Telechron, Inc. v. Parissi

120 F. Supp. 235, 101 U.S.P.Q. (BNA) 144, 1954 U.S. Dist. LEXIS 3543
CourtDistrict Court, N.D. New York
DecidedApril 12, 1954
DocketCiv. 3831
StatusPublished
Cited by10 cases

This text of 120 F. Supp. 235 (Telechron, Inc. v. Parissi) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Telechron, Inc. v. Parissi, 120 F. Supp. 235, 101 U.S.P.Q. (BNA) 144, 1954 U.S. Dist. LEXIS 3543 (N.D.N.Y. 1954).

Opinion

FOLEY, District Judge.

This suit for declaratory judgment seeks judicial declaration that three certain patents owned by the individual defendant, Parissi, are invalid for several reasons, particularly want of invention, and have not been infringed by the plaintiff corporations. Further declarative relief is requested to the effect that the claimed inventions allegedly covered by the subject matter of certain patents in suit were not disclosed to either plaintiff in confidence or subject to an understanding, express or implied, that compensation would be paid to the defendant. The defendant by two counterclaims meets these proffered issues head-on. In the first counterclaim he seeks affirmative judgment that his patents involved herein are valid and infringed for which he asks the usual injunction and accounting. In the second counterclaim he demands money judgment in excess of two and a half million dollars for profits and damages for the unlawful appropriation of his ideas relative to the inventions set forth in two of the patents, the original and reissue patents in suit, which ideas and invention he claims he disclosed to the plaintiffs in confidence prior to the filing and issuance of said patents. 1

As far as I know, there is no controversy concerning separate legal responsibility on the part of the plaintiff corporations because of independent corporate status and the evidence discloses that during most of the time material to this litigation, Telechron, Inc., previously Warren Telechron Company, was substantially a wholly owned subsidiary of the General Electric Company, and on or about June 30, 1951, became merged with and is now operated as a department of the General Electric Company. Therefore, discussion herein will treat them as one. To simplify further, the reissue patent (Reissue No. 23,261), issued August 22, 1950 on an application for reissue filed March 5, 1949, was based upon an original patent No. 2,444,-748, issued July 6, 1948 on an application filed August 28, 1945. This single reissue patent seems to be the dominant one in the consideration of the issues presented. The original and reissue patents (Nos. 2,444,748 and Re. 23,261) are entitled “Clock with visible and audible alarm means,” and the third patent involved here (No. 2,512,775) is entitled merely “Signaling Device,” and has been referred to throughout the trial and in the briefs as the “radio” patent.

Although originally held out as one of short duration, the trial consumed eighteen actual trial days in a period from November 1951 to May 1953. Interruption to the continuity of the trial was caused by previous court commitments and appeals from substantial questions arising during the trial involving jurisdiction and right to trial by jury. See Telechron, Inc. v. Parissi, 2 Cir., 197 F.2d 757; Parissi v. Foley, 2 Cir., 203 F.2d 454. There is little doubt in my mind that the declaratory judgment suit here was launched as a well planned counterattack to the previously instituted action by Parissi in November 1950, in the Supreme Court of New York, against the General Electric Company, based mainly upon the alleged confidential disclosure. The reversal of the true *237 position of the parties in this suit necessarily resulted in the plaintiffs producing a mass of physical and documentary exhibits in order to anticipate ■every possible contention of the defendant, and bring into play prematurely the entire range of patent and nonpatent defense. The evidence goes back to the year 1930, tied in with a staggering amount of letter correspondence. The usual good occlusion of issues produced by a straightforward and conventional lawsuit was not present throughout the trial, nor in the briefs, and disillusionment sets in when the defendant contends in his brief, “Only those evidentiary facts occurring after April 1, 1944, •properly can be considered critical with respect to unjust enrichment,” and the -plaintiffs counter in their reply brief, •“The case presented by Parissi’s brief is by no means the case which is actually before this court.” Such disagreement as to the questions presented :by the proof and applicable law is not .conducive to easy analysis and decision.

Simply put, however, it is the contention of Parissi that the plaintiff corporations by their manufacture and sale .of flashing light alarm clocks, switch ■clocks, clocks for the control of radios, and clock-controlled radios have infringed his patent rights and wrongfully appropriated and used certain concrete information and ideas which he .disclosed to them in confidence. Several .of these articles have had outstanding .commercial success, and it is obvious that if any inventive contribution was made by Parissi in the legal sense, his monetary return would be substantial, inasmuch as the defendant places the greater stress upon his claim of unjust .enrichment and misappropriation of his ideas or invention pertaining to electric clock mechanisms, it seems more appropriate to discuss and decide this problem first.

The .evidence discloses an unusual background -on the part of the defendant, Parissi. He is a man of limited educational and scientific training. Despite such handicap, through his mechanical and electrical instinct and aptitude, he is the owner of several patents relating to a three-wire socket device and telephone systems outside of the three patents here in suit (Ex. 43). He has been the president of the Padua Hold-Up Alarm Corporation, and inasmuch as he is no stranger to the courts such background in this respect is outlined in good detail in General Time Corp. v. Padua Alarm Systems, 2 Cir., 199 F.2d 351, certiorari denied 345 U.S. 917, 73 S.Ct. 728, 97 L.Ed. 1351. His obsession from and during the early 1930’s was the development and improvement of a flashing light alarm clock with the paramount and fine ideal to abate any noisy alarm and lessen the shock to the nervous system of the sleeper, and also by means of the flashing light awaken the deaf and hard of hearing. Throughout this period the amazing fact, continuously present, is his dogged persistence and persuasiveness in the promotion of his products that attracted the interest of substantial people. His letters, throughout the entire period, even to the time of his close contact with the plaintiff corporations, would be the envy of any modern advertising agency in the competition of high pressured promotion and salesmanship. More amazing is the fact that he entered the employ of the General Electric Company in September 15, 1941, as a machinist and model maker in its industrial control department, and despite this controversy has remained an employee, due for pension because of age, in September 1953, and I assume is now the recipient of such pension. Into this ordinary employment he carried his tremendous capacity to interest, persuade and particularly to write, and from such contact, in his kind and shy manner, he developed the interest of his superiors and other officials of the General Electric Company in certain of his issued patents and other devices, mainly , the flashing light alarm clock. By continued effort on the part of Parissi,- this interest was propelled through the General Electric Company to the *238 top officers of its subsidiary, the Telechron Company.

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Bluebook (online)
120 F. Supp. 235, 101 U.S.P.Q. (BNA) 144, 1954 U.S. Dist. LEXIS 3543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/telechron-inc-v-parissi-nynd-1954.