Kaz Manufacturing Co. v. Chesebrough-Pond's, Inc.

211 F. Supp. 815, 136 U.S.P.Q. (BNA) 65, 6 Fed. R. Serv. 2d 1073, 1962 U.S. Dist. LEXIS 5585
CourtDistrict Court, S.D. New York
DecidedDecember 7, 1962
StatusPublished
Cited by12 cases

This text of 211 F. Supp. 815 (Kaz Manufacturing Co. v. Chesebrough-Pond's, Inc.) 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
Kaz Manufacturing Co. v. Chesebrough-Pond's, Inc., 211 F. Supp. 815, 136 U.S.P.Q. (BNA) 65, 6 Fed. R. Serv. 2d 1073, 1962 U.S. Dist. LEXIS 5585 (S.D.N.Y. 1962).

Opinion

TYLER, District Judge.

This is a motion by defendant for summary judgment. The complaint alleges two claims: first, patent infringement and, second, unfair competition. Defendant originally moved for summary judgment on the first claim only; thereafter, but before final argument of the motion, it also applied for dismissal of the second claim for lack of pendent jurisdiction. 1

For the disposition of this motion, we take the facts substantially as they are alleged in the compiaint and in plaintiff’s opposing affidavits, with a few exceptions to be specifically noted hereinafter.

Plaintiff manufactures and distributes for sale a variety of electric steam vaporizers and medicaments to be used therewith. An agent of defendant purchased two of plaintiff’s vaporizers at a retail store. Defendant then proceeded to construct from these two a third or “hybrid” vaporizer, using the jar, stand and cord from one of plaintiff’s models, and the cap, spout and heating unit from another. Plaintiff’s vaporizers were protected in whole or part by patents and letters patent registered with the United States Patent Office.

On November 16, 1959, and on occasions thereafter, defendant caused to be shown on television an advertisement of a push-button spray called “Pertussin”, manufactured by defendant, in which the above-described hybrid (clearly recognizable as being, or consisting of, the manufacture of plaintiff) was shown, in operating condition, accompanied by the spoken words on the audible part of the commercial, “Steam is dangerous.”

Plaintiff argues that this reconstruction and use of its vaporizers, not being authorized, is an infringement of its patent rights. It is a possibility, assuming the correctness of defendant’s contention that none of plaintiff’s patents are combination patents, that the reconstructed or hybrid vaporizer would not work an infringement upon plaintiff’s patents even if defendant were to construct such hybrids in volume and sell them on the open market. In my view of the case, I do not reach this question but merely assume for purposes of the disposition herein, that the hybrid is an infringing article under one or more of plaintiff’s patents, if other factors necessary to a finding of infringement are present.

Patented articles are frequently sold or licensed to be used, with contractual limitations imposed by the patentee on the uses to which his patented item may be put. The rights of the patentee arising from such contractual limitations then fall within the protection of the patent laws. See e. g., General Talking Pictures Corp. v. Western Electric Co., et al., 305 U.S. 124, 59 S.Ct. 116, 83 L.Ed. 81 (1938), reh. den., 305 U.S. 675, 59 S.Ct. 355, 83 L.Ed. 437 (1939). But such a theory is not sustainable on the facts of the case at bar. The two vaporizers in question were purchased by an agent of defendant at a retail store, and no special conditions were imposed at their sales. 2 Accordingly, any cause of action arising under the patent laws in favor of the plaintiff in this case must derive from the statutes themselves rather than from limitations on use contractually imposed by plaintiff.

A search of the cases discloses no decision involving the type of acts here alleged to constitute an infringing reconstruction and use of patented manufacture.

The cases, however, do make clear that an unauthorized construction of a patented article is not infringement per se, but that it is necessary to look beyond the fact of construction to the *818 use to which the constructed article is, or is intended to be, put. 3

For example, “The use of the patented machine for experiments for the sole purpose of gratifying a philosophical taste or curiosity or for instruction and amusement does not constitute an infringing use.” Ruth v. Stearns Roger Manufacturing Co., 13 F.Supp. 697, 713 (D.C.Colo.1935), reversed on other grounds, 87 F.2d 35 (10th Cir., 1936). Nor does construction of an infringing device purely for experimental purposes constitute an actionable infringement. Chesterfield v. United States, 159 F.Supp. 371, 376, 141 Ct.Cl. 838, (1958); Dugan v. Lear Avia, 55 F.Supp. 223, 229 (S.D.N.Y.1944), aff’d. 156 F.2d 29 (2d Cir., 1946); see also, Beidler v. Photostat Corp., 10 F.Supp. 628, 630 (W.D.N.Y.1935), aff’d. 81 F.2d 1015 (2d Cir., 1936); but cf., Northill Co. v. Danforth, 51 F.Supp. 928, 929 (N.D.Cal.1942).

The question here, therefore, is whether the use made, or intended to be made, by defendant of the constructed vaporizer disturbs the “possession, use and enjoyment of the exclusive privileges secured by * * * Letters Patent” to plaintiff. 4

In general terms, “[a] patentee * * * should be able to reserve and preserve his monopoly over the commercial use of his patented invention; in other words, he may altogether exclude others from the commercial field.” Western Electric v. General Talking Pictures Corp., 91 F.2d 922, 928 (2d Cir., 1937), aff’d. 304 U.S. 175, 58 S.Ct. 849, 82 L.Ed. 1273 (1938), aff’d. 305 U.S. 124, 59 S.Ct. 116, 83 L.Ed. 81 (1938), reh. den., 305 U.S. 675, 59 S.Ct. 355, 83 L.Ed. 437 (1939). The right protected is the “right to be free from competition in the practice of the invention”. Mercoid Corp. v. Mid-Continent Investment Co., 320 U.S. 661, 665, 64 S.Ct. 268, 271, 88 L.Ed. 376 (1944).

Otherwise expressed, patents confer upon patentees “the exclusive right and liberty .to make and use and vend to others to be used their own inventions”. Seymour v. Osborne, 78 (11 Wall) U.S. 516, 533, 20 L.Ed. 33 (1870). The “use” contemplated by this rule is the commercially valuable use which the patentee would or could avail himself of in exploiting his invention. Thus, the patent “insures against another doing substantially the same thing in substantially the same way as the patentee”. 69 C.J.S. Patents, p. 172.

For the purposes of this motion, it may be assumed that the use by defendant of plaintiff’s manufacture in a television commercial was “commercially valuable” to defendant by reason of increasing its sales. But the crucial consideration here is that the value thereby accruing to defendant did not arise from the defendant’s “doing substantially the same thing in substantially the same way” as the patentee would do, or allow to be done, in the course of exploiting its patent monopoly.

Of course, the physical acts performed by defendant’s agent in the course of making the television film were substantially the same physical acts as an ordinary user of the steam vaporizer would perform in exploiting the medically remedial properties of the vaporizer. That is, or so it may be assumed for the purposes of this motion, the vaporizer was plugged in and steam caused to issue forth.

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211 F. Supp. 815, 136 U.S.P.Q. (BNA) 65, 6 Fed. R. Serv. 2d 1073, 1962 U.S. Dist. LEXIS 5585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaz-manufacturing-co-v-chesebrough-ponds-inc-nysd-1962.