Daimler Mfg. Co. v. Conklin

160 F. 679, 1908 U.S. App. LEXIS 4251
CourtU.S. Circuit Court for the District of Southern New York
DecidedApril 30, 1908
StatusPublished
Cited by3 cases

This text of 160 F. 679 (Daimler Mfg. Co. v. Conklin) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Southern New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daimler Mfg. Co. v. Conklin, 160 F. 679, 1908 U.S. App. LEXIS 4251 (circtsdny 1908).

Opinion

RAY, District Judge.

Wilhelm A. Maybach, of Cannstadt, Germany, is the original and first inventor of the devices named and described in the following United States letters patent, issued, however, to the Daimler Manufacturing Company, of New York, N. Y., as-signee of said Maybach for the United States, viz.: No. 686,100, dated November 5, 1901, for “lock for gear-shifting devices”; No. 688,108, dated December 3, 1901, for “brake for motor vehicles”; No. 709,416, dated September 16, 1902, for “cooling and condensing apparatus.” Said Maybach is also the inventor of and patentee named in a patent for improvements in “motor vehicle,” No. 703,-436, dated July 1, 1902, which relates more especially to an arrangement for sucking air through the cooling apparatus for the motor, July 1, 1902, Maybach duly assigned this last patent to the complainant company. March 1, 1905, as of January 1, 1905, the complainant company and the complainant Charles Fehman-Charley entered into a license agreement which contained the following:

“Whereas, the Daimler Manufacturing Company (hereinafter called the ■‘American Company’) is possessed of various United States patent rights covering inventions and devices which are also employed in Germany by the Daimler-Motorem Gesellsehaft, of Cannstadt (hereinafter called the ‘German Company’) in the manufacture of automobiles and launch motors, and especially in making their Mercedes automobile; and
“Whereas, Charley is in the business of selling automobiles and launch motors made by the German Company to customers who use the same in the United States and Canada, and desires to take from the Daimler 'Manufacturing Company a license in behalf of himself and his customers, so that the bringing of the German Company’s products into the United States shall not be in defiance of, but, on the contrary, in respect of, the rights of the American Company:
“Now, therefore, it is agreed between the parties hereto as follows:
“(1) The American Company hereby licenses Charley and any and all persons to whom he may have sold or to whom he may sell automobiles, launch motors, or launches, manufactured by the German Company, to import, use, and vend the same in the United States of America and Canada without let or hindrance at any time from the American Company: Provided, however, that the evidence of the license shall be in the form of a license plate with suitable words thereon. This license plate Charley shall be privileged to place on such of the machines aforesaid as he m'ay desire, and the license hereby granted shall only inure to the benefit of such of his customers, or their successors in interest, as he may provide with the license plate.
“(2) The American Company further agrees that, so long as the above license to Charley and his customers and for the benefit of Charley and his customers is in force, it will grant no other license to anybody either to import, or to use, or to vend automobiles, launch motors, or launches of the German Company in either the United States or Canada, or any part of the United States or Canada.
“(3) The American Company further agrees that so long as the license above mentioned is in force it will, upon demand by Charley or his attorney, authorize said attorney to institute suit or suits in its behalf, either alone or in conjunction with other complainants, against anybody who is not respect[681]*681ing the patent rights of the American Company or the exclusive license hereby grunted to Charley, but at Charley’s expense.
“In consideration of the above:
“(4) Charley agrees, by way of a license fee, to make the following cash payments to the American Company for every one of the machines above mentioned sold by him and imported into the United States or Canada and arriving- after the date of this agreement (no matter when the same may have been sold), to wit: One hundred dollars ($100) for each automobile up to and including sixty (60) horse power; two dollars ($2) per horse power for each automobile exceeding sixty (60) horse power; and two dollars ($2) per horse power for any launch motors or launches.
“(15) Tlie fact that the license plate is affixed to a machine shall be conclusive evidence upon its importation that a license fee is due thereon. A license fee shall also be due on such machines, when imported, not provided with a license plate, as Charley may have sold in Europe to residents of the United States or Canada, unless Charley shall at the time of the sale have given to the purchaser a receipt wherein it is stated that such car is for use only in Europe, and in case it is taken into the United Stales or Canada the owner or importer shall pay the license fee therefor demanded by the American Daimler Company, or be considered an infringer, and that then and in such ease the said Charley shall be personally relieved from the payment of such license fee.
“(6) Statements of the license plates issued by Charley are to be rendered by him each mouth to the American Daimler Company. Charley pays forthwith upon the signing of this contract seven thousand dollars ($7,000) down in advance on account of such license fees, the receipt of which the American Company hereby acknowledges. Charley agrees to make a like payment of $7,000 in advance on account on January 1, 1906, and again on January 1, 1007, and further agrees that the American Company shall at all times be kept in funds at: least $2,000 in advance on account of such license fees. The American Company is, however, to notify Charley when the margin should be made good. The obligation to pay $2,000 in advance on account of license fees shall not continue after the advance payment of January 1, 1907, unless Charley shall make lump sales showing that such advance payment will be used up before the end of the year in license fees.
“(7) Charley will not enter into any other license arrangements than the above respecting any patents or alleged patents covering or claimed as covering. the (Herman Company’s machines sold by him or any parts thereof, and the American Company will defend Charley in any suits which may be or which may have been brought against him or any of his customers on account of his failure to take out any such other license, which he may wish to defend, such defense, however, to be at Charley’s expense.
“(8) The above license and agreement on the part of the American Company is to continue so long as Charley makes the payments and renders the accounts aforesaid, which he agrees to do. The agreement is in any event to expire December 31, 1907, but upon any expiration of the agreement the license shall continue for the benefit of Charley or any of his cuslomers or their vendees, so far as the automobiles, launch motors or launches may have been already imported into this country.”

It seems that this German Company — -Daimler Motorem Gesell-schaft — uses these patented devices rightfully in the manufacture and sale of automobiles in Europe; all the devices being in a car and conjointly used therein. The defendant, Roland R.

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Bluebook (online)
160 F. 679, 1908 U.S. App. LEXIS 4251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daimler-mfg-co-v-conklin-circtsdny-1908.