Opinion ID: 391945
Heading Depth: 1
Heading Rank: 2

Heading: standard of review

Text: 9 Appellant contends that there is no presumption in favor of the district court's findings on the issue of public use, since all of the evidence regarding that issue is in the form of depositions, prepared statements, and documentary evidence. See National Lead Co. v. Western Lead Products Co., 324 F.2d 539, 543 (9th Cir. 1963). Even assuming that on these facts no presumption should be accorded the district court's findings, 7 we conclude that the court's finding on the issue of public use was correct, and that the patent is invalid under 35 U.S.C. § 102. THE APPLICABLE LAW 10 35 U.S.C. § 102 provides that if a patented invention was in public use more than one year before its patent was applied for, the inventor's patent is invalid. Incidental use of the invention by members of the public, however, is not considered a public use within § 102 if that use was primarily for experimental purposes, that is, primarily for the purpose of testing the essential qualities of the invention or for perfecting it. In re Yarn Processing Patent Validity Litigation, 498 F.2d 271, 277-78 (5th Cir. 1974), cert. denied, 419 U.S. 1057, 95 S.Ct. 640, 42 L.Ed.2d 654 (1974). 8 See Del Mar Engineering Laboratories v. Physio-Tronics, 642 F.2d 1167, 1169 (9th Cir. 1981). 11 A defendant who raises the defense of prior public use has the initial burden of establishing the facts that would call that defense into play by substantial evidence which is clear and satisfactory. 9 Tucker Aluminum Products Inc. v. Grossman, 312 F.2d 293, 294 (9th Cir. 1963); see Amerio Contact Plate Freezers, Inc. v. Belt-Ice Corp., 316 F.2d 459, 462 n.7 (9th Cir.), cert. denied, 375 U.S. 902, 84 S.Ct. 191, 11 L.Ed.2d 143 (1963). 12 Once the defense is adequately raised, however, the burden shifts to the inventor to prove by full, unequivocal and convincing evidence that the use was primarily experimental in nature. Smith & Griggs Manufacturing Co. v. Sprague, 123 U.S. 249, 264, 8 S.Ct. 122, 129, 31 L.Ed. 141 (1887); Cali v. Eastern Airlines, Inc., 442 F.2d 65, 70 (2d Cir. 1971); see Kalver Corp. v. Xidex Corp., 556 P.2d 966, 968 (9th Cir. 1977); see generally, Robbins Co. v. Lawrence Manufacturing Co., 482 F.2d 426 (9th Cir. 1973). 13 We find that the appellees have carried their burden of demonstrating that there was use of the invention by the public for over one year before the patent was applied for. In particular, the public's use of the brush-cutting chain during the sales department's 1958 testing activity clearly constituted use by the public sufficient to shift the burden to Omark to show by full, unequivocal and convincing evidence that the use was primarily experimental. 14 Moreover, the evidence strongly supports the conclusion that the sales department's testing program was undertaken primarily to determine the merchantability of the chain, rather than to perfect its essential qualities. See Cataphote Corp. v. DeSoto Chemical Coatings, Inc., 235 F.Supp. 936, 938 (N.D.Cal.1974), aff'd 356 F.2d 24 (9th Cir.), cert. denied, 385 U.S. 832, 87 S.Ct. 71, 17 L.Ed.2d 67 (1966). There was apparently little need for further testing of the chain's essential qualities at the time the Sales Department undertook its market analysis. The main problems associated with the chain those of slow cutting speed and of proper chain maintenance had already been identified by the engineering department, which also had made proposals for their correction. Moreover, the engineering department's testing had already established that, as a brush-cutting chain, the chain performed extremely well. 15 Secondly, the sales department employed extremely informal procedures for monitoring user reaction during its testing program. The names of the user were not recorded. Customer reaction was generally relayed to the department third hand by Omark's salesmen and distributors; most reports of user reaction were communicated verbally to the sales department rather than by written report. These procedures suggest that the department's testing program was designed primarily to determine how well the chain would sell, not to isolate systematically the precise qualities of the chain which remained problematic. The procedures of the sales department contrast markedly with those used during the engineering department's 1957 testing program, a program whose purpose was clearly to test the essential qualities of the chain as a brush cutter. 16 Finally, the very involvement of the sales department following the chain's extensive field testing by the engineering department is in itself some indication that it was the receptivity of the market place that was being probed, not the suitability of the chain for its intended purpose. The deposition testimony clearly indicated that it was the task of the engineering department, not the sales department, to determine the technical causes of and solutions for problems in a product's performance. Moreover, Gredler indicated that it was customary for the sales department to test the marketability of items once they had been recommended for Omark's production line by the engineering department. The evidence suggests that this is precisely what occurred here. 17 Omark supports its argument that the sales department's activity was experimental testing, designed to test the qualities of the brush-cutting chain in two ways. First, Omark argues that the brush-cutting chain had to be tested in the various woods and climates, which, it contends, is tantamount to testing the qualities of the invention. Secondly, Omark argues that after 1957, further testing was required to overcome the problems of improper chain maintenance and low cutting speed. It argues that Carlton's statement in his January 23 memo to the head of the sales department shows that even Carlton conceded that the chain required further testing. Omark's arguments are not persuasive. 18 First, Omark's claim that the chain had to be tested in various woods and climates does not establish that this testing was primarily experimental in nature. Indeed, Gredler's deposition tends to indicate that this testing was necessary to determine the chain's overall sales potential 10 rather than to probe further its qualities as a brush-cutting implement. 19 Secondly, the evidence does not support Omark's suggestion that the 1958 testing was designed primarily to remedy the problems of slow cutting speed and improper maintenance. At most, the evidence indicates that the sales department's testing merely corroborated the engineering department's prior finding that these problems existed. The only suggestion made concerning the chain's operation as a result of the sales department's activity that the chain be made available in a smaller pitch had been made by the engineering department nine months earlier. This evidence falls far short of demonstrating by full, unequivocal and convincing evidence that the sales department's activity was primarily a program of experimental testing. 20 Finally, Carlton's memo of January 23, if anything, suggests that the engineering department, not the sales department, needed to do more testing on the chain. Moreover, Carlton's memo suggests that the chain already performed well, and that the engineering department simply wanted to do further testing on a possible variation of the chain. 21 Appellants have thus failed to carry their burden of demonstrating that the public use of the brush-cutting chain during the sales department's 1958 activity was primarily experimental in nature. For that reason, the judgment of the district court is AFFIRMED.