The opinion of the court was delivered by: Igoe, District Judge.
1. Plaintiff, Fargo Glass & Paint Company (hereinafter referred
to as "Fargo"), is a corporation organized and existing under the
laws of the State of North Dakota since 1917, having its
principal offices at Fargo, North Dakota.
2. Defendant, Globe American Corporation (hereinafter referred
to as "Globe"), is a corporation organized and existing under the
laws of the State of Indiana since 1930, having its principal
offices at Kokomo, Indiana.
3. Defendant, The Maytag Company (hereinafter referred to as
"Maytag"), is a corporation organized and existing under the laws
of the State of Delaware since 1925, having its principal offices
at Newton, Iowa.
4. From 1935 to the present time, except during World War II,
when major home appliances were not available, Fargo has engaged
in the business of a distributor of home appliances.
5. Since 1930, Globe has operated two manufacturing divisions,
one at Macomb, Illinois, known as the "Macomb Division", and the
other at Kokomo, Indiana, known as the "Kokomo Division". The
Macomb Division has manufactured various types of agricultural
equipment. During the period from 1930 to the present time
(except during the period from 1942 through part of 1945, when it
was engaged in the manufacture of life boats and other equipment
for the Government), the Kokomo Division has manufactured various
types of stoves and ranges.
6. In 1937 the Kokomo Division commenced the manufacture of gas
ranges under the name of "Dutch Oven", or "Globe Dutch Oven", and
sold these ranges in interstate commerce. These gas ranges are
hereinafter referred to as "Dutch Ovens".
7. The Dutch Oven combines two utilitarian features — automatic
shut-off and heat retention. No other gas range on the market has
the unique combination of these two features.
8. Globe nationally advertised Dutch Ovens with declarations as
"Exclusive, The Only Range In The World That Automatically
Turns Off Its Own Gas And Keeps On Cooking."
"Only Dutch Oven automatically turns off the gas and keeps
right on cooking."
9. Globe is now, and since 1937 has been, the only manufacturer
of automatic shut-off, heat-retained gas ranges in the United
10. No distributor of home appliances in the United States,
including Fargo, could obtain automatic shut-off, heat-retained
gas ranges from any manufacturer other than Globe.
11. Some of the features of the Dutch Oven are covered by
United States patents owned by Globe, and the defendants have so
12. For several years prior to 1945, Globe made plans for the
post-war reconversion of the Kokomo Division to peace-time work,
and for the post-war distribution and sale of Dutch Ovens
throughout all of the States of the United States and the
District of Columbia.
13. By 1944, Globe determined to confine the manufacturing
facilities of the Kokomo Division to the manufacture of Dutch
14. In 1944, it sold its solid fuel stove business to the
Indianapolis Stove Company.
15. In 1944, it engaged the engineering firm of Sanderson &
Porter of New York City to study and submit plans for plant
arrangement of then existing and new facilities of the Kokomo
Division; said firm completed its study and rendered its report
16. In 1944, it engaged the engineering firm of Barnes &
Reinecke of Chicago, Illinios, to design and engineer tools and
features and to lay ...