# Appendix — Knowles Electronics, Inc. v. Tibbetts Industries, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1968
- **Citation:** 390 U.S. 953

## Text

APPENDIX

|. Final Hearing : See Paper: No. 37
q x March 5, 1963 _GWB/dr
, IN THE UNITED STATES PATENT OFFICE.

‘BEFORE THE |
BOARD OF PATENT INTERFERENCES

Patent Interfotoune No. 91,812°

Knowles v. Tibbetts |

(Mailed May 31 1963 U.S. Patent Office)

*

Magnetic Translating Device —

Application of Hugh S. Knowles filed April 22, 1958, Ser. .
No. 730,082 7

Application of George C. Tibbetts filed August 28, 1957, :
Ser. No. 680,753

Mr. Wilfred S. Stone for Knowles
‘Messrs. Roberts, Cushman and Grover for. Tibbetts
& * chs :

This is an interference involving application No. 730,082,
filed by Knowles the junior party on April 22, 1958, and
application No. 680,753, filed by the senior party Tibbetts
on August 28, 1957.

The invention involved is a transducer, more particularly,
a device for converting acoustic energy into electrical en-
ergy or vice versa., That is, it may serve as either a micro-
phone or a receiver. It is intended primarily for use in
hearing aids. The class of ,transducers involved comprise

od

App. 2.

a magnetic, system including .a permanent magnet with
pole pieces and a flexible reed armature fixed’ at one
end and free to vibrate in, an air gap between the pole
pieces. at the other end with a bendable tab projecting
laterally from the fixed end for varying the reluctance of
the air gap between the pole pieces at the fixed end of the
reed. The object of the variation is to. equalize the flux
paths so that‘a minimum of flux passes through the reed
itself. The adjustment is intended to be done after as-
‘sembly and encasement of the unit when the reed itself is
inaccessible, but the bendable tab can be made accessible
' by providing a small hole in the case adjacent thereto. The
hole would be closed after the adjustment was made.

The issue comprises three. counts which read as follows:
Count 1

A magnetic translating device comprising an ‘elon-
gate armature, means for supporting one end of the ar-
mature with the other end free to vibrate transversely
of a predetermined plane, magnets extending length-

‘wise of the armature on the opposite sides thereof
which are intersected by said plane, the poles of the
magnets being directed transversely of the plane -in

corresponding directions, and bridges of magnetic ma-_ .

terial substantially bridging the space between the
poles of the magnets on opposite sides of said plane
respectively, said bridges presenting pole faces of op-
posite polarity to said vibratory end, said armature
having a tab projecting therefrom from said one end
along said plane and extending between said bridges,
the tab being bendable transversely of the plane toward.
either of. said bridges. ac

| Count 2

_ An electromagnetic transducer comprising a mag-
net, a pole piece flux-conductively engaging each pole of
the magnet, said pole pieces extending laterally of the

7 App. 3 ;

magnet to form a nonmagnetic gap therebetween, an
elongated, flux-conductive, elastic armature, means \
clamping one end of said armature in non-magnetic, —
‘spaced relationship to the pole pieces in fixed position
in said gap so that the other end of said arniature may
vibrate in another portion of said gap, there being a
bending line between the clamped end aid the vibrat-
able end of the armature, and means for varying the

reluctance between the pole pieces in the air gap at
the fixed end of the armature. oe

Count 3 °

The electromagnetic transducer of count 2 wherein .’.
the reluctance varying means is a T-shaped armature “
with the clamped portion between the’ arms. of sthe |
T which project laterally on both sides into the gap.

Both parties took testimony, filed briefs and were repre-
sented at the final hearing. As junior party, Knowles has ©
_ the burden of proving priority by a preponderance of the
evidence. ) | -—

In his preliminary statement Knowles alleged first draw-
ing and disclosure to others. between April 15. and 30, 1953
and actual reduction to practice between April 30 and
November 23, 1953. Tibbetts alleges first drawing April 3,
1956, disclosure to others March 31, 1956, first written.
description July 23, 1957 and reduction to practice October =
15, 1956. ae. ey

The record on behalf of Knowles includes the testimony
of various witnesses who were employed at Industrial Re-
search Products (hereinafter Industrial), the company of
‘which Knowles is president and director of research, dur-
ing the period in question, as well as that of Knowles him-
self. Knowles relies primarily on the testimony. of one’
Cronk who had been a project engineer and later assistant
chief engineer at Industrial.. He left the employ of In-
dustrial in August 1958. - Among other witnesses were
Ulrich who performed engineering tests including acous-

aomnet a + ee

ee as

—

tigated new desi

Ee OS Pek Saal Ae Oe ee
. .

| App.4 - |
tic response ff checks, Pratt who inves-

was a model maker and toolmaker at Industrial, all of
whom had left the employ of Industrial prior to the’ —
of testimony.

In 1953 Industrial was suai a ‘ela wiereshene
identified as model AH which utilized a reed of uniform

width. According to Cronk a modification of this reed was
suggested by Knowles which he incorporated. in pencil
lines on a diazo or blueprint copy of a tracing of the origi-
nal reed for the AH motor (K exhibit 3). The modifiea-
tion comprised providing short lateral extensiofis on the

_ fixed end of the reed ‘‘so that some -adjustable member
was available to change the effective gap length at either
side of the reed,’’ (KR/39, Q 173). Sixteen reeds were
made pursuant to the proposed modification and were jin-:

corporated in AH motors.’ From the pencilled date 4-30- 53,
Cronk thought that.these motors were made up within a
week thereafter. He also stated that they were tested and

met original expectations as.a means .of adjusting fhe

magnetic balance. He did not, however, indicate what those
expectations were. The proposal was not adopted for the

“mode? AH, the reason. given “being that the number of

rejects was low enough that it was not deemed economic to

introduce another adjustment step after enclosure of the

unit. The straight reeds were at that time adjusted. “after.
assembly of the motor, but before enclosure in a case, by
inelastic deformation ‘of the reed adjacent its fixed end.

As to the degree of adjustment attainable Cronk'stated :

‘Well, the tabs themselves were completely capable

- of bringing the motor back‘on magnetic centering from

most normal cases of production drift. as we call it.,

There might be exceptions to this at times, but in terms

of production feasibility it was entirely capable of.
oe. this. _ 49, . 222)

s, Carl Zapfe, who was in charge of:
the model shop and tool room, and Herbert Zapfe who ~

J

‘als 5

Initially tests were made by Knowles and Cronk of the
motor assembly, that is, of the magnetic assembly includ-
ing the reed and £oil. "The pnits were then turned over to
Ulrich for assembly with a diaphragm and encasement as
complete acoustical models. Cronk stated further that Ul-
rich would test the acoustical response to obtain a ‘‘sensi-
tivity versus frequencialvolume”’ curve, and that they were
_ Indistinguishable from wa A other reed. (KR 50, 51, Q
225-229) | :

Ulrich testified concerning the tests he, made in 1953.
He referred to an entry, Curve #448 in his- notebook on
page 47 (K exhibit 9) dated 7/24/53 as relating to an AH
microphone with a T reed. He also referred to the entry

identified as ‘‘Curve #652”’ on page 85 ( K exhibit 12) and .,

gave the date as December 11, 1953 from the date appear-
ing on the previous page, page 83. He stated that the
“tests started at 300 cycles and’ that the apparatus went
to 5,000 cycles but that the microphone responses didn’t
get that high. The curves themselves do not appear in the
record and Ulrich could not remember just what they:

showed although he stated that the microphone responded | |

( KR 220, Q 30). . He testified regarding results as follows:

RDQ 15 Mr. Ulrich, were these microphones satis-

factory microphones?’ .

A. Apparently they were or I would have made
some note.. (KR 226). *

Nothing further was done with the T-shaped ane for

some time. In November of 1954 Ulrich did some experi-'

mental work with ‘‘bent tail’ armatures which had been
suggested earlier that year by Knowles as a possible means
‘ of volume or sentivity control. ‘These armatures had an
extension or tail extending beyond the fixed portion as
indicated on page 125 of Ulrich’s notebook (K exhibit 14).
- Variation of the angular. position of the tail with. respect
to the adjacent pole piece by an adjusting screw was’ ex-

© 9 hae

eo.
ERIN A inches oilnae La
‘

a dis

i ta

*

58 etic di haatttac eb e Opa it ts 6s alt
.

App. 6 ‘
pected to control the volume of the output of the micro-

. phone. This was not found to be satisfactory for that pur-
. pose since Ulrich had noted that centering was not changed

appreciably even when the tail was bent into contact with
the pole piece. In a weekly progress report (K exhibit
15) Cronk noted with regard to the bent tait reed that it

* eaused very little effect and that it, ‘‘Could cause total
shift of pattern of Jess than .1/16” under any condition ~

of tail coupling.’”? When questioned regarding this note
he stated that the very little effect was in terms of what
was hoped for in terms of volume control but that the
effect was probably adequate for most production read-

justment procedures.

We do not firid this evidence convincing of an actual re-
duction to practice by Knowles up to this point. For one-
thing counts 1 and 3 clearly do not read on the bent tail

structure since count 1 requires that a tab extend be- °
tween the bridges, and count 3 requires a T armature. ©
Also there is serious question in our minds that the tail

entirely outside the air gap between pole pieces can prop-

erly be regarded as the ‘‘means for varying the reluc-

tance between the pole pieces in the air gap’’ as required
by’count 2. Moreover, we are of the opinion that the rec-
ord does not demonstrate any conviction of success with
regard to this structure. Certainly there is no indication
of it in either of the documentary exhibits mentioned. We
do not accord any substantial weight to Cronk’s oral
statement made almost eight years after the period in
question even though he may be regarded as unbiased. At

‘best it is a statement of opinion as to probability. We ~°

prefer to base our.conclusion on the contemporary docu-
mentary evidence the deficiency of which has been noted.

