The Monsanto vs. Jaeger Case - Chemical & Engineering News

Nov 4, 2010 - ... was handed down by Judge Thomson in the United States District Court ... while in Buffalo, demonstrated his newly invented contact m...
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F e b r u a r y 10, 1929

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The Monsanto vs. Jaeger Case A n I m p o r t a n t D e c i s i o n B e a r i n g u p o n R i g h t s of C h e m i c a l Inventors A n important decision was handed down b y Judge Thomson in the United States District Court of Western District of Pennsylvania in t h e case of the Monsanto Chemical Company vs. A. O. Jaeger et al., N o . 1892 in Equity. Judge Thomson's decision clearly brings out the extent t o which companies dealing with individual inventors may tie up future inventions by contract, a n d the limitations on this procedure together with the rights of inventors are dealt with at length in a long opinion of which t h e following is an abstract: According t o the facts as found b y the Court, Alphons O. Jaeger, while in Buffalo, demonstrated his newly invented contact m a s s for sulfuric acid consisting of a diluted zeolite in which vanadium pentoxide was present in non-exchangeable form. Later J . A. Bertsch came to America and was employed under Doctor Jaeger. Doctor Jaeger and Doctor Bertsch entered into a contract with the Monsanto Chemical Works in June, 1925, whereby the t w o chemists represented t h a t they Lad contact masses for sulfuric acid giving very high yields. Monsanto was given t h e option t o acquire, after t h e mass had been demonstrated, a license under patent applications t o be filed covering these contact masses for sulfuric acid. A second document, called t h e "purchase agreement," which w a s executed the same day and which denned the conditions under which the license was to be made if t h e option were accepted, provided that the chemists were to carry out research work necessary to secure patent protection. A month later a similar option and purchase agreement were signed for certain contact masses for the catalytic oxidation of naphthalene to phthalic anhydride. . In accordance with the contracts the chemists were given a laboratory and equipment at Monsanto's plant and demonstrated their sulfuric acid contact mass, fulfilling all guarantees. T h e t i m e of demonstration was greatly lengthened because the company insisted o n a commercial instead of the semi-commercial demonstration of the inventions. This demonstration was completed in the early part of 1926 and the option exercised in June, 1926. T h e phthalic anhydride contact mass w a s likewise demonstrated and, while it met its conversion guarantees, Monsanto declined to accept i t because t h e output in their apparatus was too low and suitable apparatus proposed b y the chemists for large outputs would be too expensive. During the period between June, 1925, and June, 1926, the chemists filed t e n joint patent applications, some of which have matured into patents. One application, now patent N o . 1,657,754, covered t h e use as sulfuric acid contact masses of all zeolites containing a catalyticaliy active radical present in t h e zeolite in non-exchangeable form. Another application covered diluted zeolites as products, and there were further applications covering the new converter invented by the chemists during their stay a t Monsanto, a process for purifying vanadic oxide, an application covering the use of zeolite catalysts in the contact sulfuric acid process without purifying the gases from the usual poisons, and^a further application for inactivating converters for making phthalic anhydride. T h e patent applications were paid for by the chemists, n o t by Monsanto. During May and June, 1926, Monsanto demanded all processes for making contact sulfuric acid invented b y the chemists and there were disputes on deductions from royalties, etc. The chemists disagreed with the company and left. Shortly after leaving, Bertsch entered Doctor Jaegar's house through a window in the absence of Doctor Jaeger and his wife, took certain partnership papers from a room which was used as their office, accepted employment from Monsanto, and notified Doctor Jaeger that the partnership w a s at an end. D o c t o r Jaeger contended that t h e sulfuric acid contracts covered only inventions existing at the time t h e y were executed— namely June, 1925—and that they did not cover future work. This w a s the main issue in t h e suit brought against Doctor Jaeger i n Pittsburgh, where he is technical director of T h e Selden Company, to whom he has assigned all his rights in the patent and patent applications involved in the suit. Monsanto claimed not only all patent applications filed while t h e chemists were in St. Inouïs, but also t w o patent applications for sulfuric acid contact masses which the Court found were invented by Doctor Jaeger after leaving Monsanto and which have issued as patents N o . 1,675,308 (contact masses containing non-siliceous baseexchange bodies) and N o . 1,675,309 (contact masses containing so-called multi-component zeolites). T h e Court found the contact mass demonstrated in Monsanto's laboratory and the one delivered for commercial demonstration to be identical with the mass Doctor Jaeger demonstrated in Buffalo, and further that while in St. Louis the chemists developed only one other contact mass, a zeolite containing vanadium tetroxide in non-exchangeable form. After setting out in detail the above facts, the Court upheld

