Milton v. Kingsley

7 App. D.C. 531, 1896 U.S. App. LEXIS 3091
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 8, 1896
DocketNo. 29
StatusPublished
Cited by1 cases

This text of 7 App. D.C. 531 (Milton v. Kingsley) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milton v. Kingsley, 7 App. D.C. 531, 1896 U.S. App. LEXIS 3091 (D.C. Cir. 1896).

Opinion

Mr. Justice Morris

delivered the opinion of the Court:

As appears from the statement of the case, the controversy here does not seem to be between two independent inventors, operating at the same time in the same field of invention without knowledge of each other. The question at issue is simply which party procured from the other the idea of the invention. For under the circumstances of the case the reduction to practice might be regarded as the reduction to practice of either contestant, and should undoubtedly inure to the benefit of the one who generated the idea.

In the determination of the controversy we do not deem it necessary to examine the testimony in detail, as it was proper for the officials of the Patent Office to do. In fact, we prefer to place our decision upon an entirely different ground from that taken in the Patent Office, but which seems to us to be fully justified by the record.

By their contract of October 8, 1892, the parties established between themselves the fiduciary relations of a partnership for the prosecution of a common enterprise. To this partnership the appellant, Milton, agreed to contribute his invention and all improvements thereon that might thereafter be made; and the appellee, Kingsley, was to defray the expense of all letters patent and of the management of the business to result therefrom. Kingsley was a man of business, not an inventor. It is true that he states, as proof of the existence of the inventive faculty in him, that at one time he ran an engine; but it does not appear what kind of an engine it was, or in what capacity Kingsley was connected [536]*536with it. Whatever capacity for invention or discovery he manifested in the transactions detailed in the record before us, was the result of his possession of the ideas of Milton, into which possession he came in his fiduciary capacity as a partner and for the fiduciary purpose of exploiting them for the benefit of the partnership.

It is of no consequence here, as between these parties themselves, that some of the ideas of Milton may have been anticipated by other persons, as it is claimed they were; and that some of them may have proved to be impracticable. That was a contingency contemplated by them in their contract, although perhaps not anticipated. Such as they were, the devices of Milton were deemed, both by himself and Kingsley, at the time of their agreement, to be novel, useful and feasible. As between themselves, Milton was the sole and exclusive inventor of the whole smoke-consuming device which was tested in this case and which was ultimately found to be practicable, with the exception that he used iron-conduits, instead of the fire-clay conduits, which constituted the distinctive feature of the final experiment. The device which was confessedly produced by Milton, was entirely successful in the consumption of the smoke ; but it was not practicable, or rather merchantable, as the expression is, because the iron conduits could not withstand the intense heat to which they were exposed. The perfection of the device was therefore to be found in the adoption of some-material for the conduits that would withstand the heat ; and that material was found to be fire-clay. This discovery is claimed by Kingsley as his own invention.

But it is very plain that Kingsley, if he did discover the fire-clay conduits, discovered it only in the elaboration and reduction to practice of Milton’s ideas, and for the reason that he had been placed in possession of those ideas for the purpose of their elaboration. Shall he now be permitted to repudiate his obligations to Milton, to appropriate Milton’s ideas and Milton’s labors to his own use and benefit to the exclusion of Milton, and to procure for himself a patent in [537]*537which the latter is to have no interest? We think that to allow this would be to place a premium upon bad faith.

At the time at which the contract was entered into between them, the parties evidently contemplated that there would probably be improvements upon the original device, which might themselves be independently patentable ; for it was specifically provided that Kingsley should pay the expense of procuring letters patent for any and all such improvements. It was probably not contemplated that Kingsley would be the inventor of any such improvements. But it was certainly not contemplated that he should be let into the secrets of the invention, become a partner in the business of its development, become entitled to a share, and that too by far the larger share, of the profits of the partnership, and yet be himself entirely free to experiment with the invention as he pleased, and the result of his experiments, if they developed any novel feature, to appropriate to his own use and benefit. Assuming that the contract is silent upon this point, we hold that any such appropriation of results by the appellee to his own exclusive use and benefit would be a fraud upon the partnership.

It is in direct antagonism to the fundamental theory of the law of partnership that one partner should, without the consent of his copartners, carry on for his own exclusive advantage any business within the scope of the business of the partnership. Wheeler v. Sage, 1 Wall. 518; Story on Partnership, secs. 174, 175, 177, and cases cited in the notes. And this rule of good faith and fair dealing is as applicable to partnerships entered into for the purpose of perfecting and exploiting inventions in the useful arts as to any other class of partnerships. Indeed, it is not easy to imagine a case wherein the rule of good faith between partners is more applicable than in the case now before us.

We regard it as well settled law that, when one who has conceived the principle or plan of an invention employs another to perfect the details, and to realize his conception, and the employee devises new and valuable improvements [538]*538in the original conception or invention, the improvements belong to the employer, and not to the employee. Curtis on Patents, secs. 120, 123. It seems equally and upon similar grounds to be the dictate of equity and good conscience that one whose contractual relations with an inventor are those of partnership which require him in express terms or by necessary implication to use his best efforts to promote the invention and all the improvements thereon for the benefit of the partnership, and who himself has made an improvement on the invention, stimulated solely by the possession of the original inventor’s ideas under the contract, should not be permitted to claim the improvement as his own to the exclusion of his copartner, the original inventor. We think that this is the reasonable deduction to be made from all the cases. Dixon v. Moyer, 4 Wash. 68 ; Allen v. Rawson, 1 Manning, Granger & Scott, 551; Agawam Company v. Jordan, 7 Wall. 583 ; O’Reilly v. Morse, 15 How. 62; Bloxam v. Elsee, 1 Car. & Payne, 567.

It might be a question under some circumstances whether the employee or person in a fiduciary relation to the original inventor should not be regarded in a technical sense under the terms of the law as being entitled to have letters patent issued to him in his own name for improvements devised by him, subject to the processes of equity to compel an immediate assignment thereof to the original inventor.

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Bluebook (online)
7 App. D.C. 531, 1896 U.S. App. LEXIS 3091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milton-v-kingsley-cadc-1896.