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T-250-84
Diamond Shamrock Technologies S.A. and Elec trode Corporation (Plaintiffs)
v.
C. Conradty Nuernberg GmbH & Co. KG, Con- radty GmbH & Co. Metallelektroden KG, and Erco Industries Limited/Les Industries Erco Limitée (Defendants)
Trial Division, Muldoon J.—Toronto, April 30; Ottawa, May 31, 1984.
Patents — Practice — Particulars — Defendant Erco seek ing order compelling plaintiffs to provide date of invention of patent upon which plaintiffs intending to rely and material facts alleged to establish invention — Motion dismissed with out costs because of Court's cited division of opinion on issue — Defendant not entitled, before pleading, to have from plaintiff in patent infringement action, date of invention upon which patent issued — Contradictory decisions of Court on issue — Windsurfing International, Inc. v. Meriah Surf Prod ucts Limited, not followed — Durand & Cie v. La Patrie Publishing Co., Embee Electronic Agencies Ltd. v. Agence Sherwood Agencies Inc. et al. and Flexi-Coil Ltd. v. Smith- Roles Ltd., et al. applied — Better practice to heed Act, presuming patent prima facie valid, and not to compel plaintiff to produce particulars unless and until defendant formally lodging defence to action and alleging prior art, or obviousness and anticipation — Patent Act, R.S.C. 1970, c. P-4, ss. 28(1)(a), 45(8) — Federal Court Rules, C.R.C., c. 663, R. 415(1).
CASES JUDICIALLY CONSIDERED
APPLIED:
Durand & Cie v. La Patrie Publishing Co. (1951), 15 C.P.R. 86 (Ex. Ct.); Embee Electronic Agencies Ltd. v. Agence Sherwood Agencies Inc. et al. (1979), 43 C.P.R. (2d) 285 (F.C.T.D.); Flexi-Coil Ltd. v. Smith-Roles Ltd., et al. (1979), 42 C.P.R. (2d) 180 (F.C.T.D.); Corning Glass Works v. Canada Wire & Cable Limited t/a Canstar Communications, judgment dated April 5, 1984, Federal Court, Trial Division, T-1944-81, not yet reported.
NOT FOLLOWED:
Windsurfing International, Inc. v. Meriah Surf Products Limited, judgment dated January 15, 1980, Federal Court, Trial Division, T-3363-79, not reported.
DISTINGUISHED:
Union Carbide Canada Ltd. v. Trans-Canadian Feeds Ltd. et al., [1966] Ex.C.R. 884; 32 Fox Pat. C. 145; Asbestos Corp. Ltd. v. American Smelting & Refining Co. (1972), 5 C.P.R. (2d) 1 (F.C.T.D.); E.I. DuPont de Nemours & Co. et al. v. Diamond Shamrock Corp. (1979), 46 C.P.R. (2d) 68 (F.C.T.D.); Omark Industries Inc. et al. v. Windsor Machine Co. Ltd. (1980), 56 C.P.R. (2d) 111 (F.C.T.D.).
COUNSEL:
A. G. Creber for plaintiffs.
G. Zimmerman for defendants.
SOLICITORS:
Gowling & Henderson, Ottawa, for plaintiffs. Sim, Hughes, Toronto, for defendants.
The following are the reasons for order ren dered in English by
MULDOON J.: Three motions were launched as between the parties, but only one was argued by counsel. The plaintiffs' motion for default judg ment was withdrawn. The defendants' counsel and the plaintiffs' counsel agreed to the adjournment sine die of the second motion, whereupon the defendants' counsel sought to have the third motion, this one on behalf of the defendant Erco for particulars, adjourned but the plaintiffs' counsel opposed the granting of an adjournment. The motion was argued, hence these reasons.
Erco seeks an order:
That the plaintiff shall provide the date of invention of the patent in suit, which the plaintiffs intend to rely upon, and the material facts alleged to establish such date of invention.
Not surprisingly, in addition, and alternatively, an extension of time for filing a statement of defence, and a counterclaim, if any, is also sought by Erco in these proceedings.
The issue to be resolved is whether the appli cant, a defendant, is entitled before pleading to have from the plaintiffs the date of invention of the patent in suit, on which the plaintiffs intend to rely, together with the material facts to establish the date of invention. The italicized clause above,
adapted from the notice of motion begs the ques tion and in so doing may well have provided the seed of the issue's resolution. However, even stripped of that clause, the issue remains to be resolved in these terms: in this or any action for patent infringement, is the defendant, before pleading, entitled to have from the plaintiff the date of the invention upon which the patent was issued?
To the uninitiated, this question in itself may smack of medieval metaphysics. The date of invention might well become material, if the defendant makes an issue of it, while actually defending. Meanwhile, the patent is presumed to be valid. The would-be arcane practice of patent and other intellectual property law cases seems to demand a veritable thicket of interlocutory pro ceedings before the parties—or their counsel— seem prepared to get on with their trials of the real matters in issue. But, in the end, as Mr. Justice Strayer recently indicated in Corning Glass Works v. Canada Wire & Cable Limited t/a Canstar Communications' "It appears ... to be open to the Court to reach its own conclusion on the date of invention ...."
