Union Carbide Corp. v. Traver Investments, Inc.

201 F. Supp. 763, 133 U.S.P.Q. (BNA) 167, 1962 U.S. Dist. LEXIS 5652
CourtDistrict Court, S.D. Illinois
DecidedFebruary 6, 1962
DocketCiv. A. Nos. P-2357, P-244-5
StatusPublished
Cited by4 cases

This text of 201 F. Supp. 763 (Union Carbide Corp. v. Traver Investments, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Carbide Corp. v. Traver Investments, Inc., 201 F. Supp. 763, 133 U.S.P.Q. (BNA) 167, 1962 U.S. Dist. LEXIS 5652 (S.D. Ill. 1962).

Opinion

MERCER, Chief Judge.

Union Carbide Corporation, plaintiff in case No. P-2357, commenced suit in this District under 35 U.S.C. § 146 naming as defendants Traver Investments, Inc., and W. R. Grace & Company. Carbide is the assignee of United States Patent Application No. 217,144, filed on March 23, 1951, in the name of George M. Adams and Sidney J. Wakefield. Defendant, Traver, is the assignee of United States Patent Application No. 345,015, filed March 27, 1953, in the name of George W. Traver. The complaint alleges that defendant, Grace, is the assignee of United States Patent Application No. 326,122, filed December 15, 1952, in the names of Theodore W. Keller, Charles W. Garvin and John G. McMillan.

In 1954 the Patent Office determined that an interference existed between those three applications and a hearing upon the rival applications was had before the Patent Office Board of Patent Interferences. On July 25, 1960, the Board ruled that Traver’s assignor was the prior inventor and awarded priority of invention to him. Finally, the complaint alleges that plaintiff’s assignor was the first original and true inventor of the process disclosed in the patent applications. The complaint prays judgment holding that plaintiff’s assignors are the first and prior inventors of the process disclosed, and that plaintiff is entitled to a patent upon the process described in the application.

Case Number P-2445 involving the same subject matter, was filed by Howard Plastics, Inc., in the District Court for the District of Columbia against Traver Investments, Inc., and Union Carbide Corporation. The allegations of the complaint are essentially identical to-those of the complaint in Number P— 2357, except that it is alleged that Howard Plastics is a wholly owned subsidiary of Grace, that Howard is the assignee of United States Patent Application No. 326,122 and that Howard’s assignors are the true and prior inventors of the processes disclosed in those patent applications. The complaint prays judgment awarding priority of invention to> Howard’s assignors, and a patent to it. as owner of the application.

Jurisdiction in each cause is invoked under the provisions of 35 U.S.C. § 146.

Traver moved to dismiss the complaint, in No. 2357 upon the ground that Howard was an indispensable party to the suit. After that motion was argued, the court reserved decision of the question-pending a determination whether the-cause in No. 2445 might be transferred to this District from the District of Columbia. That transfer has been completed and the causes are now presented to the court upon a number of motions,, including Traver’s motion to dismiss No. 2357, Carbide’s motion to consolidate the-two causes of action for trial and the-motion of defendant Grace to add Howard as a party defendant in No. 2357.. [765]*765Those various motions are considered in a sequence which seems to be logically dictated by the circumstances, the No. 2357 motions being first considered.

Section 146 provides in pertinent part:

“Any party to an interference dissatisfied with the decision of the board of patent interferences on the question of priority, may have remedy by civil action, if commenced within such time after such decision, not less than sixty days, as the Commissioner appoints * * *.
“Such suit may be instituted against the party in interest as shown by the records of the Patent Office at the time of the decision complained of, but any party in interest may become a party to the action. * * * Judgment of the court in favor of the right of an applicant to a patent shall authorize the Commissioner to issue such patent on the filing in the Patent Office of a certified copy of the judgment and on compliance with the requirements of law.”

Rules of practice of the Patent Office, promulgated by the Commissioner, require that an action under Section 146 be commenced within 60 days from the date of the decision of the Board of Patent Interferences, unless a petition for reconsideration is filed in which case, a suit must be filed within 30 days after disposition is made of such petition. 37 C.F.R. §§ 1.303(a), 1.304.

By its motion to dismiss, Traver invokes the 60 day statutory period as jurisdictional. It argues that Howard, as assignee of one of the adverse applications involved in the interference, is a “party in interest” within the meaning of the statute and an indispensable party to the suit. In support of its motion Traver has submitted a copy of the assignment records of the Patent Office, certified by the Commissioner of Patents, which include the record of assignment of Application No. 326,122 to Howard by an instrument recorded in the Patent Office on May 14, 1956.

I am convinced that the complaint must be dismissed. In Klumb v. Roach, 7 Cir., 151 F.2d 374, 377, the court held that the similar provisions of the statutory predecessor of Section 146 were jurisdictional. Thus the court said:

“It must be remembered that this is not an ordinary equitable action but is predicated solely upon a statutory provision which confers jurisdiction upon the court and fixes the rights of the parties. In order for plaintiff to bring himself within the terms of § 4915 and before the court can adjudicate the rights of the parties, certain things must exist: (1) Plaintiff must have elected to proceed in a District Court rather than by appeal to the United States Court of Customs and Patent Appeals; (2) his complaint must be filed within six months after the decision of the Patent Office; and (3) notice must be given to adverse parties and other due proceedings had. It is our view that these requirements are jurisdictional and the complaint by appropriate allegations must show that the requirements are met; otherwise, the court is without jurisdiction.”

In the Klumb case, the plaintiff, the-unsuccessful party to an interference,, filed suit against the successful patent applicant only, although it appears that, the plaintiff had knowledge that the applicant had assigned a one-half interest in the application to one Tower. The complaint was answered, the defendant making no specific attack upon the complaint on jurisdictional grounds. After a trial was had upon the complaint and answer and after the decision of the trial court had been rendered, plaintiff moved to reopen the case to make Tower a party defendant. Over Tower’s objection the motion was allowed and judgment was entered in favor of the plaintiff. Defendant then took an appeal and moved in the Court of Appeals, upon the-jurisdictional ground, for a reversal of the judgment for want of jurisdiction.. [766]*766The Court of Appeals ruled that the trial court had been without jurisdiction, because Tower was an indispensable party to the cause and because he had not been made a party to the suit within the statutory period.

In Hazeltine Corporation v. White, E.D.N.Y., 2 F.Supp. 94, aff’d, 2 Cir., 68 F.2d 715, a suit by one unsuccessful party to an interference against a prevailing party was dismissed because a second unsuccessful interference party had not been joined. Likewise in Solomon v.

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Bluebook (online)
201 F. Supp. 763, 133 U.S.P.Q. (BNA) 167, 1962 U.S. Dist. LEXIS 5652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-carbide-corp-v-traver-investments-inc-ilsd-1962.