Scott U. S. A., Inc. v. McDonald

321 F. Supp. 339, 167 U.S.P.Q. (BNA) 526, 1970 U.S. Dist. LEXIS 11027
CourtDistrict Court, D. Idaho
DecidedJuly 7, 1970
DocketCiv. No. 1-66-13
StatusPublished

This text of 321 F. Supp. 339 (Scott U. S. A., Inc. v. McDonald) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott U. S. A., Inc. v. McDonald, 321 F. Supp. 339, 167 U.S.P.Q. (BNA) 526, 1970 U.S. Dist. LEXIS 11027 (D. Idaho 1970).

Opinion

McNICHOLS, District Judge.

This matter is again before the court upon order from the Court of Appeals [340]*340for the Ninth Circuit remanding the cause for further proceedings in accordance with that order and the teachings of Lear, Inc. v. Adkins, 395 U.S. 653, 89 S.Ct. 1902, 23 L.Ed.2d 610 (1969). In Lear the Supreme Court held that a licensee under a patent was not estopped or otherwise made incompetent to attack the validity of the patent. This court had, at the close of the trial of this matter, held the plaintiff, as such licensee under defendant’s patent, estopped to deny the validity of the patent and had determined the case on that point, dismissing the complaint without reaching the merits of the patent validity contest; this even though a full evidentiary hearing on patent validity had been completed.

It follows that the initial holding of the court so dismissing the complaint is contrary to the controlling law and must be reversed. On the teaching of Lear, I now hold that the plaintiff is not estopped to question the validity of defendant’s Patent No. 3,193,300, issued by the Patent Office, July 6, 1965, and that I must proceed to deal with the issue of the validity of the patent. The collateral issue of the enforceability of the license agreement has been decided by the State Courts of the State of Idaho, which determination is res judicata as far as this case is concerned, and if the question was ever before me, it is now considered to be ' settled and no longer an issue in this cause.

Counsel have been consulted with fully and are satisfied with the evidence record each has made. Full evidence was heard on the issue of the validity of defendant’s said patent; a transcript of the evidence has been recently reviewed by the court to refresh the mind of the trier of facts; briefs have been resubmitted and carefully perused; the matter is fully submitted and the court now makes the following Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

I.

Plaintiff succeeded to a License Agreement entered into October 6, 1960, providing for royalty payments to defendant by plaintiff’s predecessor, Edward L. Scott, for the manufacture, use, or sale of ski pole rings covered by defendant’s Patent 3,193,300 issued July 6, 1965. Plaintiff ceased to pay royalties before the patent issued and has taken the position that the patent is invalid, not infringed, and that it has no obligation under the License Agreement. Before the present action, defendant brought suit in the Idaho State Court against plaintiff alleging that plaintiff was operating under the License Agreement. Inherent in that suit was the allegation that plaintiff was manufacturing, selling, and using ski pole rings covered by defendant’s patent. An actual controversy exists between the parties.

II.

In January of 1960, defendant conceived a self-affixing ski pole ring consisting of a rubber hub with integral radially projecting spokes quite similar to the device shown in Figure 9 of defendant’s patent except that it did not have the metal reinforcing ring numbered 17B in the patent. Shortly before this, Scott had introduced to the market an improved ski pole having a special tapered construction which was an immediate success. McDonald approached Scott with his ring idea at- the Winter Olympic Games at Squaw Valley, California, and Scott suggested that some sort of a rigid outer ring would be necessary in order for the device to be workable and that a three-spoked ring might be more pleasing in appearance. Scott and defendant kept in contact with one another re the development of such a ring, and by September, 1960 the ring had taken a form similar to that shown in Figures 1-4 of the McDonald patent. Scott then sent a drawing of his preferred ring shape to McDonald for the [341]*341purpose of McDonald having a suitable mold made for production thereof.

III.

The patent application was filed in defendant’s name in the Patent Office on January 25, 1961. The ski pole ring or basket shown in Figures 1-4 of the patent differs from that first model in that the reinforcing ribs 21 along the underside of the spokes or radial arms 20 illustrated in the patent were added at the suggestion and insistence of Scott because the spokes of the early production units were frequently tearing loose from the hub or the outer metal annulus.

IV.

The ski pole rings sold by plaintiff since 1963 have been molded for it by the Reeve Rubber Company, in Southern California. This company had no difficulty in tooling up or producing the product and did so without any assistance from Scott or plaintiff, or from Redco or McDonald. The ski pole rings presently being manufactured for plaintiff corporation have not been modified in construction since the addition of the ribs on the underside of the radial arms which was made at Scott’s suggestion and insistence.

V.

Claim 3 of defendant’s patent application recited that each of the radial arms 20 is “formed with a thickened portion at its outer end” and that there are “stiffening ribs extending along the arms between said hub and said thickened portion". These “stiffening ribs” have reference to the ribs 21 which were added at the suggestion and insistence of Scott. This claim 3 of the application was finally rejected by the Examiner and was one of the claims which was unsuccessfully appealed by the defendant to the Patent Office Board of Appeals by an appeal filed October 29, 1963. On page 9 of his appeal brief filed December 23, 1963, defendant alleged as follows:

“Voster does not teach or in any way suggest applicant’s novel self attaching principle in which the enlarged central hub is diametrically expanded as the ski pole shaft is inserted therethrough. As explained in applicant’s specification, this diametrical expansion of the central hub has a tendency to cause the annular ring to flop about loosely on the radially extending arms. This can be avoided either by pretensioning the arms in the manner described in the application and claimed in certain claims in this case which have been allowed, or by stiffening the arms through the use of stiffening ribs as defined in claim 3, or by a combination of both pretensioning and stiffening the arms.
“Under some conditions of use, the stiffening ribs may be sufficient to prevent excessive flopping action and applicant is clearly entitled to protect this feature in combination with his novel self-attaching structure. Co-action is clearly present between the stiffening ribs and the other recited structure because it is the diametric expansion of the hub which makes the stiffening function for the purpose described. Voster does not contemplate any diametrical expansion of the hub portion of his basket ring and accordingly cannot be said to teach the use of stiffening ribs in combination with a diametrically expanding central hub. Claim 3 should be allowed.”

VI.

All of the claims in the patent in suit were allowed by Examiner before the appeal filed October 29, 1963. Claim 3 of the patent was claim 8 of the application, and differs from claim 3 of the application only in that instead of including the stiffening ribs along the radial arms it states that the arms are “under tension whereby the arms will remain taut when said hub is expanded radially by mounting on a ski pole”. This limitation is also found in claims 2, 4, and 6 of the patent.

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Related

Lear, Inc. v. Adkins
395 U.S. 653 (Supreme Court, 1969)

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Bluebook (online)
321 F. Supp. 339, 167 U.S.P.Q. (BNA) 526, 1970 U.S. Dist. LEXIS 11027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-u-s-a-inc-v-mcdonald-idd-1970.