Head Ski Company v. Kam Ski Company

158 F. Supp. 919, 116 U.S.P.Q. (BNA) 242, 1958 U.S. Dist. LEXIS 2821
CourtDistrict Court, D. Maryland
DecidedJanuary 24, 1958
Docket8998
StatusPublished
Cited by35 cases

This text of 158 F. Supp. 919 (Head Ski Company v. Kam Ski Company) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Head Ski Company v. Kam Ski Company, 158 F. Supp. 919, 116 U.S.P.Q. (BNA) 242, 1958 U.S. Dist. LEXIS 2821 (D. Md. 1958).

Opinion

THOMSEN, Chief Judge.

Plaintiff seeks (1) an injunction restraining defendants from using for their own purposes or disclosing, publishing or making known to anyone for any purpose the trade secrets which the individual defendants learned while working for plaintiff or for Howard Head, who conducted the business as an individual before organizing the plaintiff corporation, (2) a finding that defendants’ ski infringes U. S. Patent No. 2,694,580, which was issued to Head and assigned by him to plaintiff, (3) an injunction against such infringement, (4) an accounting, and (5) damages. 1

At the request of both sides, all issues, except the issues of accounting and damages were referred to Robert Roy, Professor of Industrial Engineering and Dean of the Engineering School of the-Johns Hopkins University, as special master, under Rule 53, F.R.Civ.P., 28 U.S.C.A. The master heard testimony,, visited plaintiff’s plant and defendants’’ plant, observed their methods of operation, considered other evidence, and filed an elaborate report. (I) He found that defendants were using many trade secrets, which they had learned while working-for plaintiff and that “defendants could not have produced their ski at all but for the knowledge gleaned from their employment by the plaintiff”, and recommended that defendants be restrained altogether from the manufacture of adhesively bonded metal skis. (II) He found that, defendants’ design “represents a significant improvement in the art of ski making” and concluded as a mixed question of fact and law “that the Kam ski does not violate the patent held by Howard Head”. The case is now before the-court on exceptions to the master’s report.

At the hearing on the exceptions-, both sides offered additional testimony. The special master was present and, after considering the additional testimony, made an orál supplemental report, on the issue of trade secrets, in which he adhered to his previous conclusion. The master’s findings of fact with respect to. the trade secrets are supported by substantial evidence, are not clearly erroneous, and therefore must be accepted by the court under Rule 53(e) (2). More *921 over, I find that they are clearly correct. They will be summarized in this opinion, but will not be set out in such detail as to disclose the trade secrets it is the purpose of this action to protect.

Plaintiff contended that the master had made an error of law in that part of his report dealing with the issue of patent infringement. The master, therefore, submitted to questioning on that issue by the court and by counsel for the respective parties.

Facts

In 1944-45, Wayne M. Pierce, Jr., an engineer employed by the Chance-Vought Division of United Aircraft Corporation, developed the idea of making a ski by adhesively bonding metal top and bottom facing sheets to a fibrous core. He applied for a patent in 1946, and U. S. Patent No. 2,525,618 for a “ski of laminated construction” was issued to him in 1950. United Aircraft made 120 pairs of such skis in 1945-46. The Tay Company, a corporation organized by Pierce, made and sold 10,000 pairs during the years 1946-51, most of them in 1947. The Pierce ski was not commercially successful in the United States, although it is still being manufactured and sold by foreign licensees, using equipment manufactured by Pierce in the United States. The main defects in the Pierce ski were the softness of the corners of the bottom facing sheet and the failure to provide a satisfactory running surface.

In March, 1947, Howard Head conceived the idea of making a ski out of aircraft materials by aircraft construction techniques, similar in many respects to the Pierce ski, but having steel strips secured along the bottom edges of the lower facing sheet, with a plastic coating on the bottom of the lower facing sheet extending over a portion of the said strips, the coating functioning as the running surface of the ski, and the exposed portions of the steel strips constituting corners of the ski and presenting sharp biting edges.

In May, 1947, Head rented shop space in Baltimore and began actively to pursue his idea. In August, 1947, he employed the defendant Kaminski, who, like Head, was an employee of the Glenn L. Martin Company, to work with him two evenings each week and on Saturdays, at a wage rate of $1.50 per hour. In November Head employed the defendant Petrus Meyer, also a Martin employee, on the same basis.

