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De Forest Radio Telephone & Telegraph Co. v. United States

273 U.S. 236, 47 S. Ct. 366, 71 L. Ed. 625 (1927)

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De Forest Radio Telephone & Telegraph Co. v. United States

United States Supreme Court
273 U.S. 236, 47 S. Ct. 366, 71 L. Ed. 625 (1927)

Facts

The De Forest Radio Telephone & Telegraph Company (De Forest) (plaintiff) held two patents on vacuum tubes (also known as audions) used in radio communication. De Forest granted a license to Western Electric Company, permitting the licensee to make various uses of the invention. Western Electric subsequently conveyed its rights under the license to the American Telephone & Telegraph Company (AT&T). The government of the United States (defendant) sought to make use of the technology during the First World War. AT&T informed the government that it would allow such use but also that it would constitute infringement. AT&T stated that it would later seek a financial accounting from the government, to which the government agreed. AT&T then went to work making audions to assist the government during the war. Later, De Forest brought suit against the government for the tort of infringement. The parties agreed that both De Forest and AT&T had the right to license the use of the invention to the government. The court of claims dismissed the suit. De Forest appealed to the United States Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Taft, C.J.)

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