As to the activity in 1953, we are of. the opinion that.
- the record does not demonstrate an actual reduction to |

practice although we believe that it established conception
by Knowles in that year. Under the circumstances of this

iiimends" ~iepnOS

-

App. 7

case a more specific finding is unnecessary. Here, while
there is no evidence directly indicating lack of success,
- Ulrich’s notebook did not include any factual data or state-
ment as to results obtained and we are left to the inference -
suggested orally by Ulrich that the results. must have been |

- satisfactory or some contrary note would have been made.
We decline to draw that inference where other circum-
stances pointing in that direction are absent and where
the failure to adopt the proposal or to file an application
are circumstances which tend to-indicate the contrary.

In 1955 the T reed proposal was again considered in
@onnection with a smaller transducer designated AO.
It appears that at first a serious reject problem arose |
_ and a program was initiated towards utilizing T-shaped —
reeds, including tooling. It was carried forward to the ex-
tent of a pilot production of 200 for the purpose of a cost
analysis on all phases of adjustment. It appears further,
however, that for some reason the consultant..who was to
make the analysis was not present while the pilot run was
made. Cronk testified that other facets of the situation
were under study at the same time and that through modifi-
cation of the bulkhead or base and the pole pieces the me-
chanical instability. problem which ‘had caused the rejects
had been solved to an economically acceptable extent at
least so the T reed proposal was again shelved.

Knowles’ contention for a reduction to practice at that
time has somewhat more force than with respect to the
earlier activity since the decision to make the run for cost
analysis would seem to indicate that those in authority
were convinced of the efficacy of the T reed adjustment.
However, only Knowles testified in any detail concerning
the making of the decision which he states was made after
a conference between Cronk and himself.: His testimony (K
record 192-195) indicates much uncertainty and alsé that
when the run of 200 went through without the industrial
engineer consultant being present the matter was dropped —

fe Oe sy De

App. 8

without further serious consideration.. Cronk’s testimony
was to the effect that at this time the T reed was put into
units: for experimentation. (K record Q 285, 286, p.
64).. There is no evidence that the 200 units produced
were themselves tested at all. A review.of these :circum-
stances leaves us with the impression that an adequate
test resulting in conviction of success was not established
in 1959.

The next activity set out in the Knowles record occurred
in the fall of 1956 when Pratt was assigned to make a study
of approaches to the motor adjustment problems which are
outlined on page 53 of his notebook (K exhibit 16). He

z

- worked on modified AO models and by calculation trans- |

formed the results into predicted effects on the AT model
which was to be smaller. Parts for the AT were not yet
available. A brief note appears on his notebook page 52
(K exhibit 17) regarding tests of proposals T(A) and I(B),

presumably referring to exhibit 16. The first indicates that _
the change achieved was equivalent to .5 to .7 milliamperes. .

and the second states that the unit appeared.to work. In

explanation Pratt stated that the result- appeared on the |
oscilloscope which he was using. We do not regard this

evidence ‘as having sufficient specificity to have substantial
significance beyond being somewhat cumulative of the
previous work. It does not appear that either form would
satisfy the structural requirements of count 3 and support
for counts,1 and 2 would be doubtful since it is not clear
that the magnetic adjustment would be in the air gap be-
tween ‘polepieces as required by these counts.

The next activity at Industrial related to a modified T
reed shown in a drawing (K exhibit 18) dated 11/20/56.

_Various witnesses referred to this as the pitchfork -ar-

mature or reed. According to Cronk, bending of the
tabs of this reed would cause a pure reluctance adjust-
ment and could also. cause a deformation of the. reed. His
testimony also indicated that by the date on the drawing

App. 9

complete microphones had been assembled and tested. The
nature and results of the tests were not given however.
Referring to the drawing (K exhibit 20) of a case for
the AT model with a hole for post assembly adjustment;
Cronk stated that at that time (March 21, 1957) the AT
model was in ‘‘moderate scale production, pilot models, I
believe’. We do not regard this testimony as being sufti-
ciently specifie. and definite as to just what had-been done
at that time to establish a reduction to practice of the
structure required by the counts in issue. Knowles stated
that these microphones were released for sale in May of

1957, but this is not corroborated except to the extent of.

.Cronk’s testimony already reviewed. There is no docu-
mentary evidence as to such release.

Knowles also stated that later modifications as shown
in drawings, exhibits 22, 23 and 24, were considered, how-
ever there is no testimony as to this by a corroborating
witness except as to the fact of the drawings themselves

which were identified by Thielman who prepared them: The —

requirement that.in interference cases the testimony of a
party must be corroborated as to acts of conception, dili-
gence and reduction to practice has been reaffirmed many
' times, an example of which is found in Thurston v. Wulff
et al., 35 CCPA 794, 1948 C.D. 150, 164 F 2d 612, 76 USPQ

121. In view of this requirement and the noted deficiencies 7
in the Knowles record we feel that he has failed to es-

tablish a reduction to practice prior to his filing date.
We do not understand that he makes any contention for
diligence throughout the critical period. . Accordingly,
Knowles cannot prevail.

In view of our conclusion above a discussion of the Tib-
betts record becomes unnecessary. However, we have con-
sidered it and find it lacking testimony by a corroborating
witness regarding the structure of the transducers sold
under the model identifications given’ in connection with

the testimony’ regarding sales. -Neither do we find any

eA AR AS te Ciera IN a NES. art dal he oa

y,

App. 10

. statement by Sawyer who made the drawing (Tibbetts

exhibit D) which shows aT reed as part of a transducer
structure, that Tibbetts was the source of the structure
_ shown therein. Further, although Sawyer testified re-

rding the making of a punch and die (Tibbetts exhibit
by he failed to associate the T reeds made by them with

| any particular model number. Both Sawyer and Raymond
“—ibbetts (father of the party George Tibbetts) testified

briefly regarding a ‘‘Tab Adjust’’ item on a: checklist (‘Tib-
betts exhibit L1), but neither explained just what structure |
or testing was involved. The drawings (Tibbetts exhibits
J-9, J-10 and K-3) which were associated with certain
model numbers are merely external cases and do not estab-

‘lish any internal structure. For the reasons given above

we do not consider that the record’ for Tibbetts has estab-
lished either conception or reduction to practice prior. to
his filing date. | ,

In view of our conclusion that neither party has proven

- an actual reduction to practice prior to his filing date, the

senior party Tibbetts is entitled to prevail on thé basis
of his earlier constructive reduction to practice by the filing
of his application.

_ Accordingly, priority of invention of the subject matter
involved is hereby awarded to hate C. Tibbetts, the
senior party.

/3/ Warren H. Willner )
Warren H. Willner )
Examiner of Interferences )

/s/ George W. Boys —s) Board.
George W. Boys ) Of Patent
Examiner of Interferences ) Interferences

/s/ Maurice A. Crews ):
Maurice A. Crews ‘

* Examiner of Interferences )

App. 11

UNITED STATES COURT OF CUSTOMS
AND PATENT APPEALS

October Term, - 1964 are :

HUGH 8S. KNOWLES, ay
~ Appellant, | Patent Appeal No.
L ° 1377
Interference No.
91,812

vs.

GEORGE: C. TIBBETTS,
| -Appellee. :

| June 24, 1965 .

a

AutmonD, ‘Judge.

Hugh S. Knowles appeals from a decision of the Board
of Patent Interferences awarding -priority of inventien to
George C. Tibbetts. The Interference is between two
applications. The board based its award of priority on
its holding that the junior party, Knowles, had failed to
prove a reduction to practice prior to the senior party’s
filing date.

There are three counts in the interference. At oral
hearing, Knowles’ attorney abandoned the appeal as to
count 1. We thus are concerned only with counts 2 and
3 which read as follows: : :

2.. An electromagnetic transducer comprising a
magnet, a pole piece flux-conductively engaging each

? Tibbetts, serial No. 680,753 filed August 28, 1957 and Knowles,
serial No. 730,082 filed April 22, 1958. ae.

Persian Botte Peltonen, Mpeicetieillid OLS At DRAWN KRIS 8 Od he

Neer tet ate vty

* App. 12 ,

pole of the magnet, said pole pieces extending lateral-

* ly of the magnet to form a non-magnetic gap there-

between, an elongated fiux-conductive, elastic armature,
means clamping one end of said armature in non-
magnetic, spaced relationship to the .pole pieces in
fixed position in said gap so that the other end of
said armature may vibrate in another portion of said
gap, there being a bending line between the clamped
‘end and the vibratable end of the armature, and means
for varying the reluctance between the pole pieces in
the air gap at the fixed end of the armature.

3. The electromagnetic transducer of count 2
wherein the reluctance varying means is a T-shaped
armature with the clamped portion between the arms
of the T which project laterally on both sides into the

gap.

| It is clear from the applications in interference that the
invention relates to a transducer of the type shown in
. Figure 2 of the Knowles application:

nig

MRAM’ BRAN ABASNS

a

2 i ge ge

‘Y=
Ope

7

—~—.s —e

.4
\7Z

TT
Se ae

App. 13

A reed 27 i is clamped between washers 28W at one ‘al

and is-free to vibrate at its: other end. When used in a
microphone to convert acoustic energy into mechanical

energy, the reed is made to vibrate by diaphragm 31 and ~

drive link 32. Vibration’of the reed between magnetic poles
22 and 23 causes a variable magnetic flux in the reed. The
variable flux causes a current to be set up in coil 20. This

output eléctrical current from the coil varies with the input °

acoustical energy.
REDUCTION TO PRACTICE

An understanding of the problem solved by the inven-
tion is important in determining whether there was a
reduction -to practice. Both: applications in interference
indicate that two.kinds of flux are normally present in
the vibrating reed. There is a steady polarizing flux in the
region of the gaps between the magnetic poles and a
variable signal flux in other regions of the reed. It is

desirable that the reed carry as little steady flux as pos-
_ sible in regions outside the gaps. Knowles’ Figure 4 repre- »

sents a reed positioned between pole pieces :

According to Knowles, circulation of polarizing flux
through the-reed can be prevented by magnetically balanc-
ing the reed. Magnetic balance is obtained when the re-
luctance across each of the air gaps Gi, Gz, Gs, and Gu,
represented as Ri, Re, Rs and Rx, is in the relationship

Ri/Rz = Rs/Rs. A reed may be balanced by simple me-

chanical centering or by bending adjustments which pro-
duce strains in the reed. The invention described by the

Pal

Pee ee

ER + A Meh 6 me ee he men me

+
Bt it Hel PU Ge le OTE AE IIELITD Fals M40

ect iad se toe Mme Rs de tee deem, Lee

| App. 14

applications in interference is another method for mag-
netically balancing the reed. Adjustable tabs 19 and 20
are provided to the fixed end of the reed as indicated by’
Tibbetts’, Figure 5: : |

a

_ Magnetic balance is obtained by bending the tabs. An im-

portant feature of the invention is that it allows adjust-
ment of the transducer after it has been assembled in a

casing if a small hole is placed in the casing to allow bend-

ing of the tabs.

