Standard Industries, Inc. v. Tigrett Industries, Inc.

Background

A patent holder sued a licensee company for payments said to be due under a patent-licensing agreement. The trial court found the licensee’s product used the patented invention and awarded damages. The Court of Appeals for the Sixth Circuit affirmed that judgment before a major Supreme Court decision changed patent-law rules for licensees.

Reasoning

After the appeals court decision, this Court decided Lear, which held that a licensee could challenge a patent’s validity. The company that had lost below then tried to raise that validity challenge here, but the opposing side argued the issue had not been raised earlier. The Supreme Court issued a per curiam decision that the judgments below are affirmed by an equally divided Court, so the Court did not reach or resolve the new validity argument.

Real world impact

Because the Justices were evenly split, the lower-court rulings and the damages award remain in effect. The Lear decision had changed the law to allow licensees to contest patents, but this tied decision does not apply that change to this case at the Supreme Court level. The practical result is that this company’s attempt to reopen patent validity failed in this Court.

Dissents or concurrances

Justice Black, joined by Justice Douglas, dissented and would have vacated the judgments and sent the case back so the patent’s validity could be decided in light of Lear.