Crown Cork & Seal Co. v. Fankhanel

49 F. Supp. 611, 57 U.S.P.Q. (BNA) 518, 1943 U.S. Dist. LEXIS 2703
CourtDistrict Court, D. Maryland
DecidedMarch 24, 1943
DocketCiv. 1815
StatusPublished
Cited by4 cases

This text of 49 F. Supp. 611 (Crown Cork & Seal Co. v. Fankhanel) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crown Cork & Seal Co. v. Fankhanel, 49 F. Supp. 611, 57 U.S.P.Q. (BNA) 518, 1943 U.S. Dist. LEXIS 2703 (D. Md. 1943).

Opinion

WILLIAM C. COLEMAN, District Judge.

This is a suit to compel the defendant to execute an application for a patent covering an invention which' he made for a substitute for rubber sealing compounds for use in caps on bottles, etc., while employed in the research department of the plaintiff company; and to compel the defendant to assign the invention and his application for a patent to the plaintiff company.

The jurisdictional requisites with respect to diversity of citizenship and amount in controversy are satisfied.

Summarized, we find the material facts as disclosed by the evidence in the case are as follows:

The plaintiff, a New York corporation with a large manufacturing plant and offices in Baltimore, has long been engaged in the manufacture and sale of so-c.alled receptacle closures of various types of both metal and paper, such as pressed on caps or crown caps, used in sealing beverages under pressure as well as milk and other food products. Generally speaking, caps of such types are provided with a suitable sealing means to engage the lip of the bottle or other container and to provide against leakage of liquids or gases. Prior to the present war, in the case of pressed on caps, the sealing materials consisted of a rubber composition flowed into a groove or sealing surface, while in the case of crown caps, the sealing means had been of cork composition. The company maintains a research department employing a number of senior research scientists and their assistants for the purpose of improving the company’s products, developing new products, methods and machines, and generally solving problems arising in the conduct of plaintiff’s business with' a view to keeping abreast of all progress in their trade and successfully meeting competition.

The defendant, now twenty-seven years old, a citizen of Maryland residing in Baltimore, was first employed by the plaintiff company in the summer of 1937 as a helper in the screw cap department, where plaintiff manufactures closures or tops of the screw type for bottles, etc. In the fall of the same year, he was transferred as a press operator to the so-called “Dactro” type closure department where the company manufactures composite metal and paper caps *613 for milk bottles. Defendant remained in ■this department until the fall of 1939, that is, for about two years, having been paid always at an hourly wage, the highest being 55‡ an hour. But in the fall of 1939 he was transferred to the company’s research department as an assistant to Dr. Giles P. Cooke, senior member of the research staff, starting at a weekly salary of $22 which was gradually increased until about a year later, when ■he was given $32 a week, which was continued until he severed his connection with the company on January 19, 1942. Defendant’s duties as assistant to Dr. Cooke consisted of conducting experiments and in working on research problems asigned to him by Dr. Cooke.

When defendant first came with the company, he was asked to execute, and did execute, a formal, written agreement with the company which reads as follows:

“In consideration of my employment and the salary paid to me by Crown Cork & Seal Company, Inc., I, James Walter Fankhanel, hereby agree that
“All inventions and discoveries which I make while in the employ of said Company, along the lines of its general work, constituting improvements both in its then existing products and methods of manufacture, or otherwise, shall become its exclusive property, that
“I will immediately upon conception of any and all such inventions and discoveries, disclose same to said Company and to no other person or persons; that
“Without further compensation — except such as said Company deems fit and proper in the premises, after Letters Patent have been obtained and said inventions or discoveries proven to be of value to it — I will, at the instance of said Company do all acts, sign and execute all applications and other papers necessary and incident to obtaining and maintaining in force, Letters Patent for any and all such inventions or discoveries both in the United States and countries foreign thereto; and that
“I will sign and execute all papers necessary to transfer and vest in said Company my entire right, title and interest in said inventions, discoveries and applications and in and to any and all Letters Patent obtained or to be obtained therefor, and will authorize the Commissioner of Patents to issue such patents to Crown Cork & Seal Company, Inc. as assignee thereof. The expenses incident to said inventions, discoveries, applications, Letters Patent and transfer to be borne by said Company.”

It was the custom of the company to require a similar agreement from all its employees. Defendant came of age on January 8, 1938. He never disaffirmed this contract, and as already stated, continued as an employee of the company for more than four years after he became twenty-one.

During the summer of 1941, defendant was assigned to the work of aiding the research department in discovering and developing a substitute for sealing compounds having a rubber or latex base, because of the scarcity of rubber, due to the War. More specifically, the particular problem was how to keep the glue or sealing material fluid at normal room temperature while dispensing it in measured amount from a tank, and depositing it automatically upon the caps as they are consecutively positioned beneath the dispensing nozzle. As a result of his work, as disclosed by the entries in his own laboratory notebooks, defendant developed a sealing composition consisting of hide glue, water, nitric acid, glycerine and a curing agent which his superior, Dr. Cooke, believed to be a highly successful composition and recommended it for serious consideration and adoption by the company, which was shortly thereafter done.

The valuable discovery which it is conceded by the representatives of plaintiff company the defendant made in developing this new sealing composition, was the inclusion of nitric acid which kept the glue formula fluid at normal room temperature for some thirty hours, — a result which no one else had previously conceived could be accomplished through the use of nitric acid. Defendant maintains that he first conceived the idea of using nitric acid on October 25, 1941, but he claims that the discovery came to him in his laboratory in his own home, as a result of the examination of treatises which he obtained from the local public library and as a result of tests he made with various acids obtained from Johns-Hopkins University Chemistry Department, he being enrolled as a night-school student in.chemistry at that university during this period.

*614 While defendant admits, as he has been compelled to do because the entries in his company laboratory notebooks are replete with data on the precise subject, that he worked on a rubber substitute as early as June, 1941, he, nevertheless, claims that he did so on “his own hook” in his spare time, and did not know that his superior, Dr. Cooke, or the company were, in fact, interested in developing such a substitute. The immediate cause of his leaving the company in January, 1942, was the company’s refusal to grant him a requested increase in salary.

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

Related

Parfrey v. Commissioner
1983 T.C. Memo. 756 (U.S. Tax Court, 1983)
Mainland Industries, Inc. v. Timberland MacHines & Engineering Corp.
649 P.2d 613 (Court of Appeals of Oregon, 1982)
Daniel Orifice Fitting Co. v. Whalen
198 Cal. App. 2d 791 (California Court of Appeal, 1962)
Hirshhorn v. Mine Safety Appliances Co.
8 F.R.D. 11 (W.D. Pennsylvania, 1948)

Cite This Page — Counsel Stack

Bluebook (online)
49 F. Supp. 611, 57 U.S.P.Q. (BNA) 518, 1943 U.S. Dist. LEXIS 2703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crown-cork-seal-co-v-fankhanel-mdd-1943.