St. Regis Paper Company v. Royal Industries, and Plas-Ties Subsidiary, St. Regis Paper Company v. Royal Industries, and Plas-Ties Subsidiary

This case involves the validity of a patent on a plastic tie strip and a method for manufacturing the product. It also involves a license agreement for the patent rights and for the know-how used to manufacture the patented tie strips. The District Court held the patent invalid and permitted rescission of the license agreement. The Court denied the licensor royalties after the filing of this action, denied the licensee recovery of royalties paid before the filing of this action, and granted the licensor some compensation for its know-how. Both parties appeal.

Some time before June 1950, Gerald Bower formed a partnership to develop and market a plastic tie strip which could be used to tie bunches of fresh vegetables. In June 1950, the business was incorporated under the name of Plas-Ties Corporation (Plas-Ties).

On June 2, 1952, Bower filed an application for a patent on a plastic tie strip and a method for making the tie strip. The Patent Office rejected all of Bower’s original claims, but he later succeeded by amendments to the application in getting some claims allowed on a narrower basis. A patent ( U.S. Patent No. 2,767,113 ) was issued to Bower on October 16, 1956 (the…