U. S. Philips Corp. v. National Micronetics Inc. v. North American Philips Corporation and N. v. Philips Gloeilampenfabrieken, Counter-Defendants

550 F.2d 716, 193 U.S.P.Q. (BNA) 65, 1977 U.S. App. LEXIS 10565
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 12, 1977
Docket209, Docket 76-7134
StatusPublished
Cited by19 cases

This text of 550 F.2d 716 (U. S. Philips Corp. v. National Micronetics Inc. v. North American Philips Corporation and N. v. Philips Gloeilampenfabrieken, Counter-Defendants) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U. S. Philips Corp. v. National Micronetics Inc. v. North American Philips Corporation and N. v. Philips Gloeilampenfabrieken, Counter-Defendants, 550 F.2d 716, 193 U.S.P.Q. (BNA) 65, 1977 U.S. App. LEXIS 10565 (2d Cir. 1977).

Opinions

MANSFIELD, Circuit Judge:

National Micronetics, Inc. (“National”) appeals that portion of a judgment of the District Court for the Southern District of New York, Robert J. Ward, Judge, holding valid certain claims of U.S. Patent No. 3,246,383 (“the Peloschek Patent”). Appellant does not challenge the district court’s additional finding that it infringed the patent.

The plaintiff, U.S. Philips1 Corporation, commenced this action against National on March 2,1971, seeking damages and injunctive relief as assignee of three allegedly infringed patents. National denied infringement, challenged the validity of all three patents, and asserted counterclaims for patent misuse and antitrust violations against plaintiff and its assignors, North American Philips and N.V. Philips Gloeilarnpenfabriken. Prior to trial plaintiff withdrew one infringement claim and Judge Ward severed and stayed the counterclaims pending the outcome of the infringement action.

On January 27, 1976, after a trial without a jury, the district court issued a 50-page opinion finding one of the patents invalid and that claims 1-A, 6 and 8-11 of the Peloschek patent were valid and infringed. National’s appeal is limited to the issue of the validity of the Peloschek patent under 35 U.S.C. § 103, which states that:

“A patent may not be obtained . if the differences between the subject matter sought to be patented and the prior art are such that the subject matter as a whole would have been obvious at the time the invention was made to a person having ordinary skill in the art to which said subject matter pertains.”

The Peloschek Patent

The Peloschek patent’s subject matter is a process for the manufacture of a magnetic recording head, which is that part of a tape recorder or computer that translates electrical impulses into magnetic patterns on a tape for the purposes of storage. In reverse, the recording head can “read” the magnetic patterns from the tape, meaning that it retranslates them into electrical impulses which then become sounds, pictures, or a computer printout.

A magnetic recording head consists of two basic parts, the first constructed of magnetic material and the second of a nonmagnetic material bonded to the first as a “gap” which permits the electrical impulses flowing through the recording head to create magnetized patterns on the tape opposite the gap. The magnetic heads at issue in this case generally have a magnetic portion constructed of two ferrite pieces, bonded together by a non-magnetic portion, usually of a glass-type material. (See Exhibit A hereto). The process for which the Pelos-chek patent was obtained describes a method of bonding the two ferrite pieces and the gap material to create a single-piece magnetic head with a minute non-magnetic gap.

The recording head and the gap in it must be of near-microscopic dimensions in order to maximize the amount of information which can be stored on a given portion of tape. The gap, which determines the size of the magnetized spot on the tape, generally measures no more than 50 to 100 microinches or millionths of an inch. (An average sheet of paper is about 3,000 mi-croinches thick.) The evidence shows that for a given recording head to be able accurately to read or retranslate information which has originally been stored on a tape through use of a different recording head, the gap dimensions in each head must be virtually identical, with allowable deviations or tolerances of no more than 10 to 20 millionths of an inch for the larger heads, and much less in smaller recording heads. [718]*718Since numerous recording heads are used in a single computer disc file, it is of vital importance to have all heads conform to prescribed gap dimensions within a few millionths of an inch. Otherwise some of the essential recording heads will not function as the system requires.

For nearly a decade prior to the issuance of the Peloschek patent the recorder-manufacturing industry was concerned over the inability to produce glass-bonded heads which would uniformly meet the precise specifications and conform to the narrow tolerances that were essential to successful performance and interchangeability. The Peloschek patent addresses itself to this problem. Filed May 3, 1963, and issued April 19, 1966, the patent states its objective as follows:

“Magnetic heads with very short gaps having lengths between 1 and 20 microns are difficult to manufacture since close tolerances are usually imposed on the length of the gap and the non-magnetic material in the gap must have a good resistance to detrition and must be capable of being readily processed; in addition, the process of manufacture should be as economical and simple as possible. The gap material also must be as homogeneous as possible. It is the primary object of the invention to provide a method of manufacturing magnetic heads with very short gap lengths which is comparatively simple to perform while achieving close tolerances for gap length.” (Emphasis added).

The claims which were sustained by the district court are:

“1. A method of manufacturing portions of magnetic heads composed of two magnetic circuit parts consisting of sin-tered oxidic ferromagnetic material and having confronting gap surfaces with a gap therebetween filled with a nonmagnetic material bonding the circuit parts together, comprising: placing spacing members having a thickness equal to the desired gap length at opposite ends of a first polished gap surface of one circuit part, placing a corresponding polished gap surface of a second circuit part on said spacing members in confronting relationship with said first surface thereby forming a gap between said surfaces, placing a quantity of nonmagnetic material adjacent to the gap, said nonmagnetic material having a melting temperature below that of said ferromagnetic material, and heating the resulting assembly to the melting temperature of said nonmagnetic material, whereby said nonmagnetic material melts, fills the gap by capillary action, and bonds the circuit parts together.
“2. A method according to claim 1, wherein said nonmagnetic material is glass.
“3. A method according to claim 1, wherein said magnetic material is enamel.
“4. A method according to claim 1, wherein pressure is applied to the assembly during'the heating step.”

Claims 6 and 8 describe the use of the process in making a multiple of recording heads, and claims 10-11 omit the use. of spacing members in the process.

The claimed manufacturing process for the bonding of the magnetic and nonmagnetic portions of the recording heads may be summarized as: (1) presetting the gap or space between two ferrite pieces at a desired length by placing the surfaces of the ferrite pieces opposite each other, inserting spacing members or shims of precise given dimensions between them, and bringing the ferrite surfaces firmly together against the spacers or shims, which serve to fix the gap length at a predetermined distance; (2) placing the nonmagnetic material (e.

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Bluebook (online)
550 F.2d 716, 193 U.S.P.Q. (BNA) 65, 1977 U.S. App. LEXIS 10565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/u-s-philips-corp-v-national-micronetics-inc-v-north-american-philips-ca2-1977.