Prest-O-Lite Co. v. Ray

162 A.D. 62, 147 N.Y.S. 138, 1914 N.Y. App. Div. LEXIS 5947
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 17, 1914
StatusPublished
Cited by2 cases

This text of 162 A.D. 62 (Prest-O-Lite Co. v. Ray) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prest-O-Lite Co. v. Ray, 162 A.D. 62, 147 N.Y.S. 138, 1914 N.Y. App. Div. LEXIS 5947 (N.Y. Ct. App. 1914).

Opinion

Laughlin, J.:

The recovery was for the penalty given by section 367 of the General Business Law, being chapter 20 of the Consolidated Laws (Laws of 1909, chap. 25), as amended by chapter 475 of the Laws of 1909, which added said section thereto.

The plaintiff was duly incorporated under the laws of Indiana in September, 1904. It has been duly authorized to do business in this State and has a plant at Astoria, Queens county, N. Y., where it manufactures and prepares for sale and sells there and elsewhere acetylene gas in five sizes of copper-plated steel shells, containers, cylinders or tanks, which for brevity will be designated tanks, containing porous asbestos brick or disc fillers for absorbing acetylene gas dissolved in a liquid acetone solvent for use in lighting motor vehicles, the gas, when thus dissolved in the acetone, being forced into the tanks under pressure. There is only one method by which acetylene gas is manufactured, and that is by adding carbide to water, whereby the gas is given off. The gas is extremely soluble in water, and, according to the evidence, is dangerous under pressure unless “stored in a safety material.” The plaintiff has a standard formula for thus preparing the gas in the acetone solvent for storage in the tanks. When the gas is dissolved in liquid acetone and inserted in the tanks according to the plaintiff’s formula, a tank will hold forty cubic feet of acetylene gas at a pressure of two hundred and twenty-five pounds — the unit whether per square foot or inch is not given — at a temperature of sixty degrees Fahrenheit, or eight times the quantity that a tank would hold if the gas were not thus dissolved in the acetone liquid solvent and absorbed in the asbestos fillers under pressure. When desired for lighting, the gas is admitted to the burner from the tank through a needle valve [64]*64at the convex end at a substantially uniform pressure, and the ordinary tank for ordinary use on automobiles, when thus filled, affords light of uniform intensity for about forty hours. The plaintiff manufactures both the tanks and gas, but, as already observed, the gas it manufactures is the same as that manufactured by its competitors, the only difference shown by the evidence being with respect to the manner of preparing and storing the gas in the tanks for use. The plaintiff is not engaged in the business of manufacturing or selling the tanks excepting as filled or to be filled with gas according to its formula. There is evidence tending to show that since the commencement of this action a single sale of an empty tank was made for eleven dollars and sixty-five cents at the plaintiff’s branch office in New York, for use with a welding machine for experimental purposes, but not to be used in affording light for motor vehicles; and there is evidence tending to show that the plaintiff sells its tanks to wholesale dealers at thirteen dollars and sixty-five cents each, less a discount for cash, to be filled, however, with gas manufactured by it and according to its formula, for which it charges the wholesalers one dollar per tank, and that it retails and authorizes the retailing of the tanks filled and ready for use for twenty-five dollars each, on the representation and assurance, but without a formal agreement, that they may be exchanged when empty for filled tanks at any one of plaintiff’s thirteen plants or twenty-six branch offices, or at any one of some fifteen hundred exchanges maintained by it for that purpose throughout the United States, Ganada, Mexico, Europe and the Philippine Islands, for a charge, varying according to the place, of from one dollar and fifty cents to three dollars, for each exchange. The plaintiff since its incorporation has sold between 650,000 and 700,000 of these tanks. The ordinary life of a tank is at least fifteen years. It is conceded that on the initial sale of a tank the plaintiff parts with all its right, title and interest therein. At the concave end of each tank there is a safety plug and gauge with the hyphenated word “Prest-O-Lite” stamped on the gauge. On the cylindrical body of the tank there is attached a square label on . which is etched in large letters the same hyphenated word, “Prest-O-Lite,” and the date of the patent under which the [65]*65plaintiff originally manufactured and sold the tanks and gas, and since July, 1910, a notice “ This Side Up,” and an inscription signed in the name of the plaintiff and its licensor, as follows: “In consideration of its return to us for exchange when empty, this device is sold and licensed for sale and use only while filled with gas and acetone compressed by us, and when sold for not less than $25.”

On the 25th day of December, 1900, the United States Patent Office duly issued letters patent No. 664,383 to G. M. A. Claude and G. A. Hess, the inventors and their assignee, for an apparatus for storing and distributing acetylene gas, and in the specifications forming part of the letters patent it is recited that the apparatus, to which the invention pertains, “is designed to carry out a process of storage and distribution involving the employment of a chamber charged with a solvent of the gas to be stored and into which the gas is forced under suitable pressure,” and that the tank is to be charged at a central station or distributing point and transported “as a complete article or package ’ adapted to be placed in communication with the burners ” where the light is desired, and that “to this end the apparatus embodying the present invention consists, essentially, in a closed receptacle containing acetylene gas in solution and having an outlet for the gas so positioned as to be normally above the level of said solution and adapted to be provided with a burner or connected with a pipe system for the final use or distribution of the gas which escapes from the solution owing to the diminution of pressure when the said outlet is opened.” It is not necessary to describe the patent in full. It is sufficient to say, for the purposes of this appeal, that it covered the tank and its contents, "prepared and filled as already described, as a complete package ready for commercial use. Each of the six specifications of the invention, as claimed by the inventors, and upon which the patent was granted, shows that the patent was claimed on the “ prepared package” or “closed vessel” con-taming acetylene gas so dissolved in a solvent and stored, described in one of the specifications as “a gas-package.”

It was held by the Federal courts, and is now conceded, that [66]*66the letters patent expired with a former similar English patent on the 30th day of June, 1910. (Commercial Acetylene Co. and Prest-O-Lite Co. v. Schroeder, 203 Fed. Rep. 276.) Prior to that time the plaintiff to the extent of its license from the patentees had an exclusive monopoly of the right to prepare and market acetylene gas in packages or tanks in accordance with the letters patent; but that right expired with the letters patent, and it has since been, and now is, open to all the world to adopt the plaintiff’s style and form of tank and formula for preparing, storing and selling acetylene.

The plaintiff attempted to register the word “Prest-O-Lite” as a trade mark pursuant to the provisions of said section 361 of the General Business Law, and its right to recover the penalty depends upon whether it is entitled to the protection of the provisions of the statute in the use of the hyphenated word “Prest-O-Lite” as a trade mark on tanks containing gas manufactured by it.

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Related

Coca-Cola Co. v. Stevenson
276 F. 1010 (S.D. Illinois, 1920)
Prest-O-Lite Co. v. Brickner
162 A.D. 75 (Appellate Division of the Supreme Court of New York, 1914)

Cite This Page — Counsel Stack

Bluebook (online)
162 A.D. 62, 147 N.Y.S. 138, 1914 N.Y. App. Div. LEXIS 5947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prest-o-lite-co-v-ray-nyappdiv-1914.