motion picture patents universal film mfg argued decided april melville church petitioner motion picture patents universal film mfg oscar jeffery edmund wetmore john stanchfield respondents justice clarke delivered opinion suit relief sought three defendant corporations joint infringers claim number letters patent granted woodville latham assignor august improvements sufficient description patent say covers part mechanism used motion picture exhibiting machines feeding film machine regular uniform accurate movement expose film excessive strain wear defendants joint answer dispute title plaintiff patent deny validity deny infringement claim implied license use patented machine evidence undisputed shows plaintiff june paper styled agreement granted precision machine company right license manufacture sell machines embodying inventions described claimed patent suit patents throughout territories possessions agreement contains covenant part grantee every machine sold except export shall sold restriction condition exhibiting projecting machine shall used solely exhibiting projecting motion pictures containing inventions reissued letters patent leased licensee licensor owns said patents upon terms fixed licensor complied user said machine use licensor owns said patents terms shall payment royalty rental licensor use grantee covenants agrees machine sold except export attach plate showing plainly dates letters patent machine also following words figures serial patented sale purchase machine gives right use solely moving pictures containing invention reissued patent leased licensee motion picture patents company owner patents reissued patent owns said patents upon terms fixed motion picture patents company complied user use motion picture patents company owns said patents removal defacement plate terminates right use machine agreement provides grantee shall sell machine less plaintiff list price except jobbers others purposes resale require jobbers others sell less plaintiff list price price fixed license contract sale machines may less machine licensee agrees pay royalty machines percentage selling price others admitted machine use charged infringement patent suit manufactured precision machine company sold delivered agreement street amusement company operating playhouse street new york sold fully paid attached plate inscription quoted required agreement reissued patent referred notice attached machine expired august defendant prague amusement company november leased street playhouse street amusement company acquired alleged infringing machine part equipment leased playhouse subsequent expiration reissued patent defendant universal film manufacturing company made two films reels march sold defendant universal film exchange march supplied defendant prague amusement company use machine acquired stated used upon street playhouse march january plaintiff sent letter second street amusement company notifying general terms using without license machine embodying invention patent warning use constituted infringement patent day plaintiff addressed letter defendant universal film exchange notifying also infringing patents supplying films use upon machine street playhouse elsewhere bill case filed march district held limitation use machine attempted made notice attached sold paid invalid street amusement company purchaser lessee prague amusement company implied license use machine used dismissed bill without passing question raised pleadings validity patent circuit appeals affirmed district fed case review certiorari admitted bar plaintiff machines use country mechanism covered patent suit one motion picture films used successfully state facts presents two questions decision first may patentee assignee license another manufacture sell patented machine mere notice attached limit use purchaser purchaser lessee films part patented machine patented second may assignee patent licensed another make sell machine covered mere notice attached machine limit use purchaser purchaser lessee terms stated notice fixed sale assignee discretion obvious case presented anew inquiry arising increasing frequency recent years extent patentee assignee authorized patent laws prescribe notice attached patented machine conditions use supplies must used operation pain infringement patent statutes relating patents provide notice derive aid rev stat comp stat requiring patented articles shall marked word affects damages recoverable infringement dunlap schofield ed sup rev stat comp stat protects penalties inventor neither one contemplates use notice whatever validity must derived general patent law extent use patented machine may validly restricted specific supplies otherwise special contract owner patent purchaser licensee question outside patent law concerned keeler standard folding bed ed sup inquiry presented record stated important fundamental requires shall determine meaning congress rev stat comp stat provided patent shall contain grant patentee heirs assigns term seventeen years exclusive right make use vend invention discovery throughout territories thereof concerned right authorized granted statute warrant right plaintiff claim validity warning notice words used statute simple familiar changed substantially since first used act stat chap bauer ed sup ann cas meaning seem doubtful avoid reading really contain interpreting language statute service keep mind three rules long established applicable patent law construction patents viz scope every patent limited invention described claims contained read light specification mark progress claimed patent begins ends aptly likened description deed sets bounds grant contains claims every patent therefore must turn seeking determine invention exclusive use given inventor grant provided statute claim nothing beyond keystone bridge phoenix iron ed lehigh valley mellon ed yale lock mfg greenleaf ed sup mcclain ortmayer ed sup long settled patentee receives nothing law effect patent restrain others manufacturing using selling invented patent law simply