Summary

Oliver Wendell Holmes, Jr. Eclipse Bicycle Company v. Willard M Farrow…

We come back to the construction of the contract. The royalty is to be paid on the 'invention above referred to.' The use of the word 'invention' does not open the state of the art and allow the defendant to meet the plaintiff's claim by proving that he had invented nothing new. The royalty is to be paid on the invention described in the specified applications that is to say, on the contrivances there described-unless and until there is final adverse action by the Patent Office. That is the measure of the defendant's self-protection.
Source: Wikisource

Oliver Wendell Holmes, Jr. Eclipse Bicycle Company v. Willard M Farrow…

Obviously, also, the fact that, subject to the foregoing qualifications, the defendant took the risk of the value of Farrow's alleged invention, even when coupled with its covenant to use due business diligence in pushing their sale, did not preclude it from using any later invention, if one were made which superseded Farrow's and did not embody it. Due business diligence would not require it to enter into a hopeless contest, and would not prevent it from avoiding such a contest by purchase. In that event it would not be accountable to Farrow for royalties on the new machine.
Source: Wikisource

Oliver Wendell Holmes, Jr. Eclipse Bicycle Company v. Willard M Farrow…

It is true that in both the sprocket wheel is arranged to engage or disengage with the main wheels of the machine, to allow coasting and to brake by a reverse action of the rider's feet. But the methods by which these results are accomplished are so different that it is only on the assumption that Farrow was, in the broadest sense, a pioneer, and had covered the whole ground, or at least that the contract put him in that position relatively to the defendant, that the claim in respect of E 10 could be allowed.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature