The opinion of the court was delivered by: BRUCHHAUSEN
BRUCHHAUSEN, District Judge.
This is an action for infringement of a patent. The application therefor was filed in the Patent Office by Mr. Murray G. Crosby on April 21, 1953 and granted under Patent No. 2,851,532 on September 9, 1958. The claims relied upon are numbered 10, 12, 16, 18, 22, 24 and 25. Claims numbered 12, 16 and 24 relate to receiving equipment. Claims numbered 10, 18 and 22 allude to transmitting equipment and claim number 25 pertains to equipment for the adapting of a monophonic receiver, producing stereophonic signals in a stereo manner. The defense is invalidity of the patent.
Between the period of his graduation as an electrical engineer, in or about the year 1925, and the spring of 1953, when he filed his application for the subject patent, Mr. Crosby devoted his talents to the electronic communications field, specializing in FM communications. In the first nineteen years of that period, he was employed by the Radio Corporation of America at its receiving station for transocean communications. He assigned a number of patents to the said corporation. Thereafter, he continued the same type of endeavor with several other concerns and in 1948 organized his own company. Early in 1951, his company entered into an eighteen months contract with the United States Naval Department to devise an FM Multiplex System for a special one-way disaster type of communication. He testified that this occupation immersed him and his associates in considerable multiplex research and thinking on the subject matter of the patent in suit. (R. 304-310). Mr. Crosby then conducted numerous experiments, with the object of producing practical equipment, acceptable to the industry. He eventually devised a system, which he named "Multiplex Communication System", culminating in the subject patent. His invention relates to a multiplex communication system and more particularly to the binaural transmission and reception of sound. He was aware of the contribution to the art, made by Major Armstrong, set forth in his 1933 patent, teaching the advantages of wide-band FM radio broadcasting.
On June 15, 1953, a few months after he filed his application for the subject patent, he was invited to address the American Institute of Electrical Engineers. His subject was "Binaural Sound on One FM Channel." (R. 314; Exh. 29).
That presentation comprised the results of the measurement of the material, recorded from his experiments. (R. 316).
Exhibit 29 includes, in substance, the disclosure in the subject patent application.
In December 1953, Mr. Crosby was invited to address the Institute of Radio Engineers on the same subject. (R. 317).
During that year, he gave demonstrations illustrating his new broadcasting technique to a Sylvania engineer, as well as to a large assemblage of representatives of the National Broadcasting Company and Radio Corporation of America, including Mr. Charles Dennings, a former chairman of the Federal Communications Commission and then a vicepresident of National Broadcasting Company. (R. 319).
On October 11, 1957, by invitation, Mr. Crosby addressed the Audio Engineering Society on the subject entitled "A Compatible System of Stereo Transmission by FM Multiplex." (R. 323).
Under date of October 25, 1957, Mr. Jerry A. Meyer, an employee of the defendant's Radio Receiver Department, wrote Mr. Crosby for a copy of the aforesaid address, and he also sent a copy of his letter to Mr. W. H. Beaubien, another employee of the defendant.
Mr. Meyer therein stated:
"We are interested in obtaining a copy of the paper you presented at the Convention (alluding to the said Audio Engineering Society) and any other information which you feel would help us gain a background in FM multiplexing."
On October 31, 1957, Mr. Crosby sent him a copy of the address. (Exh. 30).
In the summer of 1958, the first broadcast under Mr. Crosby's system ...