K & G Tool & Service Co. v. G G Fishing Tool Service

314 S.W.2d 782, 158 Tex. 594, 1 Tex. Sup. Ct. J. 295, 117 U.S.P.Q. (BNA) 54, 1958 Tex. LEXIS 593
CourtTexas Supreme Court
DecidedMarch 12, 1958
DocketNo. A-6577
StatusPublished
Cited by124 cases

This text of 314 S.W.2d 782 (K & G Tool & Service Co. v. G G Fishing Tool Service) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K & G Tool & Service Co. v. G G Fishing Tool Service, 314 S.W.2d 782, 158 Tex. 594, 1 Tex. Sup. Ct. J. 295, 117 U.S.P.Q. (BNA) 54, 1958 Tex. LEXIS 593 (Tex. 1958).

Opinions

Mr. Justice Norvell

delivered the opinion of the Court.

This is a “trade secret” case which is in some respects similar to Hyde Corporation v. Huffines, this volume 566, 314 S.W. 2d 763.

At the conclusion of a jury trial the district court rendered judgment for $22,000 against defendants, G & G Fishing Tool Service and others and issued an injunction perpetually re[597]*597straining defendants from wrongfully copying, making and using a magnetic fishing tool which was substantially the same as the tool devised by plaintiff, John J. Kirby, II and manufactured by his licensee and co-plaintiff, K & G Tool & Service Co., Inc. The magnetic tool was a device for recovering parts of broken drilling bits, drill stems and other foreign metallic materials from oil wells. The Court of Civil Appeals reversed the judgment of the trial court and rendered judgment that plaintiffs take nothing. See G & G Fishing Tools Service v. K & G Oil Tool and Service Co., Inc., 305 S.W. 2d 637.

The plaintiffs in the trial court, K & G Tool & Service Company, Inc. and John J. Kirby, II brought the case here as petitioners and writ of error was granted because of our tentative opinion that Wissman v. Boucher, 150 Texas 326, 240 S.W. 2d 278 did not control this case. The decision of the Court of Civil Appeals was also contrary to that of the Fort Worth Court of Civil Appeals in Hyde Corporation v. Huffines, 303 S.W. 2d 865 (this day affirmed), this volume 566, [314 S.W. 2d 763] as to the propriety of granting an injunction extending beyond the date of the issuance of a patent.

While other contentions are presented in the briefs, such as the application of the equitable doctrine of laches and the sufficiency of the injunctive decree which call for some discussion, the two matters above mentioned are deemed controlling. Primarily for the reasons stated in our opinion affirming the Fort Worth Court in Hyde Corporation v. Huffines, we are in agreement with the trial court upon the injunction feature of the case. We have likewise concluded that the magnetic tool here involved cannot properly be placed in the same category with the collapsable fishing rod of Wissman v. Boucher insofar as ease of reproduction is concerned. Other matters urged by respondents as the prevailing • parties in the Court of Civil Appeals do not call for a reversal of the trial court’s judgment and hence these holdings require that the judgment of the Court of Civil Appeals be reversed and that of the trial court affirmed.

It appears that J. J. Kirby, II had been working upon a magnetic fishing tool for a number of years. He secured one patent on January 30, 1951 and on August 2, 1951 he filed another application. An amended or additional application was filed on January 30, 1952 which was described as being in part a continuation of the application of the preceding August. The 1952 application referred to the device as a “Magnetic Fishing Tool” and described the same as follows:

[598]*598“This invention pertains to tools for removing undesired materials from a well and more particularly to a magnetic tool for fishing magnetic junk out of a hole in the earth drilled by the rotary method, from which hole oil or gas is to be produced. * * *
“It is the principal object of the invention to provide a magnetic fishing tool which will be more efficient in the removal of junk.
“A more specific object of the invention is to provide a magnetic fishing tool in which the distribution of the magnetic field is controlled so as to make it more effective for holding magnetic junk.
“A further object of the invention is to provide a magnetic fishing tool having fluid circulation means for clearing mud and detritus away from the magnetic junk wherein the fluid path is so positioned as to have a more effective field of action.
“Still another object of the invention is to provide a magnetic fishing tool having a rotary shoe for clearing heavy and consolidated materials away from the magnetic junk wherein the shoe is positioned so its field of mechanical action cooperates more effectively with the magnetic and fluid-dynamic fields.
“Another object of the invention is to provide a magnetic fishing tool which is more rugged and durable and better protected against accidental damage.
“A further object of the invention is to provide a magnetic fishing tool which will more firmly hold the magnetic junk or fish.
“Another object of the invention is to provide a magnetic fishing tool capable of holding a larger number of separate fish.
“Still another object of the invention is to provide a magnetic fishing tool which will more nearly assure a one hundred percent removal of all the junk.
“Another object of the invention is to provide a magnetic fishing tool that is more easily manufactured and repaired and maintained.”

[599]*599It appears that the idea of using a magnet to remove “fish” or metallic substances from the hole of a drilling well was not new to the oil industry. Articles concerning the use of a magnet for such purposes had appeared in technical journals prior to the date of business negotiations between the parties to this litigation. In fact the record discloses that some five or six patents upon magnetic devices for removing foreign metallic matter from well holes had been applied for or issued prior to March of 1951. A number of these inventions bore the same descriptive designation as that used by Kirby, namely, a “Magnetic Fishing Tool.” It further seems that the metallurgy Division of the Chemical Department of the General Electric Corporation had widely advertised a magnet made of metal which was called “Alnico.” These magnets were said to be suitable for a number of uses, such as holding necktie racks in place, providing fasteners for metal doors and removing nails from parking areas and driveways. It appears that the Kirby tool utilized an Alnico magnet as an effective feature in its operation.

In 1951 K & G Oil Tool & Service Co., Inc. was formed and licensed by Kirby to manufacture his magnetic tools and some of them were leased for oil field use. In the early part of 1952 K & G entered into an agreement with G & G Fishing Tools Service whereby G & G agreed to sub-lease the K & G tool to drilling operators for twenty-five per cent of the rentals charged. K & G also leased from G & G certain space in a warehouse located in Duncan, Oklahoma for the storage of its magnetic tools.

The jury made a number of special issues findings as to agreements between K & G and G & G as well as actions taken by G & G in violation of such agreements. The jury found:

1. That during March 1952 it was mutually agreed between Robert Garrett (representing K & G) and Cecil Bond (representing G & G) that during the time the G & G Fishing Tool Service Co., Inc. was handling the K & G magnetic fishing tool, no one was to disassemble said tool.

2. That, in making such agreement, it was mutually understood that the purpose of such agreement was to guard against anyone determining the internal construction of the tool by way of examining the interior thereof.

3.

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Bluebook (online)
314 S.W.2d 782, 158 Tex. 594, 1 Tex. Sup. Ct. J. 295, 117 U.S.P.Q. (BNA) 54, 1958 Tex. LEXIS 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/k-g-tool-service-co-v-g-g-fishing-tool-service-tex-1958.