1. This Court, in affirming the validity of the letters patent
No. 15,687, granted to Joseph D. Cawood Sept. 9, 1856, for
"an improvement in the common anvil or swedge block for the
purpose of welding up and reforming the ends of railroad rails when
they have been exfoliated, or become shattered from unequal wear
occasioned by the inequalities of the road,"
&c., which were before it in
Turrill v.
Michigan Southern Railroad Co., 1 Wall. 491, holds,
in addition to what was declared in that case, that they embrace a
bottom support for the rail on the anvil, and that they are
infringed by the machines known as the "Illinois Central," the
"Etheridge," and the "Whitcomb," but not by those known as the
"Bayonet vise," the "Michigan Southern," and the "Beebe and
Smith."
2. Where an account for the infringement of letters patent is
prayed for and decreed, the record filed here should set it forth.
This Court should not be called upon to perform the duties of a
master.
3. Considering the number of feet of rails mended by the
respondents in the use of the machines covered by said letters
patent, and of those which infringe them, the gain in mending,
compared with the cost of mending on the common anvil, and the
saving in fuel and labor, the damages decreed by the court below
are not excessive.
4. In settling an account between a patentee and an infringes of
his letters patent, the question is not what profits the latter
made in his business, or from his manner of conducting it, but what
advantage he derived from his use of the patented invention.
Page 94 U. S. 696
The facts are stated in the opinion of the Court.
MR. JUSTICE STRONG delivered the opinion of the Court.
These five cases may very conveniently be considered together,
since they all present, in the main, the same questions.
The Cawood patent, for alleged infringements of which the suits
were brought, has heretofore been the subject of consideration in
this Court, where it has been at least partially construed, and its
limits have been defined.
68 U. S. 1 Wall.
491. It is a patent
"for an alleged new and useful improvement in the common anvil
or swedge block, for the purpose of welding up and reforming the
ends of railroad rails when they have exfoliated or become
shattered from unequal wear."
Such is the general description given by the patentee in his
specification, followed by a more detailed one, which needs careful
consideration, in order to discover what the invention claimed
distinctively was. The patentee refers to an annexed drawing, made
a part of the specification, and claimed as giving a perspective
view of the machine or invention. It represents a bed sill on which
is placed an anvil or swedge block of cast iron, across the face of
which there are recesses or dies shaped like the side of the rail
to be repaired. A solid and fixed block, cast as a part of the
anvil, is also represented, with its side face shaped to the side
of the rail when placed in its natural position, and a movable
press block held down upon the anvil by dovetailed tongues and
grooves, and operated by two eccentric cams, moving it back and
forward, toward and from, the fixed block. The face of the movable
block is also shaped to fit the side of the rail next to it, and
the two blocks grasp the rail on each side while its ends are being
reformed, the movable one having sufficient travel to allow the
rail to be extricated without altering its vertical position. A
rail of the T form is also represented in position between the two
press blocks. Having thus exhibited his invention by the drawing,
the patentee proceeds to describe how he usually makes it, and the
manner of
Page 94 U. S. 697
its use. After having stated that he usually makes his improved
anvil and swedge block between four and five feet long and sixteen
inches wide across the face, with two forms or recesses at one end,
right and left, of a form corresponding to the sides of the rail,
he adds:
"Close to these is a cast or raised block nearly as high as the
rail, and with its farther edge also shaped to fit the sides of the
rail, when it lies across the anvil in its natural position. Next
this [says he] I attach to the face of the anvil, by dovetailed
tongues and grooves, or in any other convenient manner, what I call
a movable press block with a similar but reversed shaped edge,
lying opposite the other, so as to enclose the rail between the
two, as in the jaws of a vise. The blocks I work by eccentric cams
on a shaft which is attached to the anvil by two standards, with
bearings either cast on or bolted to the edge of the same, so that
half a turn of the crank will move the press block over a space a
little more than half the width of the rail."
The mode of use is then described. The rail and the piece of
iron to be welded on having been heated, the former is swung from
the fire into the space between the blocks, when, by half a turn of
the cams, the blocks are closed upon it. The welding piece is then
laid on top of the rail and leveled up by a swage held by the
smith, of the form of that section which projects above the blocks.
