In Re Yarn Processing Pat. Validity Lit.

472 F. Supp. 170
CourtDistrict Court, S.D. Florida
DecidedApril 20, 1979
DocketMDL No. 82
StatusPublished

This text of 472 F. Supp. 170 (In Re Yarn Processing Pat. Validity Lit.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Yarn Processing Pat. Validity Lit., 472 F. Supp. 170 (S.D. Fla. 1979).

Opinion

472 F.Supp. 170 (1979)

In re YARN PROCESSING PATENT VALIDITY LITIGATION.

MDL No. 82.

United States District Court, S. D. Florida.

March 6, 1979.
As Amended April 20, 1979.

James L. Armstrong, III and Hugh J. Turner, Jr., Smathers & Thompson, Miami, Fla., for Lex Tex, Ltd., Inc.

William K. West, Jr., Cushman, Darby & Cushman, Washington, D.C., for Burlington Industries.

Dale H. Hoscheit, Schuyler, Birch, Swindler, McKie & Beckett, Washington, D.C., for Monsanto of North Carolina, Inc.

Wallace D. Newcomb, Philadelphia, Pa., for Collins & Aikman.

David Rabin, Greensboro, N.C., for Dow-Badische Co., National Spinning Co., Collins & Aikman and Glen Raven Mills, Inc.

*171 David Klingsberg and David F. Ryan, Kaye, Scholer, Fierman, Hays & Handler, New York City, for National Spinning Co., Dow-Badische Co. and Hoechst Fiber Industries.

Daniel A. Kavanaugh, Miami, Fla., for ARCT and Barmag.

MEMORANDUM OPINION AND ORDER DENYING LEX TEX'S DEMAND FOR A JURY TRIAL

ATKINS, Chief Judge.

These cases were joined with several others that were transferred pursuant to 28 U.S.C. § 1407.[1] The current infringement actions were brought by Lex Tex following a ruling by the Fifth Circuit Court of Appeals that Lex Tex's patents have been misused and are thus unenforceable; In re Yarn Processing Patent Validity Litigation, 398 F.Supp. 31 (S.D.Fla.1975), aff'd 541 F.2d 1127 (5th Cir. 1976), cert. denied, 433 U.S. 910, 97 S.Ct. 2976, 53 L.Ed.2d 1094 (1977). The complaints filed by Lex Tex against the Throwsters seek damages for "periods of time with respect to which the plaintiff's claim is not subject to defenses arising out of patent misuse." Lex Tex argues that it has purged the previously adjudicated misuse of its patents.

On October 4, 1978, the Court, pursuant to Rule 42(b) of the Federal Rules of Civil Procedure, ordered a separate trial on the issue of purge, since "it would be conducive to expedition and economy and in furtherance of convenience." Several Throwsters then filed declaratory judgment actions against Lex Tex alleging the misuse has not been purged. These actions were consolidated with the transferred cases. The issue presently before this Court is whether Lex Tex's claim that it has purged the misuse of its patents 3,077,724, 3,091,912 and 3,472,011 is triable by right to a jury. In the present actions, Lex Tex has demanded trial by jury pursuant to Rule 38(b) of the Federal Rules of Civil Procedure. The Throwsters have moved to strike the jury trial demand.

I.

It has long been the view of all courts that a viable defense in a patent infringement action is that of patent misuse. Patent misuse is an extension of the equitable doctrine of "unclean hands." United States Gypsum Co. v. National Gypsum Co., 352 U.S. 457, 465, 77 S.Ct. 490, 1 L.Ed.2d 465 (1957); W. L. Gore & Associates, Inc. v. Carlisle, 529 F.2d 614, 622 (3rd Cir. 1976); Ansul Co. v. Uniroyal, Inc., 306 F.Supp. 541, 563 (S.D.N.Y.), mod. & aff'd, 448 F.2d 872 (2d Cir.); cert. denied, 404 U.S. 1018, 92 S.Ct. 680, 30 L.Ed.2d 666 (1971); Inland Products Co. v. MPH Manufacturing Corp., 25 F.R.D. 238, 247 (N.D.Ill.1959). The equitable defense of "unclean hands" applies:

"whenever a party, who as actor, seeks to set the judicial machinery in motion and obtain some remedy, has violated conscience, good faith, or other equitable principal, in his prior conduct, then the doors of the court will be shut against him in limine; the court will refuse to interfere on his behalf, to acknowledge his right, or to award him any remedy." 2 Pomeroy's Equity Jurisprudence § 398 (1941).

