Interstate Rubber Products Corp. v. Radiator Specialty Co.

114 F. Supp. 120, 99 U.S.P.Q. (BNA) 206, 1953 U.S. Dist. LEXIS 3926
CourtDistrict Court, W.D. North Carolina
DecidedAugust 7, 1953
DocketCiv. No. 860
StatusPublished
Cited by2 cases

This text of 114 F. Supp. 120 (Interstate Rubber Products Corp. v. Radiator Specialty Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Rubber Products Corp. v. Radiator Specialty Co., 114 F. Supp. 120, 99 U.S.P.Q. (BNA) 206, 1953 U.S. Dist. LEXIS 3926 (W.D.N.C. 1953).

Opinion

WARLICK, District Judge.

This is an action for infringement of Patent No. 2,333,273, issued to Charles D. Scanlon, on November 2, 1943,- — based on his application, dated February 17, 1941, for a patent on a device in producing so-called traffic markers in the shape of a cone from discarded automobile tires. The principal defenses are invalidity and non-infringement.

The Facts.

Sometime in the fall of 1940, Charles D. Scanlon, an employee of the Traffic Department of the City of Los Angeles,.became interested in the use of markers for directing traffic and other means; and as a result of a conversation had by him with one Rodney B. Taylor, a tire shop operator in said city, decided to put into practice his ideas by use of fabric and rubber from old tires, as suggested by Taylor, — cutting the material in such way that it would form into a conical shape. Scanlon and Taylor produced a few such conical shaped devices, and added a base of a harder substance, so as to give the cone shaped property a receptacle on which to rest. Not too long thereafter production was abandoned in view of their inability to obtain old tires and the rubber and fabric therefrom. Thereafter Scanlon, on obtaining the patent in suit, after applying for it in his own name, assigned one-third interest each therein to Roscoe J. Arnold and Rodney B. Taylor. Subsequently Arnold sold his interest in equal parts to Scanlon and Taylor, thereby constituting these two as the ■owners thereof.

On November 5* 1946, Scanlon and Taylor entered into an exclusive license agreement with Charles Terry and Robert L. Mitchell, trading as partners. On January .3, 1948, Mitchell sold his interest in the partnership and in the license agreement to 'Terry.

Later on and on December 1, 1950, Terry assigned his holdings in the license agreement and the property of the partnership by proper conveyance to the Interstate Rubber Products Corporation.

This action is brought by such corporation as plaintiff as exclusive licensee under the patent from Scanlon and Taylor.

Rodney B. Taylor, assignee, voluntarily joined himself as a party plaintiff and on the refusal of Charles D. Scanlon to become a party plaintiff as the original patentee and part owner thereof, was involuntarily made a party plaintiff to the action.

The corporate plaintiff was organized on August 7,1950, under the laws of the State of California, and possesses the rights and privileges of a corporation under the laws of that state.

The defendant, Radiator Specialty Company, is a North Carolina corporation and has been in existence since July, 1927, with its principal place in'Charlotte, in the Western District of North Carolina, and manufactures specialty articles. The individual defendants, Isador D. Blumenthal, Herman Blumenthal, and J. J. Duckworth, are officers and directors of said corporation.

Plaintiff’s predecessor in title began production of said traffic markers in March 1947, and production thereof has continued throughout the intervening period. All of the markers manufactured had round bottoms until some time in March 1952, when the plaintiff corporation began manufacturing markers with a square' base and has alternately produced both round and square bases since that date.

Plaintiff’s product is made, at this time and for several years, from rubber sheets which are placed into a mold and heated under pressure and as such constitute one production item. Originally, however, it would appear, as the application for patent will show, that Scanlon based his claim to an invention on the particular manner in which he and Taylor cut strips from old tires to form a cone shaped object. The product as made since 1947 has had a ready sale and has enjoyed a receptive market from the time of its first production, but no commercial success came from the [122]*122efforts of Scanlon and Taylor in the making of the markers from strips of old tires.

Sometime during the spring of 1949, I. D. Blumenthal, one of the defendants, and president of the defendant corporation, while on a visit in Los Angeles, saw certain of the plaintiff’s traffic markers being used on the streets of that city, and ascertaining the name of the producer thereof, contacted the plaintiff corporation with the idea in mind of handling this product in the eastern territory through the defendant corporation. However, in various contacts with representatives of the plaintiff, he was unable to effect any sort of working agreement, and gave up the idea of becoming such agent of the plaintiff in the East. Blumenthal and his associates in the intervening months, made a careful study of traffic markers manufactured by plaintiff, looked into the matter of the so-called patent, and securing certain information, decided to manufacture a commodity answering the same purpose. Thereupon a mold maker on the West Coast who had previously made molds for uses in various capacities for the defendant, was employed and in line therewith made a mold used by the defendant in the manufacture of its traffic markers.

There are a number of different characteristics between the cone-shaped marker manufactured by the defendant and that made by the plaintiff, though the two have a similar appearance when placed side by side, and when similar paint has been used, —the biggest difference being that the product of the defendant has a square base and that oí the plaintiff has a round base as set out above. Other differences are minor. The product of the defendant has likewise met with a considerable degree of success and both have proven of a relatively great help in directing traffic in cities and towns, and other purposes for which they are similarly used. The product of the plaintiff is molded from sheets of rubber; that of the defendant is from blocks of rubber. Both are placed in molds and melted under heat and assume therefrom the form and shape of the mold in which made.

The defendant began the manufacture of its product in the fall of 1951, designating it as “Safe-T-Cone” and received a trademark registration in the Patent Office on January 6, 1953.

During the spring of 1952 plaintiff corporation began production of a square base marker and incidentally set up the “Safety Cone Traffic Corporation”, and through that corporation has marketed the square base products of the plaintiff, — Charles Terry being the owner of all stock in the plaintiff corporation as well as the Safety Traffic Cone Corporation.

It would seem that the principal issues in the case are those of validity and infringement, — other side issues are injected in the case, but a determination of either or both of these as it will be made will be an answer to the controversy in suit.

The plaintiffs contend that “The patent in suit is valid because it describes and claims a new and useful manufacture * * * and was duly * * * issued in compliance with the law.” That in addition thereto

a. “The presumption of validity of patent in suit must prevail because defendants have not sustained the burden * *

b. “The claims of the patent in suit define ‘invention’ over the prior art and therefore are not invalid for want of invention.”

c. “Patent device is new and revolutionary and provides advantageous results never before achieved.”

d. “The patent claims clearly define the Patented new and useful improvement and patentably distinguished from the prior art”,

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114 F. Supp. 120, 99 U.S.P.Q. (BNA) 206, 1953 U.S. Dist. LEXIS 3926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-rubber-products-corp-v-radiator-specialty-co-ncwd-1953.