LAW REPORTS.

Dominion, Volume 6, Issue 1680, 21 February 1913, Page 9

LAW REPORTS.

SUPREME COURT. (Boforo his Honour Mr. Justice Chapman.) j PATENT LAW & DAMAGES. CLAIM IN COURT. Patent law figures largely in an action oommenced in tho Supreme Court yesterday, before Mr. Justice Chapman, and a special jury of twelve, of whom Mr. Geo. Shirtcliffe has been chosen foreman. The 'plaintiff is Frederick John Northcott,' manufacturers' agent, of Auckland. The defendants are Henry Hughes, Ltd., patent agents, carrying on, business in Wellington and elsewhere in the Domin'ion. j Mr. A." W. Blair'appeared for Northcott, and Mr. T. Young for Hughes, Ltd. It was set out in. tho statement of claim that on May 1, 1911, Henry Hughes, Ltd.-(acting as agents for Northcott) applied in Wellington for letters patent .for improvements in milk-receiving cans for milking machines. A complete specification. was accepted by the Patent Office on May 31, 1911, and-notification of this was made in the New Zealand Gazette of June 1, 1911. In or about tho month of May, 1911, Northcott instructed "lienry Hughes, Ltd., to obtain letters patent tor tho invention in the Commonwealth of Australia. In pursuance of these instructions, George Waters and Son '(agents tor Henry ■ Hughes, Ltd.) lodged an application, No. 1017, in the Commonwealth Patent Offico at Melbourne, on June 29, ' 1911. Shortly after Northcott received advice of the filing of this application, and believed that it was a proper and valid application, upon ..which letters patent could be issued. On this account he went to Melbourne to negotiate for the sale of his patent rights. Oa September 25, 1911, he entered into a prelimina'ry agreement with ono John Henry Davies for tho sale of the, Commonwealth rights. : Under this agreement, Davies contracted to pay a royalty-of , w£l,.for each article, with a minimum payiflent of .£2OO for the first year and £301 per year:for the four sub'sequeht. years; 'At .the end of five'years DavieS would have beenf entitled to a renewal of tho agreement, with a minimum payment of JE3OO per year, so long as tho patent remained in force. Before a formal agreement was sighed,' however,' it was' discovered that tho; letters ; patent granted in the Commonwealth were in- ' valid ■%, reason of the publication of'the nature of the-patent ih-tlie New Zealand Gazette of June'l;-1911. ."Copies/of this Gazette had been received in Atistralia more'than 21 days prior to. the, filing of , the. Commonwealth,: application, . This, would render it necessary to filo. a, fresh . application, and would mean delay. Upon this discovery, Davies repudiated' the agreement, -and could not recover damages from him. Northcott" now; :• alleged ihatrhe' had lost' tho'sale 'of the ' rights in Australia owing., to negligence on the part:of|Henrv Hughes,■' Ltd., in dealing With tlip applications.' For : these reasons ho claimed da'niages amounting j to .£550. ......

In the statement of defence, Henry Hughes, Ltd., denied any responsibility for. the non-issue of valid letters patent. Henry Hughes, Ltd., further teaid that the application No. -1647/1911, lodged in tho Patent i Office at Melbourne, as mentioned in the statement of claim, was a good and valid application, and had letters patent issued or been granted thereon, such letters patent would have conferred upon Northcott a valid patent.' Mr. Blair called - several .witnesses •• in ■support -'of-'the plaintiff's case, and then jput-irt, oertaiii of. "the interrogatories.' , ' ;Evidence .taken on commission in..Mcl.Mbfne was nest read to the jury by the Registrar.

' Mr. Yojing,. before opening for tho de-, fence, mentioned five grounds on which he would ask:for nonsuit,,and his. Honour reserved leave to : oounsel to argue these-later on. . , . •l! I ' OTie first witness-for the dofence had Just completed his evidenoe' at 5 p.m.. when the further hearing was adjourned until,half-past 10 o'clook this morning, '