Overman Cushion Tire Co. v. Goodyear Tire & Rubber Co.
Decision Date | 20 June 1932 |
Docket Number | No. 432.,432. |
Citation | 59 F.2d 998 |
Parties | OVERMAN CUSHION TIRE CO., Inc., et al. v. GOODYEAR TIRE & RUBBER CO., Inc. |
Court | U.S. Court of Appeals — Second Circuit |
Watson, Bristol, Johnson & Leavenworth, of New York City (David A. Woodcock and Lawrence Bristol, both of New York City, of counsel), for appellant.
Robert W. Byerly, of New York City, for plaintiff-appellee.
Morrison, Kennedy & Campbell, of New York City (F. O. Richey, B. D. Watts, and H. F. Schneider, all of Cleveland, Ohio, of counsel), for defendant-appellee.
Before MANTON, SWAN, and CHASE, Circuit Judges.
The appellant's bill for intervention, seeking the right to participate in the damages or profits recoverable against the appellee Goodyear, an infringer of the Overman patent, No. 1,092,078, granted March 31, 1914, for a tire, was dismissed below. In a suit by Overman against Goodyear, the patent was held valid and infringed Overman Cushion Tire Co. v. Goodyear Tire & Rubber Co. (C. C. A.) 40 F.(2d) 460 and an accounting was decreed. Appellant filed its bill, as a licensee under the patent, while the cause was before a master for the purpose of ascertaining the damages or profits to be paid for such infringement.
The appellant contends that its license agreement makes it a sole licensee. The theory of the bill is that the appellant, as well as the Overman Company, has been damaged by the infringement, and that it may recover damages therefor. Rev. St. § 4921 (35 USCA § 70).
The agreement does not give an exclusive license to the appellant, and it has no rights under the statute to a part of the recovery of damages or profits. In Western Electric Co. v. Pacent Reproducer Corp., 42 F.(2d) 116, 118, we distinguished a nonexclusive license from an exclusive license, and said:
"It is conceded that a bare license to practice a patented invention gives the licensee no right to join as plaintiff in a suit against an infringer." And "it is not disputed that an `exclusive licensee' has the right of joinder with the patent owner in an infringement suit."
An exclusive license is the permission to do a thing, and a contract not to give leave to any one else to do the same thing. The promise of the grantor that he will not give further license is essential to the creation of an exclusive license. The court below held, in the instant case, that there was no agreement that no further license would be granted, and said:
The Goodyear Tire & Rubber Company, Inc., was mentioned in the license as one of several parties to whom further license could be granted. That company was known to be a subsidiary of the Goodyear Tire & Rubber Company, and the license to the parent manufacturing company would necessarily have licensed the sale of its tires through the appellee. The reserved right to grant further license made it possible to name as licensee the parent company of the present infringeer. The right to object to unnamed licensees merely prevented the grant of a license to an irresponsible company.
The claim is made that the Overman Company did not choose to exercise its right to grant further license and therefore the appellant became an exclusive licensee. A sole licensee is not necessarily an exclusive licensee. The patent laws provide for granting one entire monopoly only as the statute reads, in three ways. Waterman v. Mackenzie, 138 U. S. 252, 11 S. Ct. 334, 335, 34 L. Ed. 923; Bliss Co. v. United States, 253 U. S. 187, 40 S. Ct. 455, 64 L. Ed. 852; United States v. Gen. Electric Co., 272 U. S. 476, 47 S. Ct. 192, 71 L. Ed. 362. In the Waterman Case, supra, it was said:
In Curtiss Aeroplane & Motor Corp. v. United Aircraft Engineering Corp., 266 F. 71, 76, we said:
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...entitled to claim patent infringement and recover damages pursuant to the Second Circuit decision of Overman Cushion Tire Co. v. Goodyear Tire & Rubber Co., 59 F.2d 998 (2d Cir.1932). That case specifically held that a licensee could not "share in the profits or damages, if any were obtaine......
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...of contracts generally. We turn to a consideration of the decisions relied upon by QBA and Stroehmann. In Overman Cushion Tire Co. v. Goodyear Tire & Rubber Co., 2 Cir., 59 F.2d 998, certiorari denied 290 U.S. 681, 54 S.Ct. 119, 78 L.Ed. 587, this Court held that the petitioner-licensee did......
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Ortho Pharmaceutical Corp. v. Genetics Institute, Inc.
...licensee has no right to be in suit or to appeal; such authorization by patentee has no effect); Overman Cushion Tire Co. v. Goodyear Tire & Rubber Co., 59 F.2d 998, 14 USPQ 104 (2d Cir.), cert. denied, 287 U.S. 651, 53 S.Ct. 97, 77 L.Ed. 562 (1932) (nonexclusive licensee has no right to su......
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