Nature of the Case
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Facts
This was a suit in equity originally brought in the Court of Chancery of the State of New Jersey by P. The bill alleges that P is the inventor and patentee of certain improvements in coach pads, harness saddles, and saddle trees, covered by three certain letters-patent issued to him; that on Feb. 1, 1876. P made an agreement in writing of that date with Ds and assigned Ds the letters-patent, and also certain other letters-patent for which he had made application to the Patent Office, and also any other patents which he might obtain for improvements in gig-saddles and coach-pads for harnesses. Ds agreed to use their best efforts to sell goods manufactured with the patents and pay P royalties. P sold and transferred to Ds all his titles and interests in the inventions covered by his patents. The transfer was absolute and unconditional. P no longer had a right to prosecute anyone for infringements of his patents or to demand damages therefore or an account of profits. P was entitled to the royalties secured by his contract with Ds, and nothing more. P began to suspect that Ds were not paying what was due under the contract and sued Ds in state court to get an accounting. Ds removed the case to federal court reasoning that the case involved a patent and arose under patent law that federal courts had exclusive jurisdiction. P petitioned to remand the case and the petition was granted. Ds appealed.
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