Jack Winter, Inc. v. Koratron Co.

50 F.R.D. 225, 14 Fed. R. Serv. 2d 755, 166 U.S.P.Q. (BNA) 295, 1970 U.S. Dist. LEXIS 11091
CourtDistrict Court, N.D. California
DecidedJune 30, 1970
DocketCiv. A. Nos. 49392, 49913, 47273, 50063, 49558, 51281, 49671, 51301, 51654, 51691 and C-69471
StatusPublished
Cited by24 cases

This text of 50 F.R.D. 225 (Jack Winter, Inc. v. Koratron Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jack Winter, Inc. v. Koratron Co., 50 F.R.D. 225, 14 Fed. R. Serv. 2d 755, 166 U.S.P.Q. (BNA) 295, 1970 U.S. Dist. LEXIS 11091 (N.D. Cal. 1970).

Opinion

MEMORANDUM OPINION AND ORDER

WILLIAM E. DOYLE, District Judge.

This cause is presently before us upon the motion of the adversaries to Kora[227]*227tron to compel answers to certain questions propounded at the taking of the deposition of Arlington C. White, an attorney at law specializing in patent and trademark matters. White refused to answer a substantial number of questions asked by attorneys for the adversaries of Koratron on the ground that the information sought fell within the attorney-client privilege. Hence, there is drawn into question the entire scope of attorney-client privilege as applied to preparation and processing of a patent application.

White is a patent lawyer, and 'á' member of the firm of White & White of San Francisco. He was employed by William K. Warnock and Frank G. Hubener at the time of the application. Warnock was acting on behalf of Koret of California, Inc., the predecessor of Koratron, for the purpose of preparing and submitting a patent application for what has been referred to as the, 432 Patent. White also consulted with Mr. Greenberg, an official of Koratron on numerous occasions as a “sort of general counsel.” This took place within the time period 1965 to 1968. More specifically, he met with Greenberg and others in the fall and winter of 1965, at the time of the negotiating of the agreement between Koratron and Dan River, which contract is an important focal point in this litigation. It has given rise to the third party complaint asserted by Koratron against Dan River.

The questions which White refused to answer may be placed into two general categories: (1) Those which sought to elicit the names of persons who gave information and samples to White for purposes of preparing the patent application; the substance of the information imparted; White’s responses to persons consulting him with respect to the application; and White’s knowledge of the processes described in the application; and (2) Those questions pertaining to discussions between White, Greenberg, and others in late 1965 and White’s advice to Greenberg with respect to the Dan River agreement.

With respect to the second class of questions described above, counsel for Dan River (the third party defendant here) claims that any attorney-client privilege which might have existed has been waived by Koratron because the questions pertain to the causative factors which led to the Dan River agreement. Koratron claims that this contract was forced on it by Dan River and thus it is said that the' question whether Koratron followed advice of counsel and acted voluntarily is in issue as is the question of the competence of White.

Those adversary to Koratron claim that none of the information sought by them may be withheld on the basis of attorney-client privilege. As to the questions relating to the patent application, they state:

1. No attorney-client privilege exists because the preparation and submission of a patent application is not legal work;
2. The attorney-client privilege is not applicable in this ease because those adversary to Koratron have shown a prima facie ease of fraud;
3. No attorney-client privilege arises with respect to information imparted to an attorney for the purpose of preparing a patent application since all information so imparted must be fully disclosed by the attorney to the Patent Office.

Initially, we note that we have directed the attorneys for those adversary to Koratron, including Dan River, to first proceed with the taking of depositions of the several clients Hubener, Warnock, Greenberg, and other individuals in volved with Koraton before further deposing White. This appears to be more practical especially since one of these witnesses has renounced the privilege. In this way much of the information which parties adversary to Koratron now seek may be acquired without subjecting White to the awkward and undignified procedure of requiring a lawyer to first reveal matters communicated to him by clients. We recognize [228]*228that even though much of it is not in law privileged, nevertheless, it should first come from the lips of the clients. It may, however, become necessary to depose White and the present rulings will govern any such further inquiry. The clients who are to be deposed are, of course, subject to these rulings.