There are apparently contradictory decisions of this Court in regard to the issue in this matter. The applicant's counsel invokes paragraph 28(1)(a) of the Patent Act [R.S.C. 1970, c. P-4], and cites the following decisions: Union Carbide Canada Ltd. v. Trans-Canadian Feeds Ltd. et al., 2 Asbestos Corp. Ltd. v. American Smelting & Refining Co., 3 E.I. DuPont de Nemours & Co. et al. v. Diamond Shamrock Corp., 4 Omark Indus tries Inc. et al. v. Windsor Machine Co. Ltd.,' Windsurfing International, Inc. v. Meriah Surf Products Limited. 6
' Judgment dated April 5, 1984, Federal Court, Trial Divi sion, T-1944-81, not yet reported, at p. 38.
2 [1966] Ex.C.R. 884; 32 Fox Pat. C. 145.
3 (1972), 5 C.P.R. (2d) 1 (F.C.T.D.).
4 (1979), 46 C.P.R. (2d) 68 (F.C.T.D.).
' (1980), 56 C.P.R. (2d) 111 (F.C.T.D.).
6 Judgment dated January 15, 1980, Federal Court, Trial
Division, T-3363-79, not reported.
The applicant's counsel also cited a passage from Fox's The Canadian Law and Practice Relating to Letters Patent for Inventions,' which refers to practice in the Exchequer Court.
The Union Carbide case is one in which the validity of the patent was put in issue by the statement of defence and the principles expressed therein regarding novelty, inventive ingenuity and prior art are expressed in a judgment after trial. The Asbestos case is reported as a conflicts action under subsection 45(8) of the Act. The DuPont case is one in which the plaintiffs sought to impeach the defendant's patent. In the Omark case the plaintiffs, claiming infringement, sought further and better particulars from the defendant, and the reported decision enunciates clearly the purpose and function of Rule 415(1).
The motion cited in the Windsurfing case appears to be on all fours with the motion at bar, in that the defendants, before pleading, sought particulars from the plaintiffs as to the "date on which the idea of the invention of the patent in suit was conceived", and indeed, as to all steps taken by the inventors up to the date of filing the application for the patent. The motion succeeded and those particulars, among others, were ordered by Mr. Justice Mahoney. He recorded no reasons in support of that order.
The plaintiffs' counsel relies, at this stage at least, upon the prima facie validity of the patent, averring that the particular date of the invention is neither needed nor compellable before the state ment of defence is filed. He cites these decisions: Durand & Cie v. La Patrie Publishing Co., 8 Embee Electronic Agencies Ltd. v. Agence Sher- wood Agencies Inc. et al., 9 Flexi-Coil Ltd. v. Smith-Roles Ltd., et al. 10
' Fourth Ed., 1969, Carswell, Toronto, at p. 473.
8 (1951), 15 C.P.R. 86 (Ex. Ct.).
9 (1979), 43 C.P.R. (2d) 285 (F.C.T.D.).
10 (1979), 42 C.P.R. (2d) 180 (F.C.T.D.).
The Durand case is similar to the case at bar, although that action was taken for alleged infringement of copyright. The defendant, before pleading, sought analogous particulars from the plaintiff. Cameron J. is reported as follows:
Items 5 and 6 are for particulars as to whether the author and composer are alive, and if deceased, the dates of death. Item 7 is for particulars of the name of the country in which the play was first produced, the date thereof and the name of the publisher. These demands in my opinion relate to the question of the existence of copyright in the play.
These particulars are among those which counsel for the plaintiff submits can be ascertained upon discovery. It is not always easy to draw the line between what ought to be fur nished by way of particulars and what ought to be obtained by way of discovery. Particulars are ordered primarily with a view to having a pleading made sufficiently distinct to enable the applicant to frame his answer thereto properly, and secondarily to prevent a party from being taken by surprise at the trial. Examination for discovery is made to get at the knowledge of the adverse litigant."
And he concluded:
I think I may safely assume that in this case the defendant will put in issue either the existence of copyright or the title of the plaintiff thereto, or both; and therefore, in considering what are the material facts which the plaintiff must set forth in its claim, it is proper to take into account that the plaintiff may intend to rely on the presumption that copyright subsists in the play rather than setting out matters which would establish that fact. From that point of view, it is not material to its case to allege facts which establish the existence of copyright. While particulars as to Items 5, 6 and 7 would doubtless be of great assistance to the defendant in meeting the presumption as to the existence of copyright in s. 20(3) of the Act, it must be remembered that the burden of proof on that point (under the circumstances I have mentioned) lies on the defendant. For that reason I do not think that the plaintiff is required to give particulars as to Items 5, 6 and 7. 12
In the Embee case the plaintiffs brought action because of alleged infringements of a non-regis tered trade name or mark, and of registered copy rights. There, again, the defendants moved for particulars before pleading. In his reasons, leading to a conclusion that the defendants' request was premature, Mr. Justice Marceau is reported thus:
" Supra, fn. 8, at p. 90. 12 Ibid., at p. 91.
