Hussey v. Whitely

12 F. Cas. 1067, 2 Fish. Pat. Cas. 120
U.S. Circuit Court for the District of Southern Ohio·Decided December 15, 1860·Published·Cited by 2 cases

Opinion

LEAVITT, District Judge.

A motion has been made and fully argued by counsel on both sides,-for the dissolution of the injunction granted by Judge McLean, in July last. The grounds stated in the written motion on file, are in substance, that the order for the injunction was improvidently made, contrary to the evidence in the case, and that the improvements patented to Hussey were known and in public use prior to the date of his invention. Before referring to the grounds upon which the present motion is urged, it will be necessary to notice another, set forth in the answer, and insisted on in the argument by the counsel for the defendants, but not included in the written reasons on file. In their answer they aver that Hussey, on February 5, 1852, by a written instrument, assigned to Minturn, Allen & Co. all his right and interest, under his original patent of 1847, in twenty-three counties in the state of Ohio, including the county of Clark, and that if said patent and the reissued patents are valid, and have been infringed by the defendants, a suit for such infringement can only be maintained by Minturn, Allen & Co., and that Hussey, therefore, in his lifetime had, and his representatives since his death have, no right of action for such infringement. If the legal effect of the contract referred to is as claimed by the defendants’ counsel, it is clear that the motion to dissolve the injunction must prevail. It is, therefore, necessary to look into the contract to determine the question. The written instrument referred to in the answer is made an exhibit by the defendants, but was not before Judge McLean when the application for injunction was made, and the question now presented was not brought to his notice. By this agreement or contract, Hussey granted to Minturn. Allen & Co. the exclusive right to make and sell his improve-ed reaping and mowing machine, during the continuance of his patent, within the county of Clark, and a number of other counties in the state of Ohio, and they were to pay ten dollars for each machine made and sold by them. Hussey expressly reserved the right of sending machines of his own manufacture into the territory embraced in the contract. The inquiry arises, whether this contract imports such a transfer of Hussey’s interest in this patent as to preclude him from a [1069] remedy in chancery for infringement in making and vending the patented machine ■within any counties included in the grant to Mintum, Allen & Oo. And it would seem that section 17 of the act of July 4, 1836, viewed in connection with the contract, furnishes a satisfactory solution of the inquiry. That section, after declaring that the circuit courts of the United States (or district courts having circuit court powers) shall have jurisdiction of all suits and controversies arising under the patent laws of the United States, proceeds as follows: “Which court shall have power, upon a bill in equity filed by any party aggrieved, in any such case, to grant injunctions according to the course and principles of courts of equity, to prevent the violation of the rights of any inventor, as secured to him by any laws of the United States, on such terms and conditions as said courts may d.eem reasonable.”

The sole question is whether Hussey can be viewed as a “party aggrieved” within the meaning of the provision just quoted. And of this there does not seem to be any reason for doubt, if it be conceded that there has been an infringement as alleged in the complainant’s bill. The contract between Hussey and Mintum, Allen & Oo., is not and does not purport to be an assignment of Hussey’s interest in the patent within the territory named. It is <& mere grant of the right to make and sell the patented machine within those limits in consideration of the payment of Hussey of ten dollars foreachma-ehine made and sold, reserving to Hussey’an unlimited right to send into that territory and vend machines manufactured by himself. Under this contract, Mintum, Allen & Co. are mere licensees of Hussey, incurring no obligation except the payment of the stipulated price of each machine they may construct and vend. Hussey's interest in his patent remained in full force, within the counties included in the grant to Mintum, Allen & Co., subject to their right to make and sell under the contract; and his profit was wholly dependent on the number of machines made and sold by his licensees. And that profit would be reduced in proportion to the number of machines made and sold by othérs in violation of his right under his patent. Moreover, the right reserved by Hussey to send machines for sale within the territory named, would be of no value to him unless he was protected from unlawful infringement, as every machine made and sold within the district by an infringer would have a direct effect in depriving him of the profit he would otherwise derive from sales made within it. He must be viewed as a “party aggrieved,” in the words of the statute, and has heretofore an undoubted right to proceed in equity, for the protection of his rights.

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Hussey v. Whitely, 12 F. Cas. 1067, 2 Fish. Pat. Cas. 120 (circtsdoh 1860).

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