Sola Elec. Co. v. Jefferson Elec. Co., 317 U.S. 173 (1942)

Sola Electric Co. v. Jefferson Electric Co.


No. 45


Argued October 23, 1942
Decided December 7, 1942
317 U.S. 173

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

Syllabus

1. Where, owing to the invalidity of a patent, a price-fixing stipulation in a license to manufacture the patented article and to sell it in interstate commerce is in conflict with the Sherman Law, the licensee is not estopped to set up the invalidity against the licensor in a suit by the latter to recover royalties and to enjoin sales not in conformity with the license agreement. P. 175.

2. This question of estoppel is a federal question. P. 175.

Local rules of estoppel will not be permitted to thwart the purposes of statutes of the United States. Ere R. Co. v. Tompkins, 304 U.S. 64, distinguished. P. 176.

125 F.2d 322, reversed.

Certiorari, 316 U.S. 652, to review a judgment affirming the District Court in upholding a price-fixing provision in a patent license agreement, and dismissing a counterclaim.