National Gypsum Products Co. v. Buttonlath Manufacturing Co.

This is an action to recover royalty—$4,000 for the year June 3, 1928, to June 3, 1929, and $1,000 for the quarterly period from June 3, 192'9, to September 3, 1929,—alleged to be due from defendant to plaintiff, under the terms of a contract entered into between the said parties under date of June 3, 1924. This contract provided for the sale by plaintiff to defendant of certain specified machinery and raw materials for the manufacture of tile, and for an exclusive license to defendant to use and manufacture plaintiff’s patented machines. Under the terms of the contract, the license fees or royalties were graduated to the tile manufactured through the use of plaintiff’s patents, to wit:

The answer asserted that the contract had been terminated by notice dated January 11, 1929; that all royalties due from defendant to plaintiff had been paid, and that defendant had fully complied with all the conditions in that behalf upon its part to be performed.

The contract provided for termination as follows:

The court found that, “except for the payment of the sum of $3,147.30, on account of minimum royalty due under said agreement for the year commencing on the 3rd day of June, 1928, and…