Ford Motor Co. v. K. W. Ignition Co.

278 F. 373, 1921 U.S. App. LEXIS 1963
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 4, 1921
DocketNo. 2879
StatusPublished
Cited by4 cases

This text of 278 F. 373 (Ford Motor Co. v. K. W. Ignition Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford Motor Co. v. K. W. Ignition Co., 278 F. 373, 1921 U.S. App. LEXIS 1963 (7th Cir. 1921).

Opinion

EVAN A. EVANS, Circuit Judge.

Appellee brought this suit against appellant for damages for past infringement, and to enjoin future infringement of patent No. 1,092,417, covering an ignition apparatus, which patent was issued to James A. Williams and by him assigned to appellee. From a decree sustaining the patent, directing an accounting, and restraining further infringement, appellant appeals. Numerous defenses, including invalidity, estoppel, laches, and non-infringement in the state of Indiana, where the suit was begun and tried, are set forth.

[ 1 ] It will not be necessary to consider any defenses other than es-toppel.

Upon this issue the facts are singularly free from dispute. Many of them are established by letters. Where there is any serious dispute, we have resolved it in favor of the appellee. So analyzed and.examined, the record shows:

The appellant to be an extensive manufacturer of automobiles, who during the period of alleged infringement (1914 — 1919) turned out 3,-000,000 cars equipped with 12,000,000 ignition coils of the type under consideration. About 5,000,000 of these coils were supplied by ap-pellee and the remainder manufactured by appellant, and for their alleged wrongful production damage is sought. In addition a large number of parts or entire coils were made by both parties to supply the retail trade or Ford users.

The Williams coil, it is alleged, tended “to eliminate any lack of synchronism or timing in the operation of several cylinders.” It displaced, or tended to displace, an apparatus known as the master vibrator in the production of which Williams was interested and which he manufactured. Appellant did not equip its cars with this master vibrator. It was while Williams was negotiating for advertising space in a trade paper published by appellant that he first spoke of a new coil for which he claimed better results in the respect above mentioned. As a result of this conversation he later met appellant’s engineers, and tests were made of his coil. Appellant’s engineers and Williams there-[375]*375alter made numerous changes in the construction and arrangements of parts in this coil. While Williams denies that the changes were vital or essential to produce greater synchronism, it is apparent that they were productive of economy in construction, in simplification of the parts, and were largely persuasive in inducing appellant to adopt the coil as a part of its standard equipment.

Prior to this time appellant purchased its coils from different manufacturers, using three different types, the Ileinze, the Kingston, and the J & B coils. It manufactured none. These various coils were produced by different manufacturers. Neither Williams nor appellee had any of appellant’s coil business.

In order to avoid confusion resulting from the use of different types of coils and to cheapen the cost of production and lessen the cost of the stock in trade which the retailer was required to carry, appellant decided to standardize its coil. It considered various makes. In the main they were similar in appearance and in the general method of operation they were alike. It would serve no useful purpose to set forth their differences.

After examining the various types or models then on the market, appellant selected the Williams coil and thereafter all of its cars were equipped therewith. It was understood at the time of the adoption of this coil as a part of its standard equipment that appellant should, on acount of its extensive business, have two sources of supply. To avoid the delays and damage resulting from fires, strikes, etc., appellant insists on two sources of supply for all of its standard equipment. It was therefore understood and agreed that appellant should install a department for the manufacture of these coils. It was equipped by appellant, but Williams assisted in the selection and arrangement of machinery. Thereafter the enormous demand for these coils was supplied by both parties.

Appellee at all times knew appellant was manufacturing the coils in large numbers. Mr. Williams was frequently in appellant’s coil manufacturing department where from three to four hundred employees were at work and knew that large sums of money had been expended in building and equipping this department. The parties exchanged parts used in manufacturing the .completed coils and ap-pellee frequently sold large quantities of parts to appellant to be used in manufacturing its coils. We quote a few of the many letters establishing these facts.

The quotations are all taken from letters written by appellee’s manager to appellant or some officer thereof. On January 7, 1919 it wrote:

“Confirming our telephone conversation with you this morning, we sire expressing you today 100,000 T-6772, 5/16ths inch hexagon nuts Í2-32 thread. * * * Investigation shows that yon are using a punched nut on this job. As we prefer a machine nut and are using same, please do not replace this shipment to us, and we will make arrangements to replenish our own stock.”

On another date:

“We are pleased to acknowledge your valued order #77601, covering 5,000,-000 I-679S) Tungsten point rivets."

[376]*376A year earlier this letter was written:

“We have your valued order #75354, covering 500,000 part T-6799 Tungsten point rivets, was duly received by us and the December shipment made you on December 14th. Shipments will be made at the rate of 100,000 per month from now on as requested.”

Again:

“In answer to your letter of August 13th, the instructions we received were not in the form of a communication, but were verbal instructions given, to the writer while in your coil department.”

The following is most significant:

“Regarding yours of the 14th, in reference to our securing wood hacks and bottoms from the Michigan Truck & Lumber Co. We note that you are at this time taking their entire output and, therefore, cannot allow them to ship us 5,000 sets as requested. If you will please advise us your other source of supply on these, we will take it up with them and see if we can possibly secure these parts from them. The tractor plant is after us for delivery on metal boxes and we are handicapped at this time on account of wood backs and bottoms. If there is any possible way that you can help us out without' interfering with yourselves, we would appreciate the same very much.” .

The purchase of 5,000,000 Tungsten point rivets alone was notice to appellee that appellant was manufacturing the units on a large scale. The letters indicate not only normal, but extreme, cordiality, where one manufacturer accommodated the other by loaning parts which were replaced.

At no time was the subject of a patent mentioned.

Williams, however, after making his arrangement with appellant, sought and secured the patent in issue. He never marked any of his products with his patent number and in no way suggested that his coil or any part of it was covered by a patent. At no time prior to the commencement of a suit in which another corporation, Henry Ford & Son, Inc., an organization formed to manufacture and sell tractors, was indirectly interested, did appellant have actual knowledge of the issuance of this patent. It appeared in this suit that Henry Ford & Son, Inc., gave an order to the Kokomo Electric Company to make for it some coils.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lukens Steel Co. v. American Locomotive Co.
99 F. Supp. 442 (N.D. New York, 1951)
Baker-Cammack Hosiery Mills, Inc. v. Davis Co.
181 F.2d 550 (Fourth Circuit, 1950)
Fyrac Mfg. Co. v. Bergstrom
24 F.2d 9 (Seventh Circuit, 1928)
Hutton v. City of Omaha
198 N.W. 146 (Nebraska Supreme Court, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
278 F. 373, 1921 U.S. App. LEXIS 1963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-co-v-k-w-ignition-co-ca7-1921.