Court Opinion

ID: 9453084
Source: CourtListenerOpinion
Date Created: 2023-08-04 18:01:45.995021+00
Date Added: 2024-06-11T17:33:29.922344
License: Public Domain

SCHNACKENBERG, Circuit Judge
(concurring in part and dissenting in part).
I concur in Judge Kiley’s opinion except as to that part entitled “Misuse”. As to the latter part, I dissent. The record shows that the patented machine is made and sold in combination with unpatented machines installed in the same cabinet and that the royalty paid by the manufacturer, is based, not on the manufacturer’s selling price of the patented machine, but on the retail selling price of the entire combination, patented and unpatented machines alike. Thus, although the royalty rate of 6% remains constant, the actual royalty, applied to the manufacturer’s selling price, ranges between 24% and 136%. It has been demonstrated in this case that the patent privilege in this case is being used by plaintiff contrary to the public interest. Mercoid Corp. v. Mid-Continent Company, 320 U.S. 661, 669, 64 S.Ct. 268, 88 L.Ed. 376 (1944); Morton Salt Co. v. G. S. Suppiger Co., 314 U.S. 488, 492, 315 U.S. 788, 62 S.Ct. 402, 86 L.Ed. 363 (1942).