Knowles’ Exhibit 3°’ dated ‘‘3-18-53”’ is a drawing of
a T-reed having bendable tabs. Herbert G. Zapfe, a model
maker employed by Knowles’ company, Industrial Re-
search Products, Inc., testified that he had made several
reeds in accordance with .Exhibit 3 and probably turned

them over to Knowles about April 30, 1953. Edward R.

Cronk, an engineer employed by Industrial, testified that

the T-reeds were placed in magnetic armature type motors

designated as model AH. The parties appear to be in
agreement that these AH motors ‘incorporating the.
T-reed’’ satisfy counts 2 and 3.2. There was testimony that

2Tibbetts does contend that, because of the type of washer

"used to hold the reed, magnetic adjustment alone is impossible.

This argument will be treated later.

App. 15 .

these AH motors were tested to determine whether mag-
netic ‘centering could be obtained by bending the tabs on
the T-reeds and that the motors were assembled in micro-
phones and tested acoustically by an engineer, Paul Ulrich.

The board held that this activity carried out i in 1953 estab- |

lished conception by Knowles but that it did not establish

reduction to practice. Conception is the formatior in -

the inventor’s mind of the complete operative invention,

Townsend v. Smith, 17 CCPA 647, 36 F.2d 292, 4 USPQ

269. Here the concept was not only in Knowles’ mind, it
was actually incorporated into a motor. Thus, it appears
that the board considered the AH motor containing the
T-reed to be a complete and operative embodiment of the
invention in counts 2 and 3. The board’s finding that re-
duction to practice had not been attained was expressed
as follows: ' sy

As to the ‘activity in 1953, we are of the opinion that
the record does not demonstrate an actual reductior to
practice although we believe that it established con-
ception by Knowles in that year. Under the circum-

' stances of this case a more specific finding is unneces-
sary. Here, while there is no evidence directly indi-
cating lack of success, Ulrich’s notebook did not in-

‘clude any factual data or statement as to results ob-

tained and we are left to the inference suggested
orally by Ulrich that the results must have been satis-
factory or some contrary note would have been made.
‘We decline to draw that inference where other cir-
cumstances pointing in that direction are absent and
where the failure to adopt the proposal or to file an
application are circumstances which tend to indicate.
the-contrary. |

This vague statement by the board appears to indicate
that only the acoustical tests by Ulrich were considered in
determining reduction to practice. This brings us to the

"© nub of the problem. We find, as apparently the board

PRT

%

App. 16

- did, that an operable transducer satisfying the counts was
made in 1953. The legal question we must determine is,
what proof of testing of this motor is required to estab-,

lish reduction to. practice?

Although tests under actual conditions \ of use are not
necessarily; a requirement for reduction to practice, the
tests must prove’ that the invention will perform satisfac- -
torily in the intended functional setting, White v. Lem-
_ merman,52.CCPA 968, 341 F.2d 410, 144 USPQ 409 and
Paivinen v. Sands, 52 CCPA 906, 339 F.2d 217, 144 USPQ 1.
Before considering Knowles’ proofs regarding redtction to
practice, we must-scrutinize the technical aspects to deter-
. mine just exactly what the intended functional setting of
_. the invention is. :

; There is some dispute o over the actual nature and pur-
‘pose of the invention. Knowles contends that the inven-
‘tion\is a transducer or in simpler terms merely a motor .
which -has. a wide variety ‘of applications and need only
- run to prove reduction to practice. Tibbetts, on the other
hand, apparently takes the ‘position that the primary util-.
ity of the invention’ is in a microphone or receiver and |
{3 would require, actual service tests in a hearing aid. The
| Knowles application states:

This invention pertains to the provision of improve- |
‘ments in‘electromagnetic devices such as transducers
employing an armature movable relative to polarized

pole pieces, and miore particularly, but not exclusively,

- to that class of transducers used as receivers and mi-

| crophones in hearing aids, and the like, in which the

armature may be a long thin. magnetic reed reacting

- relative to pole pieces condugting the main polarizing
flux,

The ‘entire invention, however, is directed to problems en-
countered in miniaturized equipment. Knowles states that
magnetic balancing 1 is ‘important in receivers. _where the

one

-

App. 17

alternating signal flux in the pole pieces becomes an appre-

ciable portion. of the steady polarizing flux.’’ Tibbetts, in

his application, describes the problem as follows:

_ As the size of certain types of transducer assem-
-blies is reduced, e.g. microphones, the sensitivity also

tends to reduce. One of the important means of main- .

taining sufficiently high sensitivity of such magnetic
transducers is to employ a magnetic instability factor
as high as practicable. ‘Hence the problem of ob-
taining a sufficiently low steady flux density in the
. armature of moving armature magnetic transducers

is greatly accentuated by the process of miniaturiza-

tion. ae

_ The principal object of my invention is to provide
means in a balanced armature magnetie translator
for adjusting accurately and permanently the mag-
netic state of the armature and hence of obtaining as
close an approximation to magnetic balance as may be
desired. ge |
The gist of the invention then appears to be magnetically
balaneing miniaturized transducers, and this balancing is
necessary when the transducers are used in ‘microphonés
and receivers. There seems to be no doubt that a minia-
turized transducer was made; Herbert Zapfe made the
T-reeds which were made up into modified AH motors ac-
cording to the testimony of Cronk. There is further evi-
dence that bending the tabs resulted in ‘‘varying the re-

luctance between the pole pieces in the air gap at the

fixed end of the armature’’ as called for by the count.
- Knowles testified that he bent the tabs and measured ‘the
shift in magnetic balance obtained by a laboratory test

. - setup. Cronk corroborated, stating that he had seen

Knowles make the magnetic centering tests and had made
them himself. Tibbetts questions whether a satisfactory
reluctance adjustment was. achieved. Tibbetts first points
to Knowles’ Exhibit 15, a-progress report allegedly made
by Cronk in 1954. Cronk’s testimony with regard to this
Teport was:

App. 18

Q259. Will you read into the record your comment
on this bent tail reed No. 3?' ‘was

accompanied only by a printed copy, which did not include
the paper in question. As an indication .of relevancy, the ~

notice includes only the following:

The relevancy of these patents i is to show that, while
not filing his interference application. for approximate-
ly five years after alleged conception, Knowles. filed
many other applications i in this aud ree countries
during that period.

It is therefore clear that in submitting his evidence Tibbetts
laid no foundation for a consideration of the amendment

. to which he now refers. We will therefore disregard this

contention, and in view of our conclusions above with re-
gard to the sales of Tibbetts’ devices, we are of the Opinion .
that the record before us does not provide sufficient basis
for a conclusion that Knowles was spurred into. activity

‘by the appearance on the market of the Tibbetts trans-_

ducers.

The Court of Custome and Patent Appeals in a recent
ease has held that although proof of spurring is not neces-
sarily a prerequisite to a holding of conggalment, it is
usually difficult to prove a case of concealment without it.
The Court then affirmed the decision of the Board of Patent

' Interferences holding that in that case, in the absence of a

showing of spurring, the remaining evidence was insuff-

- cient to support a holding of concealment. Dewey v. Law-

ton, 52 CCPA ; 146 USPQ 187; 347 F2d 629. We are

of the opinion that a similar holding must be made re-

garding the.contended suppression in th present case.

In view of: the above, priority of invention of the subject
matter involved is mney awarded to Hugh S. Knowles,
the junior aie

App. 27

Mr. La Verne Williams has been substituted for Mr. W.
H. Willner who has retired.

/8/ George W. Boys )
George W. Boys )
Examiner of Interferences )

)

“ /s/ Maurice A. Crews | Board
Maurice A. Crews - ) Of Patent
Examiner of Interferences ) Interferences

/s/ La Verne Williams | )
La Verne Williams )
Examiner of Interferences )

-
TO eT A RE 6 NNER RON NTE Fr

App. 28
In THE Unirep States Court oF

Customs anp Patent APPEALS

In the Matter of: fa drone )
Hueu §. Knowzss,” 3.
Junior Party-Appellant, +) Patent Appeal

Vv. _ ) Docket No. 7377

Georce C..TrssBetts, , )
- Senior .Party-Appellee ) —

(Filed June 29, 1966)

MOTION: TO. CONFIRM J URISDICTION
_ OF THIS COURT. . »

Now comes the party Knowles and moves as follows:

?

1. That this court affirm that it has sole jurisdiction of

_, the above-entitled cause,—after remand and after decision
by the tribunal below,—namely, the Board of Interference .

me Examiners of the United States Patent Office.
a That the party Knowles be restrained from seeking

and the Commissioner.of Patents from issuing any patent

under thé Knowles application. until final disposition of
~ this interference in Appeal No. 91,812 before this court.

3. That the filing date of the suit filed i in the United |

' States District Court for the Northern District of I]li-
nois, Eastern Division, No. 66 C 1077, on June 14, 1966, be
the filing date of the appeal to this court in order that

this court have jurisdiction in the event that a distriet court -

does not have jurisdiction.
This motion is denied June 30, 1966, Giles S. Rich, Judge.

4. That this motion either be “granted before the
July 5, 1966 date (the expiration- date of the sixty-day,
period from the decision of the Board of Interference Ex-

aminers of the United States Patent Office) without argu- —

ment, or that it be set for oral argument on that date be-
fore those judges of this court who are available. — .

