Federal Telephone & Radio Corp. v. Associated Tel. & Tel. Co.

99 F. Supp. 535, 90 U.S.P.Q. (BNA) 287, 1951 U.S. Dist. LEXIS 4136
CourtDistrict Court, D. Delaware
DecidedJune 26, 1951
DocketCiv. No. 872
StatusPublished
Cited by3 cases

This text of 99 F. Supp. 535 (Federal Telephone & Radio Corp. v. Associated Tel. & Tel. Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Telephone & Radio Corp. v. Associated Tel. & Tel. Co., 99 F. Supp. 535, 90 U.S.P.Q. (BNA) 287, 1951 U.S. Dist. LEXIS 4136 (D. Del. 1951).

Opinion

RODNEY, District Judge.

The complaint in this action, seeking a declaratory judgment, was filed on May 2, 1946, charging that Automatic, by certain advertisements,, had threatened prospective purchasers of Federal’s automatic telephone equipment with patent infringement [537]*537suits.1 The Court of Appeals for this Circuit has held that a justiciable controversy was thus presented.2 Subsequently leave was granted to Federal to file a sup-plemental complaint, covering automatic equipment not put in issue in the original complaint.3

On January 11, 1950, Automatic filed ■counterclaims asserting numerous patents against the plaintiff. After certain other preliminary steps this court entered an ■order on September 20, 1950, in accordance with an agreement of counsel for both parties, setting down certain limited issues for trial in October, 1950. Briefly these issues were whether certain patents of the ■defendants should be adjudicated invalid hy reason of defendants’ alleged neglect ■or delay in entering disclaimers of certain claims of those patents; whether certain patents of the defendants should be adjudicated invalid by reason of alleged double patenting; and whether Federal’s installation of certain automatic telephone equipment in foreign countries constituted infringement of certain of the patents in suit. . A further issue .relating to the taxing ■of costs and award of attorneys’ fees was specified in the order of September 20, 1950, but at the argument after the trial it was concluded that the latter matter should be deferred until a decision upon the other issues was rendered. Trial on the three issues above specified took place in October and November, 1950. Oral ■argument followed. On May 16, 1951, while these issues were still undetermined, Federal filed a petition alleging that in the course of certain pre-trial proceedings which had been had in connection with the trial of further issues that were scheduled for hearing in September, 1951, Automatic had changed its position regarding the proper scope and interpretation of the claims of patents in suit. Federal, accordingly, prayed, in effect, that it' might be permitted to submit in evidence as part of its case on the first trial, certain depositions which had been taken in the course of these later pre-trial proceedings, and that the court might take these into consideration in determining the issue of infringement by reason of the foreign installations.

A hearing on this petition took place on May 29, 1951. Automatic there denied any change of position. At the hearing it was suggested that, inasmuch as it appeared that certain issues relating to the question of the proper interpretation of claims were present alike in the matters to be tried in September, 1951, and in the foreign installation issues previously tried, it might be advisable to postpone the determination of the infringement issues heretofore tried until after the trial in September, so that both parties might have a full opportunity to clarify their positions and remove, as far as possible, all doubts in connection therewith.

Under the circumstances, I have decided that this suggested course of action is the proper one and should be adopted.. Counsel for both parties indicated at the hearing their acquiescence in this course. Accordingly, the present opinion and determination will be confined to the disclaimer and double patenting issues.

I. The Disclaimer Issue.

In the order of September 20, 1950, this issue was framed in the following terms: “The -issue of (1) whether all of the claims of any or all of the following patents asserted in Counts 4 and 8 of defendants’ counterclaims should be adjudicated invalid hy this Court on the ground, as alleged by the plaintiff, the defendants unreasonably neglected or delayed to enter a disclaimer of any or all of the following claims of said patents respectively:

«* * *»

A list of these patents subsequently appears herein.

There is little or no dispute betwéen the parties regarding the underlying facts pertinent to this issue so far as they have been brought to light by the evidence. Their differences seem to relate rather to the principles of law to be applied and to the [538]*538conclusions to be drawn, factually and legally, from these underlying facts.

The starting point of this litigation was an advertisement inserted by Automatic in certain publications, in which it asserted that it owned over 1,600 patents and in which it warned prospective purchasers of automatic telephone equipment to investigate the patent situation relating to any equipment offered for sale .to them. Subsequently this advertisement was interpreted by the Court of Appeals to mean that independent telephone operating companies were threatened with patent infringement suits if they bought and used -automatic equipment manufactured by others than Automatic.4 When Automatic filed its counterclaims in January, 1950, it asserted 85 patents against Federal. Federal’s answer, filed about twenty days later, alleged that all these 85 patents were invalid for various reasons, and cited a large number of prior patents in connection with the alleged invalidating prior art.

At a pre-trial conference in April, 1950, counsel informed the court that they had agreed to the principle of having a series of separate trials relating to limited groups of patents or claims óf patents. Some discussion took place as to which patents should be selected for the first trial, and as a result of the conference an order was entered on July 31, 1950, providing for the trial commencing on October 9, 1950, of patent No. 46, asserted in Count 8 of Automatic’s counterclaim and patents Nos. 2, 7, 25 and 43, asserted in Count 4 of Automatic’s counterclaim. Prior to the entry of this order Automatic had notified Federal that it -intended to drop from certain counts of its counterclaims one or more claims of patents Nos. 14, (20), 21, (31) and 47.5 6. Such notification was given with respect to No. 14 on April 7, 1950, and with respect to Nos. 21 and 47 on May 15, 1950. Disclaimers as to Nos. 14 and 21, which had expired respectively on July 25, 1949 and January 9, 1950, were filed on September 8, 1950. The disclaimer as to No. 47, which expires on April 29, 1952, was filed on June 14, 1950.

On August 1, 1950, Federal notified Automatic of the anticipatory prior art on which Federal intended to rely at the trial. On August 8, 1950, Federal was notified by Automatic that, in view of the notice of August 1, it would drop patents Nos. 43 and 46, and probably Nos. 2 and 7. As this action left only one of the patents out of those specified in the order of July.31, 1950, for trial, a further pre-trial conference was held on August 17, 1950, to determine what issues should be tried at the trial set for October. No conclusion was then reached, but as a result of further conferences among counsel, the parties agreed to an amendment of the July order and the amended order of September 20, 1950, previously mentioned, was entered in accordance with that agreement. Disclaimers as to certain claims of all four of the patents mentioned in Automatic’s notification of August 8, 1950, were filed in the Patent Office on September 8, 1950. Of these four patents, No. 7 had expired on May 18, 1948, and the other three were due to expire at various dates in 1951 and 1952.® .

[539]

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Bluebook (online)
99 F. Supp. 535, 90 U.S.P.Q. (BNA) 287, 1951 U.S. Dist. LEXIS 4136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-telephone-radio-corp-v-associated-tel-tel-co-ded-1951.