Digital Sensors, Inc. v. Wems, Inc.

310 F. Supp. 678, 164 U.S.P.Q. (BNA) 417, 1969 U.S. Dist. LEXIS 9741
CourtDistrict Court, C.D. California
DecidedJune 30, 1969
DocketNo. 65-1049
StatusPublished
Cited by1 cases

This text of 310 F. Supp. 678 (Digital Sensors, Inc. v. Wems, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Digital Sensors, Inc. v. Wems, Inc., 310 F. Supp. 678, 164 U.S.P.Q. (BNA) 417, 1969 U.S. Dist. LEXIS 9741 (C.D. Cal. 1969).

Opinion

MEMORANDUM OPINION

WESTOVER, District Judge.

This is an action for willful and deliberate infringement, by defendants, Wems, Incorporated and Elco Corporation, of United States Letters Patent No. 3,155,809 and for misappropriation by defendant, Elco Corporation (hereinafter designated as “Elco”) of information on the patented invention. Plaintiff seeks injunction, treble damages and counsel fees.

Defendants reply by contending that the patent is invalid for lack of invention ; that plaintiff failed to comply with Title 35 U.S.C. § 112, and alleges file wrapper estoppel. In addition, defendants assert that in the event the court finds the patent valid, there has been no infringement.

Plaintiff Digital Sensors, Inc. (hereinafter “Digital”) is a California corporation, having its principal place of business at Los Angeles, California. The parties’ pleadings disclose that Elco is a Pennsylvania corporation, with an established place of business in Los Angeles, California; and Wems, Incorporated (designated herein as “Wems”) is a California corporation.

Lee M. Griswold (herein mentioned as “Griswold”), the organizer of plaintiff corporation, has a degree in physics, having graduated from Cal-Teeh. After graduation he became chief engineer at Helipot Corporation, a company associated with Beckman Instruments, chief engineer at Southwest Products; chief engineer at Hopkins Engineering, and manager of the west coast plant of Fair-child Corporation. His experience included work with welding apparatus for forming electrical connections.

In 1960 Griswold became interested in attaching electrical terminals to tape cables. As any school boy would know, an electric wire is usually insulated, and to connect an electric wire to another electric wire or to an instrument of some type, the insulation is stripped from the wire, and the two wires are, ordinarily, twisted together to form contact. In the event of attachment to an instrument or appliance, the wire is usually wrapped around or connected to a pole, post or rod. In the development of the electrical packaging industry, wires became smaller and smaller until, finally, a process was established by which very fragile, [679]*679small wires could be encased in a tape and insulated, thus making possible tape cables.

It readily became apparent that because of injury to the wires it was not feasible to strip the insulation from such a cable; it was very difficult to make a connection between one tape cable and another, or between a tape cable and a connection of any kind.

The problem of attaching terminals to tape cables was twofold — (1) to remove the insulation without damage to small and fragile wires and (2) to make the connection. To make a functional connection with such fragile wires by the old-fashioned method of twisting was not practicable; consequently, a process was devised to make the connections by soldering. Soldering, however, in itself was not satisfactory, and some other method of making a connection was desired.

In his experimentation over a period of years relative to making electrical connections, Griswold ascertained that the insulation around the small,* fragile wires of tape cables could be removed by heat and, further, that after the insulation was removed by heating, connection could be made by spot-welding; and he built an apparatus to carry out the welding of the tape cables to terminals or terminations.

Defendant Elco, a large manufacturer, was also interested in the terminations of tape cables. Representatives of Elco learned that Griswold was making termination connections of tape cables by a welding apparatus; negotiations were entered into between Elco and Griswold whereby Elco proposed to purchase fifty-one percent of the stock of plaintiff corporation for the sum of $35,000.00; and in the light of such proposal and negotiations Griswold disclosed to Elco’s representative certain of the Griswold terminations processes.

The purchase and sale of the stock was not consummated, however, because Elco proposed that the $35,000.00 be not paid to Griswold personally but rather that the sum be used as capital and if, in the future, additional fund was required, it should be provided by Gris-wold and Elco according to their respective stock interests. Griswold, consequently, called off all negotiations relative to purchase by Elco of an interest in plaintiff corporation.

In the course of business through the years Elco obtained contracts from various manufacturers to make terminations of tape cables, farming some of its orders out to plaintiff corporation. Plaintiff made the terminations, returned the completed product to Elco, and Elco then forwarded the items to its customers. During the Elco-Griswold negotiations regarding the purchase of fifty-one percent of plaintiff corporation stock, Mr. Benjamin Fox, president of Elco, wrote two letters to Alex Paul (who had been conducting the stock purchase negotiations with Griswold) — one letter on December 5, 1961 and the other on December 12, 1961. In the letter of December 5, he states as follows:

“What I would like you to do is go over there as soon as you receive this letter and get any information you possibly can on the operation of Digital Sensors, such as whether they have equipment, whether they can weld successfully and repeatedly, whether they can weld tape cable to tape cable without removing the insulation and whether they can weld tape cable to a card edge connector successfully as we discussed when I saw you last.”

And in the letter dated December 12, 1961, Mr. Fox instructed Mr. Paul as follows:

“ * * *, in order for us to pay $35,000 to him to take over his business, we must have more ‘tachlis’ than just the few samples he delivered. I agree with you that if he has anything on the ball, we should not let him out of our hands. Therefore, try to keep him interested. I will see you when you get here but in the interim see if you can get demonstrations and samples of all of whatever he does [680]*680with his weldings and his terminals. We will discuss this further when you get here and make up our minds about what we are going to do with him.”

Defendants assert there was no invention. Defendants say and plaintiff admits that all the elements used by Mr. Griswold in his invention were well-known in the prior art; and defendants contend that all Griswold did was combine them together. Defendants contend further that in early 1961 the Gris-wold invention would have been obvious to anyone of ordinary skill in the art.

We start with the proposition that the patent in issue is a valid patent. The Patent Act of 1952 (35 U.S.C. § 282) provides:

“A patent shall be presumed valid. The burden of establishing invalidity of a patent shall rest on a party asserting it.”

In Mumm v. Jacob E. Decker & Sons, 301 U.S. 168 at 171, 57 S.Ct. 675 at 676, 81 L.Ed. 983 the Supreme Court said:

“* * *. As this Court said in Cantrell v. Wallick, 117 U.S. 689, 695, 696, 6 S.Ct. 970, 974, 29 L.Ed. 1017: ‘For the grant of letters patent is prima facie

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Bluebook (online)
310 F. Supp. 678, 164 U.S.P.Q. (BNA) 417, 1969 U.S. Dist. LEXIS 9741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/digital-sensors-inc-v-wems-inc-cacd-1969.