Such is the description. It is succeeded by the claim, as
follows:
"I do not claim the anvil block nor its recesses, but what I do
claim as my invention and desire to secure by letters patent is the
movable press block, having its edge formed to the sides of the
rail in combination with another block with its edge of a similar
but reversed form (the movable block to be operated by two cams, or
in any other convenient manner), for the purpose of pressing
between them a T or otherwise shaped rail, thereby greatly
facilitating the difficult operation of welding and renewing the
ends of such rails after they have been damaged, in the manner
herein described and set forth."
What, then, in view of this specification and claim, was the
invention patented? In
Turrill v. Michigan Southern
Railroad Co., 1 Wall. 491, this Court declared it
to be
"such a movable press block as is described, having its edge
Page 94 U. S. 698
formed to the side of the rail, in combination with such other
block as is described, with its edge of similar but reversed form,
arranged as described, and combined and operating in the particular
way described, for the special purpose of effecting the desired
result."
This was enough for that case as it then appeared. But the
present case requires a more minute analysis. Viewing the claim as
interpreted by the preceding description, to which it refers, and
by the drawing, it is not difficult to discover what the patentee
supposed he had invented. It was not any kind of movable press
block combined and operating in any way, with any kind of fixed
block, to effect any useful result. His avowed purpose was to form
a mechanism for welding up and reforming the ends of exfoliated and
crushed rails, or rather to hold them in a convenient position for
such welding and reforming, at the same time preserving their
shape. His manner of accomplishing this result was evidently
considered by him as of the very essence of his invention. On one
side of the rail, when on the anvil, it is to be supported by a
fixed block, part of the anvil itself, shaped reversely so as to
fit the shape of the rail, and on the other it is to be supported
and held in place by a movable block with a face adjusted to the
shape of the rail on that side, the movable block capable of
advance towards the fixed blocks, and of retrogradation after the
rail is placed on the anvil. The rail is also, when in place, to be
supported under its base by the anvil. This is fairly deducible
from the manifest purpose of the inventor, from his drawing, and
from his specification. It is necessary to the result supposed to
have been obtained, for unless supported at the base, the heated
end of the rail would be in danger of being driven downward between
the blocks by the blows of the sledge or hammer used in welding,
while the part of the rail not operated upon, being cooler, would
remain suspended between the blocks. And that the invention
contemplates a bottom support for the rail on the anvil is made
clear by the drawing. That shows no space between the anvil and the
base of the rail. On the contrary, it exhibits a bottom support on
the anvil, as well as lateral support by the modeled faces of the
two blocks. The rail is thus confined on three of its sides, as in
a mould. And the words of the specification,
Page 94 U. S. 699
fairly construed, convey the same meaning. Thus it is said the
fixed block is cast nearly as high as the anvil, with its farther
edge shaped to fit the side of the rail, when it lies across the
anvil in its natural position. The rail, then, is to lie upon the
anvil, having the anvil as a bottom support. Unless it does, the
shaped edge of the blocks cannot fit its side.
Having thus endeavored to ascertain what is the true idea of the
patent, we are prepared to examine the devices which the appellants
contend were in existence and use before Cawood made his invention.
Of these there are three only that have been pressed upon our
attention. The first is the angle iron machine. Between this and
the Cawood machine there are points of resemblance, but there are
also very substantial differences. The purposes and objects sought
to be accomplished by the machines are entirely unlike. It is
always of importance to consider the object an inventor of a
machine had in view, because thus the operation of its different
parts and the functions performed by each can be better understood.
The purpose of the angle iron machine is to facilitate making angle
iron. That of the Cawood is to aid in mending rails already made.
The angle iron machine is a device to assist in welding together,
at right angles with each other, two iron bars, making a fillet in
the interior angle to strengthen the rail when made. To effect
this, the fixed block on the anvil has necessarily a peculiar
construction, unlike that in the Cawood machine. It is beveled or
rounded off at the top of the face opposite the movable block, so
as to give room for the formation of the fillet. Consequently, that
face cannot answer reversely to the face of the movable block. And
not only is the face of the fixed block uniformly and necessarily
unlike that of the fixed block in the Cawood machine, but its
function is entirely different. It is to furnish support for one of
the two bars designed for the formation of the angle iron. One
entire limb of the angle iron is laid upon top of the block,
unconfined laterally, and there exposed to the hammer, the block
being the anvil. The iron is thus left free to spread out in both
directions, instead of being prevented from spreading laterally by
the press block, as in the Cawood machine. There is nothing to
preserve a shape already formed. The other bar of the angle iron,
or its other limb,
Page 94 U. S. 700
hangs suspended from the upper edge of the fixed block, and is
not supported against the blows of the hammer at any other part of
its height than the under side of the limb which lies on the block,
instead of being supported concurrently at two parts of its height
by the grasp of the two blocks, and supported also under its base.
