Radio Corp. of America v. Hohenstein

289 F. 757, 1923 U.S. App. LEXIS 2046
CourtCourt of Appeals for the Second Circuit
DecidedApril 2, 1923
DocketNo. 187
StatusPublished
Cited by2 cases

This text of 289 F. 757 (Radio Corp. of America v. Hohenstein) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Radio Corp. of America v. Hohenstein, 289 F. 757, 1923 U.S. App. LEXIS 2046 (2d Cir. 1923).

Opinion

MANTON, Circuit Judge.

This suit is for infringement of letters patent No. 841,387, issued January 15, 1907, and No. 879,532, issued February 18, 1908. The former is for a device for amplifying feeble electrical currents; the latter, for space telegraphy. They provide for vacuum tubes, used as detectors and amplifiers in radio receiving sets. A motion was made and granted, after issue was joined, for an injunction pendente lite, which restrained the three appellants “from directly or indirectly making or causing to be made, using or causing to ,be used, leasing or causing to be leased, selling or causing to be sold, advertising or offering for sale, use, or lease, or causing to be advertised, Offered for sale, use, or lease, agreeing or contracting to sell or lease, or causing to be agreed or contracted for sale or lease,” supplying, installing, or threatening to make, use, lease, sell, supply, or install, any instruments, structures, or appliances known as “Phonotron,” embodying or employing the inventions or improvements of the patent in suit. Since the order was entered as against the three appellants only, the other named defendants do not appeal.

■ The appellee maintains the action as an alleged assignee. This instrument in part reads as follows:

“Hereby assigns and sets over to the Radio Corporation of America all claims recoverable in law or in equity, whether for damages, profits, savings, or any other kind or description, which the American Telephone & Telegraph Company has against said infringer, arising out of the infringement by said infringer of the aforesaid De Forest patents numbered 841,387 and 879,532, and, for the same considerations; assigns and sets over all the rights which it now has arising from said patents of excluding said infringer from the prae[758]*758tice of the inventions of said patents, the intention being that, in so far as concerns the exclusion of said infringer under said patents, the Radio Corporation of America shall be vested with as full rights in the premises as the American Telephone & Telegraph' Company would have had, had this assignment not been made, and that the Radio Corporation of America shall have the full right to bring suit on said patents, either at law or in equity, against said infringer, and for its own benefit to exclude the said infringer from practicing the inventions of said patents, and for its own use and benefit to collect damages, profits, and savings which may arise by reason of the future infringement of said patents by the said infringer; but nothing herein contained shall in any way affect or alter the rights of the American Telephone & Telegraph Company against others than the said infringers, and for :the same consideration all rights which are herein given as against the said , infringer are given as against any successor or assignee of the business thereof.”

The complaint in the action sets forth in paragraph sixth that the De Forest Radio Telephone & Telegraph Company assigned to the American Télephone & Telegraph Company, the entire right, title, and interest in said letters patent; that said De Forest Radio Telephone & Telegraph Company “has not parted with any rights, title, or interest in said letters patent, except as hereinbefore stated.” The De Forest Company is said to be the owner of the patents having licensed the Western Electric Company, a subsidiary of the American Telephone & Telegraph Company, and the bill of complaint pleads sufficient to demonstrate that the De Forest Company, as such owner, has instituted an action .in the United States District Court for the Southern District of California, in which it joined with it the American Telephone & Telegraph Company as a party plaintiff. Appellee’s claim here is based on its right to sue the particular infringers named herein as defendants by reason of such rights as were conveyed to the appellee by the assignment in question. The question on this appeal is whether the assignment sustains the right to sue for either past or threatened future infringements. The instrument conveys an alleged cause of action as against these appellants, but not as against others. It recites that the appellants are believed to have been manufacturing and selling devices, and in so doing infringed the patents in suit; that the appellee is the licensee of the American Telephone & Telegraph Company, and that the appellants are in competition with it; and that the appellee is desirous of acquiring from the American Telephone & Telegraph Company “all of its rights of exclusion under said patent so far as the same may be exercised” against said appellants, together with “all rights of said American Telephone & Telegraph Company against said appellants arising out of the infringement as aforesaid.” Thus it is sought to have conveyed to the appellee whatever rights for damages, profits, savings, or any other kind or description the American Telephone & Telegraph Company had against these appellants under the two patents in suit. But there is also conveyed the right for its own use and benefit, to collect damages, profits, and savings which may arise by reason of the future infringement of said patents. It is not an absolute assignment. The appellants may be sued again by the assignor, if there should be a default in the condition of the assignment. In the event of' such default, the right to sue would revert back to the American Telephone & Telegraph Company.

[759]*759An act of infringement is a tort for which a law action will lie. There can be no assignment of a future tort action, for the act of tort (infringement) may never be committed. One assignor can only assign that which is his. Therefore the remedy may not be assigned, for that is the work of the courts. The basis of an equity suit for prospective or future infringement of patent is that plaintiff will suffer irreparable injury by the continued infringement. But there may be no assignment of a right to an injunction, as distinguished from an assignment, the substantial right of which secures to the party claiming it the exercise of the power of the court. There can be no assignment by the owner of a patent of the remedy to which the patent entitled him, unless he also assigns the patent itself, out of which the remedy grows. A contract for the future or any portion of the patent right may be good as against the parties as a licensee, but the legal right in the monopoly remains in the patentee, and he alone can maintain an action against a third party who commits an infringement upon it. Gayler v. Wilder, 10 How. 477, 13 L. Ed. 504. A licensee of a patent cannot bring a suit in his own name, at law or in equity, for its infringement by a stranger. An action at law for the benefit of a licensee must be brought in the name of the patentee alone. A suit in equity may be brought by the patentee and the licensee together. Birdsell v. Shaliol, 112 U. S. 485, 5 Sup. Ct. 244, 28 L. Ed. 768; Littlefield v. Perry, 21 Wall. 205, 22 L. Ed. 577; Paper Bag Cases, 105 U. S. 766, 26 L. Ed. 959. The rule was stated in Waterman v. MacKenzie, 138 U. S. 252, 11 Sup. Ct. 334, 34 L. Ed. 923, where an assignment was for the sale and exclusive right and license to manufacture and sell fountain pen holders throughout the United States, that such an assignment was a mere license, because it did not include the right to use the patented article.

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Related

Radio Corp. of America v. Emerson
296 F. 51 (Second Circuit, 1924)

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Bluebook (online)
289 F. 757, 1923 U.S. App. LEXIS 2046, Counsel Stack Legal Research, https://law.counselstack.com/opinion/radio-corp-of-america-v-hohenstein-ca2-1923.