United States v. Harvey Steel Co., 196 U.S. 310 (1905)

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United States v. Harvey Steel Company

No. 276

Argued January 3-4, 1905
Decided January 16, 1905
196 U.S. 310

APPEAL FROM THE COURT OF CLAIMS

Syllabus

The United States made a contract with the steel company for the use of a process described as patented. The contract provided that, in case it should at any time be judicially decided "that the company was not legally entitled under the patent to the process and the product, the payment of royalties should cease." In a suit by the company for royalties, the United States attempted to deny the validity of the patent while admitting there was no outstanding decision against it. Held that this defense was not open.

Held further that, under the circumstances of this case, the contract, properly construed, extended to the process actually used, even if it varied somewhat from that described in the patent.

The facts are stated in the opinion.