In the Cawood machine, the hammering is not over the blocks or upon
them, but exclusively on the rail between them. The fixed block in
that is not cast quite so high as the rail, and the new piece is
welded on and shaped, not on or over either block, but yet above
the surface of that part of the anvil that constitutes the block.
The patentee, after stating that the raised block of the anvil is
cast "nearly as high as the rail" (the two blocks thus being made
to support the under side of the crown of the rail, and confining
the lower half of the crown laterally), says,
"the welded piece is laid on top of the rail in the usual way,
and leveled up and shaped by a swedge held by the smith, of the
form of that section which projects above the blocks."
Thus the iron is not permitted to spread laterally under the
blows of the hammer over the press blocks and down between them. In
fact, the blocks have nothing to do with the formation of that
section of the rail that projects above them. It is very evident,
therefore, that the fixed block in the angle iron machine is not
intended or adapted to perform the office which the fixed block
does perform in the Cawood. In fact, it cannot perform it. Besides,
in the angle iron machine, no provision is made for a bottom
support of a rail. The height of the blocks above the body of the
anvil is not regulated with reference to any bottom support, and
the bar between the jaws is held as in a vise. Support beneath the
flange or base of the rail, when in place for reparation, is, as we
have seen, a feature of the Cawood improvement. It would defeat the
purposes and uses of the angle iron machine. The bottom serves for
an anvil in the Cawood, to resist the downward force of the blows
on the top of the rail and to prevent forcing the heated iron into
the neck of the rail and increasing its length. But one of the
objects, and a result secured in the angle iron machine, is
increasing the length and width of that portion of the bar operated
upon by the hammer, the part which lies upon the fixed block. There
is also a wide difference
Page 94 U. S. 701
in the functions of the movable blocks of the two machines. That
of the angle iron machine is principally to act as one of the jaws
of a vise to hold the bar against the fixed block or raised part of
the anvil, while the welding is being made and while the fillet is
being informed in the interior angle. It is not to preserve the
shape of an already formed rail or to resist the lateral pressure
caused by the hammering. Yet such are the functions of the Cawood
movable block. We think therefore that if the purposes of the two
devices be considered as well as their possible modes of use, the
arrangement of their several parts respectively to each other, and
the different functions of those parts, it cannot be held that the
angle iron machine contained the invention or involved the
principle of the invention described in the patent granted to
Cawood.
The second device, which the appellants insist anticipated the
Cawood invention, is what is denominated the bayonet machine, used
at the Springfield Armory before 1850 and since for forging parts
of bayonets. In some particulars there are resemblances between the
devices. but there are obvious dissimilarities not only in the
purpose and results sought to be obtained, but in the relation of
the parts to each other, in the work to be done by those parts, in
the manner and effect of their combination, and in their mode of
operation. The differences are sufficient, in our opinion, to
justify the conclusion that the machines are different devices,
embodying distinct principles. The bayonet machine is in form and
in substance nothing but a hinge vise, with a peculiar shape of the
jaws, intended to facilitate operations upon the shank and socket
of a bayonet. The jaws are fitted to hold the bayonet in place,
while the shank is turned upward, through and above their upper
surface, in order that a flat piece of iron may be welded upon the
shank and prepared to be afterwards converted into a socket. The
lateral surfaces of the jaws come into actual contact with each
other except for a short space equal to the diameter of the bayonet
shank. They hold only the lower segment of the shank, allowing the
upper segment to project a considerable distance above the upper
surface. The inner surfaces do not constitute a mould. They do not
maintain the shape of the shank, enclosed within and between them
during the process of
Page 94 U. S. 702
top welding and shaping. They are intended for no such purpose,
nor are they fitted for it. Their sole function appears to be to
sustain the shaft of the bayonet in an upright position while a
flat piece of iron is being welded upon its end. It is only in a
very limited sense that the machine can be called an anvil. One
side of it is stationary, the upper portion of its front forming
what may be called a fixed jaw. The other side, being merely an
arm, vibrates upon a hinge or upon journals attaching it to the
fixed side at or near its base. Such are the leading features of
the machine. Comparing them and the operation of the machine with
those of the Cawood, it is very evident the devices are not
substantially the same. The Cawood is an improved anvil, not a
vise. It has a fixed block cast upon an anvil, and its movable
block rests upon the anvil, attached to it, and moving towards and
from the fixed block horizontally, in a plane parallel with the
anvil's upper surface, instead of moving on the arc of a circle.
