Interconnect Planning Corp. v. Feil

543 F. Supp. 610, 215 U.S.P.Q. (BNA) 734, 1982 U.S. Dist. LEXIS 12769
CourtDistrict Court, S.D. New York
DecidedJune 2, 1982
Docket80 Civ. 6602 (KTD)
StatusPublished
Cited by8 cases

This text of 543 F. Supp. 610 (Interconnect Planning Corp. v. Feil) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interconnect Planning Corp. v. Feil, 543 F. Supp. 610, 215 U.S.P.Q. (BNA) 734, 1982 U.S. Dist. LEXIS 12769 (S.D.N.Y. 1982).

Opinion

MEMORANDUM & ORDER

KEVIN THOMAS DUFFY, District Judge:

In this action alleging patent infringement, defendants have moved for summary judgment. 1 Plaintiff Interconnect Planning Corporation (“IPC”), a New York corporation which manufactures various telephone equipment, contends that defendants Thomas E. Feil (“Feil”), Robert O. Carpenter, V Band Systems, Inc. (“V Band”) and Turret Equipment Corp. have infringed plaintiff’s patent for an electronic multiline telephone system. Defendants argue on the instant summary judgment motion that the plaintiff’s patent covered subject matter that was fully anticipated by the prior art at the time of the alleged invention, and that the patented subject matter would have been obvious at the time of the invention to one skilled in the relevant art. A review of the available record leaves no doubt that plaintiff’s patented system as a whole was obvious at the time of its invention, and accordingly defendants’ motion is granted.

BACKGROUND

Certain facts are undisputed. Beginning shortly after IPC’s founding in 1974, defendant Feil served as vice-president and director of the telephone equipment concern. Feil also held the title of Director of Engineering of IPC. During his tenure at IPC, Feil designed a trader turret system. Briefly, this system consists of large telephones each with as many as one hundred and sixty keys that represent separate telephone lines. The user of the telephone can use any one of the telephone lines simply by pressing any one of the keys. This trader turret system will be described more fully later in my analysis of the parties’ contentions.

In December, 1974, Feil applied for a patent covering his trader turret. While the patent was pending, in October, 1975, Feil assigned his patent application over to IPC. In return, Feil received 31 shares of plaintiff’s stock plus an employment contract. 2 In November, 1976, Feil’s invention was patented under U.S. Patent No. 3,991,-282 (“the ’282 patent”).

At the time the patent was granted, none of the parties, including Feil, were aware of any prior art which disclosed the invention. After the patent was issued, however, Feil learned of two items which allegedly disclosed the invention in the ’282 patent. These items were two Bell Laboratories Record articles: “Voice Communication *612 System For Air Traffic Control,” by M. E. Ozenberger, Bell Laboratories Record, May 1961, pages 154-60 (the “Ozenberger Article”), and “A New Switching System For Right-of-Way Companies”, Bell Laboratories Record, April, 1968, pages 117-20 (the “Keith Article”.) It is uncontroverted that these two articles were not considered by the patent examiner during the prosecution of the patent in suit. IPC has recently filed an application for reissue of the ’282 patent citing only the Ozenberger Article as material overlooked by the examiner. No decision on this application has yet been made.

In February, 1980, Feil left IPC and joined V Band, a company established to manufacture and market trader turret equipment. Mr. Feil is presently chief executive officer and one-half owner of V Band. Evidently, Feil formed V Band in 1977 while working at IPC. The V Band product is similar to that produced by IPC under the ’282 patent.

The instant action was commenced in November, 1980 against Feil, V Band, Robert O. Carpenter, an officer of V Band, and Turret Equipment Corp., a subsidiary of V Band, and originally asserted one count for patent infringement and another for unfair competition. Upon commencing this action, IPC moved for a preliminary injunction. Feil and V Band subsequently asserted counterclaims against IPC alleging various antitrust violations by plaintiff, including misuse of its ’282 patent.

On December 3 and 4, 1980, a hearing on plaintiff’s motion for injunctive relief was held. At the conclusion of those hearings, I denied the motion for a preliminary injunction and granted a motion by defendants for summary judgment on plaintiff’s unfair competition claim.

Defendants now move for summary judgment on plaintiff’s remaining claim for patent infringement. The basis for this motion is that the ’282 patent was improvidently awarded because its purported novelties were obvious to persons possessing ordinary skills in the area of telephone trader turrets.

DISCUSSION

Federal patent law provides generally that a person shall be entitled to a patent unless the invention is already known or patented. See 35 U.S.C. § 102. 3 The patent laws further provide that a

patent may not be obtained though the invention is not identically disclosed or described ... if the differences between the subject matter sought to be patented and the prior art are such that the subject matter as a whole would have been obvious at the time the invention was made to a person having ordinary skill in the art to which said subject matter pertains.

35 U.S.C. § 103. Obviousness under Section 103 is shown by reviewing the scope *613 and content of the prior art, comparing the claims against the prior art, and by determining the level of ordinary skill in the art at the time of the invention. Graham v. John Deere Co., 383 U.S. 1, 86 S.Ct. 684, 15 L.Ed.2d 545 (1966).

Defendants urge that the patented subject matter was known and published prior to the time of the alleged invention and was therefore not novel within the meaning of Section 102. In addition, it is submitted by defendants that the plaintiff’s patent was obvious within the meaning of Section 103. Analysis of the validity of a patent under these two sections parallel each other closely. As a result, because I find that the ’282 patent is obvious, there will be no need to touch upon Section 102 in this decision.

A. Inventor Estoppel

Before addressing the merits of defendants’ motion, it is necessary to discuss plaintiff’s argument that Feil is estopped from seeking to invalidate a patent which he applied for and then later assigned. Plaintiff argues that Feil received a handsome payment for assigning his ’282 patent and should not now be permitted to disparage the invention in order to gain further profit.

The plaintiff’s position relies upon the Supreme Court’s decision in Westinghouse Electric & Mfg. Co. v. Formica Insulation Co., 266 U.S. 342, 45 S.Ct. 117, 69 L.Ed. 316 (1924), wherein the Court declared:

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543 F. Supp. 610, 215 U.S.P.Q. (BNA) 734, 1982 U.S. Dist. LEXIS 12769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interconnect-planning-corp-v-feil-nysd-1982.