Philadelphia Storage Battery Co. v. Zenith Radio Corp.

117 F.2d 642, 48 U.S.P.Q. (BNA) 228, 1941 U.S. App. LEXIS 4297
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 14, 1941
DocketNo. 7341
StatusPublished
Cited by5 cases

This text of 117 F.2d 642 (Philadelphia Storage Battery Co. v. Zenith Radio 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
Philadelphia Storage Battery Co. v. Zenith Radio Corp., 117 F.2d 642, 48 U.S.P.Q. (BNA) 228, 1941 U.S. App. LEXIS 4297 (7th Cir. 1941).

Opinion

SPARKS, Circuit Judge.

This action was instituted by appellee against appellant under Revised Statutes, section 4915, 35 U.S.C.A. § 63.1 It sought the issuance of a patent on an application filed by one Jacke and assigned to appellee. The defendant- denied the plaintiff’s right to this relief on the ground that defendant owned a patent, No. 1,638,734, covering the same device issued to Heath the first inventor, who assigned it to defendant, who also owned Heath reissue patent, No. 17,531. The District Court entered a judgment in favor of the plaintiff holding that Jacke was the original, first and sole in[643]*643ventor of the invention in issue, and that plaintiff was entitled to receive a patent for the invention. From this decision the defendant has appealed.

There is no question either of infringement or validity presented in this appeal. The sole question is the right of priority of invention, arising out of the facts elicited in a series of interference proceedings to which the Heath reissue patent was subjected.

The original Heath patent No. 1,638,734, containing 12 claims, was issued August 9, 1927, on an application filed November 13, 1924. Jacke filed his application for a patent on November 20, 1928. It contained 12 claims. On February 23, 1929, Heath filed his application for a re-' issue of his original patent, and it was reissued with 55 claims on December 17, 1929, with the effective date of November 13, 1924. On February 3, 1930, Jacke added to his application claims 22 to 35, inclusive.

On May 24, 1930, the Examiner declared a two-party interference,. No. 59,-991, between Jacke and Heath, containing 14 counts. They correspond to the claims which Jacke had added to his application on February 3, 1930, and they also correspond to claims 28 to 37, inclusive, and 50, 51, 52 and 54 of Heath’s reissue patent. On July 27, 1930, Heath filed his preliminary statement before the Examiner of Interferences. Jacke took testimony, and Heath did not, because it was conceded that his record date was that of his original application.

In 1931 a second two-party interference, No. 65,590, was declared by the Examiner between Jacke and Heath. On June 23, 1931, the Patent Office dissolved Interference No. 59,991 as to counts 1, 2, 3, 4, 5, 6, 9 and 10, and on February 2, 1933, it dissolved count 8. On the same day the Patent Office declared Interference No. 59,991 to include an application of Edgar M. Butlerj and the issue of that interference then comprised counts 7, 11, 12, 13 and 14.

On October 20, 1936, there was a final hearing in Interference No. 65,590. Jacke submitted the testimony theretofore taken in Interference No. 59,991. Heath offered none. On November 3, 1936, the Examiner of Interferences rendered his decision in which he awarded priority of invention of the subject matter in issue to Jacke. He therein stated, among other things:

“Having filed his application prior to the issuance of the Heath reissue patent and because the original Heath patent contained no interfering claims, * * * Jacke has the burden of proving his case by a preponderance of the evidence. * * * Jacke has taken testimony. * * * Heath has taken no testimony and is therefore confined to his record date of November 13, 1924. * * *
“Having established a reduction to practice prior to the record date of * * * Heath, * * * Jacke is entitled to an award of priority.”

No appeal was taken.

On May 17, 1937, Jacke filed his motion for judgment against Heath in Interference No. 59,991, on the theory of res adjudicata by virtue of the Examiner’s decision in Interference No. 65,590. A hearing on Interference No. 59,991 was had the next day following, before the same Examiner who had rendered the decision in No. 65,590. On September 15, 1937, he rendered his decision in which he denied Jackets motion for judgment and awarded priority of invention of the subject, matter in issue to Heath. Among other things he therein stated: “* * * Butler being a junior party and having taken no testimony is not entitled to prevail herein.”

“* * * Jacke has moved for judgment against Heath on the’ grounds of res adjudicata. For the reasons as more fully discussed in the decision in Interference No. 61,976, Jacke vs. Rice vs. Heath, rendered concurrently herewith the motion for judgment is denied.”

On the question of res adjudicata the same Examiner in Interference No. 61,976, Jacke v. Rice v. Heath, said:

“* * * Jacke has moved for judgment against Heath on the ground of res adjudicata.
“* * * (They) were involved in Interference No. 65,590 on subject matter similar to but more specific than the subject matter herein. Interference 65,590 became separated from the companion interferences, of which the present case is one of a series, and was decided in favor of Jacke. * * * Heath did not appeal and the decision therefore became final as far as the Office is concerned.
[644]*644“* * * Jacke in support of his motion has cited numerous decisions but none of them apply to interferences which are copending in the Office and no reason is seen for extending the doctrine of res adjudicata and unduly penalizing a party because a series of companion interferences became separated in the Office and were not heard together as they would be in the ordinary course of events.”

On appeal to the Board this ruling was approved.

The difficulty here lies not in any disagreement as to the essential elements of res adjudicata. They are conceded. The question is whether that doctrine is to be applied in a series of companion or concurrent interferences, so that the finding by the Examiner in one interference, of a fact necessary to, but not determinative of, the issuance of a patent, will preclude the denial of the fact so found, by any party to such other interference proceedings. It is quite true that Jacke and Heath were parties to all interferences, and their right of priority was at issue in each. Butler also was a party to Interference No. 59,991, but he was not a party to No. 65,590, and could not be. True, he submitted no evidence in No. 59,991, and the finding was against him, but he was not bound, and could not be, by the finding in No. 65,590. Hence the Examiner properly required Jacke to submit his evidence on priority.

Of course the issue between Jacke and Heath was the same in both contests, and for this reason appellee urges that the doctrine of res adjudicata should apply as against Heath. We think the doctrine should not be extended so far. It has never been so applied by the department, and the precise question seems never to have been raised before. To so hold would seem to us to be unreasonable, and would interfere greatly with the expeditious transaction of the department’s work. This, we think, is well illustrated by the events that transpired here. The record discloses that in Interference No. 65,590, Heath filed no brief and did not participate in argument, but both did with respect to the last interference. The Examiner calls attention to this fact and states that after considering appellant’s argument and briefs and the evidence, he was thoroughly convinced that Heath was entitled to priority. We think this statement is not at all unreasonable. It comports thoroughly with our experience.

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117 F.2d 642, 48 U.S.P.Q. (BNA) 228, 1941 U.S. App. LEXIS 4297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-storage-battery-co-v-zenith-radio-corp-ca7-1941.