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Doctor Jaeger's contention, discounting Doctor Bertsch's statements a n d averments to the contrary, and decided t h a t the sulfuric acid contracts must be considered as dating from the day of their execution and a s covering only inventions then existing—i. e., the vanadium pentoxide zeolites. Ownership i n future inventions was flatly refused on t h e ground that a contract which mortgages a man's brains must be absolutely c'ear as i t is against the conscience of t h e Court a n d will only be enforced when its terms admit of no other construction. T h e rule that the party demanding specific performance must prove that the performance is described in unambiguous terms i n the contract w a s also invoked. The Court held that Monsanto was entitled only to licenses under patent N o . 1,657,754 and t h e applications on those related product inventions which were i n existence when the contract was signed. Monsanto was adjudged to have n o proprietary interest in the other inventions made o n its premises using its materials, but to h a v e only a non-transferable shop right under the converter application, t h e application covering t h e elimination of the purification of the gases i n the contact sulfuric acid process, the application covering purification of v a n a d i c oxide, and the application covering the inactivation of t h e phthalic anhydride converter. These shop rights extend only t o the use of the said inventions in question i n Monsanto's o w n plants a n d to the actual pieces of apparatus built at t h a t time. The Court further decided that inventions made after Doctor Jaeger left the premises of Monsanto i n no w a y belonged to Monsanto and, therefore, the Court refused to give any rights under patents N o . 1,675,308 a n d N o . 1,675,309. T h e Court declared t h a t t h e phthalic anhydride agreement never w e n t into effect a n d dismissed this portion of t h e bill and also did not, i n this decision, award Doctor Jaeger additional compensation for t h e w o r k he carried o u t not called for by the sulfuric acid contract, preserving to him h i s patent rights to any inventions made. T h e Court, however, ordered Monsanto to account t o the chemists f o r all royalties received by it under the sulfuric acid contract. I t is significant t h a t t h e Court, i n refusing t o interpret the contract a s granting any rights to future inventions, decided that an inventor who sells his invention is in n o way bound t o abstain from competing in t h e s a m e field with different inventions. I t is also interesting t o note that the Court determined that legally a zeolite is a base-exchanging polysilicate a n d that no base-exchange substance which does n o t contain silicon i s a zeolite. A third important definition made by the Court i s of the word "inventions." This term when used in a contract does not mean mere conceptions of t h e inventor or ideas unreduced to practice. A conception of t h e mind is n o t an invention until represented in some physical form.

Research Fellowships i n Metallurgy and Mining I n cooperation with t h e United States Bureau of Mines and the Mining Experiment S t a t i o n , the School of Mines a n d Metallurgy of t h e University of Missouri offers four fellowships. These fellowships are open to graduates w h o h a v e the equivalent of a bachelor of science degree and have had the proper training in mining, metallurgy, or chemistry, and who are qualified to undertake research work. T h e income of each fellowship i s $800 for ten months, beginning September 1, 1929. Fellows pay fees amounting to approximately $ 4 2 per year. They register as s t u d e n t s in the School of Mines a n d Metallurgy of t h e University o f Missouri, and become candidates for the degree of master of science (unless this or an equivalent degree has been earned). Their class work will b e directed by the heads of the departments of instruction, b u t the greater portion of their time will be spent i n research work under the direction of the Bureau of Mines staff resident a t the School of Mines. The purpose of t h i s work is t o undertake the solution of definite problems confronting the mining a n d metallurgical industries of Missouri. For 1929—30 the four fellowships will be granted i n ore dressing— problems in gravity concentration, flotation, ball-milling, and magnetic concentration. Applications, with a certified copy of collegiate record, statement of professional experience, and names and addresses of three references will be received up t o June 15, 1929, and should be addressed to the Director, School of Mines and Metallurgy, University of Missouri, Rolla, M o .

