Chas. Pfizer & Co. v. Olin Mathieson Chemical Corp.

131 F. Supp. 21, 105 U.S.P.Q. (BNA) 179, 1955 U.S. Dist. LEXIS 3147
CourtDistrict Court, N.D. Georgia
DecidedMarch 17, 1955
DocketCiv. A. Nos. 5082, 5083, 5084
StatusPublished
Cited by12 cases

This text of 131 F. Supp. 21 (Chas. Pfizer & Co. v. Olin Mathieson Chemical Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chas. Pfizer & Co. v. Olin Mathieson Chemical Corp., 131 F. Supp. 21, 105 U.S.P.Q. (BNA) 179, 1955 U.S. Dist. LEXIS 3147 (N.D. Ga. 1955).

Opinion

SLOAN, District Judge.

The plaintiff, Pfizer (by assignment from Lloyd H. Conover, patentee), is the owner of United States Patent No. 2,699,054 issued January 11, 1955, which contains claims to tetracycline, its salts,, and antibiotic compositions containing the products.

These three actions were filed on the day the patent issued, and they charge the defendants with having infringed the patent. They charge the defendants with having manufactured and sold tetracycline and with threatening to continue to do so in violation of plaintiff’s rights under its patent.

Plaintiff requests, inter alia, an injunction against future infringement of its patent and an award of damages for defendants’ violation of its patent rights.

The defendant, Bristol Laboratories, Inc., a New York corporation, is the only one of the defendants that manufactures tetracycline and this is done at its plant at Syracuse, New York.

The defendant, Olin Mathieson Corporation is a Virginia corporation, while the defendant, The Upjohn Company, is a Michigan corporation, and each of these defendants are qualified to do business in most of the states of the Union, including New York, and neither of these defendants manufacture tetracycline, but it is not disputed that they purchase it from Bristol Laboratories, Inc., package and sell it.

. On January 25, 1955, each defendant filed a complaint against Pfizer in the United States District Court for the Southern District of New York seeking a declaratory judgment that no valid claims of the Pfizer patent has been or is being infringed by defendants.

The defendants without making answer, file motions to dismiss the complaints in this Court for lack of jurisdiction, or alternatively, to transfer or stay the cases here.

The motion to dismiss for lack of jurisdiction is on the ground that no cause of action based on the patent existed at the time the complaints were filed. This motion is predicated upon the proposition that in computing the time that the patent is to run (17 years), the day of its grant is not to be included and therefore that the patent was not in effect on the day it was issued and consequently not in effect at the time of the filing of the complaint.

If the motions to dismiss should be denied, each defendant then asks for an [23]*23order pursuant to 28 U.S.C. § 1404 transferring the complaint against it, for ,the convenience of the parties and witnesses,. and.in the interest of justice, to the United States District Court for the Southern District of New York for consolidation with the pending actions there brought by defendants against plaintiff involving the same issues as those tendered by the complaints in the actions here pending.

If neither of the foregoing motions are granted, each defendant asks for an order staying these actions for the convenience of the parties and witnesses, and in the interest of justice, pending the adjudication of the declaratory judgment action in the United States District Court for the Southern District of New York.

In support of these motions defendants present an affidavit of Honorable Charles H. Walker to which affidavit is attached the following exhibits:

“A. Copy of Patent No. 2,699,054.
B. Patent Office file of Conover application.
C. Copy of telegram from the office of the Secretary of State of New York.
D. Map showing central location of New York with respect to the sources of proof.
E. Complaint filed by Bristol Laboratories, Inc., against Pfizer in the United States District Court for the Southern District of New York.
F. Notice of taking depositions.
G. Letter to Arthur B. Connolly.”

This Court issued a show cause order requiring plaintiff to show cause in Atlanta, Georgia on March 14, 1955 why the motions should not be granted. Pending the motions the deposition of Lloyd H. Conover, the patentee in the patent here involved, was taken and is now of record in the cases.

In opposition to these motions in each ■case, the plaintiff files affidavits of Honorable Arthur B. Connolly, Honorable Paul S. Bolger and Honorable Ernest P. Rogers, and at the same time plaintiff files a motion for preliminary injunction enjoining the defendants from prosecuting the declaratory judgment action now pending in the United States District Court for the Southern District of New York.

The motions came on to be heard by this Court in Atlanta, Georgia on March 15, 1955, and after the filing of briefs and written arguments, oral arguments were heard and the motions are now before the Court for determination.

From the briefs and arguments (no answers having been filed), it appears that' the principal issue in the cases is the validity of the patent, this issue involving the questions of whether the subject matter of the patent is new, whether it involves patentable invention and whether the patentee was in fact the first inventor. There is also the question of infringement involving the scope of the patent if valid and its applicability to activities and products of defendants.

Upon a trial, in determining whether patentable invention is involved, it will require examination of the history of the art with which the patent is concerned, both before and after the making of the invention.

It appears without dispute that four concerns are known to have engaged in development work in connection with the product tetracycline and that each of them has at some time claimed priority of discovery for its employees. These concerns are: (1) Chas. Pfizer & Co., Inc., (2) Bristol Laboratories, Inc., (8) Lederle Laboratories Division of American Cyanamid Co. (hereinafter called “Lederle”) ' and (4) Heyden Chemical Corporation (hereinafter called “Hey-den”).

Defendants insist and the Court finds that an examination of the history of the development of the art to which the patent relates, and a determination of priority, will involve an examination of research workers of these four companies, their respective applicants for [24]*24patents, and others having knowledge of their activities.

Defendants name and give the addresses of employees of these companies who are alleged to have participated in or to be familiar with developmental and research activities with respect to tetracycline, as follows:

Thirteen (13) employees of Pfizer located in or around New York City.

Eleven (11) employees of Lederle located in or around New York City.

Five (5) employees of Heyden located in or around New York City.

Seven (7) employees of Bristol Laboratories, Inc., located in or near Syracuse, New York, where the manufacturing plant is located, six hundred miles and seven hours travel time, North of New York City.

Plaintiff, Pfizer, in qualifying to do business in New York, designated 120 Broadway in New York City, in the Southern District of New York, as the location of its principal office in that State. Pfizer has an office and manufacturing plant in Brooklyn, New York, Groton, Connecticut, and Terre Haute, Indiana.

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131 F. Supp. 21, 105 U.S.P.Q. (BNA) 179, 1955 U.S. Dist. LEXIS 3147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chas-pfizer-co-v-olin-mathieson-chemical-corp-gand-1955.