Free Sewing Mach. Co. v. Bry-Block Mercantile Co.
Free Sewing Mach. Co. v. Bry-Block Mercantile Co.
Opinion of the Court
This case is before me upon an application for a temporary injunction, and was heard on the bill'and answer and affidavits filed by the plaintiff and defendant, tending to support their respective contentions. The bill avers and the proof shows the requisite diversity of citizenship, but no allegation is made in the bill of the amount involved, nor does it' otherwise- satisfactorily appear. The suit is to restrain defendant from infringing- certain alleged rights of the plaintiff arising under the patent laws of the United States. Since the decision in the case of Henry v. Dick Co., 224 U. S. 1, 32 Sup. Ct. 364, 56 L. Ed. 645, there seems to be no doubt of this court having jurisdiction to entertain cases of the character here un
It appears from the record that the policy of the plaintiff was to appoint, and it did appoint, only one dealer or agent in each city or town for the sale of the Free sewing machine, and that for some time prior to February 16, 1910, the defendant was such appointed dealer 'and agent at Memphis, Tenn., when, for reasons satisfactory to the plaintiff, defendant’s agency terminated and another dealer or agent was, as is alleged in the bill, “licensed to advertise, exhibit, offer for sale and sell said Free sewing machine in said Memphis, said license to be exclusive to said dealer, after the defendant should have disposed of all the said Free sewing machines previously bought by the defendant” of the plaintiff. Subsequently the defendant purchased of one B. W. Barfield, an agent of the plaintiff at Brownsville, Tenn., quite a number of the Free sewing machines, through a Mr. Taylor, who was just prior to and just after said purchase a sales agent of the plaintiff, and who it appears the defendant understood was such sales agent at the time of the purchase. No contract or agreement was made in this sale and purchase tending to restrict defendant as to the manner, place, or price in the sale of the machines. The plaintiff, however, had theretofore fixed $35 as a minimum price at which the Free sewing machine should be sold at retail by those whom it licensed or appointed as its agents. This was known to the defendant, who was and is a general dealer in sewing machines in connection with its department store in Memphis. To each machine was attached the following notice:
“Patented
Feb. 11-02 Sep. 15-OS
Oct. 17-05 Dec. 21-09
July 50-07 Jan. 10-10
Other patents pending.
Notice to
Jobbers and Dealers.
This machine Is sold subject to conditions and restrictions as to price at which and persons by whom it may be resold ascertainable from the manufacturer upon application.”
Notwithstanding this notice and knowledge on the part of the defendant, it, prior to the filing oí the bill advertised, offered for sale, and sold the Free sewing machine so purchased at a cut price of $27.50 in Memphis, Tenn.
Upon the record in this case, the temporary injunction prayed for
Keeping these general propositions in mind, the action of the court in granting or refusing the injunction must turn upon two questions, namely:
First. Whether or not one who purchases a patented article for resale (without restriction as to manner, place or price of such resale) from an authorized or licensed agent of the patentee or his assignee may offer for sale and sell said article in a different territory assigned by tifie' patentee or assignee to another and different licensee or agent.
Second. Whether or not a patentee or his assignee may fix the price at which his patented article shall be sold to the consumer by retail dealers, with whom the patentee or his assignee has no contractual relation, after the patentee or assignee has sold said article, received full payment therefor, and parted with the possession thereof, although the retail dealer knows of the restricted price and the conditions attached to the sale of the patented article by the patentee or his assignee.
It has been held by the Supreme Court in the case of Henry v. Dick, 224 U. S. 1, 32 Sup. Ct. 364, 56 L. Ed. 645, that a patentee may, by a conditional sale, so restrict the use by his vendee within specific boundaries of time, place, or method as to make prohibited uses of the patented article outside of chose boundaries constitute infringement and not mere breach of a collateral contract, that the monopoly of the patent extends to the right of making, selling, and using, and that each is a separable and substantial right. It follows, therefore, that while the patentee majq by a conditional sale, restrict the use of the patented article by his vendee, it leaves open the question as to whether or not he may restrict the price at which such vendee may sell the patented article in holding that the right of making, using, and selling are each separable and substantial rights.
