Dwight & Lloyd Sintering Co. v. American Ore Reclamation Co.

44 F. Supp. 401, 52 U.S.P.Q. (BNA) 574, 1941 U.S. Dist. LEXIS 2243
CourtDistrict Court, S.D. New York
DecidedDecember 15, 1941
StatusPublished
Cited by10 cases

This text of 44 F. Supp. 401 (Dwight & Lloyd Sintering Co. v. American Ore Reclamation Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dwight & Lloyd Sintering Co. v. American Ore Reclamation Co., 44 F. Supp. 401, 52 U.S.P.Q. (BNA) 574, 1941 U.S. Dist. LEXIS 2243 (S.D.N.Y. 1941).

Opinion

BONDY, District Judge.

Defendant concedes that the sub-licensees found by the master to have used patents 1,441,003, 1,469,521, 1,471,402, 1,491,778, 1,618,205 and 1,673,891 actually did use them and that defendant accordingly is liable for the royalties found by the master to be due plaintiff for their use.

Defendant contends that no royalties are due for the use of some of the other patents sued upon because they are invalid.

Defendant does not dispute that the courts have repeatedly stated that a licensee is estopped to deny the validity of his licensor’s patents, but it asserts that the courts have intended thereby only that a licensee can not successfully maintain that his licensor’s patents are invalid for lack of invention. Defendant therefore has challenged the validity of some of plaintiff’s patents on grounds other than lack of invention.

The attention of the court has not been directed to any authority that limits the estoppel of a licensee to an estoppel to deny invention. Moreover, the courts have indicated that a licensee may not question the validity of its licensor’s patents upon any grounds. In Milligan v. Lalance & Grosjean Manufacturing Co., C.C., 21 F. 570, the court held that a defendant whose position was described as similar to a licensee could not set up the defense that the patent was invalid because the novel element of the patent had been inserted by an attorney without authority from the inventor. In Hewitt v. American Telephone & Telegraph Co., 2 Cir., 272 F. 392, the court stated that since a licensee is estopped to deny validity, and since invention is a requirement of validity, a licensee is estopped to deny invention, thus clearly indicating that the estoppel to deny invention is only part of the broader estoppel to deny validity on any ground. In Westinghouse Co. v. Formica Co., 266 U.S. 342, 349, 45 S.Ct. 117, 120, 69 L.Ed. 316, relied upon by defendant, the court stated that the estoppel against the assignor prevented an attack upon the “utility, novelty or validity” of the patent. Defendant, therefore, may no,t attack the validity of plaintiff’s patents upon any ground.

At the request of..the defendant, who was plaintiff’s exclusive licensee, and in accordance with an agreement between the plaintiff and defendant, plates referring to patents involved in this action were placed upon machines used by many sub-licensees of defendant. On all these plates it was set forth that defendant was plaintiff’s sole licensee. The plates varied, however, in that some plates referred to some of plaintiff’s patents not referred to in other plates. In addition, defendant made payments to plaintiff between May 21, 1929, and March 31, 1932, for the use of all unexpired patents. These facts establish that both parties believed plaintiff’s patents were being used by defendant’s sub-licensees, and that defendant collected royalties from its sub-licensees on the theory they were using plaintiff’s patents. Defendant, in view of all the circumstances, can not successfully maintain in this action that the machines bearing plates referring to patents which plaintiff claims were used by the machines did not embody such patents. See Andrews v. Landers, C.C., 72 F. 666, 670; Sproull v. Pratt & Whitney Co, C.C, 97 F. 807, 809, cited with approval in Limbershaft Sales Corporation v. A. G. Spalding & Bros, 2 Cir, 111 F.2d 675, 677; Covell v. Bostwick, C.C, 39 F. 421, 424; Piaget Novelty Co. v. Headley, 2 Cir, 108 F. 870, 872, 873; Niagara Fire Extinguisher Co. v. Hibbard, 7 Cir, 179 F. 844, 850; Lathrop v. Rice & Adams Corporation, D. C, 17 F.Supp. 622, 626. Compare Barber Asphalt Paving Co. v. Headley Good Roads Co, D.C, 283 F. 236, 239, affirmed 3 Cir, 292 F. 119, and Miami Cycle & Mfg. Co. v. Robinson, 6 Cir, 245 F. 556, 565.

In Piaget Novelty Co. v. Headley, supra, the defendant was estopped to deny that certain articles, not stamped by it with the plaintiff’s patent date, were covered by plaintiff’s patent in view of the fact that the defendant had stamped other articles precisely the same with the patent date.

Some sub-licensees’ machines did not have plates referring to patents which plaintiff claims were used by such machines. These, however, so far as material in this action were substantially the same as the machines bearing plates referring to those patents and alleged by plaintiff to be using those patents. Defendant accordingly is estopped to deny that such machines *403 without plates did not use plaintiff’s patents as alleged by plaintiff.

The master’s report, excepting only as to patent 1,838,403, hereinafter more fully discussed, accordingly should be sustained because defendant may not deny validity nor question user.

Assuming, however, that defendant could raise the question of non-user, the master’s finding is correct as to the user of many of the patents by sub-licensees of defendant.

The master states in his opinion that patent 1,215,739 for a mechanism to feed constantly to a sintering machine fines of uniform condition was used by defendant’s sub-licensees as set forth in plaintiff’s Exhibit 167.

The claims of the patent include as an element of the patented combination “a flat conveyer belt” as the means of withdrawing material from hoppers and delivering it to a continuously traveling endless conveyer.

The evidence establishes that the rotating table type feeder used by defendant’s sub-licensees performs the same work as the flat belt conveyer in substantially the same way and accomplishes substantially the same result. Both transport a continuous stream of material on a horizontal plane from the bottom of the hoppers to the receiving endless conveyer. The rotating table carries the material to a point where it is forced off the table by an obstructing plate; the flat belt conveyer drops the material off at a point where the belt runs around the last roller supporting it. The rotating table is a mere equivalent of the flat belt conveyer and would readily suggest itself to any mechanic skilled in the art. See Sanitary Refrigerator Co. v. Winters, 280 U.S. 30, 42, 50 S.Ct. 9, 74 L.Ed. 147.

The claims also include “means for receiving said mass” as an element of the combination. The means referred to in the specifications and drawings are hoppers known as “surge-bins” into which the fine metal ore particles are fed immediately pri- or to delivery to mixers known as “pug-mills,” from which they are delivered as a homogenous mass into a sintering machine.

The “surge-bins” are used so that the flow of the material from the “pug-mills” to the sintering machine remains constant and unaffected by temporary closing of any of the other parts of the apparatus used to hold or carry the ore particles before they reach the “pug-mill”.

As between plaintiff-licensor and defendant-licensee plaintiff’s patents should be given a very liberal interpretation. See Freeman v. Altvater, 8 Cir., 66 F.2d 506, 508, certiorari denied 290 U.S. 696, 54 S.Ct. 132, 78 L.Ed. 598; Hewitt v. American Telephone & Telegraph Co., 2 Cir., 272 F. 392, 394.

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44 F. Supp. 401, 52 U.S.P.Q. (BNA) 574, 1941 U.S. Dist. LEXIS 2243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dwight-lloyd-sintering-co-v-american-ore-reclamation-co-nysd-1941.