In re the Investigation of Alleged Unfair Methods of Competition & Unfair Acts

16 Ct. Cust. 191
CourtCourt of Customs and Patent Appeals
DecidedMay 25, 1928
DocketNo. 3009
StatusPublished
Cited by1 cases

This text of 16 Ct. Cust. 191 (In re the Investigation of Alleged Unfair Methods of Competition & Unfair Acts) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Investigation of Alleged Unfair Methods of Competition & Unfair Acts, 16 Ct. Cust. 191 (ccpa 1928).

Opinions

Bland, Judge,

delivered the opinion of the court:

In the above entitled matter the Bakelite Corporation et al., styling themselves “Appellees,” moved for an order dismissing the above entitled appeal upon the ground that the court has no jurisdiction to entertain the same.

On the 16th day of December, 1925, the Bakelite Corporation, having its principal place of business in the city of New York, and certain of its subsidiaries and consumers filed a complaint with the [193]*193United States Tariff Commission, complaining of certain unfair methods of competition and unfair acts tending to injure their business of manufacturing and selling articles composed of synthetic phenolic resin, to which had been given the name “Bakelite” after the name of its alleged inventor, Dr. Leo Bakeland. The complaint proceeded upon the theory that the faceted beads and other articles made of synthetic phenolic resin imported were being imported in violation of certain patent rights possessed by the Bakelite Corporation. The complaint was made pursuant tó the provisions of section 316, subdivision (b) of the Tariff Act of September 21, 1922.

The tariff commission thereupon made a report to the President that it had investigated the complaint, and made and submitted findings to the effect that there was prima’ facie reason to believe that section 316 of the tariff act in question Was . being violated, and recommended that the Treasury Department forbid the entry of such articles until such investigation as the President might deem necessary might be completed, and recommended that the President request the Secretary of the Treasury to forbid such entry. Acting upon such report, the President did direct the Secretary of the Treasury to issue an embargo against the commodity.

The commission thereupon published a notice directing that all persons interested in the proceedings show cause why-the prayer for relief sought in the complaint should not be granted.

Frischer & Co. (Inc.) et al., the respondents, known as appellants in this action, appeared and filed a verified answer denying the complaint, setting up that the Bakelite Corporation did not operate the business efficiently or economically; that the patents upon which they relied were invalid; that there was no infringement of the patents; that the violation of a patent law was not an unfair method of competition, and other claims.

The Bakelite Corporation appeared before the commission by counsel and lengthy hearings were had, and on the 25th day of May, 1927, the commission made its findings and recommendations, in which it expressly found that the provisions of the statute were broad enough to invest it with jurisdiction to declare that the infringement of the patent rights was an unfair method within the meaning of the statute. Certain other findings and recommendations were made, not material here.

From these findings and recommendations an appeal was taken to this court under subdivision (c) of section 316, sufra, upon 35 assignments of error.

Frischer & Co. (Inc.) et ah, at the time of the argument of the motion to dismiss, made what they style a cross-motion to strike out the appearance of Barnes, McKenna & Halstead, as attorneys for the [194]*194Bakelite Corporation/on the ground that the same is unauthorized by statute, which latter motion the court now overrules.

Before setting out the reasons assigned by the Bakelite Corporation et al. why this court was without jurisdiction to hear the appeal, we deem it proper to set out in full the parts of the Tariff Act of 1922 under which the actions of the tariff commission and the appeal to-this court were taken:

Sec. 316. (a) That unfair methods of competition and unfair acts in the-importation of articles'into the United States, or in their sale by the owner, importer, consignee, or agent of either, the effect or tendency of which is to-destroy or substantially injure an industry, efficiently and economically operated,, in the United States, or to prevent the establishment of such an industry, or to-restrain or monopolize trade and commerce in the United States, are hereby declared unlawful, and when found by the President to exist shall be dealt with, in addition to any other provisions of law, as hereinafter provided.
(b) That to assist the President in making any decisions under this section the United States Tariff Commission is hereby authorized to investigate any alleged violation hereof on complaint under oath or upon its initiative.
(c) That the commission shall make such investigation under and in accordance with such rules as it may promulgate and give such notice and afford such hearing, and when deemed proper by the commission such rehearing with opportunity to offer evidence, oral or -written, as it may deem sufficient for a full presentation of the facts involved in such investigation; that the testimony in every such investigation shall be reduced to writing, and a transcript thereof with the findings and recommendations of the commission shall be the official record of the proceedings and findings in the case, and in any ease where the-findings in such investigation show a violation of this section, a copy of the findings shall be promptly mailed or delivered to the importer or consignee of such articles; that such findings, if supported by evidence, shall be conclusive except that a rehearing may be granted by the commission, and except that,, within such time after said findings are made and in such manner as appeals may be taken from decisions of the United States Board of General Appraisers, an appeal may be taken from said findings upon a question or questions of law only to the United States Court of Customs Appeals by the importer or consignee of such articles; that if it shall be shown to the satisfaction of said court that further evidence should be taken, and that .there were reasonable grounds for the failure to adduce such evidence in the proceedings before the commission, said court may order such additional evidence to be taken before the commission in such manner and upon such terms and conditions as to the court may seem proper; that the commission may modify its findings as to the facts or make new findings by reason of additional evidence, which, if supported by the evidence, shall be conclusive as to the facts except that within such time and in such manner an appeal may be taken as aforesaid upon a question or questions of law only; that the judgment of said court shall be final, except that the same shall be subject to review by the United States Supreme Court upon-certiorari applied for within three months after such -judgment of the United States Court of Customs Appeals.
(d) That the final findings of the commission shall be transmitted with the record to the President.
(e) That whenever the existence of any such unfair method or act shall be-established to the satisfaction of the President he shall determine the rate of additional duty, not exceeding 50 nor less than 10 per centum of the value of [195]

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Related

Ex Parte Bakelite Corp'n.
279 U.S. 438 (Supreme Court, 1929)

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16 Ct. Cust. 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-investigation-of-alleged-unfair-methods-of-competition-unfair-ccpa-1928.