The question of particulars in an action of this nature is a difficult one although it is governed by long established princi ples: see Fox, Canadian Law of Trade Marks and Unfair Competition, 3rd ed. (1972), p. 415 et seq. I do not think it necessary for me to review those principles. However, I wish to point out that, as I understand the law in this regard, a distinction must be made between a request for particulars made prior to the filing of the statement of defence and one made at a later stage of the proceedings. Before trial, after the issues have been defined, a defendant is entitled to be informed of any and every particular which will enable him to properly prepare his case, so that he may not be taken by surprise at the trial. But, before the filing of the defence, the right of a defendant to be furnished particulars is not so broad, since it does not have the same basis and serves a different purpose.' 3
While the case at bar, unlike the Embee case, is concerned with alleged infringement of a patent, the principles in regard to pleadings and particu lars are common to many and various kinds of cases, including those involving intellectual prop erty in general.
The Flexi-Coil case is one in which the same issue precisely was raised as is presented here, combined with a deficient affidavit in support of the defendants' motion. Such circumstances are set out in the words of Mr. Justice Cattanach, reported as follows:
It is represented that the particulars requested are essential to pleading in defence to the claim, that the date of the invention is essential to assess the relevance of the prior art available to defendants and that the particulars of the proposals in the specifications are essential to the defendants to support a defence of invalidity because of obviousness and anticipation. 14
With grace, upon reflection, Cattanach J. con cluded:
Because I am of the opinion that the supporting affidavit does not accomplish its purpose I would dismiss the motion.
I would add that I have also reached the conclusion that the request for particulars is premature in any event, that the statement of claim pleads all material allegations to the plain tiffs cause of action and the matters with respect to which the defendants' request particulars are not as yet issues in dispute and cannot be until a defence has been filed.
Counsel for the defendants referred me to an order that I granted on March 2, 1978, in Matbro Ltd. et al. v. J.I. Case Co. Inc. et al., Court file No. T-3814-77 [since reported 42 C.P.R. (2d) 121] in which the notice of motion requested
13 Supra, fn. 9, at p. 286. 10 Supra, fn. 10, at p. 181.
particulars substantially identical to the particulars presently being sought and supported by an affidavit in substantially the same form as the present supporting affidavit.
I do not recall if the supporting affidavit in the earlier application was the subject of attack as to its sufficiency (it may have been) but the present affidavit certainly was.
Upon reflection I am now convinced that I was wrong in granting the order that I did on March 2, 1978, and I cannot conscientiously perpetuate, in the interest of consistency, an error which I now think I made in granting the previous order. 15
What is to be made of the inconsistent disposi tions generated by the Court? On the one hand, in the dynamic sequence of events leading to the trial of the action, it is logical at this stage to assert that because the defendant has not yet pleaded in defence to the claim, no averments of prior art or invalidity founded on obviousness and anticipation are raised in the proceedings. They might never be raised. On the other hand, in the words of Camer- on J., one "may safely assume that in this case the defendant will put in issue" those very matters of defence.
The question in issue is a simple one which easily admits of either an affirmative or a negative answer, but which deserves only one standard answer. A plaintiff in a patent infringement action ought either to be obliged to set out the whole history of his patent including the date of inven tion, or alternatively to be free to withhold that fact unless and until the defendant both defends the action and raises the matter.
The most logical and, if for that reason alone, the better practice in all such situations is to heed the Act, presuming the patent to be prima fade valid, and not to compel the plaintiff to produce such particulars unless and until the defendant formally lodges a defence to the action and alleges prior art or obviousness and anticipation. That is a normal precept. The fact that this is a patent case affords no reason to contrive an abnormal practice for it. The proper disposition of this motion, and, it would appear, of all such motions, is dismissal with costs. The correct line of decision is surely that of Messrs. Justices Cameron and Marceau, and of Mr. Justice Cattanach in the Flexi- Coil case.
15 Ibid., at p. 182.
Therefore the motion is to be dismissed. Because of the Court's own cited division of opinion on this particular matter however, it seems inequitable, this time, to award even the nominal costs which could be taxed. With this present disposition, the line of authorities against ordering the particulars sought herein is growing. The next defendant, if any, who seeks such particulars should not neces sarily expect to benefit from a discretionary concession as to costs.
ORDER
UPON hearing the motion of the defendant Erco Industries Limited/Les Industries Erco Limitée, for an order that the plaintiffs shall provide the date of invention of the patent in suit, which the plaintiffs intend to rely upon, and the material facts alleged to establish such date of invention,
IT IS ORDERED that the defendant's motion be, and it is hereby, dismissed, without costs awarded for or against any party hereto.
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