Vanillin Imports Rise Sharply Vanillin imports into t h e United States show a sharp rise the last two years, according to the Department of Commerce. Figures b y the Chemical Division place 1928 imports at 15,332 pounds, four times those in 1927, which had far exceeded the 221 pounds purchased i n 1926. More than half of the 1928 imports came from Germany, t h e remainder corning from Canada, England, France, Netherlands, a n d Switzerland.

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Subcommittee on Chemistry in Electrical Insulation Appointed At t h e meeting of the Committee o n Electrical Insulation of t h e Division of Engineering and Industrial Research, National Research Council, held in Baltimore, April 1 7 , 1928, J. B. White­ head presiding, a resolution was passed to form a subcommittee o n chemistry. This committee has now been organized under the chairmanship of F. M. Clark. The personnel of t h e com­ mittee is as follows: F . M. Clark, Chairman, General Electric Co. M . L. Crossley, Calco Chemical C o . Graham Edgar, E t h y l Gasoline Corp. C. R. Hoover, Wesleyan University Harold Hibbert, McGili University J. X,. Littleton, Corning Glass Works J . S. Long, Lehigh University A. T. McPherson, Bureau of Standards H . R. Moody, College of the City of N e w York J . F . Norris, Massachusetts I n s t i t u t e of Technology L. Navius, General Electric C o . Ε . Ε. Reid, J o h n s Hopkins University C. S. Schoepfle, University of Michigan C. P. Smyth, Princeton University E . W. Washburn, Bureau of Standards J . W. "Williams, University of Wisconsin L. E. Wise, Syracuse University

The Committee on Electrical insulation h a s been in existence several years, and under J. B . Whitehead's enthusiastic leadership has achieved noteworthy results, both i n issuing valuable bibliog­ raphies and in inspiring and guiding individual research. I t has been felt, however, that t h e usefulness of t h e main committee could be materially increased and the general art advanced b y drawing into it pure scientists who could help interpret observed phenomena in terms of modern chemistry. I t is also hoped that, b y bringing the problems of electrical insulation more directly be­ fore chemists, pure research may b e stimulated along more definite lines. The problem of electrical insulation is becoming more and more acute as a result of the increasing tendency toward higher and higher operating voltages. T h e limitation i s chiefly that of the chemical stability of the insulation, both organic a n d inorganic, under electrical stress. It i s in this field t b a t t h e help of the chemist i s sorely needed. A similar Subcommittee o n Physics is being organized under the chairmanship of V. Karapetofï, of Cornell University.

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vision, t h e remainder of his time to be devoted t o research work. It is possible for a man holding one of these fellowships, by presenting a satisfactory thesis and passing examination., to secure his master's degree a t the close of the year. Candidates for these fellowships should file their applications with the director of the Knight Chemical Laboratory not later than April 1, 1929. Application blanks may b e obtained by addressing the same office.

Distribution of Residue of Estate of Charles M. Hall The trustees of the estate of Charles M. Hall, "Father of Aluminum," have announced that the $10,000,000 residue i s to be distributed, as stipulated in Mr. Hall's will, to higher educational institutions of the Near East and the OrientTwentyone institutions in Japan, China, India, and t h e N e a r Bast are to be beneficiaries. The Harvard-Yenching Institute for Chinese Studies, incorporated in Massachusetts, which has received from Mr. Kail's estate a separate endowment of several million dollars, is t o hold and administer part of t h e endowments of the Chinese institutions named.

