Opinion ID: 1475251
Heading Depth: 1
Heading Rank: 4

Heading: Pyralin Losses.

Text: The contentions upon this issue are somewhat allied to the one just discussed. The defendants were allowed to take credit in the amount of $1,477,364.84 for rejects and returns of defective laminated glass and $219,036.93 for pyralin losses. The plaintiff objects to these allowances, contending that the accounting infringer may not offset against the profit which it made on the sale of the infringing product the loss which it sustained in the manufacture of such of the product as had not been sold, because defective, or, if sold, had been returned for the same reason. We think that this issue was decided adversely to the defendants here, in Crosby Steam Gage & Valve Co. v. Consolidated Safety Valve Co., 141 U.S. 441, 457, 12 S. Ct. 49, 55, 35 L.Ed. 809, where the Supreme Court said: As for the contention that the destroyed valves ought to form a credit against the profits actually realized by the defendant on other valves, it is sufficient to say that the only subject of inquiry is the profit made by the defendant on the articles which it sold at a profit, and for which it received payment, and that losses incurred by the defendant through its wrongful invasion of the patent are not chargeable to the plaintiff, nor can their amount be deducted from the compensation which the plaintiff is entitled to receive. Cawood Patent, 94 U.S. 695 [24 L.Ed. 238]; Elizabeth v. American Nicholson Pavement Co., 97 U.S. 126, 138 [24 L.Ed. 1000]; Tilghman v. Proctor, 125 U.S. 136, 8 S.Ct. 894 [31 L.Ed. 664]. We are of the opinion that the account must be restated so as to omit credits for rejects and returns and for pyralin losses.