Jarecki v. Hays

Citations

• 161 Pa. 613
• 29 A. 118
• 1894 Pa. LEXIS 742

Syllabus

<p>Partnership — Patents—Assignment—Contract.</p> <p>By an agreement in writing the owner of a patent granted and sold a one fourth interest in a patent to the “ firm of Jarecki, Hays & Co., and unto the heirs and assigns of each of the members composing said firm.” The firm was composed of the owner of the patent and three other persons. The contract further provided that the “ said firm of Jarecki, Hays & Co., their executors, administrators and assigns ” shall pay unto the grantor a certain royalty. Held, that the parties to the contract covenanted as individuals to pay the royalties which constituted the purchase price of the several interests; and that when two of them, after the dissolution of the original firm, manufactured under the patents, they were bound to pay the royalties.</p> <p>Patents — Royalties—Illegal Patent.</p> <p>Until a patent is annulled, or adjudged invalid, a licensee receiving its benefits must pay the license fee.</p> <p>Patents — Assignment—Exclusive right to manufacture.</p> <p>Where the owner of a patent, in consideration of a royalty, assigns to another the exclusive right to manufacture, and subsequently violates his agreement by making a second assignment of an interest in the patent, the assignee under the first assignment is relieved ft-om his implied contract to manufacture and sell the patented article, but is not relieved from the payment of royalties if he continues to manufacture under the patent.</p> <p>Patents — Royalties—Interest.</p> <p>Where royalties on a patent are due on the first day of each month, interest is allowable on each installment as it becomes due.</p>