FARNHAM
v.
UNITED STATES
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Farnham claimed the Government infringed his patent for a stamp-holder device by manufacturing and selling stamp books without compensation, seeking recovery on the theory of an implied contract. The Supreme Court affirmed dismissal of his claims, holding that the Government's independent design of the stamp book without knowledge of his patent, combined with its good-faith legal advice that no infringement occurred, provided no basis for finding an implied contract to pay for the invention's use. The Court left open the possibility that Farnham could pursue a claim under a newly enacted 1910 statute providing for reasonable compensation in patent infringement cases.
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Mr. Justice Hughes delivered the opinion of the court.
The claimant, in the year 1906, .brought "his petition' to recover upon the basis of an implied contract for the alleged use by the Government of his patented invention, consisting of a stamp-holder. The claim was for profits alleged to have been made between April 16, Í900, and June 30, 1905. Another petition was filed, in 1911, upon the same basis, to recover profits for the period between June 30, 1905, and June 30, 1910. Motion to consolidate the two suits, as involving the same issues, was granted. Upon hearing, the court made findings of fact and held that the plaintiff was not entitled to recover. 49 Ct. Gis. 19.
The court found that, under date of January 4, 1898, Letters Patent No. 596,656 had been issued to the claimant for improvement in stamp-holders. Models of the proposed stamp book and an explanatory pamphlet were submitted, to the Third Assistant Postmaster-General with the suggestion that the Post Office Department should adopt , this method of handling and selling stamps. That officer, on June 17, 1898, returned the books to th§ claimant, saying: “The Department does not deem it expedient to sell stamps' in this way;” 'The claimant on July 14, 1898, replied, stating that'the descriptive pamphlet and the model stamp books formerly transmitted did not fully show the invention and that he requested a personal interview. Two days later the Government' responded as follows: “Your plan for booking and selling stamps is well ünderstood; your explanation of it could not be clearer; but, as stated in a former letter to you, the Department does not wish to adopt it.” In June, 1899, the adoption of the claimant’s device was again suggested to the Post Office Department, and the Department replied that it adhered to its former decision.
On July 1, 1899, Edwin C. Madden was appointed Third Assistant Postmaster General and he held office until March, 1907. Soon after his appointment he took under consideration the manufacture and sale of postage stamp books. He designed, without actual knowledge of the existence of the claimant’s patent or of the correspondence with the Department relating to it, the stamp book now in departmental use. This stamp book was transmitted by Mr. Madden to the Bureau of Printing and Engraving with an inquiry as to the possibility of its manufacture, the details of manufacture being left to that Bureau. It prepared plans accordingly. After the public announcement that the Department would begin the public sale of two-cent stamps in book form, Mr. Madden learned for the first time that it was claimed that there were letters patent covering the proposed stamp book, and before issuing the same .to the public he requested the Assistant Attorney General for the Department to examine all such claims, and letters patent, and to advise him whether his book would constitute an infringement. The Assistant Attorney General advised him to proceed with the public sale as contemplated; that the stamp book to be issued was not covered by any previous patents. Both he and Mr. Madden examined the patents of the claimant, and Mr. Madden also examined the correspondence on file. From the beginning the latter insisted that the invention of the stamp book issued by the Department was his own, being independent of the claimant’s patent. In March, 1900, the Third Assistant Postmaster General addressed a letter to the claimant’s attorney expressly asserting that the Department’s stamp book was not an infringement. It was; in these circumstances that the Government commenced the manufacture of its stamp books on March 26, 1900.
It is apparent that these facts furnished no basis for a finding of implied contract on the part bf the Government to pay for the use of the invention, — ’the only ground upon which the petitions were cognizable in the Court of Claims. Schillinger v. United States, 155 U. S. 163, 170; United States v. Berdan Arms Co., 156 U. S. 552, 556; Russell v. United States, 182 U. S. 516, 530; Crozier v. Krupp, 224 U. S. 290, 303, 304; United States v. Société Anonyme &c., 224 U. S. 309, 311. In this view, the consolidated petition was properly dismissed and it is unnecessary to' consider the questions which have been argued with respect to actual use and the validity of the claimant’s patent. The second petition related to a period extending to June 30, 1910, thus embracing five days after the approval of the Act of June 25, 1910, c. 423, 36 Stat. 851, permitting the recovery from the Government of reasonable compensation in cases of infringement. Crozier v. Krupp, supra. This petition, however, like thé first, did not purport to present a cgse within this Act, but was rested solely upon implied contract. The judgment, however, should be without prejudice to the presentation of any claim the petitioner may have under the statute; and with this modification the judgment is affirmed.
It is so ordered.
Mr. Justice McREYNOLDS took no part in the consideration and decision of this case.
Cases With Similar Vibessemantic neighbors from the corpus
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Portsmouth Harbor Land & Hotel Co. v. United States, 260 U.S. 327 (U.S. 1922)…ts were entitled to compensation. Implied contracts in fact do not arise from denials and contentions of parties, but from their common understanding whereby mutual intent to contract without formal words therefor is shown. Farnham v. United States, 240 U. S. 537; E. W. Bliss Co. v. United States, 253 U. S. 187, 190, 191; Knapp v. United States, 46 Ct. Clms. 601, 643. The petition sets forth the proceedings in the two earlier cases, Peabody v. United States, 231 U. S. 530; Portsmouth Harbor Land & Hotel Co…
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E. W. Bliss Co. v. United States, 253 U.S. 187 (U.S. 1920)…Fire-Arms Manufacturing Co., 156 U. S. 552; Russell v. United States, 182 U. S. 516; Bigby v. United States, 188 U. S. 400; Harley v. United States, 198 U. S. 229, 304; Juragua Iron Co. v. United States, 212 U. S. 297, 309; Farnham v. United States, 240 U. S. 537, 540. Treating for peace with one claiming patent rights for which it paid a royalty of $25, falls far short of a “convention between the parties — a coming together of the minds ” to pay $500, or any other amount, for the use of the device. As to…
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Turton v. United States, 212 F.2d 354 (6th Cir. 1954)…t exceeding $10,-000 in amount, in cases not sounding in tort. An action for damages by reason of infringement of a patent is one sounding in tort. Schillinger v. United States, 155 U.S. 163, 169, 15 S.Ct. 85, 39 L.Ed. 108; Farnham v. United States, 240 U.S. 537, 36 S.Ct. 427, 60 L.Ed. 786. We are of the opinion that an action for damages by reason of infringement of a copyright is likewise one sounding in tort. Lanman v. United States, 27 Ct.Cl. 260, 265. This lack of jurisdiction in the Court of Claims o…
Authorities Cited
- Schillinger v. United States, 155 U.S. 163 (U.S. 1894)
- Crozier v. Fried. Krupp Aktiengesellschaft, 224 U.S. 290 (U.S. 1912)
- United States v. Berdan Fire-Arms Mfg. Co., 156 U.S. 552 (U.S. 1895)
- The United States v. Société Anonyme Des Anciens Etablissements Caíl, 224 U.S. 309 (U.S. 1912)
- Russell v. United States, 182 U.S. 516 (U.S. 1901)