Republic Molding Corp. v. B. W. Photo Utilities

319 F.2d 347
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 19, 1963
DocketNos. 17433-17435
StatusPublished
Cited by57 cases

This text of 319 F.2d 347 (Republic Molding Corp. v. B. W. Photo Utilities) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Republic Molding Corp. v. B. W. Photo Utilities, 319 F.2d 347 (9th Cir. 1963).

Opinion

MERRILL, Circuit Judge.

In these three cases, consolidated for trial before the district court, Republic Molding Corporation seeks recovery of [349]*349damages for patent infringement and unfair competition. Upon appeal, the question presented is whether the district court erred in holding, in all three cases, that appellant’s unclean hands barred relief.

The subject of Republic’s patents is a plastic vegetable bin, marketed under the trade-mark of “Polly-Flex.” Appellant asserts damage by virtue of the fact that appellees are wrongfully marketing substantially similar products. The action against B. W. Photo was brought before issuance of the patents, and is confined to a claim of unfair competition. The other actions include claims for both unfair competition and patent infringement. The action against Alladin also includes a claim for copyright infringement relating to the copying of a copyrighted advertisement.

The conduct found to constitute unclean hands was Republic’s disregard of title 35 U.S.C. § 292, which provides in pertinent part:

“Whoever marks upon, or affixes to, or uses in advertising in connection with any article, the words ‘patent applied for,’ ‘patent pending,’ or any word importing that an application for patent has been made, when no application for patent has been made, or if made, is not pending, for the purpose of deceiving the public * * * shall be fined not more than $500 for every such offense.”

The B. W. Photo case contains the fullest and most specific finding of unclean hands. There the court found:

“5. Although plaintiff was aware of the provisions of the patent statute, 35 USC § 292, which provides that it is unlawful for anyone, for the purpose of deception, to advertise to the effect that an application for patent has been filed or is pending on an article when in fact such patent application has not been filed and is not pending, plaintiff falsely advertised, for a continuous period of over six months before it filed an application for patent on said receptacle, and, prior to the filing of the complaint herein, that an application for patent had been filed and was pending on said receptacle. During said period plaintiff was attempting to create a secondary meaning in the design of said receptacle and contrary to public interest conducted said false advertising for the purpose of preventing competition in said receptacle while attempting to create said secondary meaning, which the Court finds to constitute unclean hands.”

The nature of the unclean-hands defense in patent and unfair competition litigation and its proper place in the context of the issues presented in such cases has not been clearly established. Professor Chafee, in 47 Michigan Law Review, 877, 1065 (1949) (“Coming Into Equity With Clean Hands”), has conducted a searching inquiry into the doctrine including its application in the field of patent (page 1070) and trade-mark (page 1076) law.

What does seem clear is that misconduct in the abstract, unrelated to the claim to which it is asserted as a defense, does not constitute unclean hands. The concept invoking the denial of relief is not intended to serve as punishment for extraneous transgressions, but instead is based upon “considerations that make for the advancement of right and justice.” Keystone Driller Company v. General Excavator Company (1933), 290 U.S. 240, 245, 54 S.Ct. 146, 147, 78 L.Ed. 293.

What is material is not that the plaintiff’s hands are dirty, but that he dirtied them in acquiring the right he now asserts, or that the manner of dirtying renders inequitable the assertion of such rights against the defendant. As Professor Chafee suggests (page 1072), we should not by this doctrine create a rule comparable to that by which a careless motorist would be “able to defend the subsequent personal injury suit by proving that the pedestrian had beaten his wife before leaving his home.”

Further, the extent of actual harm caused by the conduct in question, either to the defendant or to the public [350]*350interest, is a highly relevant consideration. G. Heileman Brewing Company v. Independent Brewing Company (9 Cir. 1911), 191 F. 489. In patent cases a patent owner who has misused his patents in a manner contrary to the public interest is not denied relief in enforcing his patent rights if he can demonstrate that the consequences of misuse have been dissipated or “purged.” See, e. g., Morton Salt Co. v. G. S. Suppiger Co. (1942), 314 U.S. 488, 493, 62 S.Ct. 402, 86 L.Ed. 363; U. S. Gypsum Co. v. National Gypsum Co. (1957), 352 U.S. 457, 465, 77 S.Ct. 490, 1 L.Ed.2d 465. In trade-mark cases involving “unclean hands” as a defense “the courts will carefully weigh whether the representation actually leads to deception * * Derenberg, Trademark Protection and Unfair Trading, page 666.

