Miehle Printing Press & Mfg. Co. v. Publication Corp.

166 F.2d 615, 76 U.S.P.Q. (BNA) 160, 1948 U.S. App. LEXIS 4085
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 6, 1948
DocketNo. 9397
StatusPublished
Cited by8 cases

This text of 166 F.2d 615 (Miehle Printing Press & Mfg. Co. v. Publication Corp.) 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
Miehle Printing Press & Mfg. Co. v. Publication Corp., 166 F.2d 615, 76 U.S.P.Q. (BNA) 160, 1948 U.S. App. LEXIS 4085 (7th Cir. 1948).

Opinion

MAJOR, Circuit Judge.

This is an appeal from a judgment entered January 7, 1947, dismissing plaintiffs’ complaint after a trial on the merits. The complaint purports to state two causes of action, (1) for violation of an agreement entered into between the plaintiffs and the defendant, dated March 1, 1935, and (2) for the infringement of certain Letters Patent. Damages for violation of the agreement and an injunction to prevent [616]*616further violation thereof were sought. An injunction was also sought to prevent infringement of the Letters Patent and an accounting .therefor. The patents in suit are Stirling Patent No. 1,773,887, issued August 26, 1930, and Wilkinson Patent No. 2,155,458, issued April 25, 1939. Claims 7 and 8 of Stirling and claims 1, 3 to 8, inclusive, and 12 of Wilkinson are relied upon. Both patents relate to the art of printing, and specifically to what is known as the reverse half-tone intaglio process.

The plaintiff Oxford Corporation is a corporation of Michigan and owner of the legal title to the Stirling patent. The plaintiff Miehle Printing Press and Manufacturing Company is a corporation of Illinois and holds an exclusive license, with the right to grant sub-licenses, under the Stirling patent. The legal title to the Wilkinson patent is one-half in the plaintiff and paten-tee William J. Wilkinson, a citizen of California, and the other one-half in the plaintiff Miehle Company. The latter company is also the exclusive licensee, with the right to grant sub-licenses, under the one-half interest owned by Wilkinson. The defendant Publication Corporation is a corporation of New York, with a place of business in Chicago, Illinois, where it is engaged in rotary web intaglio printing. Speedry Gravure Corporation, the licensee and a party -to the agreement of March 1, 1935, was at that time a subsidiary of Alco-Gra-vure, Inc., and the latter was a subsidiary of the defendant. The agreement contained guarantees both by Alco-Gravure, Inc. and the defendant Publication Corporation for the performance of the obligations imposed upon Speedry Corporation. The defendant concedes that it has assumed and is responsible for the covenants and liabilities of Speedry.

The license agreement of March 1, 1935 was cancelled by the defendant, effective October 31, 1935. No question is raised as to the right of the defendant under the agreement to effect such cancellation. The •cause of action predicated upon the agreement arises from plaintiffs’ contention that certain liabilities imposed upon the defendant survived cancellation. More specifically, the contention is that the defendant became obligated, notwithstanding cancellation, to refrain from using the process and teachings of the claims in suit, and that it employs such process and teachings in violation of the agreement. Plaintiffs in their cause predicated upon the infringement of the claims in suit contend that the defendant is estopped by reason of the agreement of March 1, 1935, to contest the validity of such claims. Plaintiffs further contend that irrespective of this issue of estoppel, the claims in suit are valid and infringed by the defendant. The District Court, by its findings of fact, its conclusions of law and its judgment of dismissal determined all issues adversely to the plaintiffs.

Plaintiffs attach great importance to the effect to be ascribed to the agreement of March 1, 1935. Admittedly, it has its place in the lawsuit, but we are of the view that its importance has been overemphasized. The agreement specifically relates, to certain methods of printing and making printing plates, as described in Stirling Patent No. 1,773,887, and to certain methods of printing and making printing plates for which applications for Letters Patent were then pending, referred to as Serial No. 576.014, Serial No. 755,649, and Serial No. 1,487, and provides: “Miehle hereby grants unto Speedry an exclusive license to practice the method and to use the inventions disclosed and claimed in applications for United States Letters Patent Serial Nos. 576.014, 755,649, and 1487, and United States Letters Patent No. 1,773,887, for manufacturing plates and/or cylinders to be used on web intaglio printing machines for printing continuous webs of the following material [describing materials].”

The applications referred to in the agreement subsequently culminated in the Wilkinson Patent in suit, No. 2,155,458, which issued April 25, 1939. The process adopted by the defendant in-1939, which it is charged violates the agreement and infringes the claims in suit, is known as the Dultgen process. (It will be noted that the Dultgen process was adopted by the defendant some four years subsequent to the agreement of March 1, 1935, and also subsequent to the Wilkinson patent which issued on the applications referred to in the agreement.) Plaintiffs’ claim of a two-fold [617]*617cause of action arising from the use by the defendant of the Dultgen process — that is, that such use (1) violates the agreement and (2) is an infringement of the claims in suit —appears to be without substance. More specifically, we are unable to discern how the use of defendant’s process could violate the agreement, short of a showing that it was an infringement of the patent claims. In other words, it seems to us that a violation of the agreement and an infringement of the claims, in substance at least, amounts to one and the same thing. Plaintiffs’ contention in this respect, as we understand it, is that the practices and methods referred to in the agreement are broader in scope than the practices and methods described in the patents, and hence, plaintiffs are entitled to recover for a violation of the agreement, regardless of whether there has been an infringement of the claims. As a basis for this contention, it is pointed out that all inventions are not patentable and that the defendant was obligated to respect the inventions referred to in the agreement, despite their patentability. In our view, the inventions referred to in the agreement are those having a patentable status. Certainly that is true as to the disclosures contained in the Stirling patent then in existence, and we think it is also true as to the disclosures embodied in the applications for patents then pending, which were subsequently allowed and embodied in the Wilkinson patent. We think there was at least an implied representation on the part of the plaintiffs that the inventions referred to in the agreement were actual and patentable and that this is so irrespective of whether the Stirling patent referred to in the agreement and in the Wilkinson patent subsequently issued upon the disclosures contained in the applications also referred to in the agreement, were valid or invalid. The point is that at the time the agreement was entered into, the inventions and disclosures therein referred to were either actually embodied in the Stirling patent or in pending applications which subsequently culminated in the Wilkinson patent. Under these circumstances, we think the contention is without merit that the inventions and disclosures referred to in the agreement were different than the disclosures of the issued patent or the disclosures in the applications for patents then pending.

Consistent with the view thus expressed, it follows that the cause of action for violation of the agreement and that for infringement must rest upon the Same premise, that is, that the process employed by the defendant infringes the claims in suit.

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166 F.2d 615, 76 U.S.P.Q. (BNA) 160, 1948 U.S. App. LEXIS 4085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miehle-printing-press-mfg-co-v-publication-corp-ca7-1948.