The two blocks together form a mould, and they are combined with
each other through the anvil. These are very substantial
differences from the bayonet machine. The combination through the
anvil is essential for the work intended to be done. It gives the
immediate support of the anvil to the bottom of the rail as its
tread or crown is being hammered, while in the bayonet machine the
iron enclosed is supported from beneath, during the process of
welding, exclusively by the jaws, at a considerable distance from
the point of connection between them. Again, in the Cawood, the
inner surface of the blocks is designed and fitted to maintain the
shape of the rail while it is hammered -- an office not
contemplated for the jaws of the bayonet machine. The bayonet
socket is fashioned to its desired shape after the release of the
iron from the jaws. So also the relation of the blocks and jaws to
the rail or iron, when in place to be operated upon, is different
in the two machines. In the Cawood, the blocks come nearly to the
top of the rail, affording lateral support to almost the whole of
each side, while in the other there is no such lateral support. And
the hammering is entirely between the blocks, instead of being
partly over or upon them.
Still another important difference is apparent. In the bayonet
machine, the movable jaw is pushed back by a spring
Page 94 U. S. 703
interposed between the two arms of the vise, and forced forward
by leverage sufficient to overcome the resistance of the spring and
hold it compressed while the jaws are in contact with each other.
It is obvious that no such means of moving the movable block would
answer for Cawood's machine. It is true he did not claim operating
it by cams exclusively. He claimed moving the block by cams, or "in
any other convenient manner," but that meant by means adapted to
the work the machine was intended to perform. These several
differences are too many and too great to be considered merely
formal. Not only the object of Cawood's device was novel, but so
also was the function of the blocks, their combination with each
other, and the mode of operation. The general appearance of the
bayonet machine, and, as we have said, its distinctive character,
was that of a vise. We think, therefore, it cannot be regarded as
containing the principle embodied in the Cawood invention. We
cannot think it could teach how to make the improvement in the
common anvil or swage block for reforming and welding the ends of
railroad rails, which was devised by Cawood and which has gone into
large use.
It is next contended that the patent was anticipated by the
Church machine, patented in England in 1846. We have before us the
specification and a model constructed from that specification. It
requires but little attention. It is described as a machine which
may be usefully employed for straightening and flattening the rails
for railways, as well as other similar uses. As the model
represents it, the machine is totally incapable of performing the
work of the Cawood machine. It is not an anvil. There is no fixed
block cast as a part of an anvil. There is a stationary die, part
of a frame against which one side of the rail is placed to resist
the lateral pressure exerted upon it by a sliding lateral die on
the other side of the rail, and above is a horizontal bar which is
forced downwards by a series of jointed levers, carrying another
die upon the upper surface of the rail. It is plain this
description and this model could never have informed any one of the
device Cawood invented. It does not show how the blocks or jaws can
be combined so as to leave the upper face of the rail to be
repaired exposed for the action of a swage and a hammer. It is
said, however, if the upper
Page 94 U. S. 704
horizontal bar with its die and jointed levers were taken away,
a mechanic might understand how the remnant could be altered and
employed as a Cawood machine is employed, and for the same uses.
That, however, evades the question to be answered, which is whether
the specification was sufficient to enable a mechanic skilled in
mechanical arts to construct and carry into practical use the
Cawood machine, or in other words whether whatever is essential to
the Cawood machine could be read out of the prior specification. We
think no such information was given by the English patent.
That the old slide vise contains the principle of the Cawood
machine has not been contended with much earnestness, and certainly
it cannot be successfully. Nothing, then, is found in the case
sufficient to show that the patent is void for want of novelty of
the invention, and the court was not in error in holding it
valid.
We come next to the question whether machines employed by the
defendants in repairing the ends of railroad rails are
infringements of the patent. Those which have been used by the
several companies defendants, and which are claimed to have been
infringements, were, in addition to the Cawood, seven in number.
