Technograph Printed Circuits, Ltd. v. United States

372 F.2d 969, 178 Ct. Cl. 543
CourtUnited States Court of Claims
DecidedFebruary 17, 1967
DocketNo. 127-62
StatusPublished
Cited by22 cases

This text of 372 F.2d 969 (Technograph Printed Circuits, Ltd. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Technograph Printed Circuits, Ltd. v. United States, 372 F.2d 969, 178 Ct. Cl. 543 (cc 1967).

Opinion

Davis, Judge,

delivered the opinion of the court:

Plaintiff is the exclusive licensee of several patents relating to the manufacture of “printed circuit” boards for electrical apparatus.1 Alleging that its patented invention was used without a license in the manufacture of certain articles purchased by the United States from the Bendix Corporation [546]*546and the Hewlett-Packard Company, plaintiff seeks its statutory remedy of “reasonable and entire compensation” against the United States. 28 U.S.C. § 1498 (1964). Technograph contends that several of its patents have been infringed, but only two, Nos. 2,441,960 (Patent ’960) and 2,706,697 (Patent ’697), are involved in the current motion. Under former Pule 19 (now Pule 23) of this court, the Bendix Corporation and the Hewlett-Packard Company have been brought in as third-party defendants on the basis of their contracts with the United States providing for indemnification against patent infringement liability.

This suit is one of a series of more than ten patent infringement actions brought by Technograph in various jurisdictions throughout the country. See Technograph Printed Circuits, Ltd. v. Methode Electronics, Inc., 356 P. 2d 442, 443 (C.A. 7, 1966), cert. denied, 384 U.S. 950. In the District of Maryland, Bendix Aviation Corporation was charged with infringement of three patents, including Nos. ’960 and ’697.2 The District Court, after trial, found the patents invalid for several reasons, including obviousness in view of the prior art. Technograph Printed Circuits, Ltd. v. Bendito Aviation Corp., 218 F. Supp. 1-67 (D. Md. 1963). On appeal, the Fourth Circuit affirmed per curiam, stating: “After careful consideration of the record, the arguments and the briefs of counsel, we are persuaded that the patent claims are invalid for obviousness in the light of the prior art for the reasons fully discussed in the opinion of the District Court.” 327 F. 2d 497, 498 (1964), cert. denied, 379 U.S. 826.

Belying upon the Fourth Circuit’s decision, the United States moved for summary judgment as to Patent Nos. ’960 and ’697. The argument was that the patents are invalid on a number of grounds including obviousness in view of the prior art. The Court of Appeals’ judgment of patent invalidity was urged as having either res judicata or controlling effect. Plaintiff countered with allegations that the earlier decision “is grounded upon fundamental shortcomings of [547]*547fact,” and statements that it expects to present newly discovered evidence which will lead to a different result. On November 19, 1965, this court, by order and without oral argument, denied without prejudice the United States’ motion.

The Government now renews its motion for partial summary judgment and asks the court, again, to hold that the plaintiff patentee should be collaterally estopped by the Bendix Aviation Corp. decision to relitigate the validity of the ’960 and ’697 patents even though the United States was neither a party, nor in privity with a party, to the prior judgment.. Alternatively, the defendant suggests that it was in privity with Bendix, the successful defendant in the earlier action.

Especially for patent litigation, a traditional element of the doctrine of collateral estoppel has been the requirement of mutuality of estoppel. According to the received view, for a judgment to prevent relitigation of an issue once decided, the estoppel of the judgment must ordinarily be mutual. (The conventional doctrine recognizes some exceptions). Since an adjudication of patent validity in one action is not binding in a second action against a different defendant, the rule tells us that a patentee in a second action should not be bound by an adjudication of invalidity in an earlier suit. The Government submits, however, that this iron law of mutuality of estoppel has been corroding for some years, and specifically asks us to follow Nickerson v. Pep Boys—Manny, Moe & Jack, 247 F. Supp. 221 (D. Del. 1965), in which the court rejected mutuality in a patent infringement action. At the Government’s request, and in the light of decisions of the past three decades, and of professional commentary, we review the relevant case law, investigate the direction and extent of the erosion in the requirement of mutuality, and explore the basic policies at the core of the doctrine of collateral estoppel as it applies in this court and to patent-validity litigation.3

[548]*548l.

We must start by acknowledging that the last word from the Supreme Court has been an express reaffirmation of mutuality of estoppel for patent-validity litigation. In Triplett v. Lowell, 297 U.S. 638 (1936), as in the case at bar, the plaintiff had sued in a district court to restrain infringement of its patents. The court of appeals, on review, held each litigated claim invalid. Plaintiff subsequently brought a second suit against different defendants for infringement of claims held invalid in the first action. The Supreme Court unequivocally announced that “neither reason nor authority supports the contention that an adjudication adverse to- any or all the claims of a patent precludes another suit upon the same claims against a different defendant” (id. at 642). See, also, id. at 644, 645.4 Since 1936 the Supreme Court has not intimated any retreat from this holding. The same theory was followed in Maytag Co. v. Hurley Machine Co., 307 U.S. 243, 245 (1939), where the opinion indicated that, once a patent claim had been declared invalid, it, alone or with other claims, might have been made the basis of a different suit against a different party. In Commissioner v. Sunnen, 333 U.S. 591, 597-98, 601, 602 (1948), the Court recast its general position on res judicata and collateral estoppel without suggesting in any way that the defense [549]*549could be used by one not a party to the prior suit (or a privy). More recently, in a res judicata situation, the Court prevented five defendants who were neither parties nor privies to the earlier action from invoking the prior judgment against the plaintiff on what was assumed to be the same cause of action. Lawlor v. National Screen Service Corp., 349 U.S. 322, 329-30 (1955).

In patent litigation, the courts of appeals and the district courts have continued, with the one exception of the Nicker-son decision, to adhere to the Triplett rule — even though the very same court may dispense with the requirement of mutuality in other contexts. Judge Learned Hand, speaking for the Second Circuit, said, “it must not be forgotten that the decision of a single court, whether district, or court of appeals, does not settle the question [of patent validity]. It is the usual, if not universal, custom of practitioners if the stake is enough, not to rest content with a single decision of invalidity, but to seek another forum. * * *” Harries v. Air King Products Co., 183 F.

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