Koehring Company v. National Automatic Tool Company, Inc.

362 F.2d 100
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 29, 1966
Docket15356
StatusPublished
Cited by37 cases

This text of 362 F.2d 100 (Koehring Company v. National Automatic Tool Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koehring Company v. National Automatic Tool Company, Inc., 362 F.2d 100 (7th Cir. 1966).

Opinion

SWYGERT, Circuit Judge.

The defendant, National Automatic Tool Company, Inc., an Indiana corporation, appeals from a judgment of the • district court in an action for patent infringement brought by the plaintiff, Koehring Company, a Wisconsin corporation, as the owner by assignment of United States Letters Patent No. 3,084,-512. The district court held Koehring’s patent valid and infringed by National.

Both Koehring and National are engaged in the manufacture and sale of various types of heavy machinery, including plastics injection molding machines, Koehring through its HPM Division 1 in Mount Gilead, Ohio and National in Richmond, Indiana. ' Plastics injection molding machines are large industrial machines used in the manufacture of a variety of commercial plasties products. The patent in suit relates to a comparatively small internal component of these machines, an improved prefill and shift-over valve mechanism for use in that part of the machine which operates the clamp for opening and closing the mold into which molten plastic is poured. 2

National admitted infringement in the district court, subject to a determination of validity, and conceded the validity of the patent in all respects other than its assertion that the patent was invalid because the invention it described was in public use and on sale more than one year prior to the application for a patent. Accordingly, the only question presented is whether the district court correctly determined that the invention was not in public use or on sale within the meaning of 35 U.S.C. § 102(b). Since we have concluded that the patent is invalid by reason of the public use of the invention prior to the critical date, our discussion of the facts will be limited to those bearing directly upon that issue.

United States Letters Patent No. 3,-084,512 was issued to Donald A. Huel-skamp, an employee of HPM and the assignor of Koehring, on April 9, 1963, following an application filed on March 10, 1958. Thus the critical date for purposes of section 102(b) is March 10,1957. The activities of the inventor Huelskamp and Koehring’s HPM Division with respect to the invention prior to that date have been variously characterized as “experimentation” [by Koehring] and “commercial exploitation” [by National].

Huelskamp conceived the invention in suit in mid-1955 during the course of a redesigning program instituted at HPM after a new line of injection molding machines met with limited commercial success. Drawings of a prefill valve mechanism embodying the invention were completed in late 1955 and the mechanism was included in the design and prototype *102 of a machine known as the 450-H-20. 3 The 450-H-20 prototype was completely assembled by August 1956. During that month it was successfully “dry cycled,” that is, operated without molds or plastic material. Huelskamp expressed satisfaction with the machine’s operation and a plant order for its testing in HPM's ■“showroom-laboratory” was issued.

HPM’s testing facility is being referred to as a “showroom-laboratory” because of the function it performed in .HPM’s sales programing. The vice president in charge of engineering at HPM •conceded that it was a customary sales promotional practice to bring prospective •customers into the laboratory to view, HPM’s line of machines. In his own words, “We have facilities there to demonstrate the actual performance of our ■machines, and it is used as a sales tool in that respect.” Thus, after the 450-H-20 prototype embodying the Huelskamp. invention was placed in the laboratory and as it was being tested, potential custom•ers of HPM were present. No apparent restrictions as to secrecy were imposed upon the engineering or technical personnel of these customers during their visits. On September 5, 1956, representatives of the General Tire Company witnessed the testing of their plastic material, polyvinyl chloride, in the prototype. Several ■other potential customers visited the ;showroom-laboratory during the succeeding few months before the prototype was ■removed.

Huelskamp witnessed many tests of the [prototype run with actual molds during the fall of 1956 and again expressed satisfaction with the performance of his invention. 4 On October 4,1956, in an intra-•company memorandum, the production manager of HPM informed a company vice president that the 450-H-20 had been determined “satisfactory as proto typed” at a planning meeting two weeks earlier. Thereafter, in the period from October to December 1956, “stock orders” were placed for at least seventeen injection molding machines of the various sizes included in HPM’s redesigning program. Production on a stock order basis, the intraplant ordering and manufacture of large quantities of machines prior to the actual possession of customer orders, was commonly undertaken as a customer convenience by HPM in connection with its more or less standard machines. The designs for all of the stock-ordered machines embodied the Huelskamp invention.

During the last week of February 1957, three weeks prior to the critical date, the 450-H-20 prototype was shipped to the Universal Molding Company, Upper San-dusky, Ohio, pursuant to an agreement. The agreement was basically a title-retention instrument giving Universal Molding an option to purchase or return the machine at the expiration of a six-month period. HPM broadly reserved the right of access to the machine for purposes of inspecting, testing, repairing, and modifying it. Universal Molding, however, was given the right to make the ordinary repairs necessary to keep it in good operating condition. Additionally, the following provision appeared in the sales agreement: *103 The 450-H-20 had logged six hours of “production” time at Universal Molding by February 27, 1957, but the record is unclear as to the details of this operation.

*102 [Universal Molding] agrees to allow any of [HPM’s] customers to visit its plant and see the machine in operation provided, however, that such visit shall be first approved by the President of [Universal Molding].

*103 The foregoing summary relating to the issue of the public use of the Huelskamp invention is based upon HPM’s own documents and the sworn statements of its own employees. The district court referred to a portion of this evidence in its findings of fact, 5 but made no reference to the nonsecret and commercially-tinged nature of the testing of the 450-H-20 prototype. It concluded that the patented device was not in public use more than one year prior to the application for a patent within the meaning of 35 U.S.C. § 102(b). The findings of the district court which perhaps shed the most light on its decision on this issue read as follows:

Plaintiff’s invention was but a segment of the giant machine and was not readily discernible to everyone.

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362 F.2d 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koehring-company-v-national-automatic-tool-company-inc-ca7-1966.