Raymond C. Price and Control Sciences, Inc. v. Lake Sales Supply R.M., Inc.

510 F.2d 388
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 5, 1974
Docket74--1038
StatusPublished
Cited by27 cases

This text of 510 F.2d 388 (Raymond C. Price and Control Sciences, Inc. v. Lake Sales Supply R.M., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raymond C. Price and Control Sciences, Inc. v. Lake Sales Supply R.M., Inc., 510 F.2d 388 (10th Cir. 1974).

Opinion

WILLIAM E. DOYLE, Circuit Judge.

This is a patent case which presents issues as to the validity of a patent (U. S. Patent No. 3,528,560) on a sample display rack. It was issued September 15, 1970 and is known as the Price Patent. Appellant Lake Sales Supply is shown to be a California corporation which had headquarters in Denver from January 1971 to March 1972, but subsequently ceased to do business in Colorado.

In addition to the validity issue it is contended by appellant that the Price Patent was not infringed: (a) that is, that the device did not infringe the patent, and (b) that there is a dearth of proof to establish an act of infringement.

Trial was to the court. The judge entered his memorandum opinion order and judgment on October 16, 1973. This contained the court’s findings of fact and conclusions of law. The patent was held to be valid and infringed. The court enjoined appellant from making, using or selling the carpet display rack and granted appellees the right to a further hearing to determine damages from the infringement. This had been delayed pending the present disposition.

*390 In 1968 the plaintiffs-appellees Raymond C. Price and Control Sciences, Inc. conceived the idea of a carpet display rack which would display carpet and at the same time would be hidden by the display and, in addition, would fold up for convenient storage and shipping. In his first attempt to obtain a patent Price described a device which had two elongated frame sections, similar in size, which rotated about the pivotal axes and which flattened out to permit easy storage and shipping and which could be moved into a transverse position in which the sections stand in an upright position to form a stable display position with fasteners along the upright portions of the frame capable of supporting samples. 1

Price made a total of 13 claims originally, all of which were similar to the one which is noted in the footnote. All of these were rejected by the Examiner for obviousness defined in 35 U.S.C. § 103. Price proceeded to amend his claims by clarifying that the samples were to be hung on the outside of the elongated frame sections with supports for the samples intermediate to the sides of the U-shaped channel tubing which was used in the frame. Thereby, the samples would extend throughout substantially all the vertical extent of the structure concealing the frame itself.

The patent was issued on an invention consisting of two frames connected by a permanent pivot which allowed the two frames to close and to flatten out for storage and to readily open out into perpendicular intersecting planes for purposes of displaying sample binders of carpet on hangers or fasteners located on the sides of the frame so that the frame itself was substantially hidden.

The Examiner approved Claims 17, 18 and 19 which are set forth in an appendix to this opinion. Also in the appendix are pictorial reproductions which show the device in some detail. The infringing device also consisted of two intersecting- rectangle frames connected in their middles but which did not rotate in the same manner as the Price Patent described above. The two intersecting rectangles were connected by nuts and bolts together with a removable metal strip at the bottom of the frames secured in an open position perpendicular to one another. The infringing device also contained four removable headers, one located each at the top corners of the two rectangles. These were used for advertising purposes. The headers and the metal strip prevented the intersecting frames from being rotated into a closed position on a single plane. The display hangers were wrapped around the tubing, being secured by the nuts and bolts in the back of the tubing.

As noted, the trial court upheld the patent and ruled that it was infringed.

The contentions on appeal are, first, that the trial court erred in upholding the patent and, second, that the patentable aspects were first disclosed in the amended patent application and thus were made more than one year after the first sale of the invention to the public. Third, it is contended that the patent was not infringed.

In addition to the obviousness contention, the plaintiffs asserted at trial that the patent was lacking in invention. 35 U.S.C. § 102(a). This latter was a major issue at the trial, and the trial judge made a thorough analysis and upheld the patent. The thorough *391 ness may account for the abandonment of the contention on appeal. It was recognized by the trial court that a device may satisfy 35 U.S.C. § 102 with a novel combination of old elements and at the same time not fulfill the requirements of non-obviousness in 35 U.S.C. § 103. This invention admittedly consisted of a combination of old elements and hence the obviousness question pertained to the differences between the defendant’s invention and the prior art, whereby the subject matter in its entirety would have been obvious to a person having ordinary skill in the art to which the subject matter pertains. The tests for determining obviousness are set forth in Graham v. John Deere Co. of Kansas City, 383 U.S. 1, 17, 86 S.Ct. 684, 15 L.Ed.2d 545 (1966). These tests are:

1. The scope and content of the prior art are to be determined.

2. Differences between the prior art and the claims of the patent in suit are to be ascertained.

3. The level of ordinary skill in the pertinent art needs to be resolved.

Having examined this background (pursuant to the John Deere decision), the obviousness or non-obviousness of the subject matter is to be determined. Ascertainment of the scope of the prior art and determination of the difference between the prior art and the claims in suit together with the level of skill in the art are all questions of fact. Whether in the light of these factual matters the patent is obvious then becomes a question of law.

Explicit findings in accordance with these criteria are to be made in every case according to dicta in opinions of the Supreme Court. Anderson’s-Black Rock, Inc. v. Pavement Salvage Co., 396 U.S. 57, 62, 90 S.Ct. 305, 24 L.Ed.2d 258 (1969). It is noteworthy that there is law to the effect that failure of the trial court to make explicit findings in the John Deere categories is fatal. Use of broad conclusionary terms is forbidden in these decisions. See Waldon, Inc. v. Alexander Mfg. Co., 423 F.2d 91 (5th Cir. 1970). See also Van Corp Mfg., Inc. v. Townley Industrial Plastics, Inc., 464 F.2d 16

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Panjaitan v. Gonzales
172 F. App'x 870 (Tenth Circuit, 2006)
Norquay v. Union Pacific Railroad
407 N.W.2d 146 (Nebraska Supreme Court, 1987)
KN Energy, Inc. v. Great Western Sugar Co.
698 P.2d 769 (Supreme Court of Colorado, 1985)
Ralston Purina Co. v. Far-Mar-Co, Inc.
586 F. Supp. 1176 (D. Kansas, 1984)
Prager v. Meckling
310 S.E.2d 852 (West Virginia Supreme Court, 1983)
Brown v. Trion Industries, Inc.
575 F. Supp. 511 (E.D. New York, 1983)
Railroad Dynamics, Inc. v. A. Stucki Co.
579 F. Supp. 353 (E.D. Pennsylvania, 1983)
John H. Smith v. Ford Motor Company
626 F.2d 784 (Tenth Circuit, 1980)
Cucciolillo v. East Ohio Gas Co.
446 N.E.2d 175 (Ohio Court of Appeals, 1980)
Roesberg v. Johns-Manville Corp.
85 F.R.D. 292 (E.D. Pennsylvania, 1980)
In Re IBM Peripheral EDP Devices, Etc.
481 F. Supp. 965 (N.D. California, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
510 F.2d 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raymond-c-price-and-control-sciences-inc-v-lake-sales-supply-rm-inc-ca10-1974.