Hooks v. Dowless

111 F. Supp. 812, 97 U.S.P.Q. (BNA) 530, 1953 U.S. Dist. LEXIS 3034
CourtDistrict Court, E.D. South Carolina
DecidedApril 17, 1953
DocketNos. 475 and 477
StatusPublished

This text of 111 F. Supp. 812 (Hooks v. Dowless) is published on Counsel Stack Legal Research, covering District Court, E.D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hooks v. Dowless, 111 F. Supp. 812, 97 U.S.P.Q. (BNA) 530, 1953 U.S. Dist. LEXIS 3034 (southcarolinaed 1953).

Opinion

GILLIAM, District Judge.

These cases arose under the patent laws of the United States, and, having the same subject matter, were consolidated for trial.

’Charlie J. Hooks, as plaintiff, seeks a mandatory injunction to force the defendants to abide by the terms of a certain cross-licensing agreement. W. B. Dowless and others, as plaintiffs, seek to enjoin Hooks from further infringement on patents granted to Dowless.

On November 26, 1940, Dowless was granted U. S. Patent No. 2,223,301 for “Improvement in Tobacco" Drying and Curing Means”. On July 6, 1948, he was granted U. S. Patent No-. 2,444,814 for an additional improvement in drying and curing means, this patent having been applied for November 19, 1945.

By separate agreements dated November 1, 1947 and November 13, 1950, Dow-less assigned to E. D. Lennon and A. A. Price the sole and exclusive right to make, use and vend a curer bearing the trade mark “Dowless Tobacco Curer”, together with complete title and interest in and to the two patents above named and such amendments and improvements as Dowless may secure for the same.

On August 5, 1947, Hooks filed patent application serial No. 766,407 for improvement in heating burner for curing tobacco. This application, consisting of six claims, was rejected in full by the patent examiner in a communication bearing date May 5, 1948. On September 22, 1948, Hooks, through -his attorneys, filed an application amendment cancelling the initial six claims and adding five new claims. The amended application was rejected in full by a communication bearing date May 19, 1949. The five additional claims were rejected as' fully met in Dowless patent 2,444,814 and another. The Hooks application was [814]*814directed to a two-piece heating chamber, a one-piece burner and a downdraft tube equipped with a spacer bar.

From the certified copy of the records of the U. S. Patent Office regarding the File Wrapper and Contents of the application by Hooks, it appears that no further amendment was offered subsequent to the rejection of May 19, 1949; and the application was considered abandoned.

, In the summer of 1949, Lennon and Price observed the tobacco curer then being manufactured and marketed by Hooks, that curer consisting of a two-piece heating chamber, a one-piece burner and a downdraft tube equipped with a spacer bar, all according bo Hooks’ application 766,407. Lennon and Price called on Hooks regarding the one-piece burner and the downdraft tube, and asked Hooks to sign a prepared paper stating in effect that Hooks would cease to- infringe on the Dowless patent rights. Hooks stated that he had a patent coming through on his two-piece heating chamber, that Lennon and Price were using a similar two-piece heating chamber for which Dowless had not acquired a patent 'and, therefore, he would not sign the paper.

Thereafter, in the summer of 1949, Hooks called on Lennon and Price, seeking to make a trade of the use of the two-piece heating chamber in return for the use of the downdraft tube with the spacer bar. Hooks then said that he had a two-piece burner nozzle that he had made that was entirely different from the one-piece burner patented by Dowless. At this second meeting, Hooks presented a paper, presumably a cross-licensing agreement; but Lennon and Price refused to sign because the paper was too vague.

Finally, Hooks, Lennon, Price and Dow-less executed a cross-licensing agreement presented by Hooks bearing date November 5, 1949, that agreement being the subject of the present suit brought by Hooks wherein he seeks to force compliance therewith by means of a mandatory injunction. The essential parts of that agreement are as follows: “And whereas the parties of the second part (Dowless and others) claim that the tobacco curer invented and manufactured by Charlie J. Hooks has the spacer bar and burner as used in the Dowless Tobacco Curer, and that there is a possibility that it is an infringement on the patent rights of W. B. Dowless; and whereas, Charlie J. Hooks claims that the Dowless Tobacco Curer as now manufactured has a two-piece heating chamber which the said Charlie J. Hooks claims is an infringement on his patent rights; Now, Therefore, in consideration of the premises and other valuable considerations, the parties of the second part agree to permit and allow the said Charlie J. Hooks to continue to construct and manufacture his tobacco curer with the same spacer bar and burner as now used and being a two-piece burner, and the said Charlie J. Hooks hereby releases and grants unto the parties of the second part the rights and privileges to use what is known as the two-piece heating chamber.”

This agreement was entered into at a time when Hooks was in receipt of a letter from his patent attorneys, dated September 29, 1949, and reading as follows: “With regard to the above pending application (No. 766,407), please -be advised that the Examiner in the Patent Office has- rendered an official action, wherein the claims in the application were rejected as unpatentable over patent 2,444,814. This patent was discussed with Mr. Hooks during his last visit to our office, at which time we informed him that his burner structure constitutes an infringement of the claims of the patent. Furthermore, the disclosure in the patent does definitely anticipate any novelty in Mr. Hooks’ burner structure. Therefore, it will be futile to continue the further prosecution of the above application and we suggest that the same be abandoned by Mr. Hooks. Accordingly, we enclose herewith a formal Notice of Abandonment and it will be appreciated if Mr. Hooks will execute the same and return it to us for filing in the Patent Office.”

Further, on the day of November 5, 1949, but prior to the execution of the agreement, Hooks, in the presence of Lennon and in response to a question as to what he had to trade, answered, in effect, that he was forbearing to prevent the infringement of [815]*815his rights with regard to the combustion chamber then in use in the Dowless curer. Hooks stated that he had been notified that his patent was coming through shortly.

On these facts it is clear that Hooks is not entitled to performance of the cross-licensing agreement. On the other hand, the Court is satisfied that Dowiess, Lennon and Price are entitled to rescission of the agreement because it was induced by fraud, as contended in their answer. There is present a representation untrue in fact, and knowledge of the falsity on the part of the speaker; and the Court is of the opinion that the repre~entation was made with intent that it should be acted upon, and that it was in fact acted upon with resulting damage. In view of Hooks' knowledge of the contents of the letter of September 29, 1949, it is inconceivable that he believed his patent pending on the two-piece heating chamber gave him a protected right and interest in that structure. it is inconceivable that he should believe his patent was coming through shortly; for there is no admissible evidence before the Court tending to support such a belief.

Rescission of the cross-licensing agreement is opposed by Hooks on the ground that too much time elapsed prior to disaflirming the agreement and therefore whatever rights may have accrued by virtue of misrepresentations are lost by failure to act. That position is not supported by the evidence and is untenable. Lennon did not observe the date of the letter of September 29, with regard to the date of the cross-licensing agreement, until November, 1951; and the agreement was disaffirmed by public notice on January 14, 1952.

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Bluebook (online)
111 F. Supp. 812, 97 U.S.P.Q. (BNA) 530, 1953 U.S. Dist. LEXIS 3034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hooks-v-dowless-southcarolinaed-1953.