Webster Electric Co. v. Podlesak
Webster Electric Co. v. Podlesak
Opinion of the Court
After hearing the testimony and argument in this case, I give my views in support of a conclusion that an interlocutory decree should be entered, vesting the right to the invention, whose title is the subject of controversy, in a receiver or master with full power to prosecute the pending application for a patent, and to that end annulling the defendant’s revocation of the power of attorney which he had previously given to the plaintiff’s attorneys. I stated, then, that the two fundamental things of interest to both parties were whether Podlesak was entitled to a patent, and, secondly, whether the so-called Sumpter application might not be defeated through Podlesak’s application. The possibility was recognized that, if the latter disclosed invention and public use more than two years prior to the date of application, both applications (if identity of invention should be found by the Patent Office) would have to be denied upon interference. It seemed to me that, in view of the importance of this Podlesak invention as between the plaintiff and its
.. Except for certain testimony to which reference will be made, 'the parties agree that, when the Sumpter oscillator came to plaintiff’s attention, thq defendant, upon producing his drawings and other evidence in either the Sumpter or his own device, saying that plaintiff company had made and abandoned the manufacture, that it was not worth the expense of a patent, etc.; and while it appears that defendant’s diffidence was met, and later overcome, by plaintiff’s suggestion that the expense of. proceedings to obtain a patent would be borne by it, and not by defendant, the dominant purpose which had developed was not the acquisition by plaintiff of the invention, but the initiation of proceedings for a patent upon which an interference might be declared, against the competitor Sumpter Company’s then pending application to patent (supposedly) the identical invention. In other words, this was not only the then dominant purpose, but was susceptible ’ of accomplishment, regardless of the ultimate ownership, of any patent that might be granted. It was the plaintiff’s aim to avail itself of its servant’s alleged invention to meet a competitor who -was making inroads upon the market through the exploitation of this same device and upon (supposedly) a claim of patent protection. There is no doubt that both plaintiff and defendant recognized this, and that defendant did make his application for a patent (No. 15,198) obedi’ently to this mutual recognition of the end to be acomplished.
A further reason for suggesting an interlocutory decree arises out of the suggestion, contained in the evidence, that the defendant not only perfected his invention, hut the plaintiff used it publicly, more than two years prior to the application by defendant for a patent. If this were a conceded fact in the case, specific performance would have to he denied, for the reason that the agreement made between the plaintiff and defendant, if it was made, contemplated the filing of an application for a patent, when both parties recognized that none could be granted, and that circumstance injects an element which alone might invalidate any agreement. It is true that this suggestion in the evidence can be dealt with by treating it as a collateral matter not necessary to the present issue, and one which, in view of the possible claim that the use and sale of the device three years ago was experimental only, can be determined by the Patent Office where it may be directly in issue.
The plaintiff, however, is unwilling to accept the interlocutory decree, and upon the effort to settle such decree asserts that it can be content with nothing short of a decree for specific performance; because the defendant has entered into an agreement with the Sumpter or Splitdorf Company which contains, among other things, an assignment of the invention in question, it would be folly for it, the plaintiff, to protect the application in the Patent Office, with the result that the patent, if issued, might vest in its competitor.
This view of the case is prompted by these considerations arising upon the evidence, to some of which allusion has been made: the
Now, it is significant, if plaintiff’s theory is to be entertained, that both the parties recognized that defendant’s invention in February, 1915, was more than two years old. This latter fact is worthy of serious consideration in determining whether the right to the patent, if it ever existed, had not been lost because of a public sale and use. Nevertheless, at that time no inquiry was-made by any one respecting defendant’s obligation to assign the invention or any part of it to the plaintiff — I mean, his obligation arising out of the contract then, or in 1911, subsisting between the parties. It is all the more significant, in view of the application for a patent proceeding as it did in March, 1915, without assignment thereof. The matter of assigning it was a formality readily accomplished, as is frequently the case, at the time of making the application by the inventor. If, as is contended, there was, at the time when the application for patent was signed, a subsisting definite understanding that it belonged- to tire plaintiff, it is difficult to see why the same was not carried out at the time when the formality could not have escaped the attention of the plaintiff.
The allegations of the complaint, in my judgment, throw some light upon the case, and, while they need not lead to a conclusion that the testimony of the plaintiff’s witnesses was false, deliberately so, they do show an inconsistency, when taken in connection with affidavits filed in this court, between the testimony given here in open court, and such pleading and affidavits, as may well cast the present contention of plaintiff into serious doubt. Thus the contract of August 10, 1909, above referred to, gave to the plaintiff certain rights in the de
It is not reasonable to suppose that these affidavits, made so very soon after the relations between the parties had become seriously strained, could have overlooked the real basis upon which the plaintiff rests its right. This doubt, which is cast upon the plaintiff’s testimony, is strengthened by certain other occurrences after the defendant’s dismissal from the plaintiff’s employ. It appears — in fact, it is not seriously controverted — fhat on the date of the defendant’s discharge the matter of the assignment of this patent was discussed; plaintiff’s witnesses contending that the defendant then again acknowledged that he had previously agreed to assign it. This is denied by the defendant. But it does appear, without substantial controversy, that defendant at that time stated that he would like to look up the matter, since there were certain patents which the plaintiff did not wish, and that the invention in question was treated as having been abandoned; that defendant at that time requested a submission of the matter of his obligation to assign the patent to plaintiff’s counsel, asking among other things that the latter examine the contract or contracts which had been previously entered into as above stated; that plaintiff’s counsel subsequently advised defendant that the latter was not under obligation to assign the invention pursuant to the terms of the one contract which it was considered might cover the situation; that defendant at that time offered to give to plaintiff a limited right in the invention if a patent should issue; and it appears that the counsel for the plaintiff did, as late as June, 1915, prepare a letter which would embody such proposition of the defendant.
This latter testimony furnishes good foundation for questioning the probability of the existence of an oral agreement for an absolute assignment made in February, 1915, concurrently with continued negotiations or proposals for a limited right. It is a fair question to ask the plaintiff to account for its disposition to negotiate or to temporize in the matter at all. The testimony of the plaintiff, taken in connection with the other matters referred to, most strongly suggests that until the defendant, some four months after his discharge, entered into
The deféndant may take a decree dismissing the bill.
Reference
- Full Case Name
- WEBSTER ELECTRIC CO. v. PODLESAK
- Status
- Published