Rex Chainbelt, Inc. v. General Kinematics Corporation, and Albert Musschoot

363 F.2d 336, 150 U.S.P.Q. (BNA) 319, 1966 U.S. App. LEXIS 5618
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 30, 1966
Docket15213_1
StatusPublished
Cited by28 cases

This text of 363 F.2d 336 (Rex Chainbelt, Inc. v. General Kinematics Corporation, and Albert Musschoot) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rex Chainbelt, Inc. v. General Kinematics Corporation, and Albert Musschoot, 363 F.2d 336, 150 U.S.P.Q. (BNA) 319, 1966 U.S. App. LEXIS 5618 (7th Cir. 1966).

Opinion

KNOCH, Circuit Judge.

The United States District Court entered a decree finding the Musschoot Patent, No. 2,984,339, valid and in *337 fringed by the defendants-appellants, General Kinematics Corporation and Albert Musschoot. This appeal followed.

The plaintiff Rex Chainbelt, Inc., acquired the patent in suit when it purchased the assets of Carrier Conveyor Corporation, by whom Albert Musschoot had been employed.

The District Court found that Mr. Musschoot assumed duties with Carrier under a two-year contract which called for an annual salary of $18,000 with an option to purchase company stock, which he exercised. His salary was later raised to $20,000, and he became a vice-president of the company.

At the outset of his employment, Mr. Musschoot was put in charge of development, engineering and sales of Carrier’s “new products division.” His first assignment was to make a variable rate or controlled stroke vibratory feeder.

On May 16, 1961, the patent in suit entitled “Tunable Vibratory Apparatus” was issued on an application, filed July 6, 1959, in the name of Mr. Musschoot as inventor, which was assigned to Carrier pursuant to Mr. Musschoot’s agreement to assign inventions made during his employment. The application was subsequently assigned on December 21, 1959, to Chain Belt Company, which later changed its name to Rex Chainbelt Company, the plaintiff herein.

After about two years, Mr. Musschoot left plaintiff’s employment and started a new business, General Kinematics Corporation, of which he is president and majority stockholder. The District Court found that the corporate defendant is Mr. Musschoot’s alter ego, that he induced infringement of the plaintiff’s patent by the corporate defendant, participating in its manufacture and sale of the accused devices; that both were guilty of conscious, deliberate and willful infringement. The District Court awarded the plaintiff treble damages (Title 35 U.S.C. § 284) and attorneys’ fees. (Title 35 U.S.C. § 285)

The defendants asserted that the essential elements of the accused feeder were shown in the prior art; that the claims of the patent in suit were not infringed. They also asked the District Court to hold the patent in suit invalid on its own motion.

The defendants do not challenge the District Court’s findings of fact that when Mr. Musschoot was employed, Carrier had a vibratory feeder with AC-DC converter and DC motor, capable of regulation by varying the speed of its drive; that it had several steel coil springs, some of which Mr. Musschoot replaced with Firestone Airride springs or air bags, which Carrier had in stock, thus demonstrating the possibility of making a variable rate feeder by varying the spring system. The cooperation of air bags with coil springs made it possible to adjust the natural frequency of the device through a wide range not previously available, changing the speed of conveyance of bulky material at will by a small simple adjustment of an air valve.

The District Court found that a feeder which could be adjusted only by varying the speed of its drive was limited in use, in acceptance by the trade and in economic competition. Early in 1958 the market for variable rate feeders far exceeded that for fixed rate feeders.

It is not disputed that the invention of the patent in suit was reduced to practice no later than July 17, 1958. On the same day the directors of Carrier authorized a special bonus of $2000 which was paid to Mr. Musschoot on July 25, 1958, and which he accepted.

The first regular commercial order of the device was shipped March 31, 1959, under the trademark “Amplitrol.” It met with prompt commercial success.

While commercial success and the filling of a long felt want do not determine patentability, they do serve to guard against what the United States Supreme Court has called the “temptation to read into the prior art the teachings of the invention in issue.” Graham v. John Deere, 1966, 383 U.S. 1, 36, 86 S.Ct. 684, 703, 15 L.Ed.2d 545. We be *338 lieve that the defendants in this case have yielded to that temptation.

On June 29, 1959, Mr. Musschoot signed and swore to the application for the patent in suit which he now attacks as invalid.

The following illustrations are taken from the patent in suit:

*339

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363 F.2d 336, 150 U.S.P.Q. (BNA) 319, 1966 U.S. App. LEXIS 5618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rex-chainbelt-inc-v-general-kinematics-corporation-and-albert-musschoot-ca7-1966.