Grinnell Corporation v. American Monorail Company

285 F. Supp. 219, 158 U.S.P.Q. (BNA) 129, 1967 U.S. Dist. LEXIS 11250
CourtDistrict Court, D. South Carolina
DecidedAugust 23, 1967
DocketCiv. A. 4216
StatusPublished
Cited by8 cases

This text of 285 F. Supp. 219 (Grinnell Corporation v. American Monorail Company) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grinnell Corporation v. American Monorail Company, 285 F. Supp. 219, 158 U.S.P.Q. (BNA) 129, 1967 U.S. Dist. LEXIS 11250 (D.S.C. 1967).

Opinion

HEMPHILL, District Judge.

By complaint filed November 9, 1962 plaintiff sues for infringement of Fain patent 2,981,644 which issued to it April 25, 1961 on an application filed by Mitchell S. Fain. The patent, entitled Method of Cleaning Looms, relates to a method of removing lint from a series of looms arranged in a row. The method involves the use of a high velocity stream of air which is directed down onto looms and is continuously moved through a particular path, as described and claimed in the patent, in order to blow lint off the looms, but without interfering with the operation.

Plaintiff Grinnell Corporation is a Delaware corporation having its principal place of business in Providence, Rhode Island is the owner of the Fain patent by virtue of assignment from the inventor.

Grinnell is a manufacturer, inter alia, of loom cleaning equipment (loom cleaners, tracks, controls, etc.) which are sold to textile plants as loom cleaning systems by Grinnell’s wholly owned subsidiary, American Moistening Company.

The original defendant, The American Monorail Company, is a corporation of Ohio and has a regular and established place of business at Greenville, South Carolina. By stipulation filed in Court September 14, 1965 and approved by the Court, American Monorail Company, an Ohio corporation, was added to the case as an additional defendant. The additional defendant, American Monorail Company, is the surviving corporation of a merger of the original defendant into A. M. Manufacturing Company, a corporation of Ohio, effective February 16, 1965. For convenience, the two defendants will be referred to herein as “defendant” or “American Monorail.”

Defendant manufactures, inter alia, loom cleaning equipment which it sells as loom cleaning systems to textile plants, a major portion of its sales being made through its Greenville, South Carolina office. In the course of its sales activities, American Monorail frequently installs and operates trial installations of loom cleaning systems in the weave rooms of prospective customers.

Defendant filed answer and counterclaim December 28, 1962, later amended. Plaintiff filed reply January 18, 1963. Plaintiff seeks an injunction against further infringement and damages for past infringement. Defendant’s counterclaim seeks a declaratory judgment of patent invalidity and non-infringement.

There is no issue as to jurisdiction or venue nor as to plaintiff’s sole ownership of the Fain patent or its right to sue and recover for all past infringements.

*221 The basic issues are:

1. Whether the claims of the Fain patent, which are for a method of cleaning looms, are infringed 1 by defendant’s use of that method. The burden of proof on this issue is on plaintiff.
2. Whether the claims of the Fain patent are valid. The burden of proof on this issue is on defendant, who has charged invalidity on several grounds.
3. Whether plaintiff, by virtue of its activities, has “misused” the Fain patent and is thus barred from maintaining this action because of unclean hands. The burden of proof on this issue is on defendant.

The history of the patent system largely parallels the economic growth of the nation. The objectives and achievements of the system are well summarized in a study prepared in 1956 for the Patent Subcommittee of the Senate Judiciary Committee:

Those who built the governmental structure under which we live were exceedingly wise, and they were particularly so when they created a strong patent system based on the Constitution. It has three great objectives:
First, it aims to stimulate both invention and the assiduous search for new applications of knowledge, which is the basis of invention. It does this by placing the inventor in a position to secure a reward.
Second, it seeks to create conditions whereby the venture of funds to finance the hazardous introduction into public use of new devices or processes will be warranted. This is done by protecting the industrial pioneer for a limited time against the uncontrolled competition of those who have not taken the initial financial risk.
Third, it aims to prevent the creation of an industry permeated by the intense secrecy with regard to its processes which characterized the medieval guilds and which can only retard the realization by the public of the benefits of scientific progress. This it does by extending a temporary monopoly to those who, in keeping with the American ideal of openness and frankness, will make a full disclosure of their new ideas so that they may be utilized to the full by those skilled in a particular art.
******
It worked well. This country has prospered beyond all others in the wide application of new techniques and in advanced industrial processes. Undoubtedly much of this was due to the width of the land in which great homogeneous markets were developed, and to the pioneering spirit of the people which could be applied as well to the industrial as to geographic frontiers. Yet the patent system was largely responsible for the vigor of our small enterprises and for the effectiveness with which new things were promptly brought into use. Life was made more comfortable, healthy, and worth living for large numbers of our citizens. 2

The nurturing through our patent system of incentives which stimulate new developments is perhaps more important today than ever before, in view of the intense scientific and industrial competition in which our country is now engaged. In 1962 the Chairman of the Patent Subeommitte of the Senate Judiciary Committee stated:

This subcommittee is of the view that at no time in its history has the United States been faced with a greater industrial and technological challenge. The important contribution of incentive to the growth of the economy and *222 the encouragement of research has been well established. Equally well established is the role of the patent system as an incentive device * * *

In this action the court is concerned with only a few sections of the Patent Act, namely those relating to defendant’s attacks against the validity of the Fain patent, and those relating to defendant’s infringement of the patent and the relief sought by plaintiff.

Defendant’s contention that the patent is invalid for lack of novelty — or “anticipation” — is based on the following portions of 35 U.S.C. section 102:

A person shall be entitled to a patent unless—
(a) the invention was known or used by others in this country, patented or described in a printed publication in this or a foreign country, before the invention thereof by the applicant for patent, or

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Bluebook (online)
285 F. Supp. 219, 158 U.S.P.Q. (BNA) 129, 1967 U.S. Dist. LEXIS 11250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grinnell-corporation-v-american-monorail-company-scd-1967.