In the case of Bobbs-Merrill Co. v. Straus, 210 U. S. 339, 28 Sup. Ct. 722, 52 L. Ed. 1086, it was held that the sole right to vend, granted to the holder of a copyright under section 4952 of the Revised Statutes (U. S. Comp. St. 1901, p. 3406), does not secure to the owner of the copyright the right to qualify future sales by his vendee or to limit or restrict such future sales at a specified price, and a notice in the book that a sale at a different price would be treated as an infringement is ineffective against one not bound by contract or license agreement. And, further, that there are differences between the patent and the copyright statutes in the extent of the protection granted by them, and the rights of a patentee are not necessarily to be applied by analogy to those claiming under the copyright; the court saying;
*636 “If we were to follow the course taken in the argument, and discuss the rights of a patentee, under letters patent, and then, by analogy, apply the conclusions to copyrights, we might greatly embarrass the consideration of a case, under letters patent, when one of that character shall be presented to this court. We may say in passing, disclaiming any intention to indicate our views as to what would be the rights of parties in circumstances similar to the present case under the patent laws, that there are differences between the patent and copyright statutes in the extent of the protection granted under them. This was-recognized by Judge Lurton who wrote a leading case on the subject in the Federal Courts (The Button Fastener Case, 77 Fed. 288 [25 C. C. A. 267, 35 L. R. A. 728]), for he said in the subsequent case of Park & Sons v. Hartman, 153 Fed. 24 [82 C. C. A. 158, 12 L. R. A. (N. S.) 135]: ‘There are such wide differences between the right of multiplying and vending copies of a production protected by the copyright statute and the rights secured to an inventor under the patent statutes that the cases which relate to the one subject are not altogether controlling as to the other.’ ”
A critical examination of section 4884 of the Revised Statutes (U. S. Comp. St. 1901, p. 3381), conferring rights upon the patentee, and section 4952 of the Revised Statutes (U. S. Comp. St. 1901, p. 3406), conferring rights under the copyright law, is therefore important in arriving at the difference between the rights conferred under the patent and under the copyright statutes referred to by Mr. Justice Lur-ton.
Section 4884, granting franchises under the patent law, reads as follows:
“Every patent shall contain * * * a grant to the patentee, his heirs or assigns, for the term of seventeen years, of the exclusive right to make, use and vend the invention or discovery. * * * ”
Section 4952 of the Revised Statutes, granting franchises under the copyright law, reads as follows:
“Any citizen * * * who shall be the author, inventor, designer or proprietor of any book, map, chart, dramatic or musical composition * * * and the executors, administrators or assigns of any such person, shall * * * have the sole liberty of printing, reprinting, publishing, completing, copying, executing, finishing and vending the same.”
This last clause may be stated, without in my j'udgment affecting its meaning, in this wise: That the holder of a copyright shall'have the exclusive right to make and vend the work so copyrighted. Under the first section quoted, the patentee has the exclusive right of vending the invention or discovery. Under the second section quoted the owner of the copyright has the sole liberty of vending his copyright work. So that the essential difference seems to me to be that the word “use” appears in section 4884, relating to patents, and is omitted from section 4952, -relating to copyrights. The patentee under said section 4884 has the exclusive right to vend his invention or discovery, and the owner of the copyright, under section' 4952, has the sole liberty, to vend the work copyrighted. Now, if the owner of the copyright is not guaranteed the right by the words, “sole liberty to vend,” in section 4952, to qualify future sales by his vendee, or to limit or restrict such future sales at a specified price by a notice in the copyrighted book that a sale at a different price'would be treated as
An order to that effect will be entered, and dissolving the restraining order heretofore granted.
Reference
- Full Case Name
- FREE SEWING MACH. CO. v. BRY-BLOCK MERCANTILE CO.
- Status
- Published