Liquid Carbonic Corp. v. Goodyear Tire & Rubber Co.

38 F. Supp. 520, 46 U.S.P.Q. (BNA) 195, 1941 U.S. Dist. LEXIS 3935
CourtDistrict Court, N.D. Ohio
DecidedMarch 13, 1941
Docket5633
StatusPublished
Cited by13 cases

This text of 38 F. Supp. 520 (Liquid Carbonic Corp. v. Goodyear Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liquid Carbonic Corp. v. Goodyear Tire & Rubber Co., 38 F. Supp. 520, 46 U.S.P.Q. (BNA) 195, 1941 U.S. Dist. LEXIS 3935 (N.D. Ohio 1941).

Opinion

WILKIN, District Judge.

This case was submitted on motion by defendant for judgment on the pleadings. And it was subsequently resubmitted on petition for rehearing.

As to the Motion

The bill of complaint, after alleging jurisdictional facts, sets forth three causes of action as follows:

(1) That the defendant’s present and past method of curing tires under Freeman patent 2,066,265 is an infringement of the plaintiff’s Minor patents 1,808,428 and 1,808,429.

(2) That defendant’s Freeman patent 2,066,265 should be assigned to plaintiff by virtue of license agreement between the parties dated March 1, 1930; and because the methods covered by the Freeman patent were revealed and disclosed to the defendant by the plaintiff during a relationship* of trust and confidence.

(3)' That defendant’s cancellation of the license agreement under date of November 30, 1934, was null- and void because made in violation of plaintiff’s rights under such license agreement and the relationship of trust and confidence and without disclosure of facts which plaintiff was entitled in equity and good conscience to know.

The bill prays an injunction against infringement of plaintiff’s Minor patents; for an assignment of defendant’s Freeman patent; 'for accounting of profits' and damages; and for punitive damages by reason of the breach of trust and confidence.

The answer admits the jurisdictional facts alleged in the bill, admits ownership of the Minor patents by plaintiff, admits receipt of letters dated on or about February 12, 1937, and April 1, 1937, charging infringement of such Minor patents, admits that Henry H. Minor, inventor of the process covered by the Minor patents, visited defendant’s plant at Akron, Ohio, in March, 1927, and subsequent thereto disclosed to defendant the use of carbon dioxide gas backed up with steam for the vulcanization of tires, and alleges that it went to great expense in carrying on experiments and tests in connection with such disclosures and demonstrations by Minor, but says that such experiments and tests were made solely at its own expense; that they proved impractical and unsuccessful; and that on or about May 25, 1931, it so informed Minor. The answer denies any relationship of trust or confidence, or that any disclosures were made in such relationship; admits the license agreement as set forth in the bill of complaint and Exhibits A, B, and C attached thereto; but alleges that the cancellation of such agreement (Exhibit D, bill of complaint) was proper and lawful and in strict compliance with such agreement. The answer further admits that on November 25, 1933, the defendant filed or caused to be filed in the *523 United States Patent Office applications for letters patent which duly matured into the Freeman patent 2,066,265 dated December 29, 1936; but denies that it was under any obligation to make any disclosures with reference to such patent to plaintiff. It alleges that the invention of such Freeman patent is radically and fundamentally different from that of the Minor patents; that such differences are apparent and obvious from a comparison of the patents; and that such differences have been recognized by the Patent Office in the issuance and reissue proceedings of such Freeman patent. The answer alleges that the plaintiff had full knowledge of the issuance of the Freeman patent; of the fact that defendant for several years prior had been practicing the steam-air process covered by such patent and had acquiesced in the understanding that said steam-air process was free and clear of any adverse rights of plaintiff, and that plaintiff had consented to cancellation of the license agreement as shown by Exhibit D of the bill of complaint. That a comparison shows that the Freeman patent does not come within the scope of either of said Minor patents and consequently not within the scope of the license agreement, and that therefore there is no infringement, no violation of the license agreement, and the cancellation is valid. The answer prays that the bill of complaint be dismissed.

Thereafter motion for judgment on the pleadings was filed and certified copies of the two Minor patents and the Freeman patent were submitted with such motion.

While the motion is referred to as one for judgment on the pleadings, it is, in reality, a motion to dismiss the bill because of its failure to state a claim upon which relief can be granted, or, in. other words, it is a motion to dismiss because the bill and the exhibits fail to show facts which entitle the plaintiff to the relief sought. For the purposes of such motion, all material and pertinent allegations of the bill must be assumed to be true. If, in view of the answer, any issue of fact exists, there must be a trial.

It is the contention of the defendant that all three causes of action can and must be determined by a comparison of the Freeman and Minor patents; that all three claims of the plaintiff give rise to the same fundamental question: does the defendant’s Freeman patent infringe either of the Minor patents?. If there is no infringement, the first cause of action is, of course, disposed of. If there is no infringement, so defendant contends, the second cause of action likewise falls, because, by the terms of the license agreement, all obligations of the defendant to the plaintiff were limited to improvements, inventions, or discoveries with respect to the Minor method of curing tires; that no relationship of trust and confidence could exist as to any invention independently developed by defendant and differing radically and fundamentally from that disclosed by plaintiff to defendant. And if there is no infringement, according to defendant, the third or alternative cause of action also fails because the process covered by the Freeman patent does not come within the provisions of the license agreement. Even if the license agreement should still be in force and effect, it would be no basis for the plaintiff’s claim to the Freeman patent or any rights with reference to it.

The defendant does not depend exclusively, however, upon an interpretation of the terms of the patents. It claims that other facts revealed by the bill are equally fatal to the plaintiff’s second and third causes of action:

(1) The bill of complaint and the exhibits show conclusively that there was no relationship of trust and confidence.

(2) If the Freeman patent were held to cover the same- invention as that covered by the Minor patents the Freeman patent would for that very reason be invalid, because, as shown by the pleadings, it was applied for (November 25, 1933) more than two years after the date of the grant of the other patents (June 2, 1931). In such case the Minor patents themselves would afford plaintiff full protection without assignment of the Freeman patent.

(3) If Minor did actually disclose to defendant the process covered by the Freeman patent, that again would lead to the invalidity of the Freeman patent. The plaintiff would be protected under its own patents, and an assignment of the Freeman patent would be useless.

(4) The bill of complaint and the exhibits reveal no obligation on the part of the defendant to assign patents to the plaintiff. The license agreement mentions only “improvements, inventions, or discoveries with respect to the aforesaid method”, i. e., the Minor method, and then it provides that the defendant shall do no

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Bluebook (online)
38 F. Supp. 520, 46 U.S.P.Q. (BNA) 195, 1941 U.S. Dist. LEXIS 3935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liquid-carbonic-corp-v-goodyear-tire-rubber-co-ohnd-1941.