Cloud v. Standard Packaging Corp.

236 F. Supp. 981, 144 U.S.P.Q. (BNA) 172, 1965 U.S. Dist. LEXIS 9694
CourtDistrict Court, N.D. Illinois
DecidedJanuary 4, 1965
DocketCiv. A. No. 60 C 1516
StatusPublished

This text of 236 F. Supp. 981 (Cloud v. Standard Packaging Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cloud v. Standard Packaging Corp., 236 F. Supp. 981, 144 U.S.P.Q. (BNA) 172, 1965 U.S. Dist. LEXIS 9694 (N.D. Ill. 1965).

Opinion

WHAM, District Judge.

FINDINGS OF FACT'

1. Plaintiffs William S. Cloud, Fred B. Pfeiffer and Jesse R. Crossan, are citizens of the United States, Cloud being domiciled in the State of Illinois, Pfeiffer and Crossan being domiciled in Ohio:

2. Plaintiff Cloud Machine Corporation is a corporation of the State of [982]*982Delaware, having its place of business in Skokie, Illinois.

3. Plaintiff Food Machinery Corporation, by change of name F M C Corporation, is a corporation of the State of Delaware operating a packaging division having its principal place of business at 4900 Summerdale Avenue, Philadelphia 24, Pennsylvania, as successor to Stokes & Smith Corporation.

4. Plaintiffs Fred B. Pfeiffer and Jesse R. Crossan are the title owners of record of the Pfeiffer Patent 2,486,760 in suit.

5. Plaintiff William S. Cloud is the title owner of record of William S. Cloud Patent 2,546,059 and Charles E. Cloud Patent 2,888,787 in suit.

6. Plaintiffs Cloud Machine Corporation and F M C Corporation are cross-licensed under the Pfeiffer Patent 2,-486,760 and under the Cloud Patents 2,-546,059 and 2,888,787 in suit.

7. All necessary parties have been named as plaintiffs, defendant having admitted that no indispensable parties have been omitted and that it does not question the authenticity of any of the title documents and agreements of plaintiffs.

8. Defendant Standard Packaging Corporation is a corporation of the State of Virginia having its main offices in New York City and a regular and established place of business at 1200 West Fullerton Avenue, Chicago, Illinois, within the jurisdiction of this court.

9. Jurisdiction is conferred on this court under the patent laws of the United States, 35 U.S.C. §§ 271, 281 et seq. and by 28 U.S.C. § 1338 and by diversity of citizenship, there being the requisite jurisdictional amount in controversy and the parties having admitted jurisdiction of this court.

10. This is an action for unfair competition and for infringements of three patents, namely:

(a) Pfeiffer Patent No. 2,486,760, original filed February 28, 1939, issued November 1, 1949 (hereinafter referred to as Pfeiffer ’760 patent). Plaintiffs rely on claims 1, 2, and 3.

(b) Cloud Patent No. 2,546,059, filed' August 24, 1946, issued March 20, 1951 (hereinafter referred to as Cloud ’059-' patent). Plaintiffs rely on claims 1, 2, 3 and 5.

(c) Cloud Patent No. 2,888,787, filed January 11, 1957, issued June 2, 1959 (hereinafter referred to as Cloud ’787' patent). Plaintiffs rely on claims 8, 9, 10, 11, 14, 15, 16, 18, 19, 20, 21 and 22.

11. Defendant’s accused machines identified as its 6-12 and 6-16 are covered by or marketed under its Mahaffy Patent 2,935,828 (hereinafter referred to as Mahaffy ’828 patent) filed April 16, 1957 and issued November 1, 1960. All of plaintiffs’ patents in suit are prior to Mahaffy ’828 patent in point of time of filing and issuance.

12. The principal issues to be tried, in this action are:

(a) Whether defendant’s 6-12, 6-14 and 6-16 vacuum packaging machines,, sold, leased or licensed by defendant, Standard Packaging Corporation, infringe any of the three patents in suit;

(b) whether each of the claims of the-three patents in suit relied upon by plaintiffs is - invalid for lack of inven-, tion;

(c) whether any of the claims of the three patents in suit relied upon by plaintiffs is invalid for failure to particularly point out and distinctly claim the invention disclosed in the patent, as required by 35 U.S.C. § 112;

(d) whether each of the claims of the Cloud ’787 patent relied upon by plaintiffs is invalid by reason of the fact that the packaging machine disclosed therein was in public use and on sale within the meaning of 35 U.S.C. § 102(b) more than one year prior to the date of application for the patent; and

(e) whether there was any joint venture or confidential relationship between defendant and plaintiffs or any wrongdoing in the nature of betrayal of trust by defendant attending or following the inspection on April 7, 1955, by defendant’s engineer, Reid Mahaffy, of the Cloud vacuum packaging process and [983]*983machine then located at the Ostrow plant in San Francisco and described in the •Cloud ’787 patent that was applied for more than eighteen months later on January 11, 1957.

13. During the forepart of the trial the Court, accompanied by counsel for both parties and the court reporter, visit-ed the plant of Universal Tool Company in Chicago where a representative model ■6-12 continuous vacuum packaging machine of defendant was observed by and ■explained to the Court and from which •a dummy package was taken and offered in evidence as Plaintiffs’ Exhibit 62; ■further evidence in the trial consisted ■of oral and written testimony, exhibits, and certain stipulations and admissions; also depositions read into the record.

14. Based upon the Court’s inspection ■of said machine described in Finding 13 and consideration of the evidence and authorities and upon findings heretofore and hereinafter stated and upon conclusions which appear hereafter, the Court finds and concludes as follows:

(a) That both of the Cloud ’059 and ’787 patents here in suit and the claims thereof relied upon by the plaintiffs, as indicated in above Finding No. 10, are valid and infringed by defendant’s accused machines identified herein as 6-12 and 6-16.

(b) That none of the three patents in suit is infringed by defendant’s accused machine identified herein as machine 6-14.

(c) That Pfeiffer ’760 patent is valid but neither it nor any of its claims are infringed by any of defendant’s accused machines.

(d) That the evidence fails to establish or prove any joint venture or confidential relationship or relationship of trust attending or following inspection on April 7, 1955 by defendant’s engineer Reid Mahaffy of the Cloud vacuum packaging process and machine then located by the Clouds at the Ostrow plant at San Francisco, California; that no such specified relationships grew out of subsequent meetings, conferences or communications between the parties.

(e) That from such inspection of the Cloud machine at Ostrow’s by Reid Mahaffy he gained ideas, concepts and understanding of the method and process of continuous roll fed vacuum packaging followed by said machine that were by him communicated to the defendant and used or adapted by defendant in producing and completing their machines 6-12 and 6-16. In so far as the structure in defendant’s machines 6-12 and 6-16 vary from the details of component parts of methods or processes disclosed and claimed in Cloud ’059 and ’787 patents the variations shown'by the evidence such as in the heat sealing, the oscillating arms, registration and the adaptation to the films used by the defendant come within the range of equivalents to which plaintiffs are entitled for protection under their ’059 and ’787 patents.

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236 F. Supp. 981, 144 U.S.P.Q. (BNA) 172, 1965 U.S. Dist. LEXIS 9694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cloud-v-standard-packaging-corp-ilnd-1965.