Sperry Rand Corp. v. Control Data Corp.

319 F. Supp. 629, 167 U.S.P.Q. (BNA) 394, 1970 U.S. Dist. LEXIS 10469
CourtDistrict Court, D. Maryland
DecidedAugust 24, 1970
DocketCiv. A. No. 15823
StatusPublished

This text of 319 F. Supp. 629 (Sperry Rand Corp. v. Control Data Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sperry Rand Corp. v. Control Data Corp., 319 F. Supp. 629, 167 U.S.P.Q. (BNA) 394, 1970 U.S. Dist. LEXIS 10469 (D. Md. 1970).

Opinion

WATKINS, Chief Judge.

What started out as a routine and well-behaved patent infringement case has been complicated by a motion to intervene, accompanied by a Complaint for Declaratory Relief.

Plaintiff, Sperry Rand Corporation (Sperry Rand) claims to be the owner, by mesne assignments, of United States Patent No. 2,617,705 (not involved in the intervention proceedings) and United States Patent No. 2,629,827, issued on February 24, 1953 to John Presper Eckert, Jr. (Eckert) and John W. Mauchly (Mauchly). The usual claims of infringement by the defendant Control Data Corporation (Control Data) are made. The answer denied infringement, and set up the usual defenses of indefiniteness of the specifications; obviousness ; knowledge, patents or printed publications existing .more than one year before the inventions; and public sale and use more than one year prior to the applications.

More than three and one-half years after suit was entered and the answer filed, a Motion to Intervene was filed by Iowa State University Research Foundation, Inc. (Iowa State) purportedly under F.R.C.P. 24. The Motion states:

“The ground for this motion is the alleged ownership of an undivided interest in United States Letters Patent No. 2,629,827, now in suit. Should the Court find that Applicant’s assignor was omitted as a joint inventor, equitable relief can be granted under 35 U.S.C. 256.”

The proposed Complaint for Declaratory Relief recites the current litigation; asserts jurisdiction under 35 U.S.C. § 256 “which provides that non-joinder of joint inventors may be corrected by any court before which such matter is called in question”; alleges that John V. Atanasoff (Atanasoff) is a joint inventor of the subject matter of Patent No. 2,629,-827 and that Iowa State is owner of the entire right, title and interest of Atanasoff in said patent by virtue of an assignment agreement of May 6, 1968; that Atanasoff made certain inventions and discoveries which he incorporated in a computing machine constructed during 1937-1942 and that Mauchly visited Atanasoff in June 1941, “at which time Atanasoff fully disclosed to Mauchly the detailed structure, theory, operation of and results produced by the computing machine, including the memory system thereof”, from which Mauchly “derived certain concepts and ideas incorporated in” the patent, and which ideas and concepts were communicated by Mauchly to Eckert, prior to the filing of the application which resulted in Patent No. 2,629,-827. It further alleges that “Certain of the claims of Patent No. 2,629,827 in suit describe the memory system of Atanasoff as well as those of the named inventors. A typical claim in Claim 1” embodies a rotating drum of the kind incorporated in Atanasoff’s machine. The prayer for relief is:

“That the Court declare John V. Atanasoff to be a joint inventor for United States Letters Patent No. 2,-629,827; order correction of said Patent; and such other and further relief as the Court may deem just.”
Section 256 of Title 35 reads as follows:
“Whenever a patent is issued on the application of persons as joint inventors and it appears that one of such persons was not in fact a joint inventor, and that he was included as a [631]*631joint inventor by error and without any deceptive intention, the Commissioner may, on application of all the parties and assignees, with proof of the facts and such other requirements as may be imposed, issue a certificate deleting the name of the erroneously joined person from the patent.
“Whenever a patent is issued and it appears that a person was a joint inventor, but was omitted by error and without deceptive intention on his part, the Commissioner may, on application of all the parties and assignees, with proof of the facts and such other requirements as may be imposed, issue a certificate adding his name to the patent as a joint inventor.
“The misjoinder or nonjoinder of joint inventors shall not invalidate a patent, if such error can be corrected as provided in this section. The court before which such matter is called in question may order correction of the patent on notice and hearing of all parties concerned and the Commissioner shall issue a certificate accordingly.”

Slightly more than five weeks after the Motion by Iowa State, Control Data filed an amended answer, not opposed by Sperry Rand, including in the prior art “the work of John V. Atanasoff.” It also filed two new paragraphs, 15 and 16, of defenses reading as follows:

“15. The defendant asserts that the Patent No. 2,629,827 in suit is invalid and void because the alleged inventors thereof did not themselves singly or jointly invent the subject matter sought to be patented.
“16. The defendant further asserts that Patent No. 2,629,827 in suit is invalid and void because the oath therein was known by the alleged inventors to be false when executed, and accordingly, both patents in suit are unenforceable as plaintiff has brought suit knowing Patent No. 2,629,827 to be invalid.”

About one month later, Control Data filed a memorandum in reply to Iowa State’s Motion to Intervene, Control Data asserting that Iowa State’s proposed Complaint for Declaratory Relief failed to state a cause of action. The memorandum ended with the following language.

“Addressing the motion as such, as distinguished from addressing the merits, it is defendant’s position that if this Court believes that Iowa should have a day in Court to be heard on its contentions then same may as well be a part of the present Civil Action as any other and defendant does not object to the granting of the motion on the ground that it is untimely or lacks a common area of fact finding, notwithstanding that as aforesaid defendant does maintain that the applicant for intervention has failed to state a cause of action and ultimately its prayers cannot be granted.”

On the same day that Control Data’s above memorandum was filed, Sperry Rand filed an extensive Memorandum in Opposition to the Motion to Intervene, accompanied by exhibits and affidavits. The points relied upon were delay and laches, and that the type of relief sought was not cognizable under 85 U.S.C. section 256.

While Sperry Rand makes out a strong prima facie case of staleness and laches, Iowa State offers several explanations. There are clearly unresolved factual issues, not permitting a denial of the motion to intervene on the ground that staleness and laches have been established as a matter of law.

The question of the relief available under section 256 is, however, a matter of law. In this first memorandum of Sperry Rand in Opposition, the argument was simply (a) Iowa State (or Atanasoff) had actual or constructive notice of the issuance of the patent in suit, and should have proceeded under Title 35, section 135 (Interference) and Patent Office Rule 47(a); and (b) there is no reported case in which one claiming to be a joint inventor has sought to assert that [632]*632claim by intervention in a court proceeding.

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Bluebook (online)
319 F. Supp. 629, 167 U.S.P.Q. (BNA) 394, 1970 U.S. Dist. LEXIS 10469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sperry-rand-corp-v-control-data-corp-mdd-1970.