Moore v. American Barmag Corp.

693 F. Supp. 399, 9 U.S.P.Q. 2d (BNA) 1904, 1988 U.S. Dist. LEXIS 10079, 1988 WL 92663
CourtDistrict Court, W.D. North Carolina
DecidedSeptember 2, 1988
DocketNo. C-C-87-0228-P
StatusPublished
Cited by3 cases

This text of 693 F. Supp. 399 (Moore v. American Barmag Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. American Barmag Corp., 693 F. Supp. 399, 9 U.S.P.Q. 2d (BNA) 1904, 1988 U.S. Dist. LEXIS 10079, 1988 WL 92663 (W.D.N.C. 1988).

Opinion

ORDER

ROBERT D. POTTER, Chief Judge.

THIS MATTER, a suit for patent infringement, is before the Court on Defendants’ Motion for summary judgment. It appears that oral argument on the motion is unnecessary, for the parties have briefed their positions well. Accordingly, the Court will decide the motion on the briefs and other papers filed with the Court.

Defendants’ motion raises two broad issues: (1) whether Plaintiff must assign his patent to Defendant American Barmag Corporation (“ABC”), his employer, under the principles of patent law relating to inventions by employees; and (2) if Plaintiff is not required to assign his patent, whether Defendant ABC is entitled to a non-exclusive license to practice the invention under the “shop rights” doctrine. For the reasons stated herein, the Court holds that Defendants are not entitled to summary judgment under either theory, for genuine issues of material fact remain as to both.

I. BACKGROUND

During the period of time pertinent to this case, Plaintiff worked for Defendant ABC as a “service engineer.” Defendant Barmag, A.G. manufactures machinery for use in the textile industry. Defendant ABC is Barmag’s American sales and service arm. Plaintiff agrees that his duties included “start up of texturing machines,” “troubleshooting on texturing machines,” “workpng] on customer trials either at ABC or in customer’s plant,” and “report[ing] on customer trials either at ABC or in customer’s plant,” and “reporting] to Service Manager.” Plaintiff summarizes his duties as “start-up and adjustment services.” A written job description produced by Defendants, which Plaintiff claims he did not see until after the events leading to this lawsuit had occurred, lists as additional duties of service engineers “design adaptations on certain machine parts” and “work within limits on other ABC Service related developments.” Plaintiff claims that no one at ABC ever discussed these latter duties with him and, in fact, they were not part of his job. Specifically, Plaintiff claims that he was not employed to invent new machinery or methods.

The events which underlie this lawsuit occurred in October or November, 1983. The Court will relate the version most favorable to Plaintiff, who opposes summary judgment. Plaintiff claims that ABC’s sales manager, Hahnen, asked Plaintiff to go to the Collins & Aikman (“C & A”) plant in Graham, North Carolina and disclose to C & A an “idea” Hahnen had for altering the feed path on a yarn texturing machine. Plaintiff disputes that he was sent to C & A to solve a “problem” C & A was experiencing. Defendant ABC, however, claims that it sent Plaintiff to C & A to solve an overfeed problem.

At any rate, Plaintiff went to C & A and disclosed the idea that Hahnen had suggested. C & A rejected the idea. Plaintiff eventually returned to his hotel room where, in a state between waking and sleeping, he conceived of a novel way of feeding yarns through an air texturing machine which would greatly increase the speed at which quality yarn could be produced.

The next day, Plaintiff returned to C & A to try out his idea. Using parts from C & A, he altered a Barmag machine, owned by C & A, to implement his idea. The trial proved successful. It is undisputed that Defendant ABC paid for Plaintiffs hotel room and meals in Graham, and his travel expenses to and from Graham. C & A paid ABC for Plaintiff’s services.

[401]*401When he returned to ABC, Plaintiff inquired about compensation for his invention. His superior, Berger, told him that ABC or Barmag, A.G. might compensate him, although ABC had no policy for handling employee inventions. Plaintiff then disclosed his invention to ABC.

ABC’s patent counsel prepared and filed an application for a U.S. patent on Plaintiffs invention. Plaintiff signed a declaration permitting ABC to file the application in Plaintiffs name, but refused to assign the patent to ABC or Barmag, A.G. ABC thereupon abandoned the application. Plaintiff obtained independent patent counsel, who prosecuted an application which resulted in the issuance of the patent in suit.

Plaintiff brought suit in May, 1987, eventually asserting ten claims for relief. These include patent infringement, inducement to infringe and contributory infringement, misappropriation of trade secrets, tortious conversion of property, tortious interference with contractual relations and with prospective economic advantage, negligence, and conspiracy to damage Plaintiff.

II. SUMMARY JUDGMENT

Fed.R.Civ.P. 56 provides for summary judgment in favor of a defendant where “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The facts and inferences to be taken therefrom must be viewed in the light most favorable to the moving party. Ballinger v. North Carolina Agricultural Extension Service, 815 F.2d 1001, 1004 (4th Cir.), cert. denied, — U.S.-, 108 S.Ct. 232, 98 L.Ed.2d 191 (1987).

The question on a motion for summary judgment is similar to that on a motion for directed verdict or for judgment notwithstanding verdict: whether a reasonable factfinder could return a verdict for the party opposing the motion on the basis of the evidence presented. Anderson v. Liberty Lobby, 477 U.S. 242, 249-51, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). The inquiry on summary judgment includes assessment of the evidence in light of the evidentiary burden each party will bear at the trial. Id. Where Plaintiff must prove his case by a preponderance of the evidence, it must be apparent on summary judgment that Plaintiff will be able to present evidence at trial sufficient to allow a reasonable jury to find that Plaintiff has proved his case by a preponderance.

III. EMPLOYEE AS INVENTOR

One employed to make an invention, who succeeds, during his term of service, in accomplishing that task, is bound to assign to his employer any patent obtained. The reason is that he has only produced that which he was employed to invent. His invention is the precise subject of the contract of employment. A term of the agreement necessarily is that what he is paid to produce belongs to his paymaster.

United States v. Dubilier Condenser Corp., 289 U.S. 178, 187, 53 S.Ct. 554, 557, 77 L.Ed. 1114 (1933). Defendant urges that invention of a method or device to make Barmag machines fit customers’ purposes was one of Plaintiff’s duties, either in general or in the particular case of Plaintiff’s visit to Collins and Aikman. Whether an employee was “hired to invent” is a question of fact. Forberg v. Servel, Inc., 88 F.Supp. 503, 509 (S.D.N.Y.1949).

In deciding whether an employee was hired to invent, the Court must keep in mind the fundamental nature of an invention,

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693 F. Supp. 399, 9 U.S.P.Q. 2d (BNA) 1904, 1988 U.S. Dist. LEXIS 10079, 1988 WL 92663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-american-barmag-corp-ncwd-1988.