Ocean Science & Engineering, Inc. v. United States

595 F.2d 572, 26 Cont. Cas. Fed. 83,165, 219 Ct. Cl. 1, 204 U.S.P.Q. (BNA) 438, 1979 U.S. Ct. Cl. LEXIS 86
CourtUnited States Court of Claims
DecidedJanuary 18, 1979
DocketNo. 239-75
StatusPublished
Cited by4 cases

This text of 595 F.2d 572 (Ocean Science & Engineering, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ocean Science & Engineering, Inc. v. United States, 595 F.2d 572, 26 Cont. Cas. Fed. 83,165, 219 Ct. Cl. 1, 204 U.S.P.Q. (BNA) 438, 1979 U.S. Ct. Cl. LEXIS 86 (cc 1979).

Opinion

PER CURIAM:

This case is before the court on the parties’ exceptions to the opinion, findings of fact, and [3]*3conclusions of law of Trial Judge Francis C. Browne, submitted in accordance with Rule 134(h). Trial Judge Browne determined that the United States had neither infringed the patent of Willard Bascom (Count I of the petition), nor breached an implied contract of confidentiality between the government and plaintiffs (Count II). Although plaintiffs disagreed with the trial judge’s resolution of their claims under both counts, in order to simplify the issue on appeal, they chose to focus on the infringement issue, and did not except to the trial judge’s findings relating to Count II.

Due to the classified nature of the material involved in this case, the proceedings were all conducted in camera. However, we are able to state the reasons for our decision publicly, without reference to any classified material. After consideration of the briefs and arguments of counsel, we agree with Trial Judge Browne to the extent indicated, and the court adopts his decision with the modifications discussed below as the basis for its judgment in this case. Thus, plaintiffs are not entitled to recovery and their petition is dismissed.

We have deleted from the trial judge’s opinion the portion discussing the issue of extra-territoriality in order to avoid the impression that the issue is easily disposed of in this case, and we do not decide this issue. He admitted that this would be dictum if we agreed with him, as we do, on the infringement issue. The novelty of Bascom’s concept is his creative combination of traditional devices to obtain the desired result — the location of underwater objects. The method used by the United States for this purpose and allegedly infringing Bascom’s patent was operational only on the high seas — outside the United States, as defined in the patent laws as "the United States of America, its territories and possessions.” 35 U.S.C. § 100(c). Yet the patent laws protect only against the manufacture, use, or sale of a patented invention "within the United States.” 35 U.S.C. § 271. Referring to this country’s historical distaste for monopolies, the Supreme Court has strictly limited the scope of patent laws (which create monopolies) to the express provisions of the statute. Sears, Roebuck & Co. v. Stiffel Co., 376 U.S. 225, 229-30 (1964). Faced with these narrow limits, the Supreme Court ruled that the, assembly [4]*4of spare parts of a device to devein shrimp could not infringe U. S. patent laws although the parts were manufactured in the United States, because the novelty that made the idea patentable was in the combination of the parts, and that combination took place outside the territorial United States. Deepsouth Packing Co. v. Laitram Corp., 406 U.S. 518 (1972). See also Decca, Ltd. v. United States, 210 Ct. Cl. 546, 544 F.2d 1070 (1976) for a discussion of this problem.

In Decca we decided not to apply or reject the fiction that a United States flag ship or plane is an ambulatory portion of United States territory. Deeming it a "juridical prop” that could be dispensed with, we found jurisdiction in the fact that the alleged infringing device, the Omega worldwide system to fix the location of ships and planes, employed beside receivers on the ships and planes and "slave” stations in foreign countries, its necessary "master” stations wholly in the United States.

The trial judge relied on Steele v. Bulova Watch Co., 344 U.S. 280 (1952), which, however, interprets the Lanham Act to authorize an injunction against a trademark infringement in a foreign country. The opinion construes the legislation as stating an affirmative intent to apply as broadly as the constitutional powers of Congress permit. Of course, the constitutional power of Congress to make our patent laws applicable to processes carried out on U. S. flag ships and planes at sea is not challenged; the question is whether Congress has done so in view of the Supreme Court’s doctrine of strict construction.

Perhaps the patent bar will note the possible loophole in the coverage of the U. S. patent laws and will invite the attention of Congress to it. Meanwhile, it is well to adjudicate cases on other grounds when possible, as we do this case.

Another complex issue appears in this case as an affirmative defense for the government. The government argues that Mr. Bascom conceived the invention at issue while employed by the National Academy of Sciences under a National Science Foundation research grant, and that the provisions of that grant entitle the United States to a royalty-free license to practice any invention made in the course of work done under that grant. Trial Judge [5]*5Browne ruled that Bascom did not conceive the idea in the course of work done under the grant, since Bascom visualized and gave form to the idea on Christmas Eve, on his own free time, and without employing materials or facilities of the National Academy of Sciences. Since our ruling on the subject of infringement allows us to refrain from determining whether the government has such a right to a license under these circumstances, we omit Trial Judge Browne’s discussion of the issue, and reserve for another time consideration of the scope of patent rights clauses commonly found in government research grants. We also have omitted the trial judge’s discussion of other affirmative defenses unnecessary for resolution in this case.

The court adopts the trial judge’s findings of fact as its own, except for the third sentence of finding 14 and findings 42 — 46, which are not adopted. The said findings are not printed herewith as they have been furnished to the parties.

Trial Judge Browne’s opinion, as modified, is printed below.

OPINION OF TRIAL JUDGE

BROWNE, Trial Judge:

Ocean Science & Engineering, Inc., a Delaware corporation (hereinafter OSE), and Willard N. Bascom (hereinafter Bascom) filed a "Petition for Infringement of Letters Patent and Breach of Implied Contract” in this court on July 16, 1975. The United States of America (hereinafter defendant) filed its answer to the petition on January 13, 1976. As a result of informal discovery plaintiffs determined that they should voluntarily dismiss any claim for infringement of United States Letters Patent 3,472,191 by defendant and, on July 16, 1976, filed a stipulation under Rule 39 permitting the filing of a "First Amended Petition for Infringement of Letters Patent and Breach of Implied Contract” on the same date. Defendant filed its answer to the amended petition on August 16, 1976. After completion of all discovery, trial was commenced on Tuesday, April 12, 1977, and testimony was concluded on Monday, May 2, 1977. A final trial session was held on Thursday, May 12, 1977, at which session this opinion was rendered orally.

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595 F.2d 572, 26 Cont. Cas. Fed. 83,165, 219 Ct. Cl. 1, 204 U.S.P.Q. (BNA) 438, 1979 U.S. Ct. Cl. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ocean-science-engineering-inc-v-united-states-cc-1979.