The traditional concept of equity jurisdiction required a showing of wrongful intent or willful misconduct to establish "unclean hands." Ansul Co. v. Uniroyal, Inc., 306 F.Supp. 541, 563 (S.D.N.Y.1969), aff'd & mod., 448 F.2d 872 (2d Cir.), cert. denied, 404 U.S. 1018, 92 S.Ct. 680, 30 L.Ed.2d 666 (1971). In the patent field, the doctrine has been used in a variety of situations ranging from cases that involved licensing agreements that amounted to tying arrangements, to price fixing or other restrictions on resale:

". . . in whatever posture the issue may be tendered courts of equity will *172 withhold relief where the patentee and those claiming under him are using the patent privilege contrary to the public interest." Mercoid Corp. v. Mid-Continent Inv. Co., 320 U.S. 661, 669, 64 S.Ct. 268, 273, 88 L.Ed. 376 (1944), citing Morton Salt v. G. S. Suppiger Co., 314 U.S. 488, 492, 62 S.Ct. 402, 86 L.Ed. 363 (1942).

Since the defense of misuse is equitable in nature, and based on a strong public policy against allowing one who wrongfully uses a patent to enforce it during the misuse, the remedy of purge has developed, requiring that there be a showing that a dissipation or purge of the effects of the misuse has occurred, before the patentee may enforce his patent. United States Gypsum Co. v. National Gypsum Co., 352 U.S. 457, 465, 77 S.Ct. 490, 1 L.Ed.2d 465 (1957). The burden is on the patentee to show the misuse has ceased and its effect dissipated. B. B. Chemical Co. v. Ellis, 314 U.S. 495, 498, 62 S.Ct. 406, 86 L.Ed. 367 (1942); Preformed Line Products Co. v. Fanner Mfg. Co., 328 F.2d 265, 279 (6th Cir.), cert. denied, 379 U.S. 846, 85 S.Ct. 56, 13 L.Ed.2d 51 (1964); Ansul Co. v. Uniroyal, Inc., 306 F.Supp. 541, 560 (S.D.N.Y.1969), mod. & aff'd 448 F.2d 872 (2d Cir.), cert. denied, 404 U.S. 1018, 92 S.Ct. 680, 30 L.Ed.2d 666 (1971).

In Morton Salt v. G. S. Suppiger Co., 314 U.S. 488, 493, 62 S.Ct. 402, 405, 86 L.Ed. 363 (1942), the Supreme Court hinted that like misuse, purge is solely equitable in nature. The High Court stated that an equity court should continue to withhold assistance in a patent misuse case "at least until it is made to appear that the improper practice has been abandoned and the consequences of the misuse of the patent have been dissipated." In a companion case decided the same day, B. B. Chemical Co. v. Ellis, 314 U.S. 495, 62 S.Ct. 406, 86 L.Ed.

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

Related

Morton Salt Co. v. G. S. Suppiger Co.
314 U.S. 488 (Supreme Court, 1942)
B. B. Chemical Co. v. Ellis
314 U.S. 495 (Supreme Court, 1942)
Mercoid Corp. v. Mid-Continent Investment Co.
320 U.S. 661 (Supreme Court, 1944)
International Salt Co. v. United States
332 U.S. 392 (Supreme Court, 1947)
United States Gypsum Co. v. National Gypsum Co.
352 U.S. 457 (Supreme Court, 1957)
Beacon Theatres, Inc. v. Westover
359 U.S. 500 (Supreme Court, 1959)
Dairy Queen, Inc. v. Wood
369 U.S. 469 (Supreme Court, 1962)
Katchen v. Landy
382 U.S. 323 (Supreme Court, 1966)
Parklane Hosiery Co. v. Shore
439 U.S. 322 (Supreme Court, 1979)
Gray Tool Co. v. Humble Oil & Refining Co.
186 F.2d 365 (Fifth Circuit, 1951)
Eastern Venetian Blind Co. v. Acme Steel Co.
188 F.2d 247 (Fourth Circuit, 1951)
Hensley Equipment Company, Inc. v. Esco Corporation
383 F.2d 252 (Fifth Circuit, 1967)
The Ansul Company v. Uniroyal, Inc.
448 F.2d 872 (Second Circuit, 1971)
In Re Yarn Processing Patent Validity Litigation
341 F. Supp. 376 (Judicial Panel on Multidistrict Litigation, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
472 F. Supp. 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-yarn-processing-pat-validity-lit-flsd-1979.