General Mfg. Corp. v. Gray

48 F.2d 602, 9 U.S.P.Q. (BNA) 66, 1931 U.S. Dist. LEXIS 1236
CourtDistrict Court, W.D. Oklahoma
DecidedMarch 21, 1931
DocketNo. 1073
StatusPublished
Cited by7 cases

This text of 48 F.2d 602 (General Mfg. Corp. v. Gray) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Mfg. Corp. v. Gray, 48 F.2d 602, 9 U.S.P.Q. (BNA) 66, 1931 U.S. Dist. LEXIS 1236 (W.D. Okla. 1931).

Opinion

KENNEDY, District Judge

(of Wyoming, sitting in the Western District of Oklahoma) .

The above-entitled cause is before the court upon a citation for contempt particularly directed to two of the defendants, Lyman J. Gray and W. H. Coyle. A sketch of the history of the litigation and the transactions involved wi’l be necessary for the proper consideration of the controversy.

[603]*603One Jacob Young of Oklahoma, the inventor, made application for patent upon a mechanical ball game for which thereafter and on May 14, 1929, letters patent No. 1,-713,247 were issued to General Manufacturing Company, his assignee and plaintiff herein. Some time thereafter in the same year, a controversy arose between the plaintiff and a number of defendants, including those against whom relief is here sought, claiming infringement of plaintiff’s patent together with the uses of apparatus of defendants in the manufacture of the patented machine. Before the suit came to trial a compromise was effected between the litigating parties, or such of them as were actually interested in the litigation, and an agreement perfected whereby the defendants in interest here were by a written contract given certain privileges and rights, presumably as licensees, to manufacture and sell the patented machine in certain designated territories and under certain prescribed conditions. Terms were provided by which the plaintiff would receive certain consideration from the sales thereof. Thereupon a consent decree was entered in said infringement suit by the terms of which defendants were restrained and enjoined from any infringement of plaintiff’s patent. The evidence tends to show that the defendants here attacked thereupon proceeded with the attempted manufacture and distribution of the plaintiff’s apparatus which they claim did not result satisfactorily. Some difficulty evidently arose in the set-up of the machine, and the inventor Young, whose interests were aligned in the proceeding with those of the plaintiff, was taken into the manufacturing plant for the purpose of aiding in the mechanical development of the patented apparatus. Some time thereafter, and when the breach between the plaintiff and defendants had widened considerably through the alleged failure to pay royalties and properly label the few machines which were turned out in accordance with the demands of the plaintiff, the defendants began the manufacture of another machine in conjunction with one Carpenter, who purported to invent such machine and make application thereon for a patent. A company was organized in which the defendants are actively interested. Thereupon in September, 1939, the plaintiff made an application for a citation against the defendants Emenhiser, W. H. Coyle, and Cray as for contempt on account of their alleged acts amounting to a violation of the injunetional order contained in the final decree heretofore referred to. At the trial, the proceeding against the defendant Emenhiser seemed to have been dropped, as he did not appear to have been longer connected with the alleged infringement. A citation was issued by the court, and upon its return the defendants W. H. Coyle and Cray appeared and made a response which in substance admits the former decree and the contract and alleges that the machines attempted to be manufactured under plaintiff’s patent were inoperative and unsaleable, which frailties the plaintiff was unable to correct, although repeatedly requested by defendants so to do. They further allege that the machine which they are now manufacturing is á different machine from that covered by plaintiff’s patent and in no way an improvement upon or an infringement of plaintiff’s device, but that it is a machine being manufactured as an invention of one George W. Carpenter for which an application for patent is pending.

The case thereupon proceeded to a hearing upon the citation and the response of the defendants W. H. Coyle and Gray. At the hearing the issues were narrowed to the consideration of two points by counsel for defendants, the first being to the effect that the plaintiff had not pursued the proper remedy, it being the contention of counsel for the defendants in this respeet that the remedy of the plaintiff was properly a suit at law upon the contract which purported to cover and regulate the relations between plaintiff and defendants concerning the manufacture of plaintiff’s apparatus. This position on the part of defendants I hold to be untenable, for the reason that the issue tendered by the application and citation is solely one of infringement which contemplates the manufacture and distribution of a slightly different machine than that of plaintiff’s but so similar as to represent but a colorable imitation. Likewise the response of the defendants' in substance meets this tendered issue. If there should be a determination of infringement, the matter of stipulated amounts set forth in the contract might possibly govern the question of damages as to manufactured and distributed machines. The second issue, as indicated is, whether or not the machine admittedly manufactured by the defendants is an infringement of plaintiff’s patent, and to this issue the attention of the court will therefore be directed.

At the outset, for a judge rather inexperienced in patent law, a surprise was occasioned by the fact that counsel devoted such slight attention in argument and brief to the scope of an investigation upon a eon-[604]*604tempt proceeding in patent cases. This may have been based upon the erroneous presumption that one called to sit in a ease of this character was already advised. However, it appears to me important to analyze the nature of the proceeding here for a correct solution of the main infringement issue. A brief review of the authorities will be helpful.

In California, etc., Paving Co. v. Molitor, 113 U. S. 609, on page 618, 5 S. Ct. 618, 622, 28 L. Ed. 1106, a contempt proceeding in a patent case, Mr. Justice Bradley, speaking for the court, says: “It is a question which the circuit court must decide for itself in the ordinary way. If the judges disagree there can be no judgment of contempt; and the defendant must be discharged. The complainant may then either seek a review of that decision in this court, or bring a new suit against the defendant for the alleged infringement. The latter method is by far the most appropriate one where it is really a doubtful question whether the new process adopted is an infringement or not. Process of contempt is a severe remedy, and should not be resorted to where there is fair ground of doubt as to the wrongfulness of the defendant’s conduct.”

In Crown Cork & Seal Co. v. American Cork Specialty Co., 211 P. 650, on page 653 (C. C. A. 2), the following language is found: “Complainant moved to attach for contempt because of the use of this reorganized machine. It has been the practice in this circuit (Bonsack Machine Co. v. National Cigarette Co. [C. C.] 64 P. 858) not to deal with modifications of a machine held to be an infringement, on motions to punish for contempt, unless the change was plainly a mere colorable equivalent; if the change was substantial, fairly arguable as to its being covered by the patent, it has been the practice to leave the patentee to an application to enjoin its use.”

In Charles Green Co. v. Henry P. Adams Co., 247 P. 485, at page 486 (C. C. A. 2), Judge Hough observes:

“The practice of reaching evasive and persistently infringing defendants by supplementary injunction we have already substantially approved.

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

Related

Patton v. Stone
178 F.2d 515 (Fifth Circuit, 1949)
Otis Elevator Co. v. 570 Building Corp.
26 F. Supp. 900 (E.D. New York, 1939)
American Chemical Paint Co. v. J. G. Brillo Co.
99 F.2d 602 (Third Circuit, 1938)
American Foundry & Mfg. Co. v. Josam Mfg. Co.
79 F.2d 116 (Eighth Circuit, 1935)
Radio Corporation v. Cable Radio Tube Corporation
66 F.2d 778 (Second Circuit, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
48 F.2d 602, 9 U.S.P.Q. (BNA) 66, 1931 U.S. Dist. LEXIS 1236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-mfg-corp-v-gray-okwd-1931.