protects monopoly invented described claims patent american bell teleph ed sup continental paper bag eastern paper bag ed sup bauer ed sup ann cas since pennock dialogue pet ed decided consistently held primary purpose patent laws creation private fortunes owners patents promote progress science useful arts constitution art object purpose authoritatively expressed justice story decision saying one great object patent laws holding reasonable reward inventors giving exclusive right inventions limited period stimulate efforts genius main object promote progress science useful arts thirty years later returning subject kendall winsor ed pointedly significantly says undeniably true limited temporary monopoly granted inventors never designed exclusive profit advantage benefit public community large another doubtless primary object granting securing monopoly never modified statement relative importance public private interests involved every grant patent even declaring construction patents patent laws inventors shall fairly even liberally treated grant raymond pet ed winans denmead ed walker patents rules law make clear scope grant may made inventor patent pursuant statute must limited invention described claims patent supra determine grant may lawfully made must hold fast language act congress providing found two sections revised statutes section comp stat provides person invented discovered new useful art chine manufacture composition matter new useful improvement thereof may obtain patent therefor comp stat provides patent obtained contain grant patentee heirs assigns exclusive right use invention discovery thus inventor may apply meets required conditions may obtain patent new useful invention discovered patent shall contain grant right exclusive use discovery plainly language statute established rules referred restrict patent granted machine case mechanism described patent necessary produce described results concerned nothing materials machine operates grant exclusive right use mechanism produce result appropriate material materials machine operated part patented machine combination produces patented result difference clear vital exclusive right use machine law gives inventor right use exclusively prescribed materials license notice seeks restrict restrictions law relate useful novel features machine described claims patent nothing materials used operation machine notice restrictions nothing invention patented relate wholly materials used form substance notice attempts restriction upon use supplies regard priety use language termed restriction upon use machine whatever right owner may control restriction materials used operating machine must right derived general law ownership property machine derived protected patent law allows grant right exclusive use new useful discovery made nothing construction gives inventor exclusive use inventive genius discovered statute provides shall given receive fair well statutory measure reward contribution public stock knowledge discovery important one reward construction law large experience abundantly proved unimportant permitted legal devices impose unjust charge upon public return use century plain meaning statute accepted technical meaning afforded ample incentive exertion inventive genius proved fact greatest inventions time teeming inventions made serve good purpose amplify argument illustration plain meaning statute plain argue obscure time came full possibilities seem first appreciated uniting one many branches business corporate organization gathering great profits small payments realized resented many rather smaller even equal profits larger payments felt may refused came thought use invention patent gave patentee assigns right restrict use materials supplies described patent terms made part thing patented construction patent law justifies valid restriction patented machines notice use unpatented supplies necessary operation part believed originated eureka specialty app fed come widely referred case decided circuit appeals sixth circuit case recognizing pioneer character decision rendering speaks restrictions considering says called upon mark another boundary line around patentee monopoly debar engrossing market article subject patent declined decision proceeds upon argument since patentee may withhold patent altogether public use must logically necessarily permitted impose conditions chooses upon use may allow defect thinking springs substituting inference argument language statute failure distinguish rights given inventor patent law may assert world infringement proceeding rights may create private contract however subject rules general distinguished patent law true statutes patentee might withhold patented machine public use yet consented use others use immediately fell within terms statute seen thereby restricted use invention described claims patent may expanded limitations materials supplies necessary operation imposed mere notice public high standing rendering decision obvious possibilities gain method approved led immediate widespread adoption system restrictions expanded comprehensive forms length case bar reached machine sold paid yet claimed still subject restriction supplies used also subject restrictions conditions use royalty company authorized sale may see fit sale time time impose perfect instrument favoritism oppression system business valid put control owner patent make courts astute need defeat operation restrictions sustained plainly plaintiff might profit favorites obviously simple expedient varying royalty charge ruin anyone unfortunate enough dependent upon confessedly important improvements business twenty years since decision case announced wanting courts judges dissented conclusions sufficiently shown division question involved first came henry dick ed sup disposition shown extend doctrine bauer ed sup ann cas exclusive right patented article derived clause section statute gives exclusive right article following decision case widely contended obviously sound right existed owner