They were the "Illinois Central," the "Etheridge," the "Whitcomb or
Cleaveland block," the "Michigan Southern," the "Bayonet vise," the
"Beebee and Smith," and the "Blaine reversible rolls," all of which
except the last were held by the circuit court to be infringements.
Of these, the Illinois Central Railroad Company has used only the
"Illinois Central," the "Bayonet vise," and the "Beebee and Smith;"
the Pittsburg, Fort Wayne, and Chicago Railroad Company has used
the Whitcomb or Cleaveland block; the Chicago and Alton Railroad
Company as used only the Whitcomb; the Chicago, Burlington, and
Quincy Railroad Company has used only the Cawood and the Etheridge;
and the Michigan Southern and Northern Indiana has used only the
Beebee and Smith, the Bayonet vise, and the Whitcomb. We have had
before us models and drawings of them all, and we have considered
the testimony respecting them which is found in the records. It is
but faintly contended, if at all, that the Illinois Central, the
Etheridge, and the Whitcomb machines are not
Page 94 U. S. 705
infringements of the Cawood. The principle of each of them, the
object sought for, the combination and arrangement of the parts and
the mode of operation for the purpose of effecting the described
result are so manifestly the same as that described in the
complainant's patent that a detailed examination of them is
unnecessary. But it is earnestly insisted that neither the use of
the Bayonet vise, nor that of the Michigan Southern machine, nor
that of the Beebee and Smith, used by some of the defendants, can
rightfully be held to infringe the patent, and such is our opinion.
We have already called attention to the fact that a very limited
construction must be given to the claim of the Cawood patent in
view of the state of the art when the patent was granted and of the
explanations contained in the specification. It was said in
Turrill v. Michigan Southern Railroad Company, supra,
"special devices are described as combined and arranged in a
particular manner, and operating only in a special and peculiar
way, for a special purpose, and to effect a special result."
To repeat the definition of the invention given in that case, it
is
"of such a movable press block as is described, having its edge
formed to the side of the rail, in combination with such other
blocks as is described, with its edge of similar but reversed form,
arranged as described, and combined and operating in the particular
way described, for the special purpose of effecting the desired
result."
If the claim be thus limited, if such was the invention Cawood
made, the use of the Bayonet vise and of the Michigan Southern
cannot, we think, be regarded as an infringement. Both the machines
were manifestly copied from the Springfield machine, which we have
endeavored to show did not anticipate or contain the principle of
Cawood's invention. Each is substantially a vise, and not an anvil.
The combination of the blocks is unlike that of the Cawood improved
anvil. It is not through the anvil, and the rail when in place for
welding and shaping does not rest on the anvil. The iron to be
hammered rests upon the jaws, and consequently it is much more
liable to displacement than it would be if arranged as described by
Cawood. In each, only a part of the force of the blows reaches the
anvil, for the movable block is supported by an arm attached by a
hinge, or by journals, to the base of the block. It is true that by
the
Page 94 U. S. 706
change in the shape of the jaws one of the functions of the
Cawood machine is secured -- that of preserving the shape of the
rail during the process of hammering; but that is only one of the
elements of the Cawood. Neither of these two machines can be said
to be an improved anvil or swage block. In neither are the two
blocks combined by means of an anvil. In neither is a raised block
cast as a part of the anvil. In neither is there any such movable
press block attached to the anvil as is described in the Cawood
patent, combined and operating with the other parts of the machine
in the manner described. And in neither of them is there any part
of an anvil immediately below and fitted to support the rail when
in place for being repaired. Each of them has, however, all the
parts and substantially the arrangement and combinations of the
Springfield machine, and in principle they are identical with it,
the only appreciable difference being in the shape of the jaws. If,
therefore, they are infringements of the Cawood patent, that patent
is void for want of novelty, for it was anticipated by the
Springfield. If, on the other hand, the Cawood machine was novel,
as we think it was, if it was not anticipated by the Springfield,
the conclusion is inevitable that neither the Michigan Southern nor
the Bayonet vise is an infringement.
