Opinion ID: 1476460
Heading Depth: 1
Heading Rank: 4

Heading: Interest on Invested Capital.

Text: Under this heading the District Court allowed a deduction of $259,120.54 from gross profits for interest on investment in tangibles, and $45,260.79 for interest on investment in patents and patent rights. The master's report refused all allowance for such interest. As pointed out in Judge Wilkerson's opinion, this court is committed to the principle that in such cases interest on invested capital should be deducted. No valid reason appears to us why the amounts which the court fixed are not proper. There was evidence that the gum-making machinery covered by the patents which Wrigley acquired was in constant and profitable use in the Wrigley factories during the infringing period, and, to the extent of Wrigley's actual investment in such patents, it is not apparent to us why a fair proportion of interest thereon attributable to Doublemint should not be deducted from the gross profits, as well as the interest on investment in tangibles. We are in accord with the District Court's disposition of these items.