Puget Sound Salmon Egg Co. v. Shoshoni, Inc.

321 F. Supp. 104, 168 U.S.P.Q. (BNA) 154, 1970 U.S. Dist. LEXIS 9609
CourtDistrict Court, D. Idaho
DecidedNovember 6, 1970
DocketCiv. No. 1-69-60
StatusPublished
Cited by2 cases

This text of 321 F. Supp. 104 (Puget Sound Salmon Egg Co. v. Shoshoni, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puget Sound Salmon Egg Co. v. Shoshoni, Inc., 321 F. Supp. 104, 168 U.S.P.Q. (BNA) 154, 1970 U.S. Dist. LEXIS 9609 (D. Idaho 1970).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

McNICHOLS, District Judge.

FINDINGS OF FACT

I.

This is an action for an injunction and for damages arising out of infringement of United States Patent No. 2.951.761, for “Fish Bait”, which patent issued on September 6, 1960, on an application Serial No. 735,951, filed May 19, 1958, which application was a continuation of application Serial No. 467,896, filed November 9, 1954. Defendants have counterclaimed for a declaratory judgment of patent invalidity and for unfair competition.

II.

Plaintiff, Puget Sound Salmon Egg Company, Inc., is a Washington corporation having an established place of business at 1440 South Jackson Street, Seattle, Washington.

III.

United States Letters Patent No. 2.951.761, issued to John Thomas Stephan, and said John Thomas Stephan has been and continues to be the sole owner of United States Letters Patent No. 2.951.761,

[106]*106IV.

Plaintiff, Puget Sound Salmon Egg Company, Inc., is the exclusive licensee of John Thomas Stephan under United States Letters Patent No. 2,951,761, by reason of a license agreement dated November 19, 1956, under which agreement Puget Sound Salmon Egg Company, Inc. is authorized to bring and maintain this action.

V.

Defendant, Shoshoni, Inc., is an Idaho corporation, formerly having an established place of business at 108 East 40th, Boise, Idaho, and presently having an established place of business near Meridian, Idaho, in this judicial district.

VI.

Defendant, K. Clint Stephens, is and has been the President of defendant, Shoshoni, Inc. since the founding of said corporation, and resides at 406 North DeClark Street, Emmett, Idaho.

VII.

By Consent Judgment and Decree entered September 2, 1970, the Complaint against Lucky Brands, Inc. was settled and dismissed, with the defendant Lucky Brands, Inc. having been enjoined along with its officers, agents, servants and employees from infringement of United States Letters Patent No. 2,951,761.

VIII.

This Court has jurisdiction over the parties and subject matter of this action. Jurisdiction and venue of the infringement claims are based on 28 U.S. C. Sections 1338(a) and 1400(b), and the patent laws of the United States. Jurisdiction and venue of the counterclaim for declaratory judgment are properly before this Court as provided by the Declaratory Judgment Act, 28 U. S.C. Sections 2201 and 2202.

IX.

In their natural state, salmon eggs have a slightly acidic pH of about 6.3 and a solids content of about 38-45% by weight. Expanded eggs have a smaller solids content, often about 20% by weight in commercial practice.

X.

Unexpanded salmon eggs were processed and sold by various companies as fish bait long prior to the invention of the patent in suit. Sellen Patent No. 1,703,324 which was before the Patent Office during the prosecution of the patent in suit, and Tereski Patent No. 2,743,185, disclose two methods of processing unexpanded bait fish eggs.

XI.

Siberian Fish Products Company, of Seattle, Washington, marketed an expanded bait fish egg prior to the invention of the patent in suit. The actual manner of processing the Siberian egg has been maintained as a secret by the processor and the nature of the process is not determinable by analysis of the bait eggs as marketed.

XII.

Neptune Fish Products Company, of Seattle, Washington (according to the testimony of its owner Mrs. Dorotha B. Kinney), produced and sold expanded fish eggs even prior to World War II. Documents and testimony established that Neptune Fish Products Company in 1948 and 1949 marketed a Sure Strike brand egg which was expanded in nature and was characterized by a substantial amount of acetate ion. These eggs were processed by a process involving soaking of the eggs in an acetic acid solution of about pH 3 for at least 48 hours, followed by soaking of the eggs in 3 to 6 changes of water solution. However, Neptune Fish Products Company kept this process and its other egg processing techniques secret and concealed to the extent that not even employees of Neptune knew of the nature of the processing or the chemicals used, in part by misbranding or not branding the chemicals involved. Testimony of plaintiff's [107]*107expert witnesses indicated that the nature of the Neptune processing is not determinable by analysis of the eggs as marketed.

XIII.

Mr. Nicholas Andreev while he was an employee of Neptune Fish Products Company prior to October, 1942, had attempted unsuccessfully to produce a marketable expanded fish egg for bait purposes prior to Stephan’s invention. Spoilage of the eggs a short time after processing was the principal problem encountered at that time.

XIV.

In the early 1950’s Mr. Steve Sarich, Jr., President of the plaintiff Puget Sound Salmon Egg Company, Inc., had recognized the market need for an expanded bait fish egg and, being aware of the Siberian expanded egg, had tried to duplicate it using a hydroxide or base type expansion process, without success.

XV.

After having exhausted his own ideas, Mr. Sarich retained Dr. Charles Shockey of Seattle Pacific College to attempt to develop an expanded bait fish egg which would not spoil, and Dr. Shockey’s efforts in this respect were likewise unsuccessful.

XVI.

Mr. Sarich next contacted John Thomas Stephan, an experienced protein chemist, furnished a sample of the expanded Siberian egg to him, and asked him to develop a marketable expanded egg for Puget Sound Salmon Egg Company, Inc. At that time it was believed there would be a market demand for a large but relatively soft egg for use in lake fishing. This type egg would not have to be able to stay on a hook during repeated casting, and would not be exposed to the strong currents of rivers or streams. Knowing the Siberian egg to have a pH in the alkaline range, Mr. Stephan first unsuccessfully attempted to produce an egg using processing materials such as sodium hydroxide and other bases. After several hundred experiments, ranging from use of bases, salts and a wide variety of organic compounds such as urea and resins, Mr. Stephan discovered that an acid soak followed by a water soak could be used successfully to expand fish eggs, and that eggs prepared in this manner would not spoil. After a number of additional experiments, Mr. Stephan finalized the invention of the patent in suit.

XVIL

Stephan U.S. Patent No. 2,951,761 has nineteen claims. Broadly, the invention involves, in the language of broadest claim 1:

“1. A process for swelling fish eggs comprising the steps of soaking the eggs in an acid solution followed by soaking in water until swollen”.

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Bluebook (online)
321 F. Supp. 104, 168 U.S.P.Q. (BNA) 154, 1970 U.S. Dist. LEXIS 9609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puget-sound-salmon-egg-co-v-shoshoni-inc-idd-1970.