Constant v. United States

617 F.2d 239, 27 Cont. Cas. Fed. 80,270, 223 Ct. Cl. 148, 206 U.S.P.Q. (BNA) 313, 1980 U.S. Ct. Cl. LEXIS 86
CourtUnited States Court of Claims
DecidedMarch 19, 1980
DocketNo. 406-78
StatusPublished
Cited by13 cases

This text of 617 F.2d 239 (Constant v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Constant v. United States, 617 F.2d 239, 27 Cont. Cas. Fed. 80,270, 223 Ct. Cl. 148, 206 U.S.P.Q. (BNA) 313, 1980 U.S. Ct. Cl. LEXIS 86 (cc 1980).

Opinion

DAVIS, Judge,

delivered the opinion of the court:

[151]*151Chapter 17 of the Patent Act of 19521 66 Stat. 805, 35 U.S.C. §§ 181 et seq., authorizes the Commissioner of Patents and Trademarks, when a patent application has been filed and the publication or disclosure of the invention by the grant of a patent might be detrimental to the national security, to order that the invention be kept secret and to withhold the grant of a patent so long as the national interest requires. 35 U.S.C. § 181.2 It then becomes a criminal offense for private persons, knowing of the order and without authorization, to publish or disclose the invention or material information respecting it. 35 U.S.C. § 186. Section 183 of Title 35 gives to inventors and patent applicants affected by such secrecy orders the right, if a patent is found allowable, to seek compensation for damages caused by the imposition of the order. The primary question we have here is whether that right to sue for compensation extends to a patent-holder whose patent application was placed for some time under a secrecy order but the issuance of whose patent was not in fact delayed by the order. We hold that section 183 grants us jurisdiction of that type of claim and that plaintiff James N. Constant can recover under that statutory provision if he proves adequately that he suffered damage or loss through imposition of the secrecy order.

Plaintiff filed his patent application — disclosing a method of encoding radar signals, applicable in the field of vehicular identification systems — on September 22, 1969. A secrecy order was imposed on May 18,1970. The order prohibited plaintiff from publishing or disclosing "the invention or any material information with respect thereto * * * in any way to any person not cognizant of the invention prior to the date of the order * * *, under the penalites of [fine, imprisonment or abandonment of the invention, as set forth in] 35 U.S.C. (1952) 182, 186.” In an effort to have the order removed, Constant filed a petition to that effect (on May 23, 1970) with the Commissioner of Patents. When the petition [152]*152was denied in April 1971, plaintiff appealed the denial to the Secretary of-Commerce (on June 8,1971). Some months later, on August 27, 1971, the secrecy order was rescinded. It had been in effect for approximately fifteen months. On December 10, 1971, about three months after the secrecy order was rescinded, plaintiff was informed that his patent claims were allowable; the formal notice of allowance was dated Máy 5, 1972; and the actual patent (No. 3,691,557) issued on September 12,1972.

This suit was brought on September 11, 1978. The First Count of the petition invokes 35 U.S.C. § 183 (reproduced in full in the Appendix to this opinion) and alleges that the existence of the secrecy order during 1970-1971 "substantially interfered with and defeated” plaintiffs efforts to finance and market his invention because the order prohibited disclosure of the invention to prospective users, licensees, and financing institutions, and the order also negated such persons’ interest by "indefinitely clouding the usability, marketability and profitability potential of the Invention.”3

Defendant moves to dismiss this count4 or, in the alternative, for summary judgment, on the grounds that the court lacks jurisdiction of plaintiffs claim under 35 U.S.C. § 183 and also that the petition fails to state a proper claim under that provision.

I.

The sole jurisdictional dispute before us turns on whether section 183 opens this court’s doors to a patentee the issuance of whose patent was not actually delayed by a secrecy order. Because the order in this case was rescinded some months before plaintiffs patent application was allowed and his patent granted,5 the Government contends that the claim falls outside of section 183 and we lack all [153]*153jurisdiction. Plaintiff, on the other hand, takes the position that the statute creates a right to judicial compensation for damages resulting from the imposition of a secrecy order, regardless of whether or not the order caused the patent to be withheld.

The somewhat baffling text of section 183 provides no definitive answer to this problem. The difficulty is that the provision establishes two separate routes for obtaining compensation which differ in their definition of who may seek relief. The first portion of the section (comprised of the first six sentences) envisages an administrative settlement with subsequent judicial consideration in this court or a district court if the applicant is dissatisfied with the administrative award or is denied any relief.6 This first part of the statute explicitly requires that the patent be withheld before the administrative channel can be followed:

An applicant * * * whose patent is withheld as herein provided, shall have the right, beginning at the date the applicant is notified that, except for such order, his application is otherwise in condition, for allowance, * * * to appiy to the head of any department or agency who caused the order to be issued for compensation for the damage caused by the order of secrecy and/or for the use of the invention by the Government, resulting from his disclosure. * * * (emphasis added).

In contrast, the following part of the section (seventh and eighth sentences), covering patent owners (presumptively including plaintiff) who do not seek administrative compensation, is not on its face worded so as to require that the patent be withheld because of the secrecy order:

The owner of any patent issued upon an application that was subject to a secrecy order issued pursuant to section 181 of this title, who did not apply for compensation as above provided shall have the right, after the date of issuance of such patent, to bring suit in the Court of Claims for just compensation for the damage caused by reason of the order of secrecy and/or use by the Government of the invention resulting from his disclosure. * * *. (emphasis added).

[154]*154The only textual prerequisites for suit under this portion of section 183 are that the patent application be subject to a secrecy order, that the claimant not have applied for administrative relief, and that the patent shall have issued. Nothing is said in this part of the statutory text about the withholding of the patent because of the secrecy order.

Defendant attempts to tie this second segment textually to the earlier portion by reading the words "who did not apply for compensation as above provided” to incorporate in the second portion the requirement of the first part that the patent have been withheld because of the secrecy order.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Damnjanovic v. United States Department of the Air Force
135 F. Supp. 3d 601 (E.D. Michigan, 2015)
National Air Cargo Group, Inc. v. United States
117 Fed. Cl. 10 (Federal Claims, 2014)
Honeywell International Inc. v. United States
107 Fed. Cl. 659 (Federal Claims, 2012)
Linick v. United States
104 Fed. Cl. 319 (Federal Claims, 2012)
Weiss v. United States
37 F. App'x 518 (Federal Circuit, 2002)
Weiss v. United States
146 F. Supp. 2d 113 (D. Massachusetts, 2001)
Constant v. United States
1 Cl. Ct. 600 (Court of Claims, 1982)
American Telephone & Telegraph Co v. United States
685 F.2d 1361 (Court of Claims, 1982)
McDonnell Douglas Corp. v. United States
670 F.2d 156 (Court of Claims, 1982)
Gordon v. United States
649 F.2d 837 (Court of Claims, 1981)
Leary
652 F.2d 69 (Court of Claims, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
617 F.2d 239, 27 Cont. Cas. Fed. 80,270, 223 Ct. Cl. 148, 206 U.S.P.Q. (BNA) 313, 1980 U.S. Ct. Cl. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/constant-v-united-states-cc-1980.