Carpet Seaming Tape Licensing Corp. v. Best Seam Inc.

694 F.2d 570
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 9, 1982
DocketNos. 80-6069 to 80-6072
StatusPublished
Cited by17 cases

This text of 694 F.2d 570 (Carpet Seaming Tape Licensing Corp. v. Best Seam Inc.) 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
Carpet Seaming Tape Licensing Corp. v. Best Seam Inc., 694 F.2d 570 (9th Cir. 1982).

Opinion

ORRICK, District Judge:

This case, which involves the validity and enforceability of certain patents on products and processes used in seaming carpets, is before this court for the second time. In the first trial, the trial court held the patents-in-suit to be invalid and unenforceable on two grounds: fraud in the procurement of a patent not in suit, which rendered the patents-in-suit invalid under the doctrine of “unclean hands,” and patent misuse and violations of the antitrust laws.1 On appeal, this court reversed the trial court’s decision and remanded the case for further proceedings on the grounds that the record was not developed fully enough to allow this court to determine the points of law [573]*573upon which the judgment rested, and that the trial court had failed to articulate and apply- the proper legal standards in assessing the presence of fraud, patent misuse, and antitrust violations.2

On remand, following a second trial, the trial court again held the patents-in-suit to be invalid and unenforceable on the basis of the same defenses relied upon in its prior decision, and also on the basis of four new defenses: (1) the inventions protected by the patents were “obvious” from the prior art, (2) the inventions were derived from the work of a third party, (3) the failure to disclose to the Patent Examiner the source from which the inventions were derived was fraud, and (4) the patent infringement suits against appellees were barred by laches. The trial court denied appellees’ motion for attorneys’ fees under 35 U.S.C. § 285, finding that this was not an “exceptional case” warranting such an award.

Appellant challenges the trial court’s rulings with respect to each of the defenses, and cross-appellants challenge the trial court’s denial of their motion for attorneys’ fees as an abuse of discretion.

For the reasons stated below, we affirm the judgment of the trial court that the patents-in-suit are invalid because they are obvious from the prior art. We reverse the rulings of the trial court with respect to the other defenses, however, finding those rulings to be wholly without support in the law or the evidence. Finally, we affirm the denial of appellees’ motion for attorneys’ fees under 35 U.S.C. § 285 as properly within the discretion of the trial court.

I

Appellant, Carpet Seaming Tape Licensing Corporation (“Carpet Seaming”), a Texas corporation which is the exclusive licensee under the three patents originally issued to Charles Burgess, brought these patent infringement actions against appellees, Best Seam Incorporated (“Best Seam”), a California corporation making and selling hot-melt adhesive carpet seaming tape, Vectron Industries, Inc. (“Vectron”), another California corporation also making and selling hot-melt adhesive carpet seaming tape, and Eugene Tassee, the President of Vectron and, with his wife, the owner of all its stock. The patents-in-suit cover the products and techniques utilized in a hot-melt face-seaming process for installing carpet, which may be briefly described as follows.

The method for seaming carpets most accepted today is a face-seaming process using a hot-melt adhesive tape. Carpet sections are positioned pile-side-up on the floor, and the edges to be joined are rolled back just far enough to allow placement of the tape beneath the seam. The adhesive which is in solid form on the tape is then melted, and the carpet edges pressed down upon it for bonding as the adhesive resolidifies. This system has largely supplanted sewing as well as back-searning (a process in which carpet sections are turned pile-side-down, and the seaming work is performed on the back of the carpet) since it allows the work to be done quickly and without the need for moving cumbersome sections of the carpet once they have been positioned as the installer desires.

The tape utilized in this process is composed of three elements. The upper-most element is a layer of hot-melt adhesive. Hot-melt adhesive is solid and nonadhesive at room temperature. When heated, it becomes molten and forms a bond that it retains when cooled and resolidified. During the manufacturing of the tape, the adhesive layer is bonded to the second element of the tape, a layer of synthetic mesh that lends the tape strength. The seaming process actually involves the bonding of two pieces of carpet to this single strip of mesh. The final element of the tape is a paper barrier that prevents the adhesive layer [574]*574from bonding to whatever lies beneath it when it is heated.

In March, 1966, Burgess, after consultation with his patent attorneys, applied for and received a patent (“703”), which is the “parent” of the three patents-in-suit, arid which disclosed the process described above, using a two-element tape, without a paper barrier layer. In December, 1966, Burgess filed a continuation-in-part application, disclosing the same process, but using a composite three-element tape incorporating a barrier web (“876”), the structure of the tape (“038”), and a method for producing the tape (“830”). In January, 1968, Burgess sold his business and the pending applications to Giffen Industries, Inc. (“Giffen”), which subsequently transferred them to appellant. Besides obtaining exclusive licenses for the Burgess patents, appellant also obtained exclusive licenses for the so-called “Clymin” and “Winkler” patents, which disclosed certain improvements on the Burgess “038” patent.3

Much of the evidence introduced at the second trial pertained to the source of Burgess’ idea of utilizing a hot-melt adhesive for face-seaming carpet, and in particular the role of one Buzz Powell and one Robert Walters in introducing Burgess to the properties of Thermo-Grip, a new thermo-plastic adhesive. In February, 1966, Buzz Powell, a carpet accessory salesman, called on Burgess, who was then the owner of a carpet store and installation business in Macon, Georgia. Powell showed Burgess a hot-melt adhesive, Thermo-Grip, and a gun for dispensing the adhesive that had recently been developed by The United Shoe Machinery Company. Powell also informed Burgess that Robert Walters, manager of a carpet store in La Grange, Georgia, had explained and demonstrated to Powell yarious possible applications of Thermo-Grip for use in seaming carpet. The question of precisely what it was that Walters demonstrated to Powell and what Powell subsequently communicated to Burgess is disputed; it is clear, however, that at the least, Powell showed Burgess how to back-seam carpet using Thermo-Grip and a glue gun, . by extruding molten adhesive from the gun along the back side of the carpet and then pressing a burlap strip onto the adhesive.

At the conclusion of the second trial, the court again entered judgment for appellees, holding the patents-in-suit invalid and unenforceable on the basis of the same fraud and misuse defenses as before, and also on the grounds that (1) the inventions were “obvious” over the prior art, (2) the inventions were derived from the work of a third party, (3) the failure to disclose to the Patent Officer the source from which the inventions were derived was fraud, and (4) the suits against appellees were barred by laches.

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Bluebook (online)
694 F.2d 570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carpet-seaming-tape-licensing-corp-v-best-seam-inc-ca9-1982.