Elrick Rim Co. v. Reading Tire Machinery Co.

157 F. Supp. 60, 116 U.S.P.Q. (BNA) 307, 1957 U.S. Dist. LEXIS 2451
CourtDistrict Court, S.D. California
DecidedDecember 5, 1957
DocketNo. 19538
StatusPublished
Cited by3 cases

This text of 157 F. Supp. 60 (Elrick Rim Co. v. Reading Tire Machinery Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elrick Rim Co. v. Reading Tire Machinery Co., 157 F. Supp. 60, 116 U.S.P.Q. (BNA) 307, 1957 U.S. Dist. LEXIS 2451 (S.D. Cal. 1957).

Opinion

YANKWICH, Chief Judge.

The above-entitled cause heretofore tried, argued and submitted is now decided as follows:

On the issues raised by the plaintiff’s complaint and the defendant’s answer and counter-claim, judgment will be entered as follows:

1. That plaintiff take nothing against the defendants or either of them on either the claim alleging invalidity of the patent in suit or the claim for unfair competition.

2. Judgment will be for the defendant as prayed for in the answer and counter-claim, finding the claims of the patent in suit and each of them valid and infringed by the plaintiff.

Injunction will be issued against the plaintiff to prevent further infringement [62]*62and the matter will, after the interlocutory decree has become final, be referred to a Master to be appointed by the Court to ascertain the amount of single damages to be awarded the defendant under Section 284 of Title 35 U.S.C.A. Defendant to recover costs of suit.

As the plaintiff forced the litigation upon the defendant and sought not only declaration of invalidity and damages for unfair competition, but attorneys fees also, under circumstances which the Court thinks were not justified, in view of the recency of the issuance of the defendant’s patent, the Court is of the view that in this case the defendant should recover attorneys fees against the plaintiff. The amount will be determined upon a showing to be made before this Court on notice to be given by the defendants.

Findings and Judgment to be prepared by counsel for the defendants under Local Rule 7, West’s Ann.Code.

Comment

By its complaint the plaintiff seeks to have declared invalid Letters Patent 272,148 issued to Ralph R. Reading, one of the defendants, on October 18, 1955, upon the ground that the processes described in the claims are anticipated in the prior art (35 U.S.C.A. § 102(a)), that the claims are invalid for indefiniteness (35 U.S.C.A. § 112) and that the record shows prior use by Reading and others for more than one year before the filing of the application for patent (35 U.S.C.A. § 102(b)).

A second cause of action seeks damages for unfair competition based upon notice to some of the plaintiff’s customers and to the trade in December, 1955 and general notice to the trade in January, 1956, through an advertisement in a trade paper that asserted the issuance of the patents and their intention to prosecute persons who used the process. The answer denies invalidity and by counterclaim asks that the Letters Patent 272,148 be declared valid and infringed with damages for patent infringement which it is sought to treble. The Congress in revising the Judicial Code in 1948, provided specifically that the federal district court should have original jurisdiction over any civil action asserting a claim of unfair competition when joined with a substantial and related claim under “the patent law”. 28 U.S.C.A. § 1338(b).

The writer has had occasion recently to indicate the benefits derived from the use of unfair competition in conjunction with patent, trademark and copyright litigation. See Yankwich, Unfair Competition as an Aid to Equity in Patent, Copyright and Trademark Cases, 1957, 32 Notre Dame Lawyer, p. 438 et seq. And it may be conceded that if a person having a patent harasses another’s customers, the Court could, especially if the patent is declared invalid or no infringement is found, hold that such harassment might constitute unfair competition. But in the case before us it is quite evident that the notices and advertisements were sent out a short time after the patent was issued to Reading and were very conservative in tone. And it would be stretching the norm of unfair competition beyond its reasonable and equitable import to charge with unfair competition a person who, after long proceedings in the Patent Office, has secured a valid patent to a process, merely notifies the trade of the fact and that he intends to protect his rights under it. And our Court of Appeals has so held. Celite Corporation v. Dicalite Co., 9 Cir., 1938, 96 F.2d 242, 250.

As the period of limitation for an action for patent infringement is six years (35 U.S.C.A. § 286), an infringer should not be permitted to force the patentee to “rush” court action before he is ready under penalty of making his failure to institute such action an act of unfair competition. So there is no substance to the plaintiff’s claim of unfair competition in this case. Reading believed he had a valid new process. And he was within his rights and acted in good faith in notifying the trade that he intended to assert his rights under the patent. [63]*63More, we are of the view that the patent is valid.1 The experts of the plaintiff have sought to dissect the patent into segments and to show that it presents nothing new. At times, as I stated at the trial, they have confounded process with product and device and vice versa. In the last analysis, the patent is a process patent of the type which has been recognized as valid for many years going back to the famous case of Ansonia Brass & Copper Co. v. Electrical Supply Co., 1892, 144 U.S. 11, at page 18, 12 S.Ct. 601, at page 604, 36 L.Ed. 327, where the Court states the principle in this manner:

“On the other hand, if an old device or process be put to a new use, which is not analogous to the old one, and the adaptation of such process to the new use is of such a character as to require the exercise of inventive skill to produce it, such new use will not be denied the merit of patentability.” (Emphasis added.)

Later cases have reasserted the principle and have applied it even to device patents [64]*64where a change of material resulted in better use. Potts v. Creager, 1895, 155 U.S. 597, 609, 15 S.Ct. 194, 39 L.Ed. 275. Even more recently the basic principle declared in Ansonia Brass & Copper Co. v. Electrical Supply Co., supra, was given recognition. See General Electric Co. v. Jewel Incandescent Lamp Co., 1945, 326 U.S. 242, 247-248, 66 S.Ct. 81, 90 L.Ed. 43. In the matter of chemical patents, even the introduction of a known compound into a different combination has been held to amount to invention over the prior art. Gilbert Spruance Co. v. Ellis-Foster Co., 3 Cir., 1940, 114 F.2d 771. And see the writer’s recent opinion in Everlube Corp. of America v. Electrofilm, Inc., D.C.Cal.1957, 154 F.Supp. 788.

The new codification of the patent law adopted these principles by including among patentable inventions not only a new and useful process or composition of matter but also any “new and useful improvement thereof”. 35 U.S.C.A. § 101.

“The test of the indentity of processes is not the apparatus used for carrying them out but whether they involve identical or equivalent steps. See Philadelphia Rubber Works Co. v. Portage Rubber Co., 6 Cir., 241 F. 108”. Celite Corporation v. Dicalite Co., supra, 96 F.2d at page 248.

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Bluebook (online)
157 F. Supp. 60, 116 U.S.P.Q. (BNA) 307, 1957 U.S. Dist. LEXIS 2451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elrick-rim-co-v-reading-tire-machinery-co-casd-1957.