&

a

ae

“App. 29

- support of the fovegoing motion, appellant Knowles oe

sets forth the following facts :

1.. The above-numbered appeal deriva donee an inter-

ference set up on the 29th day of March, 1961 by the United -

States Patent Office with Interference No. 91 812.
- 2. On'the 31st day of May, 1963, the Board of Inter-

ference Examiners ruled i in favor-of the party Tibbetts. A :

motion for réconsideration was denied, on lac 4,
. 1963. :

' 3. The party Knowles appealed to this court. on the

first day of October, 1963, and the case _was given the

above-identified No. 7377.

4. The party Tibbetts did not elect to compel Knowles
to go into a federal court: under 35 U.S.C. § 141. Had he
so elected, this case would have been brought in the United
States District Court for the State of Maine, the. scented

Pibbetts being located i in Carden, Maine.

5. ” (This court ruledsthat Knowles was the ; senior party,
but also found that tle Board of Interference Examiners

_ had made no finding upon abandonment, and that Tibbetts —

was entitled to such a finding. This court remanded the
case to the Patent Office. —

6. On the 13th day of January, 1966, the deity Tibbetts’.

filed a Petition for Writ of Certiorari to the United States
Supreme Court. . This petition was s denied on February 28,
1966.

7. The ieartise filed briefs under the remand and the
Patent Office ruled that Knowles had not abandoned, sup-
pressed or concealed the invention on the 3d day of May,
1966. Its decision is ‘attached.

th,
ty

9 eo a

App. 30

8. Tibbetts filea a complaint in the United States Dis-
trict Court for the Northern District of Illinois, Hastern
Division, on June 14, 1966, Civil Action 66°C 1077, Judge |
Decker, which was served on the parties Knowles . and
Knowles Electronics, Iné., on June 21, 1966. Count i of
this complaint asks that a patent be granted to Tibbetts
and not to Knowles; and Count 2 seeks a declaratory judg-
ment that any patent issuing from the Knowles application .
be declared invalid. !

9. Appearances for Knowles’ Electronics, Ine. and Hugh -
S. Knowles have been entered, bat they have taken no
further action to date. :

.

The party Knowles ‘submits that he appealed to’ this
court under 35 U.S.C..§141, and that his opponent Tib-
betts did not elect to-force Knowles ‘‘to have all further
_ proceedings conducted’’ in,a federal court, i.e., the South-
ern District of Maine at Portland, Maine; that 35 U.S.C. .
§146 is inapplicable ; that this court has ettin juris-

diction; that any .action by the United States District
‘ Court for the Northern District of Illinois ‘prior to July
5, 1966 is impossible because a motion and briefs cannot
be filed before said date. If the party Knowles is right
“that only this court has jurisdiction, Tibbetts possibly
may lose his right to appeal to this court on July 5, 1966.

Respectfully submitted,

Stone. ZumMer & Livineston
By Wilfred S. Stone
Wilfred S. Stone, for
Hugh S. Knowles

App. 31

PROOF OF SERVICE |
’ " e
Chicago, Minois

June 28, 1966

This is to certify that a copy of the foregoing Motion has
been served on the party Tibbetts and on the Commis-
sioner of Patents, Attention the Office of the Solicitor by

- Mailing a copy of each, postage prepaid to Charles S. cg.
Grover, Esq., Roberts, Cushman & Grover, 31 Milk Street, . |

- Boston,. Massachusetts 02109, and to The Commissioner t
of Patents, a D.C. 20231, this 28th day of J wae, | ,
1966.

/3/ Wilfred S. Stone

2

AE af thin a Caiitentis san

-" App. 32

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION |

: TIBBETTS Inpweraits, Inc., and

)
Georce C. Tisserts, . )
| Plaintiffs, *)
: vs. ) No. 66 C 1077

Know tes Execrronics, Inc., and
Hue 8S. Know zs, )
| Defendants. _)

e
MEMORANDUM OPINION "

Count I of this complaint raises a question of first im-

_ pression in the interpretation of the sections of the patent
- laws which provide for review of ‘decisions of the Board:

of Patent Interferences, Plaintiff filed this suit for re-
view under 35 U. S.C..§ 146. Defendant, the successful

party before the Board, moves to dismiss. The motion is
denied. |

Biden -ou an apifeation is made for a patent which

. would interfere with any pending application, or with
me unexpired patent,’’ the question of ‘‘priority of: in-
vention’’ must be determined. 35 U.S.C. § 135(a). This
question of “‘priority’’ requires resolution of the issues
of f‘cqnception,’’ ‘‘diligence,’’ ‘reduction to practice’?
and ‘‘abandonment.’’ A party first to conceive and dili-

_gently reduce to practice may nonetheless lose on the is-

sue of priority if he has concealed, abandoned or sup-
pressed his invention.

An ‘interference proceeding” is initiated and resolved

| by a special panel, the Board of Patent Interferences

(‘Board’). 35 U.S.C. §135(a). The Board’s decision

Be eee

App. 33

“awarding priority’? to one of the competing applicants |
is reviewable. through a comprehensive and, until today,
clear procedure. Appeal may be filed either in the United
States Court of Customs and Patent Appeals (‘““ECPA’?’),
under 35 U.S.C. §141, or, in the alternative, in a United
States District Court, under 35 U.S.C. § 146. Count I of.
this complaint was filed under § -146.

Resort to one forum plainly bars use of the other. Thus;
§ 146 states: 1s

‘‘Any party to an interference dissatisfied with the
decision of the board of patent interferences on the
- question of priority, may have remedy by civil ac- .
tion, if commenced within such time after such de- _— a
cision, not less than sixty days, as the Commissioner ~ a
appoints or as provided in section 141 ofthis title, --. -§
unless he has appealed to the United States Court of
Customs and Patent Appeals, and such appeal is
pending or has been decided.”’ 7

And, 28 U.S.C. § 1542 states: © |

“The Court of Customs and Patent Appeals shall
have jurisdiction of appeals from decisions .£: - —

‘“‘(1) the Board of Appeals and the Board of
Interference Examiners of the Patent Office as to oe
patent applications and interferences, at the in- of
stance of an applicant for a patent or any party to
a patent interference,-and such appeal by an ap-
plicant shall waive his right to proceed under sec-
tion 63.of Title 35.’ * :

‘It is clear that the reference to the old § 63 may be read
to include the present § 146. : .

Ae Oe a ee Senet

Other parties to the interference have the same choice -
‘provided for dissatisfied parties. Thus, § 141 states:

‘‘A party to an interference dissatisfied with the
decision of the board of patent interferences on the
question of priority may appeal to the United States

>
a

j a:

App. 34 —

Court of Customs and Patent Appeals, but ‘such ap-
peal shall be dismissed if any adverse*party to such
interference, within twenty days ‘after the appellant -
has filed notice of appeal according to section 142 of
this title, files notice with the Commissioner that he
elects to have all further proceedings conducted as
. provided in section 146 of this title:”’ :

_-Amny party can bring the appeal to federal district court
and thereby bar resort to the CCPA.

Many characteristics of the two forums may influence a
party’s choice. One difference between them is particularly
; important: in district court new evidence can be introduced

while in the COPA it cannot. 35 U.S.C. § 146. A party
who wishes to bring in new evidence must remove the pro-
* ceedings to the district court.

Plaintiffs Tibbetts Industries, Inc., and George Tibbetts
(‘‘Tibbetts’’) and defendants Knowles Electronics, Inc.,
and Hugh.S. Knowles (‘‘Knowles’’) were parties to an
interference which was resolved by the. Board on May 31,
1963, with an’award of priority to Tibbetts.1 Knowles
appealed to the CCPA. Tibbetts also appealed to object
to the Board’s failure to make certain findings. The
CCPA reversed the Board, finding that Knowles was the _

‘first to conceive and reduce the invention to practice. How-~

ever, the case was remanded to.the Board to determine
whether Knowles, though prior, ‘had foreclosed a patent by
abandoning, ‘suppressing or concealing the invention. 35
U.S.C. § 102(g). This question was irrelevant as long as
Tibbetts was -held to be prior, and therefore the Board
- had ignored it. Given the CCPA’s reversal, the question
became of paramount importance. The Court said:

1 The individual and corporate party on each side are referred
to here as a single entity. The actions of each bind the other.

ss

ee a

App. 35

“‘Having held that there was no reduction to practice,.
the board did not consider whether Knowles had aban-
doned, suppressed: or concealed his invention from
the time of reduction to practice in the latter part of
. 1953 until his filing date of April 22, 1958. Tibbetts -
' * has raised that issue throughout, the interference and
‘it must. be decided. We thus remand for consideration . .
of the 35 U.S.C. § 102(g) issue.’’ |
On remand, the Board denied Tibbetts’ request for oral
hearing, considered ‘the previously ignored question and
awarded priority to Knowles. It is from this decision of
the Board that Tibbetts claims ‘a right to appeal in this
court pursuant fo § 146. The question is whether, when the
Board makes two separate’ decisions at different - times
involving different issues, a waiver of a § 146 suit as to
the first Board decision constitutes a waiver as to the
second decision as well. I think it does not. :

The statutory language does not preclude and slightly

favors Tibbetts’ right to sue here. No violence is done to.
§§ 141 and 146 by reading the word ‘‘decision’’ to refer
_ to every independent adjudication made by the Board.
Nothing in the statute requires a waiver following one de-
cision to reach.a-second decision in’ the same interference.
The statute speaks solely in terms of **decisions,’’ not inter-
ferences or proceedings.? It can hardly be debated that

the Board made two ‘‘decisions”’ in this case.

_ The legislative history favors Tibbetts’ right to sue here.

_ The purpose of requiring an election of remedies was to
foreclose redundant appeals. See Hoover v. Coe, 325 U.S.
- 79, 86-87 (1945). Permitting Tibbetts to sue here on the

* Under § 141, an appeal in the CCPA goes forward unless ‘a
party “elects to have all further proceedings conducted” in fed-
eral district court. However, the word “proceedings” in § 141
is clearly controlled by the prior word ‘‘decision” in: the section
. and is limited to proceedings on that decision.

6.

o> - + aul s one
Pini ite Siig Sai pheesr teat te dans in rere iin tenet on te 6 iru pas zhi

App-36 —

- Board’s second decision does not proliferate appeals since
there is certainly a right to one more appeal in this case
in some forum. The choice of this. one precludes later

, : resort ‘to the CCPA.

