E. W. Bliss Co. v. United States
Headline: Court upholds dismissal of a claim for payment and patent infringement over torpedo “super‑heaters,” finding no enforceable contract and no patent ownership that allows the inventor to collect from the United States.
Holding:
- Prevents patent licensees from collecting from the United States without clear ownership or an enforceable contract.
- Affirms that mere licenses do not let a licensee sue the Government for infringement.
- Requires explicit assignment or territorial rights to sue the United States for patent infringement.
Summary
Background
A company claiming to own patents on a torpedo “super‑heater” sued the United States seeking payment and damages. The complaint said the company had a 1905 agreement with the British inventor (Armstrong Company), licensed rights tied to certain torpedoes, and alleged the Government bought torpedoes equipped with the device without paying royalties. The Court of Claims interpreted the pleadings as claiming a contract for 50 devices and infringement for hundreds more and sustained the Government’s demurrer, dismissing the suit.
Reasoning
The Court explained that the papers do not show any clear, enforceable agreement to pay the claimed royalty. Negotiations and refusals over price were expressly alleged and therefore negate an implied contract to pay the demanded sum. The Court also held that the 1905 instrument was a mere license, not an assignment of the patent or exclusive territorial rights, and that a licensee without sufficient patent ownership cannot maintain an infringement suit against the United States under the governing statute.
Real world impact
The decision means companies that only hold licenses, rather than clear assignments or exclusive territorial rights, cannot force the United States to pay patent royalties or sue it for infringement. Claims based on preliminary price talks or withheld consent are not enough to create a binding government contract. Inventors seeking recovery from the Government must show a definite contract or patent ownership that the statute recognizes.
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