Wm. T. Burnett & Co. v. General Tire & Rubber Co.

454 F. Supp. 794, 200 U.S.P.Q. (BNA) 223, 1978 U.S. Dist. LEXIS 16433
CourtDistrict Court, D. Maryland
DecidedJuly 21, 1978
DocketCiv. No. Y-77-540
StatusPublished
Cited by1 cases

This text of 454 F. Supp. 794 (Wm. T. Burnett & Co. v. General Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wm. T. Burnett & Co. v. General Tire & Rubber Co., 454 F. Supp. 794, 200 U.S.P.Q. (BNA) 223, 1978 U.S. Dist. LEXIS 16433 (D. Md. 1978).

Opinion

JOSEPH H. YOUNG, District Judge.

By an amended complaint filed August 15, 1977, plaintiff Wm. T. Burnett & Company, Inc. (Burnett) seeks to recover damages from defendant, The General Tire & Rubber Company (General) for loss of patent rights attributable to defendant’s fraudulent conduct in patent procurement.

The parties were involved in lengthy interference proceedings before the United States Patent Office from 1962 until 1966 to determine the priority of invention of a process for making polyurethane foam. The proceeding resulted in an award of priority to General, from which plaintiff did not appeal. General ultimately obtained two patents, one relating to the process of blowing polyester polyurethane foam, and one for polyether polyurethane foam.

In subsequent litigation which did not involve Burnett, General claimed patent infringement by various companies, and one patent was declared unenforceable in part, du.e to failure to disclose certain information to the Patent Office during patentability proceedings. Although those proceedings were separate from and prior to the interference action, plaintiff claims that its inability to obtain a patent was a direct result of the fraud, and prays damages based upon a reasonable royalty which it would have obtained but for the fraud.

The plaintiff’s theory may be summarized as follows: if the defendant had disclosed the information, its patent application would have been denied; there would therefore have been no interference with plaintiff’s application; and plaintiff would have obtained the patent.

General has moved to dismiss the complaint, or in the alternative, for summary judgment. The motion will be granted since plaintiff is precluded on various grounds from raising issues vital to its claim.

BACKGROUND

General is the holder of two patents which are relevant in this litigation: NO. 3,072,582, POLYETHER-URETHANE [796]*796FOAMS AND METHODS OF MAKING SAME, patented January 8, 1963; and NO. 3,391,093, POLYESTER-POLYURETHANE FOAMS AND METHODS OF MAKING SAME, patented July 2, 1968 (Exhibits 1 and 2 to the motion to dismiss the complaint).

Both patents originated with application Serial No. 541,823, filed on October 20,1955. That application disclosed a particular method of making polyurethane foam which had been developed by Charles Frost, an employee of General. (Hereinafter this will be referred to as the Frost application or the parent application.)

The formation of a polyurethane from component substances involves use of a gas-forming material called a “blowing agent” which causes foaming.1 Many materials cause the expansion of the foam — /. e., act as “additives in the process which form a gas and cause the urethane to expand into a cellular structure.” 398 F.Supp. at 1356. The agents used by Frost, which included various halogen-substituted alkanes, avoided problems connected with the use of other agents, such as gas escaping and causing crust to form or foams shrinking or collapsing after the initial rise.

The parent application disclosed the process for both polyester and polyether foams.2 The patent examiners rejected it as unpatentable on four occasions. In his third decision, June 24,1958, the examiner cited prior art in the form of two foreign patents — the Hochtlen patent, a German patent; and the Wingfoot patent, a Belgian patent — as a reason for rejection. General then sought to distinguish Frost’s work from the prior art in Hochtlen on the basis that the halogenated hydrocarbons used by Frost had different boiling points. Rejecting this distinction and denying patentability for the fourth time in May, 1959, the examiner stated:

. it is not seen wherein the difference in boiling points is critical or patentable. Mere assertions as to superior or unpredictable results are of no weight in the absence of proper corroborating evidence.

Patent examiner’s conclusions, quoted at 398 F.Supp. at 1359.

General did not respond to this invitation to document its assertions, but filed two continuation-in-part applications (CIPs), Serial Nos. 803,380 and 893,381 in 1959, for making polyester and polyether urethanes respectively.

The polyether application matured into Patent No. 3,072,582, patented January 8, 1963, which was the subject of numerous patent infringement actions brought by General Tire and consolidated by the Panel on Multidistrict Litigation.

Fraud in procurement is a well-established defense to an infringement claim, Precision Instrument Manufacturing Co. v. Automotive Maintenance Machinery Co., 324 U.S. 806, 65 S.Ct. 993, 89 L.Ed. 1381 (1945).

After consolidation, a separate trial was ordered on the issue of alleged fraud by General in procuring the polyether method patent, In re Multidistrict Litigation Involving Frost Patent, supra. The deceptive behavior which General was determined to have practised in that case is the basis for the present claim.

The Hochtlen and Wingfoot patents only disclosed the use of their respective blowing agents for blowing polyester polyurethanes. The crux of the fraud was General’s failure to report to the examiner the results of experiments by its employees, which successfully used these agents for blowing poly-ether foam. The undisclosed tests were done in 1958 and prior to May 4,1959, when the parent application was rejected for the fourth time.

[797]*797In the multidistriet litigation, the court held that the selective disclosure of only those experiments which showed that the Hochtlen and Wingfoot agents were inoperative for polyethers, was an intentional misleading of the Patent office in a matter which might have affected the decision.

In its initial prosecution of the polyether CIP, General included a range of agents which covered agents disclosed by the prior patents. The examiner held that General’s use of the Hochtlen and Wingfoot agents for polyether urethanes, rather than polyester urethanes, did not involve invention. Although the polyether application, when approved, no longer contained the Hochtlen and Wingfoot agents, the court held that failure to disclose the polyether tests using those agents was nonetheless a material omission, since it might have influenced the decision on patentability in view of prior art. The court reasoned that:

If the examiner had known methylene chloride [a Hochtlen agent] is operative in processes using both polyethers and polyesters, his position that processes using polyesters are analogous to processes using polyethers would have been strengthened, and he might have continued to assert Hochtlen as a reference against processes utilizing polyethers.
Since the claims were narrowed to exclude methylene chloride, it is entirely possible that the examiner would have dropped the Hochtlen reference even if successful use of methylene chloride had been disclosed. It is also possible, however, that the examiner would have felt that substitution of the claimed freons, alkanes and alkenes for methylene chloride would have been obvious to one of ordinary skill in the art; accordingly, he would have continued to reject the claims as unpatentable over Hochtlen.

398 F.Supp. at 1372, and footnote 38.

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Related

William T. Burnett & Co. v. General Tire & Rubber Co
609 F.2d 512 (Fourth Circuit, 1979)

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Bluebook (online)
454 F. Supp. 794, 200 U.S.P.Q. (BNA) 223, 1978 U.S. Dist. LEXIS 16433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wm-t-burnett-co-v-general-tire-rubber-co-mdd-1978.