Indiana General Corp. v. Krystinel Corp.

421 F.2d 1023
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 14, 1970
DocketNos. 116, 117, Dockets 33486, 33535
StatusPublished
Cited by30 cases

This text of 421 F.2d 1023 (Indiana General Corp. v. Krystinel Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana General Corp. v. Krystinel Corp., 421 F.2d 1023 (2d Cir. 1970).

Opinion

MEDINA, Circuit Judge:

The issue involved in this case is the validity of United States Patent No. 3,-036,009, issued to Georg Zerbes for the invention of a five-oxide component soft ferrite manifesting a high Q-factor at high frequencies and assigned by him to Indiana General Corporation, plaintiff-appellant. The court below, Judge Ten-ney sitting without a jury, held the patent invalid. Opinion reported at 297 F. Supp. 427 (S.D.N.Y.1969). Judge Ten-ney concluded that the patent was invalid under 35 U.S.C. Section 112 in that it included overly broad statements and misrepresented the scope of the inventive advance; under 35 U.S.C. Section 102 because of commercial use for more than one year before August 11, 1958, the filing date of the continuation-in-part application which eventually became the patent in suit; under 35 U.S.C. Section 112 for claiming a utility not supported by the specification and known by Zerbes at the time the first application for a patent was filed in the United States on November 9, 1954; and under 35 U.S.C. Section 103 for obviousness in view of the state of the art as it existed prior to November 27, 1953, the date on which the original application for a patent was filed in West Germany. Judge Tenney also held that Krystinel Corporation’s accused products K-401-1, K-411, and K-502 were non-infringing. However, he concluded that Krystinel’s K-401, discontinued on November 1, 1963, would have infringed the patent if the patent were held to be valid. He also concluded that Indiana General, its corporate predecessor General Ceramics Corporation, and Zerbes did not engage in fraud before the Patent Office although their concealment of certain facts rendered their conduct less than candid, and that the ease was not “exceptional” within the meaning of 35 U.S.C. Section 285 to warrant the awarding of attorneys’ fees to Krystinel. Although, in affirming the judgment below we conclude that Judge Tenney’s findings of fact are not “clearly erroneous” and that his conclusions of law are correct, we find it necessary to discuss only the issue of obviousness.

I.

Discussion of Relevant Technical Terms

The invention to which the patent in suit relates is a soft ferrite which allegedly has a high Q-factor in high frequen[1025]*1025cy communication applications.1 In order to understand the interaction of the patent in suit with the prior art, it is essential that the characteristics of soft ferrites and their relevant magnetic properties be explained.

A ferrite is a chemical composition containing iron (ferric) oxide and other metallic oxides which is magnetic although not metallic. “Soft” ferrites are temporary magnets; they become magnetized when an electric current or radio waves pass through them and lose most of their magnetism when such passage ceases. “Hard” ferrites are permanent magnets.

The ferrites here involved have an “inverse spinel” structure. Their formula is MO • Fe203, where M represents any divalent metallic ion. A divalent metallic ion is one in which two electrons have been given up to form a neutral compound. Examples of such ions are cobalt (Co2+), manganese (Mn2+), zinc (Zn2+), and nickel (Ni2+). Each of these ions displays different magnetic properties.

The inverse spinel structure is cubic and crystalline, and the geometrical arrangement of the iron and divalent metallic ions and the oxygen ions within the crystal is responsible for the various [1026]*1026magnetic properties of the substance. Generally some of the iron ions form a cube within which other iron ions, the ions of the divalent metals, and oxygen ions are arranged. Within the cubic structure, oxygen ions are closely packed together; and the iron ions, obtained from ferric oxide, and the divalent metallic ions are situated at interstices of lattices formed by the oxygen ions. There are two types of interstices, called A sites and B sites. An inverse spinel ferrite contains twice the number of B sites as A sites. In such a ferrite the iron ions occupy all the A sites and one-half the B sites. Consequently, the number of iron ions occupying the A sites is equal to the number occupying the B sites.

The interactions between the metallic ions of the A and B sites are very numerous, so much so that all other ionic interactions are relatively unimportant. Because the iron ions are arranged in opposite alignments on the A sites and the B sites, they cancel each other out. As a result, the magnetic properties of an inverse spinel ferrite are largely determined by the magnetic properties of the divalent metallic ions — i. e., cobalt, manganese, zinc, nickel, magnesium, vanadium, and copper ions — occupying the remainder of the B sites.

These data are the A B Cs of the art. Those skilled in the art are physicists, chemists and chemical engineers such as most of those who testified at the trial. In due course we shall discuss the investigations of the practitioners of this art and the nature of the progress made in the development of the art that constitute the background against which the issue of obviousness must be adjudicated.

The importance of soft ferrites in high frequency communication applications is derived from their high resistivity.2 The reason is that this property causes the material to be more efficient by having low eddy-current losses. The result is that less power is wasted, and the time lag in the operation of a given electrical device is decreased. Also important is the existence of high permeability and high quality factor. Permeability, symbolized by the Greek letter Mu (g), is a measure of the ability of a given material to concentrate magnetic lines of force. It is the ratio of the flux (lines-of-force) density of the material in a given magnetic field compared with the flux density of air in the same field. Because radio and other electromagnetic waves have a magnetic component as well as an electric component, permeability can also measure the ability of a substance to concentrate such waves. Quality factor (the “Q-factor”) is the inverse of loss factor, which is the amount of energy dissipated when magnetic lines of force or electromagnetic waves pass through it. Thus, a high quality factor indicates a material which loses relatively small amounts of energy. A ferrite with high permeability and high quality factor at high frequencies is efficient and well suited to use as a radio antenna.

II.

The Development of the Patent in Suit

As the ensuing discussion will make all too apparent, the patent in suit had a rough voyage through the Patent Office and was finally issued only after the Commissioner had overruled the Examiner, who had protested again and again that the combination of elements whose properties were already well known and described in the prior art should not override the claim of obviousness.

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