Wood v. Atlantic Gulf & Pacific Co.

296 F. 718, 1924 U.S. Dist. LEXIS 1783
CourtDistrict Court, S.D. Alabama
DecidedMarch 18, 1924
StatusPublished
Cited by12 cases

This text of 296 F. 718 (Wood v. Atlantic Gulf & Pacific Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Atlantic Gulf & Pacific Co., 296 F. 718, 1924 U.S. Dist. LEXIS 1783 (S.D. Ala. 1924).

Opinion

ERVIN, District Judge.

This matter comes on to be heard on a motion filed by defendant to reopen the former decree of this court and permit defendant to offer newly discovered evidence tending to show anticipation of the idea disclosed in plaintiff’s patent, and, further. because it is claimed the court, in the injunction granted in favor of plaintiff, exceeded the jurisdiction of the court, in that it overlooked the Act of Congress approved July 1, 1918 (40 Stat. 705, c. 114 [Comp. St. Ann. Supp. 1919, § 9465]), amending the Act of June 25, 1910.

I here quote the material portions, both of the act of 1910 and of the amendatory act of 1918, italicizing the special language which is to be construed. I also bracket the words added by the amendatory act.

“Whenever an invention -described in and covered by a patent of the United States shall hereafter be used by the United States without license of the owner thereof or lawful right to use the same, such owner may recover reasonable compensation for such use by suit in the Court of Claims. * * * ” Act of 191Q.
“Whenever an invention described in and covered by a patent of the United States shall hereafter be used [or manufactured] by [or jfor] the United States without license of the owner thereof or lawful right to use or manufacture the same, such owner’s remedy shall be by suit against the United States in the Court of Claims for the recovery of his reasonable and entire compensation for such use and manufacture. * * * ” Act of 1918.

The only words added by amendment to the original act are shown in the brackets, and they are “or manufactured” before the word “by” and “or for” following the word “by.” So that primarily the act was amended only by adding the provision that, if a patented article should be manufactured for the United States, then the remedy of the patentee is fixed by the act.

Suppose the act as originally passed had contained only the words added by the amendment, it would only have provided that, if the 'patented article be manufactured by or for the United States, then the remedy would be as provided. But the original act already provided that, if the article was used by the United States, the remedy should be as provided. Now we have, therefore, the letter asking an amendment of this act, so as to let the government “proceed with the procuring of such patented articles as it needed,” and an addition by amendment of words doing this very thing. It is at least doubtful to me if the act goes any further, and covers the use by a third person in a government work of a patented article.

But, conceding the need of the government that work done, for it should be protected, as well as the work it was doing, and also conceding that, by the way the words “or manufactured” and “or for” are placed in the sentence, it was intended to qualify them by the preceding word “used,” so as to protect one who used a patented article in work done for the government, still such use should not be extended to a case where it was not with the knowledge and consent of the government.

[720]*720This raises two questions for consideration: First, whether the standard form of injunction which is used by the various courts over the country is invalid, because of the provisions of the act, and should be altered, so as to provide an express exception in the matters provided for in the act, where work is being done for the government, or the making or using for the government of the patented article; second, is the act effective, where the use of the patented article is in the performance by an independent contractor with the government of work which he is doing for the government, which does not under the terms of his contract require him to use the tool or device which is patented, but leaves him free- to use it or not as he sees fit ?

As to the first proposition, it seems clear to me that there is no necessity for the court, in granting an injunction against an infringer of a patent, to write into the injunction any express exception as to the making by or for the government of the patented article or the use of the patented article by the infringer for the government, for several reasons:

First, the court cannot foresee that the infringe^ will ever have any occasion to make a patented article for the government, or to use it for the government, or will ever have any contract with the government which calls for either the making or using of such article.

■ Second, if it should ever transpire, in the taking of evidence as to damages, that a part of the damage claimed is by reason of the making of the article for the government, dr the use of the,article for the government, the court can make provision for, and grant ample protection to the infringer as to, that part of the damages, and can remit so much of the claim for damages as is for such making dr use, to the Court of Claims for determination under the provisions of the act.

Hence there would be no reason for setting aside the decree in this case, or for changing it in this 'respect. At the expense of making this opinion unduly long, it might be well to quote what defendant has quoted to me, namely, a letter from the Acting Secretary of the Navy to Senator Tillman, chairman of the committee' of naval affairs, which brought about the passage of this bill, and also the report of Mr. Padg*ett, ¡chairman of the committee of naval affairs in the House, in reporting the bill in the House. Both the letter and report are given for the purpose of calling attention to the purpose sought to be accomplished by the enactment.

“Navy Department, Washington, April 20, 1918.
“My" Dear Senator Tillman: This department is confronted with a. difficult situation as the result of a recent decision by the Supreme Court affecting the government’s rights as to the manufacture and use of patented inventions, and it seems necessary that amendment be made of the Act of June 25, 1910, entitled ‘An act to provide additional protection for the owners of patents of the United States, and for other purposes.’ The case in which the court’s decisioii was rendered is that of William Cramp & Son’s Ship & Engine Building Co., Petitioner, v. International Curtis Marine Turbine Co. and Curtis Marine Turbine Co. of the United States, and the decision is, in effect, so far as it is of importance here, that a contractor for the manufacture of a patented article for the government is not exempt, unless he is only a contributory infringer,' from ’injunction and other interference through litigation by the patentee. - ' .
[721]*721“A prior decision of the Supreme Court, that in the case of Crozier v. Krupp, had been interpreted as having the opposite meaning, and the department was able up to the time of the later decision, on March 4 last, to proceed satisfactorily with the procuring of such patented articles as it needed, leaving the matter of compensation to patentees for adjustment by direct agreement, or, if necessary, by resort to the Court of Claims under the above-mentioned act of 1910. Now, however, manufacturers are exposed to expensive litigation, involving the possibilities of prohibitive injunction payment of royalties, rendering of accounts, and payment of punitive damages, and they are reluctant to take contracts that may bring such severe consequences.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Zoltek Corp. v. United States
672 F.3d 1309 (Federal Circuit, 2012)
Carrier Corp. v. United States
534 F.2d 244 (Court of Claims, 1976)
Consolidated Vacuum Corp. v. MacHine Dynamics, Inc.
230 F. Supp. 70 (S.D. California, 1964)
J. & G. DEVELOPMENT COMPANY v. All-Tronics, Inc.
198 F. Supp. 392 (E.D. New York, 1961)
Drexler v. Koza
88 F. Supp. 298 (W.D. Pennsylvania, 1950)
Bereslavsky v. Esso Standard Oil Co.
175 F.2d 148 (Fourth Circuit, 1949)
Bereslavsky v. Standard Oil Co. of New Jersey
82 F. Supp. 939 (D. Maryland, 1949)
Allgrunn v. United States
67 Ct. Cl. 1 (Court of Claims, 1928)
Richmond Screw Anchor Co. v. United States
275 U.S. 331 (Supreme Court, 1928)

Cite This Page — Counsel Stack

Bluebook (online)
296 F. 718, 1924 U.S. Dist. LEXIS 1783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-atlantic-gulf-pacific-co-alsd-1924.