E. I. duPont de Nemours & Co. v. Celanese Corp.

285 F. Supp. 819, 159 U.S.P.Q. (BNA) 35, 1968 U.S. Dist. LEXIS 12284
CourtDistrict Court, S.D. New York
DecidedJune 10, 1968
DocketNo. 68 Civ. 723
StatusPublished
Cited by3 cases

This text of 285 F. Supp. 819 (E. I. duPont de Nemours & Co. v. Celanese Corp.) 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
E. I. duPont de Nemours & Co. v. Celanese Corp., 285 F. Supp. 819, 159 U.S.P.Q. (BNA) 35, 1968 U.S. Dist. LEXIS 12284 (S.D.N.Y. 1968).

Opinion

OPINION

TYLER, District Judge.

This motion grows out of an interference contest between plaintiff’s Patent No. 3,068,528 and defendants’ reissue application Serial No. 399,569. In proceedings before the Patent Office, priority was awarded to the latter.1 Defendants’ successful application was filed in the name of Angelo Vaccaro as inventor, with defendant Columbia Ribbon and Carbon Manufacturing Company (“Columbia”) named as assignee. According to the records of the Patent Office, Columbia’s interest was reassigned to Celanese Corporation prior to the culmination of the interference proceedings in the office.

In February, 1968, E. I. duPont de Nemours and Company (“DuPont”) commenced this action pursuant to 35 U.S.C. § 146 (1964) 2 to overturn the decision of the Patent Office. In its complaint, the plaintiff alleges Celanese “is the party in interest as shown by the records of the Patent Office at the time of the decisions complained of” and that it is the owner of the entire right, title and interest in and to the relevant application or “a substantial part thereof”:3 In addition, the roles of Vaccaro and Columbia are described. Celanese’s answer contends that it is the “sole owner” of the application and the “only party in interest”. Defendants Vaccaro and Columbia so far have failed to interpose any answer. Instead, they have moved to dismiss the action as to themselves for lack of jurisdiction, claiming its absence is shown by the fact that neither is alleged in the complaint to be a “party in interest”.

Prior to 1952, when the patent laws were revised and codified, the law was clear that predecessors in title such as [821]*821inventors and assignors were proper parties to a suit for review under Rev. Stat. § 4915 (1875) of a Patent Office determination of priority. Armstrong v. Langmuir, 6 F.2d 369 (2d Cir. 1925). In that decision, Judge Learned Hand analogized the position of an inventor-assignor to that of the grantor of an equity of redemption in a mortgage foreclosure suit.

“It has always been deemed proper, and it is customary, to join such grantors, upon the theory that the decree will cut off any equities which may subsist between them and their grantees, who are the necessary parties. * * * The decree may be of no value to the plaintiffs, but he [the inventor-assignor] cannot complain.” Id. at 371.

In my view, neither sefction 146 nor any other section of the patent code changes the rule of Armstrong v. Langmuir. Accordingly, defendants’ motion to dismiss must be denied.

While section 146 is the source of subject matter jurisdiction for this action, that section, just as its predecessor, R.S. 4915, does not purport to elaborate the multitude of rules describing the indispensable and proper parties to the suit, nor specify all the procedural niceties to be followed once the action has been properly commenced. Instead, it merely states a discrete number of rules regarding parties and procedure, most of which are remedial measures enacted to change the undesirable results of pre-1952 or common law rules. The remainder of the rules applicable to these interference proceedings must be extracted from the background of the substantive law of patents and the Federal Rules of Civil Procedure.

For example, the section commences with the new rule that “any party to an interference” may bring a civil action to review the determination of the Patent Office. This remedies a defect in R.S. 4915 by giving a losing patentee, who previously had no recourse outside the Court of Customs and Patent Appeals, see, e. g., Galena Mfg. Co. v. Superior Oil Works, 104 F.2d 400 (C.C.P.A.), cert. denied, 308 U.S. 609, 60 S.Ct. 173, 84 L.Ed. 509 (1939), the same remedy as a losing applicant. Yet this clause makes no reference to either proper or indispensable parties plaintiff. Notwithstanding the language of the rule, it is clear that an assignee of the party actually involved in the Patent Office interference has standing to sue so long as he possesses a substantial interest in the patent. See, e. g., Radio Corp. of America v. International Standard Electric Corp., 232 F.2d 726 (3d Cir. 1956). On the other hand, it is doubtful whether a losing inventor who has assigned all his interest to another can maintain a section 146 proceeding if his assignee has decided to give up the pursuit and refuses to join as a co-plaintiff. See Garfield v. Western Electric Co., 298 Fed. 659 (S.D.N.Y.1924).

Similarly, the second paragraph of section 146 provides, in part, that the District Court for the District of Columbia “shall have jurisdiction” in interference review cases where there are “adverse parties” from different states involved. The section goes on to supply that court with long-arm jurisdiction which extends to parties residing in foreign countries. This salutary scheme was devised in 1927 to enable certain multiparty interference suits to be brought where the necessary litigants could not otherwise be joined under the general jurisdiction and venue statutes. Again the relevant passages nowhere advert to either proper or indispensable parties. Notwithstanding the apparently unambiguous language used, the courts have uniformly ruled that “adverse parties” refers only to indispensable adverse parties. Thus, where parties whose interests are adverse to the plaintiff are not indispensable, i. e., they are not owners of substantial interests in any of the conflicting patents or applications, the fact that they reside in different states does not require the transference of the suit to the District of Columbia. See Sylvester v. Jacobsen Mfg. Co., 217 F.[822]*822Supp. 93 (E.D.Wis.1963); Minnesota Min. & Mfg. Co. v. Chavannes Indus. Synthetics, Inc., 128 F.Supp. 659 (D.Del.1955).

The provisions of section 146 relating to parties defendant appear even more skeletal. They prescribe, in relevant part, that interference review actions “may be instituted against the party in interest as shown by the records of the Patent Office at the time of the decision complained of * * The section continues with a rule applicable to potential intervenors: “but any party in interest may become a party to the action.” 35 U.S.C. § 146 (1964).

Defendants construe the first clause to mean that only a “party in interest” as shown by the records of the Patent Office at the time of the final administrative ruling may be sued. They view the second clause as limiting intervention to other “parties in interest” who wish to uphold their unrecorded interests. On the other hand, DuPont, while agreeing that the language works a change in the pre-1952 law, disagrees with the premise that this part of section 146 imposes new limitations on the parties who may be joined as defendants in an interference review proceeding.

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285 F. Supp. 819, 159 U.S.P.Q. (BNA) 35, 1968 U.S. Dist. LEXIS 12284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-i-dupont-de-nemours-co-v-celanese-corp-nysd-1968.