Opinion ID: 1968591
Heading Depth: 1
Heading Rank: 4

Heading: Patent claims.

Text: Other plus factors added by plaintiff to book value are built upon contentions relating to certain patents held by John W. Leighton, the president of Pressed Metals, covering various devices manufactured and sold by Pressed Metals over a period of more than twenty years. The facts are these: Mr. Leighton has been the guiding spirit of Pressed Metals. His inventive ability, the Vice Chancellor found, provided the basis for the corporation's success. He developed and patented numerous devices that the corporation manufactured and sold to the automobile companies. Beginning in 1931, he entered into a series of agreements with Pressed Metals by which the corporation was granted from time to time exclusive licenses to manufacture and sell his inventions in return for a royalty of five per cent. From time to time he waived part of the royalties due him under these contracts. In recent years his maximum annual royalty has been $75,000  an amount substantially less than that actually due. In connection with the sale of Pressed Metals' assets, Richmond agreed with Mr. Leighton and his son, John D. Leighton (also an officer and director of Pressed Metals), to buy all of their patents, applications and developments for $500,000. Richmond also arranged to employ them as executive officers of the corporation that he formed to take over the transferred assets. Plaintiff makes certain contentions with respect to the patent situation, upon which he builds four more plus factors totaling $5,356,000. They are as follows: