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Hollister v. Benedict & Burnham Manufacturing Co.

Citations: 113 U.S. 59; 5 S. Ct. 717; 28 L. Ed. 901; 1885 U.S. LEXIS 1651

Court: Supreme Court of the United States; January 4, 1885; Federal Supreme Court; Federal Appellate Court

Narrative Opinion Summary

This case involves a dispute over the alleged infringement of U.S. Patent No. 93,391, which pertains to innovations in revenue stamps used for sealing liquor casks. The appellees, the patent's assignees, filed a bill in equity against the appellant, the collector of internal revenue for Connecticut, alleging unauthorized use of the patented design. The patented invention involves a revenue stamp with a removable segment that enhances fraud prevention, which the patented design claims as a novel feature. The court examines the validity of the patent and the applicability of its claims to the allegedly infringing tax-paid stamp used by the government. While acknowledging the presumption of the patent's validity, the court concludes that the features claimed do not constitute a substantial innovation. The court notes that the method of detaching a part of the stamp to prevent reuse is a common practice and not a novel idea. Consequently, the circuit court's decree was reversed, and the case was remanded for dismissal, as the changes did not represent inventive creativity under patent law.

Legal Issues Addressed

Application of Patent Claims

Application: The court evaluates the specific claims of the patent to determine whether the alleged infringing product embodies these claims.

Reasoning: The central issue pertains to the first claim of the Locke patent, which describes a stamp made of paper or other materials with a removable slip displaying a serial number that corresponds with a stub.

Invention and Non-Obviousness

Application: The court finds that the claimed improvements to the tax-paid stamp do not rise to the level of a patentable invention.

Reasoning: The method of detaching a portion of the stamp to prevent reuse was deemed a common practice and not a novel idea.

Patent Infringement and Government Use

Application: The case examines whether the use of a patented invention by a government officer constitutes infringement and if such use implies a promise of compensation under eminent domain.

Reasoning: The legal precedent established in James v. Campbell affirms that a patentee's rights, under U.S. patent law, exclude government use without compensation.

Patent Validity and Novelty

Application: The court recognizes the presumption of patent validity but concludes that the features of the stamp in question do not constitute a novel invention.

Reasoning: The court acknowledges the presumption of patent validity based on the patent office's grant and recognizes the new stamp's effectiveness in preventing tax fraud, as highlighted by the internal revenue commissioner's reports.