Mitchell v. Hawley

83 U.S. 544, 21 L. Ed. 322, 16 Wall. 544, 1872 U.S. LEXIS 1182
CourtSupreme Court of the United States
DecidedMarch 18, 1873
StatusPublished
Cited by113 cases

This text of 83 U.S. 544 (Mitchell v. Hawley) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. Hawley, 83 U.S. 544, 21 L. Ed. 322, 16 Wall. 544, 1872 U.S. LEXIS 1182 (1873).

Opinion

Mr. Justice CLIFF O RD’

delivered the opinion of the court.

. Patentees acquire by their letters-patent the exclusive right to make, and use their patented inventions and to *547 vend the same to others to be used for the period of time specified in the patent, but when they have made one or more of the things patented, and hare vended the same to others to be used, they have parted to that extent with their exclusive right, as they are never entitled to but one royalty for a patented machine, and consequently a patentee, when he has himself constructed a machine and sold it without any conditions, or authorized another to construct, sell, and deliver it, or to construct and use and operate it, without anjr conditions, and the consideration has been paid to him for the thing patented, the rule 's well established that the patentee must he understood to have parted to that extent with all his exclusive right, and that he ceases to have any interest whatever in the patented machine so sold and delivered or authorized to be constructed and operated. "Where such circumstances appear, the owner of the machine, whether he built it or purchased it, if he has also acquired the right'to use and operate it during the.lifetime of the patent, may continue to use it until it is worn out, in spite of any and every extension subsequently obtained by the patentee or his assigns. *

Patents were granted, under the prior Patent Act, for the term of fourteen years, but the provision was that a patentee in certain cases might have the term extended for seven years from and after the expiration of the first term, and the same section provided that the benefit of such renewal shall extend to assignees and grantees of the right to use the thing patented to the extent of their respective interests therein, which last provision has frequently been misunderstood. Such misapprehension has usually arisen from a failure to keep in view the well-founded distinction between the grant and the right to make and vend the patented machine, and the grant of the right to use it, as was first satisfactorily pointed out by the late Chief Justice Taney with his. accustomed clearness and preeision.

*548 Purchasers of the exclusive privilege of making or vending the patented machine hold the whole or a portion of the franchise which the patent secures, depending upon .the nature of. the conveyance, and of course the interest which the purchaser acquires terminates at the time limited for its continuance by the law which created the franchise, unless it is expressly stipulated to the contrary. But the purchaser of the implement or machine for the purpose of using it in the ordinary pursuits of life stands on different grounds, as he does not acquire any right to construct another machine either for his own use orto be vended to another-for any purpose. Complete title to the implement or machine purchased becomes vested in the vendee by the sale and purchase, but he acquires no portion of the franchise, as the machine, when it rightfully passes from the patentee to the purchaser, ceases to be within the limits of the monopoly.

Patented implements or machines sold to be used in the ordinary pursuits of life become the private individual property of the purchasers, and are no longer specifically protected by the patent laws of the State where the implements or machines are owned and used. Sales of the kind may be made by the patentee with or without conditions, as in other cases, but where the sale is absolute, and without'any conditions, the rule is well settled that the purchaser may continue to use the implement or machine purchased until it is worn out, or he may repair it or improve upon it as he pleases, in same manner as if dealing with property of any other kind.

Letters-patent were granted to James P. Taylor for new and useful improvements in machinery for felting hats, bearing date the third of May, 1853, securing to him the exclusive right to make and use and to vend to others the right to make and use' the said machines for the term of fourteen years from the date of the letters-patent. Due conveyance or license, subject to certain restrictions and limitations, was made by 'the patentee of the exclusive right to make and use uaudio license to others the right to use the said machines” *549 in the States of Massachusetts and New Hampshire, during the remainder of the original term of said letters-patent, it being expressly stipulated in the instrument of conveyance that the licensee “shall not, in any way, or form, dispose of, sell, or grant any license to-use the said machines beyoud the expiration ” of the original term. Apart from that the patente© also stipulated that the said licensee, if the.patent should be extended, should have the right to control the same in those two States, he paying to the grantors in his license, or their heirs and assigns, a fair and l’easonable compensation for the same, oh terms as favorable as may be offered to any other person or party. Bayley, as such licensee, 01 the eighteenth of March, 1864, constructed four machin'es, being two sets, and sold the machines, “ with the right to rm'1 the same, to the grantors of the respondents, for the sum of twelve hundred dollars, executing to the purchasers at trie same time a license under his hand and seal, authorizing the purchasers, as such licensees, “to run and use two sets (four machines) for felting hats,-in said town of Haverhill, under Taylor’s patent, bearing date as specified in the original letters-patent,” showing conclusively that the purchasers were referred to the original letters-patent as the source of his authority. Of course said letters-patent expired on the third of May, 1867, and the record shows that the commissioner, before the term expired, renewed the letters-patent and extended the same for the further term of seven years from the expiration of the original term, and that the complainants having become by certain mesne conveyances, duly recorded, the exclusive assignees of the right, title, and interest in the renewed letters-patent for those two States, instituted the present suit to restrain the respondents from using the four machines which they or their grantors purchased of the licensee under the original letters-patent. They appeared to the suit and filed an answer setting up as a defence to the charge of infringement that they are by law authorized to'continue to use the four machines just the same under the extended letters-patent as they had the right to do under the original patent, when the purchase was made *550 by those under whom they claim, which is the only question in the case.

No one in general can sell personal property and convey a.valid title to it unless he is the owner, or lawfully represents the owner. Nemo dat quod non habet.

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Cite This Page — Counsel Stack

Bluebook (online)
83 U.S. 544, 21 L. Ed. 322, 16 Wall. 544, 1872 U.S. LEXIS 1182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-hawley-scotus-1873.