Sujt in federal district court was lis to save ‘ ‘to

%, litigants the option of producing new evidence in a court.”’

Hoover v. Coe, 325 U.S. 79, 87 (1945). The difficulty. with

_ Knowles’ reading of the statute is evident in light of this
provision. Following the first. Board decision, Tibbetts

saw no need to employ the special processes of this court.

-Tibbetts had won; evidence on questions of abandonment,

suppression and concealment was unnecessary. Tibbetts’

need for this forum became clear only later, after. the |
Board’s second decision; such a need could not have been’ |
discerned, except in pure prophecy, priér to that time. It
is unreasonable to attribute to Congress the intention to

- force a litigant to make his choice not only on the basis

‘ litigant’s. choice in light of the status of his case. There
is no reason to deny the benefits of that choice when condi-
tions have’ changed and the entire deéision-making process -

Dated: December 22, 1966.

of. present facts, but on uncertain future ones as well. The

statute cannot be read to give a waiver made in one set
of circumstances on one decision, binding effect in new,
radically different circumstances on another decision. Con-

gress must have thought that there were differences be- .

tween the two available forums which would influence a

has begun again.-on new questions.

For these reasons, Knowles’ motion to dismiss Count J
of the complaint is denied.

.

ENTER:

Bernarp M. Decker |
United States District: Judge

+ eT een
iar ase”

i: ie eee a App. 37

e

‘Mnited States On Court nf Appeals
| Sor the Srueathy Cirenit :

pean 1967 TERM AND SEssION

No. 16099
TIBBETTS Inpustaiss, Inc. and) Pe ape
Gerorce C. TrBBETTs, .| Appeal from the
Plaintiffs-Appellees,| United States Dis-
vy, _.. \ trict Court for the
are = 7 Northern District °
_Kwowtes Exzctronics, Inc. and | of Illinois, Eastern’
Huex S. Know gs, Division.
Defenidants-Appellants. |

November 29, 1967

Before Hesinves, Chief Judge, and ScHNACKENBERG and
; Famcump, Circuit Judges.

Husriwen, Chief Judge. The precise question for decision

. on this appeal can be best stated after a brief summary
of the prior proceedings had in the United States Patent
. Office, and thereafter.

George: C. Tibbetts and Hugh S. Knowles each filed
separate applications ‘in the United States Patent Office

’

App. 38 _ -
ie, ae

for a patent, stated in. general terms, on a.means of . |

-Inagnetically balancing the motor of a microphone or re-
ceiver. The Tibbetts application, serial No. 690,753, was’
filed August 28, 1957.. The Knowles application, serial
No. 730,082,. was. filed April 22, 1958.

The respective patent applications were placed i in inter-
ference pursuant to Title 35, US.C.A. § uahiids for the ;
determination of priority. of invention.

The Board of Patent Interferences iin priority
of invention to Tibbetts. It based its: award of priority
_on its holding that the junior party, Knowles, had failed
to prove a reduction to practice prior to the senior party’s
filing date. Having so held, the Board did nof reach or
consider Tibbett’s claim that Knowles had suppressed,
abandoned or concealed the invention.

Pursuant to Title 35, U.S.C.A: § 141, Knowles appealed
‘this decision to the United States Court ef Customs and
Patent Appeals, and Tibbetts filed a protective appeal
seeking affirmance and preserving alternate grounds for
: affirmance. The appeals related solely to the issues of con-
_ ception, reduction to practice and diligence.

. On appeal, the CCPA reversed the Board on the cat
of reduction to practice. However, it further held that
Tibbetts had raised throughout the interference the issue
of whether Knowles had abandoned, suppressed or con-
cealed his invention from the time of reduction to practice _
in the latter part of 1953-until his filing date of April

App. 39
22, 1958, and that issue must now be decided by the Board.

- Ht thus remanded the case to the Board for consideration ©

of this issue ‘as set out in Title 35, U.S.C.A. § 102(g).
Knowles v. Tibbetts, USCGPA, 347 F. 2d 591, (1965).

On remand; the Board’ of. Patent Interferences for the
first time considered the issues of abandonment, ‘suppres-
sion arid concealment., In.a second decision, after denying

Tibbett’s request for an oral hearing and considering only .

a closed record, the Board held tHat Knowles had not:sup-
pressed jhis invention and awarded priority to Knowles.

As will appear, this decision is the one under qiestion
before this court on the instant appeal.

‘Following the foregoing second decision of ‘the Board,
on Juné 14, 1966, pursuant to Title 35, U.S.C.A. § 146,

Tibbetts Industries, Inc. and George C. Wibbetts brought ©
this action in the United States District Court for the -

Northern District of Hlinois to review such second decision
of the Board. In Count.I, plaintiffs seek a judgment to
compel’ the issuance of the patent in question to. Tibbetts.

In Count Il, plaintiffs seek to declare invalid. the patent

issued to Knowles on the same invention.

Named as defendants in the: instarit daik: are Know ie.

Electronics, Inc. and Hugh 8. Knowles.

Following the filing of dis complaint, on June 29, 19667

Knowles filed an emergency motion in the CCPA asking
that court to confirm its sole jurisdiction in this matter.
This motion was summiarily denied by Judge Rich on June
30, 1966, through his handwritten notation on the original
petition. In short, this appears to have been an abortive

attempt #y Knowles to force this review before the CCPA..

Thereafter, on August 1, 1966, Knowles filed a motion

- to dismiss the complaint in this action. Knowles sought ©

dismissal of Count I on the ground that the district court

“

App. 40

lacked jurisdiction over the subject matter, claiming juris-
diction to. be in the CCPA under 35 U.S.C.A. § 141, since
it is alleged that Tibbetts waived his right to institute
the present action by filing a notice of appeal from the
first decision of the Board of Patent Interferences.

The grounds for dismissal of Count II are other than
those asserted against Count I. Count II is not before us
at this time and need not be further considered here.

The district court denied the motion of Knowles to
dismiss Count I. Knowles petitioned this court for leave
to appeal this order pursuant to Title 28, US.C.A. § .
1292(b). Upon proper. certification by the presiding dis-
trict judge, leave to appeal from such interlocutory order

was granted arid the matter is now before us...

It is clear that under 35 -U.S.C.A. §. 135(a), subject
to the conditions for patentability stated in 35 U.S.C.A.
§ 102(g), when two competing inventors file separate ap-
plications for a patent on a similar invention, the. first
to conceive and reduce the invention to practice is entitled

‘to an award of priority. and ‘the issuance of a patent,

unless he has abandoned, suppressed or concealed it. On
appeal to the CCPA, it was finally determined that Knowles
was the first to reduce to practice and that issue is no longer

before us. — ay: °
The relevant part of 35 U.S.C.A. § 146 reads:

'. “Any party to an interference dissatisfied with the
decision of the board of patent interferences on the -
question of priority, may have remedy by civil action,
if commenced within such time after such decision,
not less than sixty days, as the .Commissioner ap-
points or as provided in section 141 of this title, unless
he has appealed to the United States Court of Customs
and Patent Appeals, and such appeal is pending or has
been decided. * * *??. ,

~

App.41.:-:.

~ The relevant part of 28 U.S.C.A. § 1542 reads: *

_ The Court of Customs and Patent Appeals shall % -:
3

The proposed act reads as follows:

. SEc. 4894. All applications for patents shall be completed and prepared
for examinatioh within six months after the filing of the application, and in
default thereof, or upon failure-of the applicant to prosecute thé, same
within six months after any action therein, of which-notice shall have been
om @ the applicant, they shall be regarded as abandoned by the parties

ereto.

Section 2 of the act reads as follows:
Sec. 4897. Any person who has an interest in an invention or discovery

whether as inventor, discoverer, or assignee, for which a patent was ordered
to issue upon the payment of the final fee, but who fails to make payment

thereof within'six months from the time at which it was passed and allowed, ©

and notice thereof was sent to the applicant or his agent, shall have a right
to make an application for a patent for such invention or discovery the same
as in the case of an original application. But such second application must
be made within two years after the allowance of the original application.
But no person shall be held responsible in damages for the manufacture or
use of any article or thing for which a patent was ordered to issue under
such renewed application prior to the issue of the patent. And upon the

hearing of renewed applications preferred under this section, abandonment :

shall be considered as a question of fact,

slit Win A al tes

DE WDE Io tiene

@

App. 56

The proposed act changes the words “two years” in line 10 to
one year, and strikes out the last sentence, réading as follows:

Sec. 4897. Any person who has an interest in an invention or discovery,
whether as inventor, discoverer, or assignee, for which a patent was ordered
to issue upon the payment of the final fee, but who fails to make peymens
thereof within six months from the time at which it wes passed and allowed,
and, notice thereof was sent to the applicant or his arent, shall have a right

‘to make an application for a patent for such invention or discovery the same .

as in the case of an original application. But such second application must
be made within one year after the allowance of the original application. But
no person shall be held responsible in damages for the manufacture or use
of any article or thing for which a patent was ordered to issue;under such
renewed application prior to the issue of the patent. ;

Section 3 strikes out old section 482, which reads as follows: .

Sec. 482. The examiners in chief shall be persons of competent legal
knowledge and scientific ability, whose duty it s all be, on the written peti-

-tion of the appellant, to revise and determine upon the validity of the

adverse decisions of examiners upon applications for patents, and for re-
issues of patents, and in interference cases; and when required by the

‘commissioner they shall hear and report upon claims for extensions, and

perform such other like duties as’he may assign them.

and substitutes a new section 482, which reads as ‘follows:

Sec. 482. The examiners in chief shall be persons of competent legal
knowledge and scientific ability. The Commissioner of Patents, the first
assistant commissioner, the assistant commissioner, and the examiners in
chief shall constitute a board of. appeals, whose duty it shall be, on written
petition of the appellant, to review end determine upon the validity of the
adverse decisions of examiners upon applications for patents and for reissues
of patents and in interference cases, Each appeal shall be heard by at least
three members of the board of appeals, the members hearing such appeal to
be designated by the commissioner. The board of appeals shall have sole
power to grant rehearings.

