Wing Engineering Corporation v. United States

151 F. Supp. 314
CourtUnited States Court of Claims
DecidedMay 8, 1957
Docket49769 and 93-53
StatusPublished
Cited by11 cases

This text of 151 F. Supp. 314 (Wing Engineering Corporation 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
Wing Engineering Corporation v. United States, 151 F. Supp. 314 (cc 1957).

Opinion

WHITAKER, Judge.

These two suits by the Wing Engineering Corporation, as licensee, and the Chrysler Corporation, as owner, have been consolidated for trial.

The only two questions now before the court are: first, whether the Wing Engineering Corporation may maintain its *315 action under section 1498 of Title 28 U.S.C.; and, second, the trial commissioner’s recommendation for the dismissal of the intervening petitions of Estelle Zap and Morris Lavine for want of prosecution.

Intervenors Estelle Zap and Morris Lavine contend that certain assignment of the patents in suit, upon which the right of plaintiffs to maintain their suits depends, are void, and that they are the rightful owners of the patents in suit. They, however, presented no evidence at the trial to support the allegations of their petitions, although they were given full opportunity to do so. For want of prosecution, their intervening petitions are dismissed.

On the first question, of the right of the Wing Engineering Corporation to maintain its suit, the Commissioner’s opinion states that the Wing Engineering Corporation owned an undivided interest in the patent, and as such was entitled to bring the action under section 1498, Title 28, U.S.C. The reasons given by the Commissioner for this conclusion are sound.

The Chrysler Corporation on October 19, 1943, was the owner of the patent in suit through mesne assignments. On that date it executed an instrument transferring to Wing Engineering Corporation “an exclusive license, with right to grant sub-licenses, to make, use and sell in the United States of America devices embodying some or all of the inventions covered by the said patents * *

Under paragraph 5 the licensee was given the right “to notify the infringers of such invention, and to enter into negotiations with the infringers looking toward the granting of licenses to them on the terms herein outlined and the collection of damages for past infringements.” It was further provided:

“Should such negotiations fail, Engineering may notify Chrysler in writing of the infringement and of Engineering’s desire to sue the infringers. If Chrysler shall not elect to institute suit, within ninety (90) days after receipt of such written notice, Engineering shall have the right to do so at its own expense. * * * Recoveries from any suit instituted under this paragraph shall be applied first to offset any proper litigation expense of the parties, and any remaining balance shall be divided equally between the parties.”

The license granted, however, was subject to the reservation of the right in Chrysler Corporation and its subsidiary and controlled companies “to make, have made, use and sell devices embodying or adapted to be installed in structures which embody some or all of the inventions covered by said patents.”

Since the license was exclusive as to all persons, except the owner and its subsidiary and controlled companies, and especially since the licensee had the right to sue infringers, we do not think it can be doubted that an undivided interest in the patent was granted Wing Engineering Corporation by Chrysler Corporation. The very right was granted which is asserted and attacked in this suit, to wit, the right to sue infringers for damages.

If defendant had sought a license to use the inventions here in suit, plaintiff Wing Engineering Corporation was the only entity having a right to grant it such a license. Such a right in Wing Engineering Corporation is an ownership right within the meaning of the jurisdictional statute.

Section 1498 Title 28, U.S.C. gives the “owner” a right to bring a suit against the United States for the infringement of its patent. The section reads:

“Whenever an invention described in and covered by a patent of the United States is used or manufactured by or for the United States without license of the owner thereof or lawful right to use or manufacture the same, the owner’s remedy shall be by action against the United States in the Court of Claims for the recovery of his reasonable and
*316 entire compensation for such use and manufacture.”

This does not mean the owner of the entire right in the patent. It means a person who has “at least such an interest in the patent as without the statute would support such a suit against a defendant other than the United States.” E. W. Bliss v. United States, 253 U.S. 187, 191, 192, 40 S.Ct. 455, 457, 64 L.Ed. 852.

In Crown Die & Tool Co. v. Nye Tool & Machine Works, 261 U.S. 24, 43 S.Ct. 254, 67 L.Ed. 516, the court said that what the Government granted by its patent was not the right to make, use, or vend the invention, but the right to exclude others for a certain period from making, using and vending it.

The Wing Engineering Corporation was given the exclusive right, subject to the reservation mentioned, to make, use and vend the article, and was given the right to exclude all others except the licensor from doing so. The Wing Engineering Corporation, therefore, had all the rights which the Government granted by its patent, except for the reservation in the so-called licensor.

The case of Independent Wireless Telegraph Co. v. Radio Corporation of America, 269 U.S. 459, 46 S.Ct. 166, 70 L.Ed. 357, was a suit between private corporations. The Radio Corporation had an exclusive license to make, use, and vend apparatus embodying the patent, subject to a reservation jin the licensor to make, use and vend it. The Radio Corporation brought a suit in equity for infringement against the Independent Wireless Telegraph Company, joining as a party plaintiff, the De Forest Radio Telephone & Telegraph Company, which was the original assignee of the patent issued to Lee De Forest, alleging that the De Forest Radio Telephone & Telegraph Company had refused to give its assent to the bringing of the suit in its name.

The Supreme Court held it was entitled to do so. It cited with approval former decisions holding that, where the licensor had agreed to sue infringers, a licensee, under section 4919 of the Revised Statutes, 35 U.S.C.A. §§ 281, 284, could bring an action for infringement in the name of the patentee, although that statute gave the right to bring a suit for infringement only to a “pat-entee, assignee or grantee.” But in E. W. Bliss v. United States, supra, wherein it was said a licensor could not maintain an action for infringement. The distinction between the two cases is that in the Bliss case the licensor was authorized to sell to only one person; whereas, in the Radio Corporation case it had an exclusive license, subject to the reservation in the licensor to make, use and vend.

In the Independent Wireless Telegraph Co.

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151 F. Supp. 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wing-engineering-corporation-v-united-states-cc-1957.