Heath v. Zenkich

437 N.E.2d 675, 107 Ill. App. 3d 207, 221 U.S.P.Q. (BNA) 78, 63 Ill. Dec. 26, 1982 Ill. App. LEXIS 1975
CourtAppellate Court of Illinois
DecidedMay 3, 1982
Docket81-82
StatusPublished
Cited by5 cases

This text of 437 N.E.2d 675 (Heath v. Zenkich) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heath v. Zenkich, 437 N.E.2d 675, 107 Ill. App. 3d 207, 221 U.S.P.Q. (BNA) 78, 63 Ill. Dec. 26, 1982 Ill. App. LEXIS 1975 (Ill. Ct. App. 1982).

Opinion

PRESIDING JUSTICE CAMPBELL

delivered the opinion of the court:

Plaintiff appeals from an order of the circuit court of Cook County which dismissed his complaint. Plaintiff sought equitable and declaratory relief in this action in which plaintiff claimed that he was the inventor and owner of two medical devices for which defendants had filed applications for letters patent with the United States Patent and Trademark Office. On appeal, plaintiff raises two issues: (1) whether the State courts have jurisdiction to determine title to inventions and patent applications; and (2) whether a request for an order compelling defendants to inform the Patent and Trademark Office of the factual findings of the circuit court relating to inventorship constitutes a claim upon which relief may be granted.

According to plaintiff’s complaint, defendant Elias R. Zenkich was the sole owner of defendant Zenex Corporation and its related companies, Zenco Engineering Corporation and Medizenco, U.S.A., Ltd. Plaintiff, as an independent contractor, agreed to repair and service various medical equipment for which Medizenco was a distributor. Plaintiff was paid a commission for the work which he performed and from this commission he paid to Medizenco his rental and overhead expenses. Plaintiff later agreed to sell the products which Medizenco distributed. Subsequently, the operations of Medizenco were transferred to Zenex and plaintiff continued to sell, repair and service the equipment as he had done for Medizenco. Plaintiff claims that his sole agreement with Medizenco and Zenex involved the repair, maintenance and sale of the companies’ equipment and that plaintiff was not employed by the two companies for the purpose of making inventions or discoveries. Plaintiff claims that there was no agreement with either of the two companies concerning any inventions or discoveries which he might make.

During the time that he was providing repair and maintenance service for Zenex, plaintiff developed two inventions. The first involved an improved grounding pad for use during electrosurgical procedures (Bi-Pad) . Plaintiff’s second invention involved a system to permit defibrillation of a patient during physiological monitoring by using one pair of pre-applied and preconnected electrodes for both defibrillation and physiological monitoring (Bi-Pak 2). Plaintiff had prepared sketches and written descriptions for the two inventions and had assembled a model of the Bi-Pak 2. Plaintiff claims that he inquired whether defendant Zenkich was interested in either of plaintiff’s two inventions in exchange for appropriate remuneratiori. Zenkich and plaintiff refined the Bi-Pak 2 and assembled a model of the Bi-Pak. This work was performed at Zenex after regular working hours. Both of these devices subsequently were manufactured and sold by Zenex.

Plaintiff was requested by Zenkich to assist a patent attorney in the preparation of patent applications for both devices. Plaintiff alleged that he did not file patent applications in his name because he believed that the applications on which he assisted the attorney were being filed in his name. The devices had been on sale for more than one year at the time that plaintiff first learned that the patent applications had been filed in defendant’s name. Therefore, plaintiff was barred from filing applications for letters patent in his name pursuant to 35 U.S.C. sec. 102(b) (1976). Plaintiff subsequently requested Zenkich to file an affidavit with the Patent and Trademark Office to correct the name of the inventor on the applications. Zenkich refused and informed plaintiff that Zenkich believed himself to be the inventor of the two devices.

Plaintiff subsequently filed his complaint in the circuit court of Cook County seeking equitable and declaratory relief. Count I sought an order compelling Zenkich “to file appropriate documentation in the United States Patent and Trademark Office setting forth the facts regarding inventorship, as found by [the circuit court]” for the Bi-Pad device. Count II sought a similar order for the Bi-Pak 2 device. Count III sought a declaratory judgment that plaintiff was either the sole inventor or a joint inventor of the two devices and also sought a declaration as to plaintiff’s ownership rights in the two patent applications, the inventions and the patents which may issue. Count IV sought an order compelling Zenex and Zenkich to execute documentation necessary to vest in plaintiff the ownership rights to the inventions, patent applications and the patents which may issue. Defendants moved to dismiss the complaint for failure to state a claim upon which relief may be granted and for lack of subject matter jurisdiction pursuant to sections 45 and 48, respectively, of the Illinois Civil Practice Act. (Ill. Rev. Stat. 1979, ch. 110, pars. 45, 48.) The circuit court dismissed counts I and II pursuant to section 45, count III pursuant to sections 45 and 48 and count IV pursuant to section 48.

Plaintiff first argues that unless the circuit court exercises jurisdiction in this matter, he will be deprived of a forum to have his claim to the titles of the two inventions heard. Plaintiff contends that Federal courts do not have jurisdiction to hear cases in which title to inventions is at issue. (See Laning v. National Ribbon & Carbon Paper Manufacturing Co. (7th Cir. 1942), 125 F.2d 565; Lion Manufacturing Corp. v. Chicago Flexible Shaft Co. (7th Cir. 1939), 106 F.2d 930.) Plaintiff argues that in the instant case, the questions relating to Federal patent law are collateral issues and that jurisdiction exists in the State courts to hear this matter. (See Jones v. Ulrich (1950), 342 Ill. App. 16, 95 N.E.2d 113.) Plaintiff urges that at issue in this case is his common law right to make, use and sell his inventions and to exercise other rights accruing to him through ownership of the inventions and that these rights do not depend upon Federal patent law. (See Crown Die & Tool Co. v. Nye Tool & Machine Works (1923), 261 U.S. 24, 67 L. Ed. 516, 43 S. Ct. 254.) Plaintiff claims that it is State law which protects his common law rights to his inventions. See Aronson v. Quick Point Pencil Co. (1979), 440 U.S. 257, 59 L. Ed. 2d 296, 99 S. Ct. 1096; Kewanee Oil Co. v. Bicron Corp. (1974), 416 U.S. 470, 40 L. Ed. 2d 315, 94 S. Ct. 1879.

Defendants argue that at issue in this case is the validity of federally created interests in the applications for letters patent and that, therefore, this matter falls within the exclusive and original jurisdiction of Federal district court pursuant to 28 U.S.C. sec. 1338(a). Defendants urge that plaintiff’s pleading establishes that a “case,” rather than a “question,” involving Federal patent law exists and that the proper forum for plaintiff’s claim is the Federal district court. (See Pratt v. Paris Gaslight & Coke Co. (1897), 168 U.S. 255, 42 L. Ed. 458, 18 S. Ct.

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437 N.E.2d 675, 107 Ill. App. 3d 207, 221 U.S.P.Q. (BNA) 78, 63 Ill. Dec. 26, 1982 Ill. App. LEXIS 1975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heath-v-zenkich-illappct-1982.