It will be seen that the proposed new section combines the com-
missioner and his assistant commissioners with the examiners in
chief into one: board of appeals and ‘reduces the appeals in the
Patent Office from two to one. Under the present system it is’

utterly impossible for the present board of appeals to handle the - .

volume of work which in the last two years has increased from
1,200 to 1,600 appeals per annum.

Section 4 amends old: section 4904, which reads as follows:

Sec. 4904. Whenever an application is made for a patent which, in the
opinion of the commissioner, would interfere with any pending application,
or with any unexpired patent, he shall give notice thereof to the applicants,
or —- and patentee, as the case may be, and shall direct the primary

ner to proceed to determine the question of priority of invention. And
the commissioner may issue a patent to the party who is adjudged the prior
inventor, unless the adverse party appeals from the decision of the primary
examiner, or of the board of examiners in chief, as the case may be, within
such time, not less than twenty days, as the commissioner shall prescribe,

App. 57

The amendment merely strikes out of old section 4904 the
words “or of the board of examiners in chief, as the case may
be,” which elimination is made necessary by: the reduction of
the number of appeals. The amended section reads as follows:

Sec. 4904. Whenever an application is made for a patent which, in the
opinion of the commissioner, would interfere with any pending application,

or with any unexpired patent, he shall give notice thereof to the applicants,
or applicant and patentee, as the case may be, and shall! direct the.primary

examiner to pfoceed to determine the question-of priority of invention; And.

the commissioner may issue a patent to the party who is adjudged the prior
inventor, unless the adverse party appeals from the decision of the primary
examiner, within such time, not less than twenty days, as the commissioner
shall prescribe.

Section 5 amends section 4909 of the present act which reads
as follows:

Sec. 4909. Every applicant for a patent or for the reissue of a patent,

any of the claims of which have been twice rejected, and every party to an —

interference, may appeal from the decision of the primary examiner, or of
the examiner in charge of interferences in such case, to the board of
examiners in chief, having once paid the fee for such appeal.

The amendment consists merely in striking out the words “ex-

aminers in chief” and substituting the word “appeals” making.
the appeals to the board of appeals instead of to the board of ex-.

aminers in chief, as follows:

Sec. 4909. Every applicant for a patent or for the reissue of a patent,
any of the claims of which have been twice rejected, and every party to an
-interference, may appeal from the decision of the primary examiner, or of
the examiner in charge of interferences in such case, to the board of ap-
peals; having once paid the fee for such appeal.

Section 6 repeals section 4910 which reads as follows:

Sec. 4910. If such party is dissatisfied with the decision of the examiners
in chief, he may, on payment of the fee prescribed, appeal to the commis-
sioner in person. G . y

oBy reason of the consolidation of the appeals in the Patent
Office to one board of appeals section 4910 becomes unnecessary.

Section 7 repeals section 9 of the act of February 9, 1893,
which reads as follows: .

Sec. 9. That the determination of appeals from the decision of the Com-
missioner of Patents, now vested in the general term of the Supreme Court
ofthe District of Columbia, in pursuance of the provisions of section seven
hundred and eighty of the Revised Statutes of the. United States, relating to
the District of Columbia, shall hereafter be, and the same is hereby, vested
in the court of appeals created by this act; and in addition any party

aggrieved by decision of the Commissibner of Patents in any interference

case may appeal therefrom to said court of appeals.

The reason for the repeal of this section is that. section 4911,

which is also amended by this bill,: takes the place of this ‘re-
pealed section 9 of the act of 1893, °

~

FE PEI ee NT

EA I EAR

App. 58

Section 8 rewrites the present section 4911, which reads as
follows: : |

Sec. 4911.. If such party, except a party to an interference, is dissatisfied
with the decision of the commissioner, he may appeal to the Supreme Court
of the District of Columbia, sitting in banc. (See sec. 9, act of February 9,
1893, post, p. 23.) . :

The new section 4911 reads as follows: .

.

ppeal according to section 4912 of the -
Commissioner of Patents that he elects
to have all further proceedings conducted as provided in section 4915 of the
Revised Statutes. Thereupon the appellant shall have thirty days thereafter
within which to file a bill im equity under said section 4915, in default of
which the decisions appealed from shall govern the further proceedings in
the case. If the appellant shall file such bill within said thirty days and
shall file due proof thereof with th Commissioner of Patents, the issue of a

atent to the party awarded priorjty by said board of appeals shall be with-

eld paare the final determination of said proceeding under said
section . :

Section 4911 is repealed because the entire section is rewritten

vised Statutes, file notice with th

~ under the new act.

Section 9 of the bill amends the present section 4912 which
reads as follows: om

Sec. 4912. When an appeal is taken to the Supreme Court of the District
of Columbia, the appellant shall give notice thereof to the commissioner, and
file in the Patent Office, within such time as the commissioner shall appoint,
his reasons of appeal, specifically set forth in writing.

The new section 4912 amends the present section 4912 by
striking out the words “Supreme Court” and inserting instead .
thereof “the Court of Appeals” as fallows:

Sec. 4912. When an appeal is taken to the Court of Appeals of the District
of Columbia, the —_ ~— give notice thereof to the commissioner, and
file in the Patent Office, within such time as the commissioner shall appoint,

his reasons of appeal, specifically set forth in writing.

Section 10 repeals the last sentence of section 4913 because it
is obsolete and has not been in operation for the last five decades.

Sec. 4913. The court shall, before hearing such appeal, give notice to the
commissioner of the time and place of the hearing, and on receiving such
notice the commissioner shall give notice of such time and place, in such
manner as the court may prescribe, to all parties who appear to be interested
therein. The party appealing shall lay before the court certified copies of.
all the original papers and evidence in the case, and the commissioner. shall
furnish the court with the grounds of his decision, fully set forth in writing,
touching all the points involved by the reasons of appeal, And at the request

——__— oer _ ee nn eae

App. 59 ©

of my pew interested, or of the court, the commissioner and the examiners
may be examined under oath, in explanation of the principles of the thing

.for which a patent is demanded.

The amendment strikes out the last sentence, as follows:

SEC. 4913. The court shall, before hearing such appeal, give notice to the ©

commissioner ‘of the time and place of the hearing, and on receiving such
notice the commissioner shall give notice. of such time and -place, in such
manner as the court may prescribe, to all parties who appear to be interested
therein. The party appealing shall lay before the court certified copies of
all the original papers and evidence in the case, and the commissioner shall
furnish the court with the grounds of his decision, fully set forth in writing,
touching all the points involved by the reasons of appeal. :

Section 11. Section 4915 reads as follows:

Sec. “4915. Whenever a patent on application is refused, either by the
Commissioner of Patents or by the Supreme Court of the District of Colum-
bia upon appeal from the commissioner, the applicant may have remedy by
bill in equity; and the court having cognizance thereof, on notice to: adverse
parties and other due proceedings had, may adjydge that such applicant
is entitled, according to aw, to receive a patent for his invention, as specified
in his claim, or for any part thereof, as the facts in the case may appear.
And such adjudication, if it be in favor of the right of the applicant, shall
authorize the commissioner to issue such patent on the applicant filing in the
Patent Office a copy of the adjudication, and otherwise complying with the

‘requirements of law. In all cases, where there is no opposing party, a copy.

of the bill shall be served on the commissioner ; and all the expenses of the

: proqeting shall be paid by the applicant, whether the final decision is in

is favor or not.

The proposed section replacing old section 4915 reads as fol-

lows:

t>

. grevacion, however, to the right of the parties to take further testimony. —

Sec. 4915. Whenever a patent on application is refused by the Commis-
sioner of Patents, the applicant, unless appeal has beer taken from the
decision of the board of appeals to the Court of Appeals of the District of
Columbia, and such appeal is pending or has been decided, in which case no
action may be brought under this section, may have remedy by bill in equity,

if filed within six months after such refusal; and the court having cognizance '

thereof, on notice to adverse parties and other due proceedings had, may
adjudge that such applicant is entitled, according to law, to receive a patent
for his invention, as specified in his ¢iaim, or for any part thereof, as the
facts in the case may appear. And such adjudication, if it be in favor of the
right of the applicant, shall authorize the commissioner to issue such patent

on the applicant filing in the Patent Office a certified copy of the adjudica- —
tion and otherwise complying with the requirements of law. In all cases °

where there is no opposing party a copy of: the bill shall be served on the

commissioner; and all the expenses of the proceeding shall be paid by the

applicant, whether the final decision is in his favor or not. In all suits
brought hereunder where there are adverse parties the record in the Patent
Office shall be admitted in whole or in part,.or .motion of either party,
subject to-suéh terms and conditions as to the costs; expenses, and the
further cross-examination of the witnesses as the court may impose, without

he testimony and exhibits, or parts thereof, of the records in the Patent
Office when admitted shall have the same force and effect as if originally |
taken and produced in the suit, J ;

je eee ri.

~

App. 60: : -

Section 12 of the act amends section 4918 by inserting the two
words “or both.” Section 4819 reads: -

Sec. 4918. Whenever there are’interfering patents, any person interested
in any one of them, or in the working of the invention claimed under either
of them, may have relief against the interfering patentee, and all parties
interested under him, by suit in equity against the owners of the interfering

pres and the court, on notice to adverse parti:s, and other due proceedin

ad according to the course of equity, may adjudge and declare either of the
patents void in whole or in part, or inoperative, or invalid in any particular
part of the United States, oor gee | to the interest of the parties in the.
patent or the invention patented. But no such judgment or adjudication

_ shall affect the right of any person except the parties to the suit and those
‘ deriving title under them subsequent to the rendition of such judgment.