In January, 1948, Head resigned from the Martin Company to devote full time to the ski project, but in a few months his funds became exhausted and he was forced to take another job; however, he continued to spend many hours on the development of his ski. The defendants Meyer and Kaminski continued to work part time for Head, deferring payment of wages, and keeping an informal log of hours on the shop wall. Head made great sacrifices of time, energy and money in the pursuit of his idea, encountering and overcoming a succession of obstacles. Kaminski and Meyer also worked with their hearts as well as with their heads and hands. Many of the ideas and techniques which culminated in a successful metal and plastic ski were theirs, conceived and applied during their employment by Head.

By June, 1951, the Head ski had become successful enough to sell and the back wages of the employees were paid. In December, 1951, bonuses of $1,000 each were paid to Meyer and Kaminski, and they signed written agreements in which they acknowledged full settlement of back wages, accepted a future wage rate of $2.50 per hour, and agreed not to “divulge or impart any trade secret or company’s business to any person, firm or corporation whatsoever”.

Head obtained a license from the holder of the Pierce patent and patented the Head ski as an improvement. Head’s application was filed February 27, 1951, and after repeated amendments of his original claims, patent No. 2,694,580 for a “composite wood and metal ski having plastic running surface” was issued to him on November 16, 1954. The exact language of Head’s claims will be set *922 out below in the discussion of the patent infringement issue.

During the winter of 1950-51 Head sold 300 pairs of skis; during the following winter sales rose to 1,100 pairs; 2,300 pairs were sold in 1952-53; 4,500 pairs in 1953-54; 8,000 pairs in 1954-55; 18,000 pairs in 1955-56; 23,000 pairs in 1956-57. To secure capital for this expansion, Head formed the plaintiff Head Ski Company, Inc., in the spring of 1953, and assigned to it his entire proprietorship in return for approximately 60% of its stock.

Petrus Meyer continued to work for Head and the corporation on a part time basis until February, 1954, Kaminski until November, 1954. Meanwhile, early in 1954, at about the same time that he left the Head Company, Meyer began working on a ski of his own in the basement of his home. He invited Kaminski to join him, and they have continued to work together ever since. During most of the year 1954 Kaminski worked concurrently as a joint venturer with Meyer and as an employee of the Head Company. For a brief time the defendant William Meyer also worked concurrently for the plaintiff and for the other defendants. Late in 1955 Petrus Meyer and Kaminski, with their respective wives, formed the defendant Kam Ski Company, Inc., which took over the business that had been developed by Kaminski and Meyer.

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

Related

E.I. DuPont De Nemours & Co. v. Kolon Industries, Inc.
894 F. Supp. 2d 691 (E.D. Virginia, 2012)
Medtech Products Inc. v. RANIR, LLC
596 F. Supp. 2d 778 (S.D. New York, 2008)
U.S. Land Services, Inc. v. U.S. Surveyor, Inc.
826 N.E.2d 49 (Indiana Court of Appeals, 2005)
Padco Advisors, Inc. v. Omdahl
179 F. Supp. 2d 600 (D. Maryland, 2002)
Basic American, Inc. v. Shatila
992 P.2d 175 (Idaho Supreme Court, 1999)
Bond v. Polycycle, Inc.
732 A.2d 970 (Court of Special Appeals of Maryland, 1999)
General Electric Co. v. Sung
843 F. Supp. 776 (D. Massachusetts, 1994)
Ingersoll-Rand Co. v. Ciavatta
542 A.2d 879 (Supreme Court of New Jersey, 1988)
Tabs Associates, Inc. v. Brohawn
475 A.2d 1203 (Court of Special Appeals of Maryland, 1984)
Vigitron, Inc. v. Ferguson
419 A.2d 1115 (Supreme Court of New Hampshire, 1980)
Affiliated Hospital Products, Inc. v. Baldwin
373 N.E.2d 1000 (Appellate Court of Illinois, 1978)
Data General Corp. v. Digital Computer Controls, Inc.
357 A.2d 105 (Court of Chancery of Delaware, 1975)
Crocan Corporation v. Sheller-Globe Corporation
385 F. Supp. 251 (N.D. Illinois, 1974)
Kubik, Inc. v. Hull
224 N.W.2d 80 (Michigan Court of Appeals, 1974)
K-2 Ski Co. v. Head Ski Co.
506 F.2d 471 (Ninth Circuit, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
158 F. Supp. 919, 116 U.S.P.Q. (BNA) 242, 1958 U.S. Dist. LEXIS 2821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/head-ski-company-v-kam-ski-company-mdd-1958.