The Robbins Company v. Lawrence Manufacturing Company

482 F.2d 426, 25 A.L.R. Fed. 473, 178 U.S.P.Q. (BNA) 577, 1973 U.S. App. LEXIS 8644
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 24, 1973
Docket71-2944
StatusPublished
Cited by54 cases

This text of 482 F.2d 426 (The Robbins Company v. Lawrence Manufacturing Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Robbins Company v. Lawrence Manufacturing Company, 482 F.2d 426, 25 A.L.R. Fed. 473, 178 U.S.P.Q. (BNA) 577, 1973 U.S. App. LEXIS 8644 (9th Cir. 1973).

Opinion

OPINION

JAMES M. CARTER, Circuit Judge:

Appellee The Robbins Company (hereafter Robbins) brought suit against appellant Lawrence Manufacturing Company (hereafter Lawrence), a competitor in the field of tunnel boring machines, for infringement of Robbins’ Patent No. 3,216,513. Lawrence moved for summary judgment. This appeal is from an order of the district court denying that motion.

Ordinarily such an order would not be a final judgment and, hence, not appeal-able. However, the trial court granted appellant’s petition to certify the question for appeal and a panel of this court, pursuant to 28 U.S.C. § 1292(b), granted appellant’s motion to hear the interlocutory appeal.

The sole question on appeal is whether the patented subject matter, rock cutter assemblies, was “on sale” in this country more than a year prior to application for the patent, thereby rendering the patent invalid. We reverse.

The statute involved, 35 U.S.C. § 102(b), reads as follows:

“§ 102. Conditions for patentability; novelty and loss of right to patent
A person shall be entitled to a patent unless—
(b) the invention was patented or described in a printed publication in this or a foreign country or in public use or on sale in this country, more *428 than one year prior to the date of the application for patent in the United States.” [Emphasis added]

No question is presented as to the description of the patent in any printed publication in this country or elsewhere, or as to public use.

Facts

The patent concerns cutters which are designed for attachment to tunnel boring machines. The boring machine has at its front a rotating headplate to which an array of cutters are attached. The remainder of the machine is a locomotive-like device for driving the front end into the face of the earth while rotating the headplate. The patent does not concern anything but the cutters.

An application for the patent was filed on January 6, 1964, and Patent No. 3,216,513 issued on November 9, 1965. The patent specification refers to an earlier application dated February 18, 1963. Appellant assumes that the patent is entitled to the earlier filing date of February 18, 1963. Thus the patent is invalid under 35 U.S.C. § 102(b) if it was “on sale” more than one year prior to February 18, 1963, that is, prior to February 18, 1962, the critical date.

The prior cutters used slightly different seal and bearing arrangements. The patented version uses inclined, instead of arcuately disposed, roller bearings, and metal-to-metal seals instead of metal-to-rubber or gasket seals. Inclined roller bearings and metal-to-metal seals were, however, merely standard items purchased in the market place.

The appellant relies upon two transactions, claimed to be within the “on sale” prohibition, before the critical date: (1) the Hydro-Electric Commission transaction, and (2) the M. J. Bles Construction Company transaction.

The Hydro-Electric Commission Transaction

In 1959, the Hydro-Electric Commission of Tasmania, Australia, invited offers from manufacturers who had successfully built tunnel boring machines, for a machine to be custom built to detailed specifications for use in constructing the Great Lake Power Development, near Poatina in northern Tasmania. The terms of the bid made the successful manufacturer responsible for shop testing the boring machine before shipping; placed delivery f. o. b. the shipping port; reserved the right to cancel if the April 1, 1961 delivery date were not met; required a specific boring rate of 40 feet per day; and demanded a guarantee of performance.

In December 1959, Robbins submitted a detailed written offer for sale of such a machine. The Commission accepted. A contract was executed in June 1960, which specifically provided for a list of machine components and a price schedule, and required delivery f. o. b. Seattle, Washington by March 18, 1961. Time was made of the essence, with a penalty for late delivery and a bonus for early delivery.

Robbins guaranteed a tunneling rate of five feet per hour, against a $21,550 penalty for breach thereof. Robbins was to receive 95 percent of the total price, which was $453,705.05, when the goods were delivered in Seattle. The remainder was due after 500 feet of tunneling, or six months after on-site acceptance. There was no mention in the offer of the patented cutter; an earlier version was listed. However, the Commission’s design acceptance under the contract, in September 1960, did specify the later-patented D-1053 cutter. Nothing in the contract mentioned experimentation, and the Commission had no obligation to supply test or other data to Robbins.

The assembled machine, with 50 of the D-1053 cutters, was assembled, shop tested, disassembled, packed and then delivered on shipboard in Seattle on January 30, 1961 — more than one year prior to the critical date of February 18, 1962. Robbins received 95 percent of the price, in U.S. dollars. The machine was publicized in the newsletter of its fabricator, *429 Pacific Car & Foundry Company, in February 1961, without reference to experimentation. It arrived in Australia, was assembled and tested under Robbins’ supervision, and the Commission certified it acceptable on May 5, 1961. Robbins received the remaining five percent of the purchase price. The machine was then used to bore thousands of feet of tunnel, prior to the critical date.

Thus, well before the critical date Robbins competitively sought and obtained a “time of the essence” contract for 50 cutters, had them manufactured and delivered to it, sold and received payment for them, and the customer received, successfully used, and accepted the equipment.

The M. J. Bles Construction Company Transaction

In the summer of 1960, the M. J. Bles Construction Company of McLean, Virginia, had obtained a contract from the District of Columbia to build an underground tunnel for a Potomac sewer project. Robbins contacted Bles in July 1961 to persuade Bles to lease or rent Robbins’ tunneling equipment for the project. Robbins made a detailed pro-nosal, offering to lease or rent to Bles its Model 71 machine. Bles accepted, and an agreement, lease and option to purchase were executed on November 10, 1961, prior to the critical date of February 18, 1962. 1

The document provided for use of the machine in tunneling 7,900 feet for the sewer project, with an advance rental of $30,000 plus an amount based on tunneling footage. A minimum royalty of $154,050 was specified for 7,900 feet. Robbins guaranteed a boring rate of at least three feet per hour, within 30 days after the work commenced. Bles was to have exclusive control over the machine, and bear the expense of any necessary technical assistance.

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482 F.2d 426, 25 A.L.R. Fed. 473, 178 U.S.P.Q. (BNA) 577, 1973 U.S. App. LEXIS 8644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-robbins-company-v-lawrence-manufacturing-company-ca9-1973.