Claude Neon Electrical Products, Inc. v. Brilliant Tube Sign Co.

40 F.2d 708, 5 U.S.P.Q. (BNA) 37, 1930 U.S. Dist. LEXIS 2071
District Court, W.D. Washington·Decided March 28, 1930·No. No. 601·Published·Cited by 3 cases

Opinion

CUSHMAN, District Judge.

At the threshold of the ease the court is asked to uphold the validity of the patent on two grounds. First, by virtue of the doctrine of comity; second, because of the presumption of validity arising from the grant of the patent, reenforced by reason of the great and rapid success of the patented invention. As consideration of the two foregoing matters, in one particular at least, converge upon the same point of fact, they will be considered in the order stated.

There is no doubt of the desirability of the doctrine of comity in patent cases. Mast, Foos & Co. v. Stover Manufacturing Company, 177 U. S. 485-488, 20 S. Ct. 708, 44 L. Ed. 856; Jay et al. v. Suetter et al. (C. C. A.) 32 F.(2d) 879, 880; Cookingham v. Warren Bros. Co. (C. C. A.) 3 F.(2d) 899— 901; Strauss Bascule Bridge Co. v. City of Seattle (C. C. A.) 5 F.(2d) 229, 230.

In Jay v. Suetter, supra, it was held that the rule of comity should obtain where “in point of neither fact nor law does the record before us exhibit anything new of substance.”

In Strauss Bascule Bridge Co. v. City of Seattle, supra, it was held that the rule of comity did not apply, the Court saying: “But it appears that in the present application for injunction the court had before it certain material evidence which was not before the court in the ease cited.”

It is therefore necessary to consider whether the evidence in the instant ease is the same or may be presumed to be the same as that in Claude Neon Lights, Inc., v. E. Machlett & Son (D. C.) 21 F.(2d) 846, affirmed (C. C. A.) 27 F.(2d) 702, upon authority of which the above-cited cases have, in the main, been determined.

Before taking up this question, consideration will be given to the presumption arising from a patent and the commercial success of a patented invention.

The Circuit Court of Appeals for this circuit has given full recognition to the presumption 'of validity arising from a patent, general use and commercial success. Bankers’ Utilities Co. v. Pacific National Bank, 18 F.(2d) 16-18; Morton v. Llewellyn, 164 F. 693-697, particularly where there is no explanation for such success other than the merit of the invention, Sherman-Clay & Co. v. Searchlight Horn Co., 214 F. 86-94. If it had come immediately into general use and largely replaced all other similar things without the aid of advertising, the evidence of invention would have been at least persuasive. Minerals Separation, Ltd., v. Hyde, 242 U. S. 261, 262, 37 S. Ct. 82, 61 L. Ed. 286.

“Commercial success so often results from causes other than meritorious invention that the causes of success must be scrutinized with the utmost caution before accepting the fact of success as proof of invention.” Franc-Strohmenger & Cowan v. Siegman (D. C.) 25 F.(2d) 108, 110. See, also, Johnson v. Lambert (C. C. A.) 234 F. 886-889.

The business of electrical products corporations (that of Arizona being the original plaintiff herein) in this field has increased from a total of $727,817.68 in 1926 to $5,-226,377.79 in 1928.

[712] The report of the special master in the case of Bellows-Claude Neon Company et al. v. Sun Ray Gas Corporation et al., 39 F. (2d) 907, No. 2382-in the Northern District of Ohio, Eastern Division, a certified copy of which has been furnished the court by plaintiff’s attorney since the trial of this ease, states: “This form of advertising has met with widespread success, it is only necessary to mention the increase in business from $190,000, done in 1924, to $19,000,000; done in 1928, together with the great amount of litigation which has arisen in connection with this patent, resulting in some twenty or twenty-five lawsuits.”

No one will deny that the neon tube lamp has, in a half decade or less, swept the streets of our cities like a red flame.

This patent was applied for in November, 1911, and the patent was issued in January, 1915.

While the mere fact of delay in the success of the neon tube lamp, marked as that success has been, will not destroy the presumption of invention, it is sufficient to require a close scrutiny and searching inquiry to determine the cause of delay, and whether the successful article departs from the combination described in the patent.

At the outset we are met with the challenging maxim “post hoe ergo non propter hoc.”

Two reasons have been advanced by the plaintiff for this long delay. The first is that it was owing to the restrictions placed upon the use of electric power during the World War. The second is that it was necessary for the inventor to make financial arrangements for the marketing of his invention,

No evidence has been introduced that the patentee was hindered or delayed in any way by any restriction upon the use of electrie power as a war measure or otherwise. The testimony in the case is that less electric energy is needed per candlepower for a neon light than for the incandescent bulb.

The report of the French experts (Plaintiff’s Exhibit No. 47, page 9) states: “But Neon is a very rare gas. It can be found only in the air and with aceontent comprised of between one hundred thousandths and one millionths. It would be inaccessible if it were not concentrated with helium as uneondensed residue of liquid air.”

From the foregoing it appears that Neon is a by-product of the separation of helium from the other gases of the atmosphere.

It is no secret that ever since 1914, when a shell was fired through a German balloon and it failed to catch fire, the nations have been on a helium hunt. Eneyc. Britt. (14th Ed.); article on “Helium.”

In the popular understanding helium is a by-product of the World War. It therefore appears unreasonable to conclude that any war restriction delayed the use of the neon tube as a light.

There is no evidence that the patentee, Georges Claude, needed financial assistance in exploiting his invention.

In Plaintiff’s Exhibit No. 34 (Report of the Committee on Progress, Illuminating Engineering Society, made in September, 1912) Dr. C. H. Sharp mentions Claude’s extensive works for the liquefaction of air in. the suburbs of Paris turning out liquid air in tremendous quantities, from which it is reasonable to conclude that the patentee was not a man without substance. It is shown in evidence that he is popularly known as the “Edison of France.” That fact justifies the court in concluding that his credit would be ample.

There is no evidence in the case that extensive financial assistance would be necessary to market a successful neon tube lamp. The impression gained by the court in the trial is that the equipment necessary in order to construct such a lamp (the neon being itself obtainable as an article of commerce) is inexpensive, which, in part, probably accounts for the great number of law suits over the patent mentioned by the master in the Sun Ray Case, supra.

It is in order to consider other causes which may have contributed to the success of the Neon lamp so long after the patentee’s discovery.

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Claude Neon Electrical Products, Inc. v. Brilliant Tube Sign Co., 40 F.2d 708, 5 U.S.P.Q. (BNA) 37, 1930 U.S. Dist. LEXIS 2071 (W.D. Wash. 1930).

40 F.2d 708 (Claude Neon Electrical Products, Inc. v. Brilliant Tube Sign Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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