Piaget Novelty Co. v. Headley
Piaget Novelty Co. v. Headley
Opinion of the Court
This suit was brought to establish infringement by defendants of two United States letters patent—No. 379,534, dated March 13, 1888, and granted to Elwood Headley, assignor of one-half to William G. Horton, and No. 384,523, dated June 12, 1888, of which the defendant Headley and one Horton were patentees. The patents are now owned by the complainant. The earlier patent is for a toy registering savings bank, and the later for a coin receptacle and regulating register. At final hearing brought on before Judge Wheeler the third claim of the earlier patent was sustained, and defendants held infringers, while as to the later the complaint was dismissed. A reference was directed to a master to ascertain and report the profits and gains made by the defendants. An appeal taken from the interlocutory decree to the Circuit Court of Appeals resulted in affirmance of the decision of the Circuit Court. 108 Fed. 870. The case now comes up for hearing upon exceptions filed to the master’s report, which finds that the net profits to the defendants resulting from the infringement amounted to $1,658.15. I have carefully examined the report, the evidence, and authorities upon which it is based, with a view of ascertaining whether the master erred in his application of the rules of law which may properly be invoked in a case where the profits, gains, and advantages are recoverable from an infringer. The master’s report shows careful and diligent preparation. The evidence is succinctly set forth in his opinion, and with sufficient detail. I think the propositions of law justifying a recovery of the profits by the complainant are correctly stated and applied. I quite agree with the master in view of the decision of the Circuit Court, reported in 107 Fed. 134 (affirmed on appeal, 108 Fed. 870, 48 C. C. A. 116), holding the patent in suit to be a pioneer patent for a new article of manufacture, and deciding that claim 3 of the patent covers in its entirety all toy banks containing a registering device, that the complainant is entitled to recover the gains and profits derived by the defendants from
The exceptions are respectively overruled. There should be a decree for the complainant confirming the report of the master, with interest and costs.
Reference
- Full Case Name
- PIAGET NOVELTY CO. v. HEADLEY
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- 1. Patents—Infringement—Profits Recoverable. A manufacturer of an infringing article is liable for the entire net profits derived from its sale, where the evidence shows that its salability was primarily due to the patented feature. 2. Same—Ascertaining Net Profits—Expenses to be Deducted. In estimating the profits realized by a defendant from the manufacture and sale of an infringing article, for which it is accountable, it is entitled to be allowed for office and factory rental and for labor in producing and selling the article, but not for insurance, or for legal services or expenses in defending a prior suit, although successful in such defense. ¶ 1. See Patents, vol. 38, Cent. Dig. § 572.