Jad Corp. of America v. Hico Corp. of America

335 F. Supp. 66, 173 U.S.P.Q. (BNA) 245, 1971 U.S. Dist. LEXIS 12258, 1971 Trade Cas. (CCH) 73,649
CourtDistrict Court, S.D. New York
DecidedJuly 28, 1971
Docket70 Civ. 4233
StatusPublished
Cited by1 cases

This text of 335 F. Supp. 66 (Jad Corp. of America v. Hico Corp. of America) 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
Jad Corp. of America v. Hico Corp. of America, 335 F. Supp. 66, 173 U.S.P.Q. (BNA) 245, 1971 U.S. Dist. LEXIS 12258, 1971 Trade Cas. (CCH) 73,649 (S.D.N.Y. 1971).

Opinion

OPINION

MOTLEY, District Judge.

This is a motion for a preliminary injunction, pursuant to Fed.R.Civ.P. 65(a), on behalf of plaintiff Joseph A. Dussich and three corporations, each of which he owns and controls as sole stockholder. The complaint in the action sets forth various violations of the antitrust and patent laws by the defendants. Plaintiff and his'companies are in the business of installing waste compactors. These are machines which compact raw refuse prior to collection by sanitation men. In addition, plaintiff invented and sells a refuse container (hereinafter called the “multiple bag”) which is used with compacting machines. This multiple bag, which is the subject of plaintiff’s patent, is formed of flexible polyethylene tubing and extends from the discharge port of compacting machines. The multiple bag is structured so as to allow for the continuous operation of a compacting machine without the need to constantly change individual refuse bags. After the multiple bag is filled, it is divided into separate smaller bags which are suitable for sanitation pickup. ,

Defendant Hieo Corporation of America (hereinafter “Hieo”) engages in the manufacture and installation of compacting machines and sells multiple bags for use therein. Defendant Click Industrial Automation, Inc. (hereinafter “Click”) manufactures multiple bags which are then sold to Hieo. Defendant Greenwald, the former head salesman for plaintiff’s companies, is now employed by defendant Hieo.

Plaintiffs seek to enjoin the defendants from 1) infringing their patent No. 3,521,675 by the manufacture, use, or sale of the multiple bags claimed in the patent and from manufacturing or selling compactors designed to use such containers, 2) combining and agreeing to eliminate competition in the sale of multiple bags and compactors, and 3) enjoining defendant Greenwald from soliciting customers of his former employer.

While it is clear that defendants are infringing plaintiffs’ patent (Defs’ Affidavit in Opposition, at 12), defendants set forth three defenses to the infringement. These defenses are: 1) that plaintiffs’ patent is invalid under 35 U. S.C. § 103 because the invention would have been obvious to a person having ordinary skill in the art, 2) that plaintiffs attempt to obtain rights in their patent to a waste compactor system, which admittedly was unpatented, prevents plaintiffs from obtaining rights in their invention; and 3) laches. The defenses to [68]*68the antitrust causes of action are: 1) that plaintiffs, themselves, entered into agreements with defendants that were in restraint of trade and are, thus, barred from recovery, and 2) that defendants have not acted in restraint of trade and that plaintiffs’ allegations in that respect are untrue. As to defendant Greenwald’s solicitation of his former employers’ (plaintiffs’) customers, defendants assert 1) that this is not illegal, and 2) that Greenwald did not make copies of the plaintiffs’ customer lists and any solicitations are based on his own knowledge of the customers.

After a review of the lengthy affidavits and briefs the court has concluded that the motion for a preliminary injunction should be denied. To summarize that which will be dealt with in greater detail below, the court has found 1) that plaintiffs’ patent is not “beyond question valid,” 2) that plaintiffs have not shown probable success on the merits of the antitrust causes of action, because there are many disputed issues of fact, and 3) that plaintiffs have failed to prove irreparable harm.

Findings of Fact and Conclusions of Law

I. First, the court will consider the question of whether the plaintiffs are entitled to a preliminary injunction against defendants’ alleged infringement of the patent. The burden imposed on a patentee seeking a preliminary injunction against infringement is substantially heavier than the usual ones of showing irreparable injury and probability of success on the merits. Carter-Wallace, Inc. v. Davis-Edwards Pharmacal Corp., 443 F.2d 867 (2d Cir. 1971). A patentee must demonstrate that the “patent is beyond question valid.” Simson Bros. v. Blancard & Co., 22 F.2d 498, 499 (2d Cir. 1927) (L. Hand, J.), cited with approval in Carter-Wallace v. Davis-Edwards Pharmacal Corp., supra.

Defendants claim that the patent is invalid on the ground that the subject matter of the patent fails to meet the non-obviousness test of 35 U.S.C. § 103. Upon an examination of the patent and the prior art, much of which was not cited by the Patent Office, the court finds that it cannot properly regard the patent as “valid beyond question.”

The question for the court under § 103 is whether the subject matter sought to be patented would be non-obvious to a hypothetical mechanic having 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). While the question is one of law, the court must make a factual inquiry into the prior art and determine whether the invention was obvious. Graham v. John Deere Co., supra.

Plaintiffs’ multiple bag invention is a container formed of flexible polyethylene tubing. As described and illustrated in his United States Patent No. 3,521,675 (Exhibit C, attached to Motion for a Preliminary Injunction), the circumferential walls of the container are axially gathered in successive folds and axially spaced clamping means, e. g., staples, secure one or more of these folds against axial extension such that alternate sections of the container are secured and unsecured respectively against such extension. The container is mounted upon the discharge port of almost any conventional compacting apparatus and is continuously filled as the compacting apparatus functions. At a convenient time, the tube is separated and sealed by building personnel into individual packages of appropriate size for handling by the Sanitation Department. See Affidavit of Dussich attached to motion papers.

According to the patent the Dussich container has axially spaced clamping means each securing at least one of the successive folds against axial extension such that alternate portions of the container are secured and unsecured respectively against axial extension. (Dussich claims 1 to 5 at col. 5.) Also, the Dussieh container comprises axially spaced [69]*69means securing preselected alternate portions of an axially compressible and expandable wall against expansion. (Dussich claims 6 to 11 at Col. 6.)

Defendants rely primarily on three prior patents, not cited by the examiner, to show that the Dussich arrangement would be obvious to anyone ordinarily skilled in the art. These three patents concern packaging machines for foodstuffs, such as sausages, where it is conventional to extrude the sausage meat into casings which are subsequently tied off at prearranged intervals. The Dussich patent does mention foodstuffing machines in its discussion of the prior art, but not, as stated earlier, the three machines cited by defendants.

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

Related

Inflight Newspapers, Inc. v. Magazines In-Flight, LLC
990 F. Supp. 119 (E.D. New York, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
335 F. Supp. 66, 173 U.S.P.Q. (BNA) 245, 1971 U.S. Dist. LEXIS 12258, 1971 Trade Cas. (CCH) 73,649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jad-corp-of-america-v-hico-corp-of-america-nysd-1971.