Much of what we have said is applicable to the Beebee and Smith
machine, the use of which the circuit court also held to be an
infringement of the Cawood patent. To the inquiry what constitutes
an infringement of that patent it is indispensable to keep in mind
what the invention patented is. It is not, we repeat, any mode by
which the result sought and obtained is secured, but a machine that
attains the desired end by means of described agencies, combined in
a described manner and operating in a described way. Thus the
patent was considered in 1 Wallace. Now, we think the Beebee and
Smith machine, though arriving at the same result, does not profess
to attain it by means of the agencies described in the Cawood
patent, or any agencies that can be regarded as equivalents
combined in the manner described by Cawood, and operating in the
same or an equivalent way. True, it is a machine for holding a rail
while the exfoliated or crushed end thereof is undergoing
reparation, but it performs its functions in a manner
Page 94 U. S. 707
peculiar to itself, unlike the mode in which the Cawood
operates. The construction of the two machines is very dissimilar.
In the Beebee and Smith, there is no fixed block or jaw a part of
the anvil. Neither is there any movable block or jaw attached in
any manner to the anvil, or connected in any manner with a fixed
block or with the anvil. There are two jaws sliding up and down in
a V-shaped notch in an anvil entirely unconnected with each other,
and kept in place only by their own weight and that of the
superincumbent rail. They are not advanced towards each other or
retired by cams or any equivalent mechanism. When by force of
gravity they descend into the V-shaped cavity, and thus approach
each other, the rail rests upon them and not on the anvil, and when
grasped by them, all the force of the blows necessary in welding is
expended upon them through the rail, and only remotely upon the
anvil. Bringing the jaws together by their gravity cannot be said
to be an equivalent for cams or levers or any other mechanical
device. The Beebee and Smith machine, then, has neither such a
fixed block nor such a movable press block as is described in the
Cawood machine, nor are the two blocks combined in substantially
the same way, and the mode of operation is substantially unlike
that described by Cawood. It is impossible, therefore, to hold that
its use is an infringement of the complainant's patent.
We do not care to expend much time in refuting the argument of
the appellee that a bottom support for the rail in the use of the
Cawood invention is injurious, and that it is therefore no
essential part of the device patented to him. Considerable evidence
has been given tending to show that the face of the anvil under the
jaws has been chipped off, or cut out, and that thus altered the
thing invented works as well, if not better, than it would if the
alteration had not been made. In the nature of things, this is
impossible, and no amount of testimony can convince us that such is
the fact. Manifestly, the chipping off was made to evade the
patent. The best mode of using the device would doubtless be to
construct the blocks so as to fit exactly the sides of the rail.
Thus, its shape and its height would be maintained during the
process of hammering and shaping the crown. But this exact fit may
not always occur, and whenever it does not, the bottom support on
the anvil is of
Page 94 U. S. 708
importance. This is made evident by the fact that when
experiments have been made by chipping off the anvil at the bottom
of the blocks or jaws, if more than about three eights of an inch
was removed, it has been found advisable to support the rail by a
roller, as in the Cleaveland vise, or by introducing a key. It
proves nothing to show that rails may be repaired without any
support at their base. Because the invention has been used in an
imperfect condition, or altered slightly in one particular without
serious loss, is no proof that it was no invention, or that the use
of it in its altered condition was no infringement.
It follows from what we have said that the decrees must be
reversed and set aside, so far as the defendants have been held
accountable for the use of the Beebee and Smith machine, or the
Bayonet vise, or the Michigan Southern. But so far as the Whitcomb,
the Etheridge, the Cawood, or the Illinois Central have been used,
the defendants are answerable to the complainant.
We come, then, to the inquiry whether there was error in the
ascertainment of the profits made by the use of those devices. This
inquiry is exceedingly embarrassed by the very unusual manner of
proceeding in the court below. After having determined that the
Cawood patent was valid, the court, instead of deciding whether
there had been any infringement, by a decretal order referred to a
master to find what machines used by the defendants were
infringements, and to state an account between the parties. In
obedience to this order, the master reported that seven machines
used by the defendants infringed the patent, and on that assumption
he returned stated accounts. This report the court corrected,
holding that one of the seven machines was not an infringement, and
sent the case back to the master to report the damages sustained by
the plaintiff from the use by the defendants of the other machines,
giving him liberty to reconsider his finding as to the cost of fuel
and labor in repairing rails on the common anvil and the
plaintiff's machine, with liberty also to hear additional evidence,
and report such conclusions as might be warranted by the whole
testimony. Under this second reference, the master submitted
another report, to almost the whole of which exceptions were taken.
