Paper Converting Machine Co. v. Magna-Graphics Corp.

745 F.2d 11 (1984)

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Paper Converting Machine Co. v. Magna-Graphics Corp.

United States Court of Appeals for the Federal Circuit
745 F.2d 11 (1984)

Facts

In 1965, Paper Converting Machine Company (Paper Converting) (plaintiff) was issued a patent for toilet-and-paper-towel-manufacturing machines featuring a novel sequential-automatic-rewinding process. The patent remained valid until 1982 and was commercially successful. In 1979, Paper Converting brought a patent-infringement suit against Magna-Graphics Corporation (Magna-Graphics) (defendant). The district court held in favor of Paper Converting and awarded damages based on willful infringement and the sale of two machines incorporating the Paper Converting patent. Magna-Graphics appealed the award of damages based on the second sale, arguing that Magna-Graphics’s sale of a machine incorporating sequential automatic rewinding to the Fort Howard Paper Company (Fort Howard) was not patent infringement, because the machine was not fully constructed or utilized before the expiration of the Paper Converting patent.

Rule of Law

Issue

Holding and Reasoning (Nichols, J.)

Dissent (Nies, J.)

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