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United States v. American Bell Telephone Co.

Facts of the Case

Provided by Justia

On February 1, 1893, the United States filed in the Circuit Court of the United States in and for the District of Massachusetts a bill in equity against the American Bell Telephone Company and Emile Berliner, praying a decree to set aside and cancel patent No. 463,569, issued on November 17, 1891, to the telephone company, as assignee of Berliner. Upon amended pleadings and proofs, the circuit court on January 3, 1895, 65 F. 86, entered a decree as prayed for. On appeal to the Court of Appeals for the First Circuit, this decree was on May 18, 1895, reversed, and a decree entered directing a dismissal of the bill. 68 F. 542. Thereupon the United States took an appeal to this Court. A motion was made to dismiss the appeal for want of jurisdiction, which was denied, 159 U. S. 548 , and the case was argued upon the merits.

Conclusions

  1. Before the government is entitled to a decree cancelling a patent for an invention on the ground that it had been fraudulently and wrongfully obtained, it must, as in the case of a like suit to set aside a patent for land, establish the fraud and the wrong by testimony which is clear, convincing and satisfactory. Congress has established a department with officials selected by the government, to whom all applications for patents must be made; has prescribed the terms and conditions of such applications, and entrusted the entire management of affairs of the department to those officials, and when an applicant for a patent complies with the terms and conditions prescribed and files his application with the officers of the department, he must abide their action, and cannot be held to suffer or lose rights by reason of any delay on the part of those officials, whether reasonable or unreasonable, unless such delay has been brought about through his corruption of the officials or through his inducement, or at his instance, and proof that they were in fault, that they acted unwisely, unreasonably, and even that they were culpably dilatory casts no blame on him, and abridges none of his rights.