The court sustained those which
Page 94 U. S. 709
related to the ascertainment of profits made by the defendants,
and the measure thereof, and also sustained those which related to
the allowance of profits for the use of the complainant's machine
by the defendants before he had title to the patent, or any part or
interest therein. The effect of this was to set aside the entire
report of the master, so far as it stated an account between the
parties. That subject was then all at large, and without further
reference the court proceeded itself to find the amount of profits
the defendants had respectively made by the use of the invention
owned by the plaintiff, and found the same to be that for which the
final decrees were subsequently entered. The decree in each of the
cases was for much less than the master had reported. But how it
was made up we are not informed. No account was stated accompanying
the decrees. Though the bill prayed for an account, and though an
account was decreed, the record shows no account. Nothing in the
decree shows us how many fails had been repaired, or rails had been
repaired, or in the decree exhibits what was the comparative cost
of repairing with the patented machine and with the common anvil.
The cases have come to us, therefore, in such a condition that we
are called upon to perform the duties of a master. This ought not
so to be; and probably we would be justified in reversing all the
decrees, and sending the cases back for a statement of accounts.
But the litigation has been long protracted, at great expense to
the parties, and this consideration has induced us to examine the
evidence submitted to the master, and reported by him, in order to
discover whether there has been an overestimate of profits in those
cases where the defendants used only the machines the use of which
was a plain infringement of the Cawood patent. Without entering
into details, we are constrained to say, that, in our opinion,
there has been no such overestimate. We think the weight of the
evidence leads to the conclusion that the number of feet mended on
the infringing machines, the gain in mending, compared with the
cost of mending on the common anvil (which the court must have
determined was about thirty-six cents per foot), considering the
saving of labor and fuel, were such as justified the decrees that
were made. There are undoubtedly great differences in the
statements of
Page 94 U. S. 710
the witnesses, but we think it is not difficult to see where is
the preponderance of the evidence. The master's estimate was
manifestly too high. We cannot say that of the court was. And,
after the action of the court upon the master's first report, it
must be presumed that no profits were allowed for any use of the
Cawood patent before the plaintiff became its owner.
There is nothing more in these cases that we feel called upon to
notice, except the suggestion that repairing railroad rails was
unprofitable, compared with what might have been done. It has been
argued that it would have been better for these defendants, if,
instead of repairing the crushed and exfoliated ends of the rails,
they had cut off the ends and relaid the sound parts, or had caused
the rails to be re rolled. Experience, it is said, has proved that
repairing worn out ends of rails is not true economy, and hence it
is inferred that defendants have derived no profits from the use of
the plaintiff's invention. The argument is plausible, but it is
unsound. Assuming that experience has demonstrated what is claimed,
the defendants undertook to repair their injured rails. They had
the choice of repairing them on the common anvil or on the
complainant's machine. By selecting the latter, they saved a large
part of what they must have expended in the use of the former. To
that extent they had a positive advantage, growing out of their
invasion of the complainant's patent. If their general business was
unprofitable, it was the less so in consequence of their use of the
plaintiff's property. They gained, therefore, to the extent that
they saved themselves from loss. In settling an account between a
patentee and an infringer of the patent, the question is, not what
profits the latter has made in his business, or from his manner of
conducting it, but what advantage has he derived from his use of
the patented invention.
We will pursue the subject no farther. It follows from what we
have said that in those cases in which the defendants have been
charged with the profits made from the use of the "Bayonet vise,"
or the "Michigan Southern" machine, or the "Beebee and Smith"
machine, the decrees of the circuit court are erroneous; while in
the other cases, the defendants having used only the Cawood, or the
Etheridge, or the Illinois Central,
Page 94 U. S. 711
or the Whitcomb (the infringing machines), we discover no error.
Our judgments, therefore, are as follows:
In
Illinois Central Railroad Company v. Turrill, and
Michigan Southern & Northern Indiana Railroad Company v.
Same,
Decrees reversed, and causes remanded for further
proceedings in accordance with this opinion.
In
Chicago & Alton Railroad Company v. Same, Chicago,
Burlington & Quincy Railroad Company v. Same, and
Pittsburgh, Fort Wayne & Chicago Railroad Company v.
Same,
Decrees affirmed.
MR. JUSTICE FIELD, with whom concurred MR. JUSTICE SWAYNE,
dissenting.
I dissent from so much of the opinion and judgment in these
cases as approves the estimate of damages made by the court
below.