Seaman Corporation v. Reeves Brothers, Inc.

776 F.2d 584, 227 U.S.P.Q. (BNA) 855, 1985 U.S. App. LEXIS 24600
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 4, 1985
Docket84-3546
StatusPublished

This text of 776 F.2d 584 (Seaman Corporation v. Reeves Brothers, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seaman Corporation v. Reeves Brothers, Inc., 776 F.2d 584, 227 U.S.P.Q. (BNA) 855, 1985 U.S. App. LEXIS 24600 (6th Cir. 1985).

Opinion

MERRITT, Circuit Judge.

In this diversity case, Plaintiff, Seaman Corporation, appeals the judgment of the District Court that the defendant, Reeves Brothers, did not breach a patent license agreement which provided for royalty payments by Reeves for the use of a coated fabric patent owned by Seaman. The general issue on appeal is whether the patent and the accused fabric are sufficiently similar so that defendant’s sale of the fabric without royalty payments breaches the licensing agreement. This general issue breaks down into two more specific issues: whether Seaman's patent Claim No. 1 and the patent doctrine of “file wrapper estoppel” should be interpreted and applied so as to exonerate the accused product from infringement, as the District Court held. We conclude that the District Court erred in defining the scope of Seaman’s Claim No. 1 and also erred in its application of the doctrine of file wrapper estoppel.

I.

Seaman developed a liquid-coated woven fabric used for tents, tarpaulins and other covers. The patented fabric has an open warp weave in an “ABBA” design, as does the defendant’s fabric; that is, the weave consists of altering two smaller sized yarns (the “B” strands) with one larger yarn (an “A” strand) in the direction of the weave known as the “warp” direction (see Appendix). Seaman used one larger strand for the A strand, and Reeves combined two smaller strands through the eye of a heddle to make the larger A strand. This difference creates the first problem in the case.

Seaman, unlike the defendant, used only the larger “A” yarn in the other direction of the weave, known as the “fill” direction. This difference in the uniformity and size of the fill strands creates the other patent problem in the case.

On January 16, 1964, Seaman’s founder filed a patent application for this coated fabric, and on May 10, 1966, the Seaman patent for the fabric was issued. The last five lines of Claim No. 1 of that patent, emphasized and quoted below, contain the language at issue:

A liquid coated cloth comprising a base fabric and an elastomeric coating bridging and filling the interstices to define upper and lower surfaces on said coated cloth, said fabric having a warp of strands A and strands B, the denier [a unit of yarn size] of said B strands being approximately one-half the denier of said A strands, both said A and B strands being a continuous filament yarn and being oriented so that two of the B strands alternate with a single of the A strands, said B strands being substantially out of contact with said upper and lower surfaces of said coated cloth and fill strands, said fill strands woven alternatingly above and below warp successive strands.

(Emphasis added.) Claim No. 2 of the patent is also relevant, as we will explain later. It reads:

A liquid coated cloth, as set forth in claim 1, in which the denier of said fill strands is approximately equal to the denier of said A strand.

*586 The patent and the drawings which illustrate it are attached as the Appendix.

At approximately the same time as Seaman’s patent was issued, the defendant began marketing a coated fabric having the same base fabric weave, both in the warp and fill directions, as that of the Seaman patent. In 1971, Seaman filed suit for patent infringement against Reeves. The settlement of that litigation produced the license agreement at issue. Under this agreement Seaman granted Reeves a nonexclusive license to make and sell the coated fabric covered by the Seaman patent. Reeves was required to pay Seaman a nonrefundable advance royalty of $25,000 and an earned royalty of one per cent of the product’s net sales up to a total of $125,-000. Reeves paid the $25,000 advance royalty and made some payments of the one per cent earned royalty. Reeves then modified the weave of the fabric it was manufacturing and refused to make further royalty payments. Basically, Reeves began combining two B strands to make the larger A strand and began using the ABBA yarn pattern in both the warp and the fill directions rather than in the warp direction alone.

Seaman filed suit claiming that the modified fabric marketed by Reeves was still covered by Seaman’s patent and their license agreement. After a two day bench trial, the District Judge entered judgment in favor of Reeves, finding that Reeves' modified coated fabric did not infringe the Seaman patent.

On appeal both parties appear to accept as generally accurate the following description of the patented item by the District Judge in her memorandum opinion:

The new type of woven fabric for coating disclosed in the Seaman patent utilizes warp strands of non-uniform denier. By using warp strands of two different denier sizes rather than warp sizes of uniform denier, the cross over points where a warp strand intersects a fill strand are not all at the same elevation. Rather, the cross-over points form two planes at two different elevations on each side of the woven fabric. The high cross-over points (where a large warp strand intersects a fill strand) act as protectors of the low cross-over points (where a small warp strand intersects a fill strand). When the surface of the rollers, bars, scraping knives and other machinery used in the liquid coating process touches a fabric such as this, it will only contact the high cross-over points, leaving untouched the low cross-over points where the small warp strands are located. The possibility of the woven fabric sliding apart is minimized because the area of contact has been severely reduced.
More specifically, the new type of woven fabric for coating disclosed in the Seaman patent utilizes warp strands of two different denier sizes so arranged that two of the smaller strands alternate with a single larger strand, so that the warp strands form a repeating pattern of ABBABB, wherein A represents the larger strands and B the smaller strands. The smaller strands are approximately one-half the size of the larger strands. This use of non-uniform denier size warp strands in an ABBABB repeating pattern, wherein A is twice the denier of B, is illustrated by Fig. 2 and Fig. 4 of the Seaman patent. [See Appendix for the patent specifications, description and claims of the Seaman patent in question.] In order to accomplish Seaman’s stated objective of stability during coating, the woven fabric to be coated must have warp strands of two different denier sizes in an ABBABB repeating pattern such that the smaller warp strands remain substantially out of contact with the machinery used in the liquid coating process.

(App. 23-25.)

The patent holder, Seaman, takes issue with the following portion of the District Judge’s description of its product:

In order to accomplish Seaman’s stated objective of stability during coating, the woven fabric to be coated must have fill strands of uniform denier size, regard *587 less of what the denier size is. This insures that the smaller B warp strands remain substantially out of contact with the machinery used in the liquid coating process.

(App. 25.) The patent holder contends that neither Claim No. 1 nor its “stated objectives” require that the fill strands be of uniform size.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
776 F.2d 584, 227 U.S.P.Q. (BNA) 855, 1985 U.S. App. LEXIS 24600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seaman-corporation-v-reeves-brothers-inc-ca6-1985.