Dymo Industries, Inc. v. Com-Tech, Inc., Dymo Industries, Inc. v. Avery Products Corporation

391 F.2d 335, 156 U.S.P.Q. (BNA) 611, 1968 U.S. App. LEXIS 8382
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 17, 1968
Docket21534_1
StatusPublished
Cited by5 cases

This text of 391 F.2d 335 (Dymo Industries, Inc. v. Com-Tech, Inc., Dymo Industries, Inc. v. Avery Products Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dymo Industries, Inc. v. Com-Tech, Inc., Dymo Industries, Inc. v. Avery Products Corporation, 391 F.2d 335, 156 U.S.P.Q. (BNA) 611, 1968 U.S. App. LEXIS 8382 (9th Cir. 1968).

Opinion

BARNES, Circuit Judge:

Dymo Industries, Inc. herein appeals from two judgments rendered by the District Court for the Central District of California in related patent actions. The two suits were consolidated for trial concerning the validity of the patents in question. No. 21533 — an infringement action — was heard by the district court pursuant to 28 U.S.C. §§ 1338(a), 1400 (b) (1964), and No. 21534 was a declaratory judgment action authorized by 28 U.S.C. § 2201 (1964). Our jurisdiction rests on 28 U.S.C. § 1291 (1964).

I. BACKGROUND OF THE APPEAL

Three patents are in issue, all of which were originally issued to D. W. Souza and are presently owned by Dymo. Each of the patents relates to an embossable plastic tape on which characters may be stamped to create what have become relatively familiar plastic labels. The labels may be produced individually and inexpensively by use of a hand embossing machine, and have therefore become rather widely used by small businesses and private individuals as well as by industry in general. The distinctive feature of the tapes is that, when they are embossed, the characters thus stamped upon them take on a white color, contrasting with the original dark shades of the plastics. This “stress-whitening” quality of the plastics used — which are described in the patent claims as polyvinyl chloride and copolymers of polyvinyl chloride, especially copolymers of vinyl chloride and vinyl acetate — renders the finished label particularly readable and attractive.

The patents in question are the following :

(a) No. 2,925,625, dated February 23, 1960, and entitled “Contrast Color Embossed Plastics and Method of Production.” This patent covers the method for producing the labels described above, and will be referred to as the “ ’625 patent” or the “method patent.”

(b) No. 2,996,822, dated August 22, 1961, and entitled “Contrast Color Embossed Plastics.” This patent has as its subject matter the plastic labels themselves, and will be referred to as the “ ’822 patent” or the “label patent.”

(c) No. 3,036,945, dated May 29, 1962, and entitled “Embossable Plastic Assembly.” The subject matter of this patent is a product marketed by Dymo and others consisting of three layers: (1) the tape described above, (2) a pressure-sensitive adhesive material, and (3) a removable backing. The assembly is constructed so that one can emboss the plastic, peel off the protective backing, and easily apply the resulting adhesive-backed label to the surface to which he desires to attach it. This patent will be referred to as the “ ’945 patent” or the “adhesive tape patent.”

Asserting that these patents (along with others not here in issue) had been *338 infringed, Dymo brought suit in No. 21533 against Com-Tech, Inc., a maker of tapes similar to those described above, seeking damages and injunctive relief. Com-Tech denied infringement and pleaded the invalidity of all three patents. Avery Products Corporation, another manufacturer of embossable plastic tapes, then brought suit in No. 21534, seeking a declaration of its rights with respect to the products covered by the Dymo patents. Finding that an actual controversy existed in the latter action, the district court ordered the two suits consolidated for trial as to the patents’ invalidity. C.T. 1-2. After trial, the court rendered judgment against Dymo in each case, holding that the Dymo patents were invalid and that they had not been infringed by Com-Tech. In view of its conclusion with regard to invalidity, the court found further proceedings in No. 21534, dealing with the question of Avery’s possible infringement, to be unnecessary. It is from these judgments that Dymo now appeals.

The essential questions for our determination concern whether there is substantial evidence in the record to support the trial court’s findings, leading to its conclusions of law, that the Dymo patents are invalid because their subject matter (a) was anticipated by the prior art and therefore lacked the requisite novelty under 35 U.S.C. § 102(a), (b) (1964), 1 and (b) was rendered “obvious” by that prior art and therefore was unpatentable under 35 U.S.C. § 103 (1964). 2

II. ISSUANCE OF THE SOUZA PATENTS

The district court’s findings of fact relating to the issuance of the Dymo patents find full support in the record and are summarized in the discussion immediately following. D. W. Souza, to whom the patents in question were orginally issued, had been engaged in the radiator repair business prior to his involvement in the matters giving rise to these actions. In the course of his work he had hand-embossed metal tapes to produce radiator identification tags. Deciding that plastic might be used for such tags as well as metal, he procured from the Union Carbide Corporation sheets of various commercially available plastics. In hand-embossing them he noticed that on certain of the plastics the embossed characters were whitened, in contrast with the darker color background of the unembossed areas.

After further experimentation Souza applied for the patents here in question. The district court found that the prior art considered by the Patent Office took cognizance of the whitening effect upon which Souza’s applications were based, but did not utilize the effect to produce color-contrast writing. Even on the basis of this prior art, the Examiner in the prosecution file of the method patent at first rejected the claims, stating that

“[0]ne skilled in the art, knowing that the usually undesirable surface whitening effect will occur if low sheet temperature [sic] are used, i. e., cold working of such sheets, could easily adapt *339 this knowledge to arrive at applicant’s process if this surface effect was desired.” C.T. 75-76, 142. 3

Souza prevailed over this initial rejection, however, by contending that his invention consisted essentially of the recognition of a desirable result (the production of color-contrast, embossed writing) from an effect (stress-whitening of certain plastics) which had previously been thought undesirable.

The district court found that the most pertinent prior art, however, was not before the Patent Office when it approved Souza’s applications, and that therefore the presumption of validity attaching to the method and label patents, 35 U.S.C. § 282 (Supp. II, 1967), was overcome:

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Bluebook (online)
391 F.2d 335, 156 U.S.P.Q. (BNA) 611, 1968 U.S. App. LEXIS 8382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dymo-industries-inc-v-com-tech-inc-dymo-industries-inc-v-avery-ca9-1968.