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Kamin v. Kuhnau - 232 Or. 139, 374 P.2d 912 (1962)

Rule:

It has been recognized in the cases that a manufacturer who has been employed to develop an inventor's ideas is not entitled to appropriate those ideas to his own use.

Facts:

Plaintiff hired defendants as independent contractors to assist plaintiff in the development and construction of a new truck design. The project was successful and defendants built the trucks for plaintiff to sell. Defendants then began building and selling the trucks on their own account, and plaintiff sued for damages and an injunction based on unfair business practices. The trial court ruled for plaintiff, and defendants appealed.

Issue:

Was the plaintiff entitled to injunction under the circumstances? 

Answer:

Yes.

Conclusion:

The court affirmed the trial court’s judgment, saying that the essence of the action was breach of trust arising from the confidential relationship between the parties. It did not matter that the defendants, or others, could have copied the design by inspecting one of the trucks; defendants obtained the information by wrongful means. Public disclosure by the sale of the trucks and by the patent application, and the fact that others also produced similar trucks, did not negate the fact that defendants breached a position of trust in misappropriating plaintiff's design. The court said that a manufacturer who was retained to assist in production and development was not free to appropriate the plans for its own use.

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