Eastern Electric, Inc. v. The Seeburg Corporation

FEINBERG, Circuit Judge:

Plaintiff Eastern Electric, Inc. formerly manufactured electrical cigarette vending mchines, holding several patents in the field. By a written Purchase Agreement dated April 8, 1958, Eastern sold its entire cigarette vending machine business, including its patents, to defendant The Seeburg Corporation. 1 See-burg promised, inter alia, to pay royalties on each electrical cigarette vending machine sold that utilized the Eastern patents, referred to in the agreement as the Vending Machine Patents. After paying royalties of more than $50,000 on almost 8,500 machines which…