Section 4918, as amended, reads:

Sec. 4918. Whenever there are interfering patents, any person interested
in any one of them, or in the working of the invention claimed under either
of them, may have relief against the interfering patentee, and all parties:
interested under him, by suit in equity: against the owners of the interfering

atent; and the court, on notice to adverse parties, and other due proceed-

ngs had according to the course of equity, may adjudge and declare either,

. or both of th® patents void in whole or ir part, or inoperative, or invalid

in any particular part of the United States, according to the interest of the
parties in the patent or the invention patented; but no such judgment or

‘adjudication. shall affect the right of any person except the parties to the

suit and those deriving title under them subsequent to the rendition of
such judgment. : . a ‘
The object in amending this section is to enable the court to
declare both patents void where it appears to the court that both
are.void, whereas the old act merely gave the court the right to
declare one void. = ~

Section 13 changes the Schedule of fees found in section 4934
because there is now to be only one appeal provided in the Patent .
Office instead of two. The present fees are not sufficient to pay

-the cost of running the present appeal board, and hence the fees

have been increased to $15 for an appeal to the board of appeals
in ex parte cases and $25 in interference cases. The present
schedule of fees reads as follows: f

Sec. 4934. The following shall be the rates for patent fees:
. * * * - e

On an appeal for the first time from the primary examiners to the exam-

_ fners in chief, $10.

2 every appeal from the examiners in chief to the commissioner,

The new schedule of fees reads as follows:
Sec. 4984. The following shall be the rates for patent fees:
* * * e. |. ‘rt *° *

On an appeal for the first time from the primary examiner to. the board
of appeals, $15. On every appeal from the examiner of interferences to the
board of appeals, $25. * * * ;

.
A

App. 61

| \
if ’

Section 14 is an entirely new ‘section and provides that when
the time for taking any action or paying any fee falls on a Sun-

Sec. 14,. That where the day, or the last day, fixed by statute for taking.
any action or payifg any fee in the United States Patent Office falls on
Sunday, or on a holiday within the District of Columbia, the action may be
taken, or the fee paid, on the next succeeding secular or business day. .

% ad

Section 15 states the date when the act shall take effect and

provides that it shall not affect existing cases unfavorably.

_ SEC. 15. That this act shall take effect two motiths. from its approval; |

. but it shall not affect appeals then pending and heard before the examiners
in chief or pending before the Commissioner of Patents or in the Court of

, Appeals of the- District of Columbia, and that in all cases in which the time

under the statutes in forces at the time of approval of this act as if such
_Btatutes had not been amended ‘or repealed. 7,

ae tanlaa hn ii a

App. 62
Bates Mfg. @o. v. United States, 303 U.S. 567

Mr. Justice BLACK DELIVERED THE OPINION OF THE CouRT:

~The Revenue Act of 1926 provides that ‘‘No suit...
shall be maintained in any court for the recovery of any
interpal- -revenue tax alleged to have been sete etl or
illegally assessed or collected, . . . unless such suit .

is begun within two years after the’ disallowance of .
‘such claim...” —

The Tucker Act of March 3, 1887? as amended, gives
concurrent jurisdiction to the District Courts and the Court
of :Claims in suits against the United States jncluding
those for recovery of erroneous or illegally collected taxes.

Section 5 of the Tucker Act requires-a plaintiff bringing ~
suit against the government in the District Court to **file |
a petition, duly |verified rwith the clerk of the respective
court having jurisdiction of the case.”’ Section 6 ‘requires’

“that the. plai tiff . ‘ . cause a copy of his ia soe
to be served upon the district attorney . -, and... mail
a copy ... to the: Attorney General . . .', and cause to

be. filed with the clerk of the. court . a3 . affidavit of such .

service and . - mailing ..;% .

March 29, 1927, the petitioner’ S’ dlaim. for tax réfund
was disallowed. March 21, 1929, within two years after
the disallowance, a duly verified petition was filed in the
District Court claiming the refund. March 25, 1929, two
years and four days after the disallowance, the petition

"was served on the. United States Attorney and mailed to

tlie eiacacsered General.

1¢, 27, 44 Stat. 9, § 1113.”
2¢, 359, 24 Stat. 505; 506.

3U. §. C. Title 28, § 41 (20), (Judicial Code § 24 (20) as,

' i

ae

App. 63

The District)Court held suit was not. “begun”? by filing
the verified_petition and dismissed the cause of: action.‘
The Court of Appeals’ affirmed.®

& It is conceded that suit in the Court of Claims is “be-
gun’’ when the petition is filed. Yet, it is insisted that
suit is not ‘‘begun’” in the District Court when the petition
is filed although the Court of Claims and the District
Courts: are given concurrent jurisdiction by the Tucker
_ Act. Consideration of -the history and language of the —
statute leads us to a different conclusion. - :

Section 10 of the Act of March 3, 1863,° provides “That —
every claim against the United States, cognizable by the
. Court of Claims, shall be forever barred-unless the ——
‘ setting forth a statément of the claim be igaes . within
six years after the claim first accrues... 7? .

When the Tucker Act in 1887 greatly expanded the
jurisdiction of tle Court of. Claims and gave District
Courts concurrent: jurisdiction in all cases involving cer-

. tain amounts, its limitation in both the Court of Claims a
and the District Courts provided:

RR Le eee ee

‘* .. + no suit against the Government of the United
. States, shall be allowed under this act unless the same

» Shall have been brought within six years auc the right.
accrued . “i ’

The eubitatiial rights of claimants‘ are to be governed
‘alike whether suit is brought in the Court of Claims: or
the District Court. The author of: the Tucker Act in
declaring the statute of limitations applicable alike ‘‘to
“7 or all’’ of the cases arteing under the Act drew no

_ £19 F. Supp. 526.
593 F. (2d) 721.
* ©12 Stat. 765, 767.

Se te ee ee

| ape be.

distinction between nite: beosatt in the District Court
and in the Court of Claims.’

The purpose of giving the District Courts concurrent
jurisdiction ‘with the Courts of Claims was to provide
additional opportunity for the consideration, and deter-
mination of claims that had ‘‘long pressed upon the con-
sideration of Congress’” and to permitsuit to ‘‘be brought
in the District where the parties reside.’ After discussing
the benefits of previous legislation creating and extend-

_ ing-the jurisdiction of the Court of Claims, the Committee

on the Judiciary reported to the House:

‘*The history of this legislation and its results have been
given to show how much of benefit has been done in the
satisfactory decisions of claims against the Government
and in relief of-the Congress. But it has long been felt
that the benefits could be made much greater by extending
the jurisdiction of the Court. ... It is needless to say
more than has already been intimated as to the general
policy of this legislation. The large mass of business

now before Congress growing out of private claims con-

sumes its time year after year in committee work, rendered
useless by the lack of time to consider and pass upon
them. Just claims are painfully déferred without interest,

and the credit of the Government, so strictly upheld upon

its bonded debt, is justly-censured in neapaes to its honest
private claims.’’®

7 Congressional Record and Appendix, 49th Cong., 2nd Sess.,

’*March 3, p. 2679.

8 House Report No. 1077, 49th Cong., Ist Sess., by Mr. Tucker
on the Tucker Bill.. aa

® Congressional Record and Appendix, 49th Cong., 2nd Sess.,
March 3, p. 2679.

10 House Rep. No. 1077, gre, PP. 3-4,

e

App. 65

In response to the. needs disclosed by this report Con-
gress passed the Tucker Act, manifestly intending to pro-
vide adequate opportunity for expeditious and orderly. de-
termination of claims against the Government. This Act
not only expanded the jurisdiction of the Court of Claims,

but; for the first time, gave District Courts general au- .
thority to hear and determine claims against the Govern-.
ment. Relief of existing claim congestion and prevention -
of future congestion obviously demanded an integrated
Jurisdictional. plan by which the Court of Claims and ~~

District Courts could afford equal opportunities for ex-

peditious and fair trials of like claims within the juris--

dictional amount of the District Courts. The erection of

barriers to recovery in the District Courts which did not

exist in the Court of Claims would have tended to defeat
the prime objectives of the Act. Uniformity and equality
in substantial rights and privileges—for claimants in both
forums—were essential features in the system. Distinc-
tions between the opportunities for recovery afforded in

the two forums would have tended to mar the symmetry |
of the plan and to impair its effective and successful —

operation. As to substantial rights, Congress evidently
meant to give claimants an identical status in both Courts
where the amount. in controversy was included in the
jurisdiction of both. We find no support in the background
or objective of the Act for a construction under which a
claimant’s rights would be preserved by filing a petition

in the Court of Claims, but would be lost—without addi-

tional action—in the District Court.

As said by this Court in United States v. Greathouse,
166 U.S. 601, 606: | :

66

Courts of the United States should be different from that
applicable to like suits in the Court of Claims.’’

ba ede iN hs Sella file « bi Wey Rene

. it was not contemplated that the limitation
upon suits against the Government in the District...

Decne ee eee ee eS Ee Ee Fee

Pe ict ain Bhat ay ne Rane et as Ae ak

App. 66

As used in this statute the word:‘‘begun’’ should be
given its ordinary and accustomed meaning. To “begin
is.to start; to institute; to initiate; to commence. This
suit was begun—within two years after the refund claim
‘was disallowed—when the petition was filed in court in
good faith. Notice was mailed the Attorney General and
the District Attorney was promptly served—both within
four days after the verified petition was filed. Under these
circumstances, we do not consider what would be the effect
of lack of diligence in obtaining service."' The judgment
in the court below was not in harmony with the views
here expressed and is’

Reversed.

. Mr. Justice Carpozo and Mr. Justice Rezp took no
part in the consideration or decision of this. case.

11 Compare, Linn & Lane Timber Co. v. United States, 236 US.

574, 578.

7

App. 67

_ Chase et al. v. Coe, Com’r. Pats., 122 F.2d 128, 49 USPQ 590.
COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA
No. 7685 _ Decided May 26, 1941

Before Groner, Chief Justice, and Vinson and Epcerton,
Associate Justices.

Groner, Chief Justice: |

This is an action brought under R. S. 4915.1 Appellant
- George C. Chase was the applicant for a patent. Monroe
Calculating Machine Company (the other appellant) is —
his assignee. The Chase application was involved’in an
interference with an application of Harold T. Avery. The
Patent Office. awarded priority to Chase and—as the
result of a previous decision of the Court of Customs
and Patent Appeals—held against Avery’s contention
that there was an estoppel against Chase as to the claims
in issue, Avery then in turn appealed to the Court of
. Customs and Patent. Appeals. Chase made. no objection
_to the appeal proceedings being conducted in that court
and took no action, as he might have done, to have

135 U.S.C. A. 63.

*... If any party to an interference is dissatisfied with the
decisiéa ‘of the board of interference examiners, he may appeal
to the United States Court of Customs and Patent Appeals, pro-
vided that such appeal shall be dismissed if any adverse party to
such interference shall, within twenty days after the appellant
shall have filed notice of appeal according to section 60 of this
title, file notice with the Commissioner of Patents that he elects
to have all further proceedings conducted as provided in section
63 [R. S. 4915] .

