American Dirigold Corp. v. Dirigold Metals Corp., 8287.
| Decision Date | 28 June 1939 |
| Docket Number | No. 8287.,8287. |
| Citation | 104 F.2d 863 |
| Parties | AMERICAN DIRIGOLD CORPORATION v. DIRIGOLD METALS CORPORATION. |
| Court | U.S. Court of Appeals — Sixth Circuit |
Charles J. Andre, of St. Paul, Minn. (Butzel, Eaman, Long, Gust & Bills, of Detroit, Mich., and Sanborn, Graves, Appel, Andre & Morton, of St. Paul, Minn., on the brief), for appellant.
Rowland W. Fixel, of Detroit, Mich. (McLeod, Fixel & Fixel, of Detroit, Mich., on the brief), for appellee.
Before HICKS, SIMONS, and HAMILTON, Circuit Judges.
"Dirigold" is the fanciful name used to designate flatware and hollow-ware in the manufacture of which is employed an alloy claimed to have been invented by two Swedish metallurgists, Molin and von Malmborg. It is made in accordance with a formula and by a process for combining copper, aluminum, and non-precious metals into an aluminum bronze, said to be superior to other aluminum bronzes in that it is less subject to oxidization. Since one grade of it resembles gold in appearance, it was given the name "Dirigold." A coarser grade was found suitable in the manufacture of builder's hardware and similar products, and to this was given the name "Alcobronze." Neither formula nor method is protected by patent, the inventors preferring to capitalize their discovery by maintaining it in secrecy. In 1921 they granted to a Swedish company, now styled Aktiebolaget Dirigold, the sole right to manufacture and sell alcobronze and dirigold and products thereof throughout the whole world except Scandinavia and Finland.
The present controversy arose between two American corporations, each claiming to be the exclusive licensee of the Swedish Company, with the sole right to use all formulae and processes for the melting, mixing and combining of copper, aluminum and other metals into metals known as dirigold and alcobronze, and each claiming exclusive right to the trade-marks "Dirigold" and "Alcobronze," which had been registered throughout the United States. The appellant asserts title under a license granted by the Swedish Company to a Delaware corporation, of which it claims to be successor by virtue of reorganization, and the appellee, the plaintiff below, under a license given to it by the Swedish Company in 1931, upon the assumption that all rights under the earlier contract reverted to the licensor therein in consequence of the liquidation of the licensee in pursuance of reservations contained in the 1924 contract.
The District Court, approving the findings of fact and conclusions of law reported by a Special Master upon voluminous testimony, including depositions taken in Sweden and elsewhere, entered a decree against the appellant and dismissed its cross-bill. The decree provides that the 1931 contract from the Swedish corporation to the appellee is in full force and effect, vests in the appellee the exclusive right to use the process known as Dirigold and Alcobronze, and to market articles thereby produced under those trade names; that the appellant is without right to use the process; enjoins it from manufacture and sale thereunder, and from the use of the trade names, and requires it to assign to the appellee trade-marks registered by it in the United States and Canada,...
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