Those adversary to Koratron first contend that questions relating to the patent application are not privileged because the preparation and submission of such an application is not the practice of law. They point out that there are patent practitioners who are not lawyers. We recognize this latter fact, but we are not prepared to hold that when a lawyer performs this work that he is not acting as such. Preparation of the application involves drafting of the specification and claims, advice to the client as to patentability, and the exercise of judgment. It cannot be said, therefore, that this does not bring into play legal skills. See Sperry v. Florida, ex rel. Florida Bar, 373 U.S. 379, 83 S.Ct. 1322, 10 L.Ed.2d 428 (1963). Recent cases have limited the earlier cases of Zenith Radio Corp. v. Radio Corp. of America, 121 F.Supp. 792 (D.Del.1954) and American Cyanamid Co. v. Hercules Powder Co., 211 F.Supp. 85 (D.Del.1962) to situations where the communication was between officers of a corporation and members of the patent department of the same corporation. See, e. g., Chore-Time Equipment, Inc. v. Big Dutchman, Inc., 255 F.Supp. 1020 (W.D.Mich.1966). Where, as here, an outside attorney is consulted, we find it impossible to hold that his activities do not constitute the practice of law.

The decisive factor in the determination whether the communicated facts are privileged is the legal relationship between the applicant and the commissioner acting for the government. In making his application there is an undertaking by the applicant to reveal the invention. In return, he receives a restricted monopoly for a term of years. The key, however, is the revealing of the facts concerning his invention so that the particular art will be served.

The case law on the question of disclosure indicates that the application for a patent must fully reveal facts sufficiently explanatory to enable one skilled in the art to practice the invention. This rule must be construed to require a good faith disclosure of all factual information relevant to the granting of the patent. Thus, there is no room for partial disclosure or half truth. Obviously, a bona fide full disclosure is called for. This is born out by cursory examination of the applicable statutory provisions. 35 U.S.C. § 111 et seq. And see particularly Section 112. This relationship is much different from the adversary one which usually obtains. In the latter situation, parties are at liberty to lay back somewhat.

Much of the information passing from client to attorney for purposes of preparation of patent application is technical material relating to descriptions of the products and/or processes sought to be patented, explanations of prior art, public use and sale, and samples of the product. So also in connection with the examination there is no room for game playing or witholding. As we view it, the attorney exercises no discretion as to what portion of this information must be relayed to the Patent Office. He must turn

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

Related

SmithKline Beecham Corp. v. Apotex Corp.
232 F.R.D. 467 (E.D. Pennsylvania, 2005)
In re Gabapentin Patent Litigation
214 F.R.D. 178 (D. New Jersey, 2003)
Smithkline Beecham Corp. v. Apotex Corp.
193 F.R.D. 530 (N.D. Illinois, 2000)
McCook Metals L.L.C. v. Alcoa Inc.
192 F.R.D. 242 (N.D. Illinois, 2000)
In Re Spalding Sports Worldwide, Inc.
203 F.3d 800 (Federal Circuit, 2000)
Fromson v. Anitec Printing Plates, Inc.
152 F.R.D. 2 (D. Massachusetts, 1993)
Laitram Corp. v. Hewlett-Packard Co.
827 F. Supp. 1242 (E.D. Louisiana, 1993)
McNeil-PPC, Inc. v. Procter & Gamble Co.
136 F.R.D. 666 (D. Colorado, 1991)
In Re Cumberland Investment Corp.
120 B.R. 627 (D. Rhode Island, 1990)
Bio-Rad Laboratories, Inc. v. Pharmacia, Inc.
130 F.R.D. 116 (N.D. California, 1990)
Forscan Corp. v. Touchy
743 S.W.2d 722 (Court of Appeals of Texas, 1987)
N.F.A. Corp. v. Riverview Narrow Fabrics, Inc.
117 F.R.D. 83 (M.D. North Carolina, 1987)
Synair Corp. v. American Industrial Tire, Inc.
645 F. Supp. 1080 (S.D. Texas, 1986)
In Re Blier Cedar Co., Inc.
10 B.R. 993 (D. Maine, 1981)
Pitney-Bowes, Inc. v. Mestre
86 F.R.D. 444 (S.D. Florida, 1980)
SCM Corp. v. Xerox Corp.
70 F.R.D. 508 (D. Connecticut, 1976)
Handgards, Inc. v. Johnson & Johnson
69 F.R.D. 451 (N.D. California, 1975)
Ampex Corp.
207 Ct. Cl. 1014 (Court of Claims, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
50 F.R.D. 225, 14 Fed. R. Serv. 2d 755, 166 U.S.P.Q. (BNA) 295, 1970 U.S. Dist. LEXIS 11091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jack-winter-inc-v-koratron-co-cand-1970.