Examination for Assistant Chemist The United States Civil Service Commission announces an open competitive examination for assistant chemist, applications for which must be on file with the Civil Service Commission at Washington, D . C , n o t later than March 6. T h e examination is t o fill vacancies in the Departmental Service, Washington, D. C , and in t h e field. The entrance salary i n the District of Columbia is $2600 a year. A probationary period of s i x months is required; advancement after that depends upon individual efficiency, increased usefulness, and the occurrence of vacancies in higher positions. For appointment outside of Washington, D. C , t h e salary will be approximately the same. Optional subjects are advanced inorganic chemistry, analytical chemistry, organic chemistry, and physical chemistry. Competitors will n o t be required t o report for examination at any place, but will be rated on their education, training, and experience, and o n publications or a thesis t o be filed fc»y the applicant. Full information m a y be obtained from t h e U n i t e d States Civil Service Commission, Washington, D . C , or the secretary of the United States Civil Service Board of Examiners at the post office or customhouse in any city.

Coal and Ferrous Metallurgy Fellowships Ten fellowships in the chemistry of coal and coal products, coal mining and preparation, and ferrous metallurgy are being offered for the next college year at Carnegie Institute of Technology in cooperation with the Pittsburgh Experiment Station of the U . S. Bureau of Mines and advisory boards representing mining and metallurgical industries. Fellowships are open t o t h e graduates of colleges, universities, and technical schools who are qualified to undertake research investigations. T h e period of the studies under each fellowship will be from August 12, 1929, t o June 10, 1930. Fellowship holders will register as graduate students and become candidates for the degree of master of science. Problems for investigation will be selected from subjects in the origin and constitution of coal, utilization of coal, coal mining, mine safety, preparation of coal, and t h e physical chemistry of steel-making. A similar program of research studies has been undertaken annually under t h e same auspices for the past several years. A s in former years, results of t h e investigations b y the fellowship holders will be published jointly by t h e Carnegie Institute of Technology, the Bureau of Mines, and t h e advisory boards.

Examination for Junior Surveillance Inspector T h e United States Civil Service Commission announces an open competitive examination for junior surveillance inspector, applications for which must be on file with t h e Civil Service Commission at Washington, D . C , not later than March 6. The examination is t o fill vacancies in the Ordnance Department at Large, War Department. The entrance salary i s $1620 a year. Higher-salaried positions are filled through promotion. The duties are to perform under immediate or general supervision simple technical laboratory and field work in connection with the testing, storage, and inspection of smokeless powder, high explosives, and loaded ammunition. Competitors will not be required t o report for examination a t a n y place, but will be rated o n their education, training, and experience. Full information m a y be obtained from the U n i t e d States Civil Service Commission, Washington, D . C , o r the secretary of t h e United States Civil Service Board of Examiners at the post office or customhouse in any city.

Chemical Laboratory Named for Professor James Rubber Chemistry Fellowships a t University of Akron Fellowships have been established b y the Goodyear, Goodrich, and Firestone rubber companies a t t h e University of Akron, Akron, Ohio, for the encouragement of graduate research in the chemical problems connected with the rubber industry. Each fellowship provides $1000 for the college y e a r and is open to graduates from chemical courses of approved institutions. The university will exempt the fellows from the p a y m e n t of all fees, tuition, and breakage. Any student t o whom one of these fellowships is awarded will be required to d o the maximum of 9 hours o f laboratory super-

The University of N e w Hampshire, which is proceeding with the erection of a new chemical laboratory, has announced that it will be designated Charles James Hall in honor of the late Charles James.

Chemical Abstracts Subject Index for 1928 In order that members of the AMERICAN CHBMICAX* SOCIETY

may have information regarding t h e mailing of t h e Subject Index to Chemical Abstracts, N o . 24, 1928, this notice i s printed. The Index will be mailed to all 1928 members and subscribers from Baston, Pa., between February 20 and March 1, 1929.