Dicar, Inc. v. LE Sauer MacHine Co., Inc.

530 F. Supp. 1083, 217 U.S.P.Q. (BNA) 1251, 1982 U.S. Dist. LEXIS 10576
CourtDistrict Court, D. New Jersey
DecidedJanuary 4, 1982
DocketCiv. 81-3029
StatusPublished
Cited by10 cases

This text of 530 F. Supp. 1083 (Dicar, Inc. v. LE Sauer MacHine Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dicar, Inc. v. LE Sauer MacHine Co., Inc., 530 F. Supp. 1083, 217 U.S.P.Q. (BNA) 1251, 1982 U.S. Dist. LEXIS 10576 (D.N.J. 1982).

Opinion

OPINION

BIUNNO, District Judge.

The defendant, L. E. Sauer Machine Company, Inc. (Sauer) claims to be the patentee of U.S. Patent No. 3,522,754 (the ’754 patent) issued August 4, 1970 on the application of Louis E. Sauer (inventor) filed August 14, 1967.

The patent is on improvements to cylinders of resilient plastic (such as polyurethane) which are placed, as sleeves, over round metal cylinders called anvils, in machines used to cut corrugated cardboard to make boxes. The cylindrical sleeve is called an anvil cover, and its purpose is to provide a surface against which rotary knives may work as they cut the cardboard.

The metal anvil itself rotates on a shaft, but, as explained at oral argument the geometry of the rotary knives and the anvil is such that the knives move slightly faster. This is probably due to the design of the system to have the knives press slightly into the resilient anvil cover. In order to avoid cutting wear on the anvil cover, as well as to avoid the impregnation in it of cutting debris, the anvil cover is made “free-wheeling” so that it can move with the knives and against the surface of the rotating anvil, thus avoiding being cut into.

At one time, anvil covers were fixed to the anvil, and without the freewheeling feature they wore out relatively rapidly. Their replacement involved shutting down the machine and reduced productivity.

*1085 Since the free-wheeling cover is loose around the anvil, means must be provided to prevent it from sliding off the anvil laterally. Under an earlier Sauer patent, No. 3,274,873 (the ’873 patent) means to prevent lateral sliding was provided by having two inverted T-shaped ribs formed along the inner circumference of the anvil cover, to fit into similarly shaped grooves in the anvil itself. As explained at oral argument, this design required the anvil itself to be divided into two halves along its axis. Thus divided each half of the anvil cover was installed by sliding the T-shaped ribs into the grooves of one half of the anvil, which was then reassembled.

While this is said to have been an improvement, it did not fully achieve the freewheeling feature in use because with use and some cutting into the surface of the anvil cover, its outer surface between the lines of the ribs tended to bulge, and this caused the ribs to bind in their grooves and interfered with the free-wheeling action.

The ’754 patent outlined two ways to prevent binding. One way was to incorporate corrugated material near the inner surface of the anvil cover and across the ribs. This stiffened the resilient material and prevented bulging and binding.

The other method was to substitute a plain rib and U-shaped groove for the T-shaped ribs and grooves. Since the T-shaped rib had also served to hold the split cover on the anvil, and since the plain rib had no similar means, this method involved making the cover as a single sheet that could be wrapped around the anvil (the ribs fitting into the grooves), with each end cut in the form of long, rounded dovetails with convex fingers at one end fitting into concave spaces between fingers at the other end, and vice-versa.

In Fig. 1 of the ’754 patent, 24 and 26 are the two halves of the anvil 22, while 32 and 34 are the two halves of the anvil cover 30, for the T-rib system. In Fig. 10 of the ’754 patent, the curved dovetail system used to close the cover around the anvil is shown for the plain rib system.

Sauer sued Corrugated Finishing Products, Inc., and Shadeland Manufacturing Company in the U.S. District Court for the Southern District of Indiana, claiming infringement of the ’754 patent. After trial, the District Judge decided that the claimed patent was invalid as obvious in light of the prior art, see 207 U.S.P.Q. 993 (D.Ind., 1979). On appeal, this disposition was reversed and the matter was remanded for further proceedings, see L. E. Sauer Machine Company, Inc. v. Corrugated Finishing Products Inc., 642 F.2d 203 (CA 7, 1981). As noted there, the suit did not involve the claims dealing with improvements on the T-rib design (Claims 1, 2 and 3, as mentioned in footnote 1 of the opinion on appeal), and neither court dealt with the issue of infringement.

The papers filed here indicate that a pretrial order was entered October 16, 1981 based on a conference held August 28, 1981. Trial is set for March 8, 1982, and it is indicated that two new parties have been added: a company called “Delaware Corporation”, and a company called “Corfine, Inc.,” as to whom an amended complaint was to be filed. It also appears that Cor-fine, Inc. filed a motion to vacate the order joining it as a party. See Exh. D to Sauer’s Supplemental Memorandum here.

The papers filed here indicate that Sauer also has a separate infringement suit in the Indiana District against “Dovey Corp.”.

At oral argument, it was stated that neither the Corrugated nor the Dovey suits involved any product of Dicar’s,' and that Dicar had not provided a defense to any party in either suit.

On September 21, 1981, Sauer filed an infringement suit in the U.S. District Court for the Northern District of Illinois, against Triangle Die and Supply Co., claiming infringement of the ’754 patent on claims 4 through 12, being Docket 81C5301. On September 24, 1981, Dicar filed the present suit here, seeking a declaratory judgment that the ’754 patent is invalid, and that it is not infringed by Dicar’s anvil covers.

The complaint here, as well as discovery taken of Triangle in the Illinois suit and the *1086 affidavit of its chairman, Joseph P. Marovich, assert that Triangle is a manufacturer’s sales representative for Dicar, with a territory confined to Illinois, Wisconsin, Minnesota, Iowa and parts of Indiana and South Dakota.

It is said that Triangle makes no sales. It solicits orders, or receives unsolicited orders, which are routed to Dicar which ships directly to and invoices the customer without any further participation by Triangle. Triangle receives a 15% commission on Di-car sales in its territory without regard to whether the routing of an order is through Triangle or not. Many such orders are solicited directly by Dicar from customers.

An affidavit of Dicar’s president, Alan D. Kirkpatrick, asserts that Triangle is one of Dicar’s smaller sales representatives, having sold some $30,000 of product over the period 1978 through 1981 (to December 14th), on which it received commissions of some $4,500. He also states that Dicar is not participating in the suit against Triangle, nor funding or controlling it, and that it has not agreed to indemnify Triangle.

After Sauer was served with the summons and complaint in this declaratory judgment case, it moved for an order to dismiss for lack of in personam jurisdiction, or to quash process for lack of adequate or proper service. This motion is no longer pressed.

Sauer also moved to transfer the suit, under 28 U.S.C. § 1404

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530 F. Supp. 1083, 217 U.S.P.Q. (BNA) 1251, 1982 U.S. Dist. LEXIS 10576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dicar-inc-v-le-sauer-machine-co-inc-njd-1982.