sustained. The defendants are the Rubber & Celluloid Harness Trimming Company, Andrew Albright, Samuel E. Tompkins, and John F. Goodsell. The defendant corporation has answered separately, and the individual defendants, Albright, Tompkins, and Goodsell, have filed a joint and several separate answer. In their answer these individual defendants aver—

“That the said Albright is the president of the Rubber & Celluloid Harness Trimming Company; that the said Samuel E. Tompkins owns some of the stock of said company; that the said John F. Goodsell is one of the foremen of said company; that the acts complained of in said bill, if done at all, were done solely by said company, and that none of these defendants, in their capacity as individuals, have ever done anything herein in violation of any rights of the complainant; that whatever they may have done has been done as officer, member, or foreman of the Rubber & Celluloid Harness Trimming Company, which alone is responsible for the wrong, if any there be, complained of.”

Under what circumstances and to what extent an officer or a stockholder of a corporation can be held personally responsible for infringements of letters patent committed by the corporation are open questions. The adjudications of the courts are contradictory. In the case of Nickle Co. v. Worthington, 13 Fed. Rep. 392, Judge Loivell held that an action at law for damages cannot be maintained against officers, directors, or shareholders of a corporation which infringes a patent, even where such persons personally conducted the business which constituted the infringement. This opinion was evidently based upon the principle that the artificial person, the corporation alone, is the guilty actor, and that none of its members or officials legally participate, as individuals, in acts done by it. On the other hand, in the case of. National Car-Brake Shoe Co. v. Terre Haute Manuf'g Co., 19 Fed. Rep. 514, Judge Woods, in charging the jury, substantially held the opposite doctrine, that, in an action at law for infringment of a patent, all parties who participate in the infringement are liable, although some are simply acting as officers of a corporation. All parties who take part in a tort or trespass are liable. A man cannot retreat behind a corporation, and escape liability [584]*584for a tort in which he actually participates. And this doctrine has been sanctioned and enforced in Goodyear v. Phelps, 3 Blatchf. 91; Poppenhusen v. Falke, 4 Blatchf. 495; Iowa Barb Steel Wire Co. v. Barbed Wire Co., 30 Fed. Rep. 123; and in other cases which need not be cited. It is based upon the rule that every voluntary perpetrator of a wrongful act of manufacture, use, or sale of a patented article becomes ipso facto an infringer, and is legally responsible; and it therefore regards officers, directors, and agents employing or authorizing or assenting to the use of the patented invention as infringers, and personally responsible to the patentee. A third class of cases adopts the acceptance of the benefit, pecuniary or otherwise, springing out of the use or the sale of the patented article, or from the infringing act, as furnishing the test of liability. All who derive such benefit are to be reckoned as guilty of the tortious act which makes it possible.

The safer rule of these, as it seems to me-, is the second. Its enforcement will render all agents of a corporation who perform acts of infringement, and all stockholders and directors and other officers who, in the conduct of the ordinary business of the corporation, authorize infringing acts, personally responsible to the owners of the patent. Such rule is “in harmony with other doctrines of the law, sufficiently protects the patentee, and justly punishes those whose willful acts place them on the same footing with individual infringers.” 3 Rob. Pat. § 912. .

The proofs in this cause show that Albright as president of the defendant corporation, Goodsell as foreman, and Tompkins as general supervisor of the whole of the leather department, knew of and assented to and impliedly authorized the manufacture and sale of harness bearing an ornamentation alleged to be an infringement of complainant’s design as patented. Under such circumstances, I do not think they can shield themselves from responsibility by charging the infringing acts, if they are such, to be the acts of the corporation alone. The infringing acts are, indeed, the acts of the defendant corporation; but as well are they the acts of the individual defendants, by whose authority and direction and-assistance the corporation was enabled to and did infringe. The allegations of the bill are well founded.

This brings us to the consideration of the m'ore important question, whether the defendants, corporate or individual, have been guilty of any infringement of the rights of the complainant. The letters patent granted to the complainants secure to them a “design.” They were granted under section 4929 of the Revised Statutes of the United States, which provides “that any person who by his industry, genius, efforts, and expense has invented and produced any new and original design for a manufacture, bust, statue, * * * or any new, useful, or orig-' inal shape or configuration of any article of manufacture, the same not having been known or used by others before his invention or publication thereof, or patented or described in any printed publication, may,” etc., “obtain a patent therefor.” It is plain from the reading of this section that, to obtain a grant of letters patent for a design, the applicant must show the presence in his design of originality, in some degree'at [585]*585least.

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Bluebook (online)
45 F. 582, 1891 U.S. App. LEXIS 1800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cahoone-barnet-manufg-co-v-rubber-celluloid-harness-co-circtdnj-1891.