Rehrig Controls Co. v. Maxitrol Co.

253 F. Supp. 896, 149 U.S.P.Q. (BNA) 19, 1966 U.S. Dist. LEXIS 10303
CourtDistrict Court, E.D. Michigan
DecidedFebruary 7, 1966
DocketCiv. A. No. 23586
StatusPublished
Cited by1 cases

This text of 253 F. Supp. 896 (Rehrig Controls Co. v. Maxitrol Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rehrig Controls Co. v. Maxitrol Co., 253 F. Supp. 896, 149 U.S.P.Q. (BNA) 19, 1966 U.S. Dist. LEXIS 10303 (E.D. Mich. 1966).

Opinion

MACHROWICZ, District Judge.

This is an action for a declaratory judgment of noninfringement and invalidity of United States Patent No. 2,668,396 owned by defendant. Defendant filed a counter-claim asking the Court to find that its patent is valid and infringed by plaintiff.

A trial was had on issues of validity and infringement at which testimony was offered and numerous exhibits were submitted in evidence by both sides. After a transcript of the trial proceedings was available briefs were submitted and oral argument heard. On basis thereof this Court makes the following Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

1. Both parties to this action manufacture and sell automatic gas pressure regulating valves used for household gas furnaces, gas boilers or gas water heaters, known in the industry as main burner load type domestic appliances.

2. Defendant is owner of the patent in suit, covering a "gas regulator”, issued to F. Kern, Jr. on February 2, 1954 on application Serial No. 50,414 filed on September 21, 1948. It manufactures and sells gas regulators of the type disclosed in the patent.

3. The regulator sold by plaintiff was designed by Harold A. McIntosh. United States Patent No. 3,120,256 was issued to McIntosh on this device during the pendency of this suit, on February 11, 1964, on an application filed December 5, 1960.

4. An automatic gas pressure regulating valve is used to maintain a constant or uniform delivered gas pressure to the gas burner regardless of pressure variations that appear in the gas supply line, that is, to maintain a gas pressure at the burner substantially constant while the line pressure at the inlet to the valve varies.

5. A regulating valve has a body provided with a gas passageway connecting an inlet port to an outlet port. The inlet port is intended for connection to the gas supply and the outlet port for connection directly or indirectly to one or more burners. The flow of gas through the passageway is controlled by movement of a valve toward and away from its seat. When the valve member engages its seat, flow through the passageway is blocked (except for possibly unavoidable or negligible leakage). Under normal operating conditions, the valve member is spaced from its seat. It controls the outlet pressure under changing conditions of inlet pressure and flow by moving toward and away from its seat and thereby adjusting the pressure drop through the valve. The outlet pressure is always lower than the inlet pressure but the difference (i. e., pressure drop) is least for any given rate of flow when the valve is wide open (DX-36, Admissions 4, 5).

6. In gas regulators of the type sold by both plaintiff and defendant, the valve member is connected to a diaphragm which is subject to the gas pressure at the outlet (the burner side) acting in a direction to tend to close the valve. A spring acts on the valve member in a direction to tend to open the valve. The equilibrium position of the valve member at any given time is that position at which all forces tending to open the valve equal all forces tending to close the valve. Any change in inlet pressure or rate of flow will cause a change in at least certain of these forces thus tending to move [898]*898the valve member to a new position in which the forces are again equalized. (DX-36, Admissions 4, 5).

7. Very low gas pressures are supplied to the appliances for which the automatic gas pressure regulating valves are used. The valve of a gas regulator must float freely and respond to very small changes in pressure on the diaphragm (R. 134, 271). Both the pressure and the valve movements involved are very small (R. 271, 280, 471). The gas regulators of both parties have a valve so mounted and guided that it is capable of moving in response to a very slight change in outlet pressure.

8. When functioning as a gas regulator to maintain a constant outlet pressure, the valve is normally close to its seat (R. 264, 391, 432). Gas regulators sold by the parties seldom if ever operate near the wide-open position of the valve (R. 267-8, 423). They are not intended to be used as shut-off valves.

9. Prior to the grant of the Kern patent in 1954 General Controls Company began making a gas regulator similar to the regulator sold by defendant. After issuance of the Kern patent defendant filed a suit against General Controls Company for infringement of its patent. The controversy resulted in a settlement before trial which included a license agreement under which General Controls, as licensee, pays royalties to defendant on the regulators it manufactures and sells.

10. The accused regulating valve of plaintiff was designed by McIntosh while he was employed by Cam-Stat Incorporated. During the period 1952-7 and prior to his employment with Cam-Stat, McIntosh was employed as an engineer by General Controls Co., defendant’s licensee under the Kern patent. He disclaims having gained any knowledge of the Kern device and patent, in connection with projects on which he was working for General Controls while he was employed by them. In 1957 he left General Controls Company and went to work at Cam-Stat Incorporated as assistant chief engineer for the purpose of developing products for gas controls. In 1959 Cam-Stat took steps to place on the market the gas regulator he designed. It made and produced tooling, and sent sample gas regulators to the trade. (DX-59, Admission 30).

11. Defendant, by letters, called attention of Cam-Stat to the Kern Patent in 1959 and 1960. Cam-Stat decided not to engage in the sale of these regulators and late in 1960 sold the program, including tooling, design, inventory and patent rights to Rehrig Pacific Company, plaintiff’s predecessor. (R. 116, DX-59, Admission 37).

12. McIntosh knew the regulator program of Cam-Stat would be sold and approached Houston Rehrig with reference to purchase thereof. Houston Rehrig was president of Rehrig Pacific Company and, later, was also president of its successor, plaintiff herein. He directed the affairs of both companies. Rehrig Pacific, which had not theretofore engaged in manufacture and sale of regulators, began manufacturing and selling the present regulators of plaintiff in 1961. On May 4,1961, defendant charged Rehrig Pacific with infringement and on January 10, 1963 it charged Bryant Manufacturing Co., a customer of plaintiff, with infringement. After notice of the infringement the present plaintiff was incorporated and the gas regulator program and McIntosh transferred to it. To satisfy a request of Bryant Manufacturing Co., for an indemnity against infringement liability, upon defendant’s charge of infringement in 1961, Rehrig personally guaranteed any indemnity of plaintiff to Bryant Manufacturing Company in this respect.

13. While Kern was developing his invention, and up to the time the application was filed, all commercial gas regulators were of the poppet design (R. 213, 246) and such design is still used in all commercial gas regulators except those made by the parties to this suit and defendant’s licensee, General Controls Company. Poppet regulators therefore furnish the practical commercial standard of [899]*899comparison for the gas regulators of the parties.

14. In the poppet type regulator the gas follows a Z-shaped path through the regulator and flow across the valve element is such that there is inlet pressure acting on the bottom of the valve, tending to close it; this is opposed by the lesser outlet pressure acting on the top of the valve, tending to open it.

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Bluebook (online)
253 F. Supp. 896, 149 U.S.P.Q. (BNA) 19, 1966 U.S. Dist. LEXIS 10303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rehrig-controls-co-v-maxitrol-co-mied-1966.