patent fix price patented article might sold resold penalty patent infringement question came bauer supra rejecting plausible argument adhering language statute patent right derived refused give construction act congress decided owner patent authorized either letter purpose law fix notice price patented article must sold first sale declaring right vend exhausted single unconditional sale article sold thereby carried outside monopoly patent law rendered free every restriction vendor may attempt put upon statutory authority grant exclusive right patented machine greater indeed precisely authority grant exclusive right looking authority reasons stated opinion convinced exclusive right granted every patent must limited invention described claims patent competent owner patent notice attached machine effect extend scope patent monopoly restricting use materials necessary operation part patented invention send machines forth channels trade country subject conditions use royalty paid imposed thereafter discretion patent owner patent law furnishes warrant practice cost inconvenience annoyance public opposite conclusion occasion forbid argued merit system sale license notice public benefited sale machine practically cost fact owner patent makes entire profit sale supplies operated fact fact instead commending clearest possible condemnation practice adopted proves color patent owner intends derive profit invention law gives monopoly unpatented supplies used wholly without scope patent monopoly thus effect extending power owner patent fix price public unpatented supplies effectively may fix price patented machine confirmed conclusion announcing fact since decision henry dick supra congress source rights patents response decision enacted law making unlawful person engaged interstate commerce lease make sale contract sale goods machinery supplies commodities whether patented unpatented use consumption resale fix price charged therefor condition agreement understanding lessee purchaser thereof shall use goods machinery supplies commodities competitor competitors lessor seller effect lease sale contract sale condition agreement understanding may substantially lessen competition tend create monopoly line commerce stat chap conclusion renders unnecessary make application statute case bar circuit appeals made must accepted us persuasive expression public policy country respect question us obvious conclusions arrived opinion decision henry dick supra must regarded overruled coming terms notice attached machine sold street amusement company license plaintiff first question stated notice first provides machine sold paid amusement company may used moving picture films containing invention reissued patent long plaintiff continues reissued patent restriction invalid film obviously part invention patent suit attempt without statutory warrant continue patent monopoly particular character film expired enforce create monopoly manufacture use moving picture films wholly outside patent suit patent law interpreted notice provides machine shall used upon terms stated notice fixed plaintiff use plaintiff said patents stated bar warrant charge imposed upon purchaser graduated size theater machine used assuming plaintiff paid average royalty machine sold prescribed license agreement already received use patented improvement relates method using films another invented yet seeks device collect life patent suit doubtless gate many times amount use invention machines sold paid restriction give plaintiff potential power evil industry must recognized important element amusement life nation conclusions stated opinion plainly void wholly without scope purpose patent laws sustained gravely injurious public interest seen favorite law promotion private fortunes questions stated must answered negative decree circuit appeals affirmed justice mcreynolds concurs result justice holmes dissenting suppose patentee less property patented machine owner addition keeping machine patent gives right forbid rest world making others like short whatever motive may keep device wholly use continental paper bag eastern paper bag ed sup much undisputed understand may keep use unless licensee matter buyer use unpatented thing connection generally speaking measure condition consequence breach consequence one owner may impose unconditionally may impose conditionlly upon certain event ashley ryan ed inters com sup ohio ex rel lloyd dollison ed sup non debet cui plus licet quod minus est non licere doubt principle might limited excluded cases condition tends bring state things predominant public interest prevent predominant public interest prevent patented teapot film feeder kept public said patentee may keep tied patent lasts neither interest prevent purchase tea films made condition use machine supposed contravention public interest sometimes stated attempt extend patent law unpatented articles course accurately possible domination established means domination one extent desire teapot film feeder owner prefers keep pot feeder unless buy tea films see allowing right anything ordinary incident ownership consequence paper bag case seems case turn see grant raymond pet ed believe rule advocate right paper bag case think become rule property law justice require retained fifteen years least since bement sons national harrow ed sup considerably earlier public encouraged believe law laid eureka specialty app fed numerous decisions lower courts believe many important transactions taken place faith decisions reason well first given rule last announced henry dick ed sup maintained add bearing upon straus victor talking mach ed sup conditional sale retaining title future event delivery decided lawful bailey baker ice mach ed sup confine expressing views upon general important questions upon misfortune differ majority leave one side question effect clayton act done also might think paper bag case upheld question upon effect combination patents contrary policy bound accept congress justice mckenna justice van devanter concur dissent