Elgin National Watch Co. v. Bulova Watch Co.

This is an action by a patentee against its licensee for minimum royalties payable under a nonexclusive licensing agreement. The licensee has never employed the invention and has repudiated the agreement and resists the claim to minimum royalties accruing after repudiation upon the assigned ground of invalidity of the patent. The defense is incorporated in a plea of failure of consideration, which has been stricken as insufficient in law.

The question thus raised on this appeal is whether invalidity of a patent is a defense to an action for minimum royalties where the licensee has not used and…