Unclean hands, then, does not stand as a defense that may be properly considered independent of the merits of the plaintiff’s claim — such as the defenses of the statute of limitations or the statute of frauds. Its assertion does not eliminate the need for the court to ascertain the soundness of the plaintiff’s claim. In the interests of right and justice the court should not automatically condone the defendant’s infractions because the plaintiff is also blameworthy, thereby leaving two wrongs unremedied and increasing the injury to the public. Rather the court must weigh the substance of the right asserted by plaintiff against the transgression which, it is contended, serves to foreclose that right. The relative extent of each party’s wrong upon the other and upon the public should be taken into account, and an equitable balance struck. Alfred Bell & Co., Ltd. v. Catalda Fine Arts (2 Cir. 1951), 191 F.2d 99, 106; Stein v. Mazer (4 Cir. 1953), 204 F.2d 472, 480. The ultimate decision is whether the deception actually caused by plaintiff “as compared with the trading methods of the defendant warrant punishment of the plaintiff rather than of the defendant.” Derenberg, supra, at 666.

Upon the record before us, as we shall discuss, application of these principles renders the doctrine of unclean hands inappropriate.

We look first at Republic’s claim of unfair competition.

Republic asserts that its product has acquired secondary meaning and that customer confusion is created by the appellees in marketing their products. The district court did not find on these contentions and if we are to appraise the defense of unclean hands we must, arguendo, assume their truth.

Unless the secondary meaning was acquired by virtue of Republic’s misrepresentations, we find no significant connection between that misrepresentation and Republic’s asserted right to be free from unfair competition. While the district court did find that Republic, through its misrepresentations, intended to discourage competition, the record does not indicate that it was at all successful.

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

Related

Lokai Holdings LLC v. Twin Tiger USA LLC
306 F. Supp. 3d 629 (S.D. Illinois, 2018)
Gasprom, Inc. v. Fateh (In re Gasprom, Inc.)
515 B.R. 765 (C.D. California, 2014)
FLIR Systems, Inc. v. Sierra Media, Inc.
965 F. Supp. 2d 1184 (D. Oregon, 2013)
Pom Wonderful LLC v. Welch Foods, Inc.
737 F. Supp. 2d 1105 (C.D. California, 2010)
Campagnolo S.R.L. v. Full Speed Ahead, Inc.
258 F.R.D. 663 (W.D. Washington, 2009)
Patsy's Italian Restaurant, Inc. v. Banas
575 F. Supp. 2d 427 (E.D. New York, 2008)
Merisant Co. v. McNeil Nutritionals, LLC
515 F. Supp. 2d 509 (E.D. Pennsylvania, 2007)
CFM COMMUNICATIONS, LLC v. Mitts Telecasting Company
424 F. Supp. 2d 1229 (E.D. California, 2005)
No. 03-4233
386 F.3d 1314 (Tenth Circuit, 2004)
Worthington v. Anderson
386 F.3d 1314 (Tenth Circuit, 2004)
In Re Napster, Inc. Copyright Litigation
191 F. Supp. 2d 1087 (N.D. California, 2002)
Adrian v. McKinnie
2002 SD 10 (South Dakota Supreme Court, 2002)
Gidatex, S.R.L. v. Campaniello Imports, Ltd.
82 F. Supp. 2d 126 (S.D. New York, 1999)
Tiffany Design, Inc. v. Reno-Tahoe Specialty, Inc.
55 F. Supp. 2d 1113 (D. Nevada, 1999)
Juno Online Services, L.P. v. Juno Lighting, Inc.
979 F. Supp. 684 (N.D. Illinois, 1997)
Dream Team Collectibles v. NBA PROPERTIES
958 F. Supp. 1401 (E.D. Missouri, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
319 F.2d 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/republic-molding-corp-v-b-w-photo-utilities-ca9-1963.