R. S. 4911, as onenied by Act of March 2, 1927, c. 273, See. 8,
44 Stat. 1336; March 2, 1929, ¢. 488, Sec?2, 45 Stat. 1476; Aug. 5,
1939, c. 451, Sec. 3, 53 Stat. 1212; 35 U. S. C. A. 59a:

a |

Seite tobeee.,

App. 68

the appeal dismissed and the challenge of the Patent
Office’ decision heard only in a suit in equity in the.
District Court under 4915. He was content to have the
appeal proceed in the Patent Appeals Court, for on the ~
former appeal, to which we have referred, taken by him -
to that court—and which arose out of a prior interference _
on the identical claims in issue here and which involved —

also the identical legal question in issue in the later appeal

—the Patent Court had decided the question in his favor,

as the result of which the Patent Office, which had formerly
rejected his claims, had held he was entitled to them. On
‘the appeal of Avery from the Patent Office decision, Chase ~

doubtless anticipated that the court would adhere to its
former view. But the majority of the court, after elaborate
discussion of the point, held the former conclusion to be
error, and decided the estoppel question, on which it had
first ruled in favor of Chase, this time against him. The
Patent Office, under its duty to conform to the court’s opin-
ion, thereupon rejected his claims. And so it appears that.
Chase has twice chosen to have the Court. of Customs and |

Patent Appeals determine his right to a patent on the

claims in issue here, first by his direct ex parte appeal,
and second, by his failure to exercise his privilege to have
Avery’s appeal proceed under R. S..4915. All of which |
brings us to the question we have to decide, namely, |
whether in an interference proceeding between two appli-
cants for a patent, the applicant (Chase) who was success-
ful in the Patent Office but unsuccessful in the Court of
Patent Appeals, to which the other applicant (Avery)

appealed without objection on the part of his opponent,

e

App. 69

may thereafter again | have the entire question reviewed
in a proceeding under R. S. 4915. The District Court held

against the right, and dismissed for lack of jurisdiction.

The question is not new, -and:we had assumed that what ©

we had already said on the subject would be considered as
settling the point. For instance, in Jensen v.. Lorenz, 92
F. 2d 992, 68 App. D.C. 39, certiorari denied 302 U.S. 751
‘we said of R. S. 4911 that,? when ¢onsidered in connection
with R. S. 4915,‘ it is evidence of the intention of Congress
to require an election by the party as between the two
remedies offered to him; the one,,an appeal to the Court of
Customs and Patent patent the other, a suit in equity
under R. S. 4915; and that when’ an election is made and
there -is no protest by the adverse party, it is to be final.
‘We said as much in United States v. Coe, 95 F. 2d 347, 68

App. D.C. 218 and in Gams v. Coe, 105 F. 2d 46, 70 App.

D.C. 167. The Second Circuit in Bakelite Corporation v.

_ National Aniline & Chem. Co. 83 F. 2d 176, reached the

Same conclusion, and there is a further discussion by that
court of the problem, though under different circumstances,
in Wettlaufer v. Robins, 92 F. 2d 573, and likewise a review
of the legislative history of the several sections,—all of
which, we think, confirms the view we have hitherto ex-
pressed. —

3 A party in an sutartiwenes after an appeal by his adversary to
the Court of Customs and Patent Appeals shall have the right to
have the appeal dismissed and the proceedings consncted under
R. S. 4915.

* When a “patent is refused, the applicant, “unless appeal has
been taken to the United States Court of Customs and Patent
Appeals . . . in which case’ no action may be brought under this
section .. .” - S. 4915, as amended).

>

Oe ae re ee

LON nab RE INC IA Basin ng Rene RO aI G MMeiy Be NS ak MENS

enn ee

App.70__

But appellant says that the phrase ‘‘all further pro- ~

ceedings’’ in R. S. 4911 refers only to further proceedings
in interference and not to subsequent ex parte prosecutions
of the application of either party to the interference. From
this stated premise, he deduces the conclusion that his
failure at the time of. the appeal by his adversary to
elect to have ‘‘all further .proceedings’’ conducted in ac-
cordange with R. S. 4915 does not, after the conclusion
of the appeal proceedings, bar him from pursuing his.
equitable remedy under the latter section. He says also

_ that the Court of Customs and Patent Appeals is merely

a part of the administrative machinery of the Patent Office
and that its decisions bind only the Office and may be

_ reviewed in an equity court at the instance of the losing

party in a proceeding subsequently. begun under R. S.
4915. And; finally, he says. that in any event his present
action is not really an appeal from the decision of the
Patent Court but a new and independent proceeding arising
out-of the refusal of the patent, which the statute pro-
vides may. be submitted to a District Court on a new
record, and that a new and different finding in that court:
is not a reversal of the decision of the Patent Court.

We have given careful consideration to these theories,

.and we are of the opinion they cannot be sustained. Both

the history of the court review sections of the patent.
statute and the language of the several sections clearly
indicate the purpose of Congress to require a defeated
applicant to elect between an appeal to the Court of

Customs and Patent Appeals and a suit under R. S. 4915,

but in no case to have both. And in an interference case
the limitation applies equally to his successful opponent.
The latter’s right to have the proceedings in equity is
preserved by the provision in R. S. 4911 authorizing ‘him
to have the appeal dismissed and to require his adversary
to resort to R. S. 4915. Nothing could be fairer than this.

App. 71

In short, the right to appeal to the Court of Customs and
Patent Appeals is an optional right, and election to pro-
ceed there must be mutual, and where this happens, it
confines all further proceedings to that court. If it were
otherwise, the obvious purpose of the amendment of
1927,° to reduce the number of appeals in patent appli-.
cation cases, would be nullified and litigation would be
prolonged. beyond reason. And, in addition to this, the
jurisdiction of the Court of Customs and Patent Appeals,

which includes the power to review decisions of the Patent —
Office and affirm, modify, or reverse the same (Sec. 194,
Judicial. Code; R. S. 4914), and to certify its decision to .
the Commissioner to the end that it shall **govern the fur-
ther proceedings in the case’’, would become a shadow .
without substance or being..” And this, we think, was not
the purpose Congress had in view. :

The ingenious argument, of counsel in this respect is
well done, but we are unable to find any legal or logical
basis on which to sustain it. We think, as we have said ‘
in our former opinions, that‘the decision of the Court of
Customs and Patent Appeals, after submission ‘of the
case to it without protest, is conclusive as to all the matters
adjudicated by it.. The anomalous procedure of a new
appeal through an equity proceeding never was intended
and, as we have already suggested, would defeat the pur-
pose of the 1927 amendments to R. S. 4915, which was to
limit resort to that section to cases in which the option
to go to the Court of Customs and Patent Appeals had
not been availed. of. .

| Affirmed.

5 See footnote 2.

ware

f i | App. 72
Taylor et al. v. Marzall, Comr. Pats., 196 F’. 2d 592,
, _ 93 USPQ 127 :
COURT OF APPEALS,
DISTRICT OF COLUMBIA
No. 11141 . : Decided Apr. 17, 1952

¥

Before Evcerton, BazeLon and WasHINGTON,
Circuit Judges.

Epvcerton, Circuit Judge:

Appellant Taylor was the successful party in a Patent
Office ‘interference proceeding involving one Josserand.

: Josserand appealed to the Court of Customs: and Patent
Appeals. That court reversed the Patent Office. Josserand

v. Taylor, 138.F.2d 58, 31 C.C.P.A. (Patents) 709. Taylor
afterwards filed in that court a petition, based on newly
discovered evidence, which the court said was ‘‘in effect

‘a bill of review or an application for leave to file a bill of

review in the Patent Office, it. being claimed that the party
Josserand perpetrated a fraud upon this court in the in-
terference proceeding in which priority of the invention,
defined by the count in issue, was awarded to him.’’
Josserand v. Taylor, 159 F.2d 249-250, 34 C.C.P.A. (Pat-
ents) 824: The Court of Customs and Patent Appeals
found that Taylor had failed to show ‘‘that any fraud was
committed by appellant . Josserand as to any material is-
sue’’ in the interference proceeding. 159 F.2d at 256. Ac-

eordingly the court. denied Taylor’s petition.

Taylor filed amended claims in the Patent Office. These

‘claims are plainly not patentable over the claims involved

in the interference proceeding, and were rejected. The
Patent Office refused to consider the evidence of fraud

“ TO ee

offered by Taylor. The District-Court dismissed, on the

ground of res judicata, appellant’s bill in equity subse-

quently brought under R. 8S. §4915, 35 U.S.C. § 63, to

obtain a patent on the amended “me. We om .

court was clearly right.

J osserand’s appeal to the Court of Customs and
Patent Appeals was taken under R.S. § 4911, 35 U.S.C.

§ 59a. By the express terms of*that section that appeal _

would have been dismissed if the appellee there, appellant
here, had elected ‘‘to have all further proceedings, con-
ducted as provided in section 63 of this _title’’, ie. by a

bill in equity in the District Court. By not doing that, the. |

present appellant chose-to have the dispute between him
and Josserand settled in the forum that Josserand had
chosén, which: was the Court of Customs and Patent Ap-
peals. It is now too late to choosé the District Court.‘ The
appellant says that the™Court of: Customs and Patent

Appeals, despite its broad language which we have quoted

above, could not consider ‘‘intrinsic fraud’’. However that
may be, that court’s original decision in Josserand’s favor

remains in effect. And‘‘‘The decision of the Court of---—~
Customs and Patent Appeals, after submission of the case
to it without protest, is conclusive as t6 all the matters —

adjudicated by it.’? Chase v. Coe, 74 App. D.C. 152, 154,
122 F.2d 198, 200. |

y init

aX a Daan

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385603_1163%3A2. Public record. Not legal advice.
