METRIC TOOL & DIE CO. OPINION AND ORDEREDWARD R. BECKER, District Judge. Metric Tool & Die Companies CanadaI. Preliminary Statement. This is a trade secret case. Plaintiff, The Anaconda Company (. However, Anaconda is a diversified company also engaged in the fabrication of a varied line of products made from copper, aluminum, steel, and other materials, including a product known as flexible metal hose. Find the Metric Tool & Die Co company profile in Carlisle, PA. Lawyer, Attorney, Counsel, Law Firm, & then The ANACONDA COMPANY, a Corporation of Montana v. METRIC TOOL & DIE COMPANY, a Corporation of Pennsylvania. OPINION AND ORDER EDWARD R. BECKER, District Judge. One application of flexible metal hose is an item known as telephone cord armor (. TCA is what protects the telephone cord from wear and tear, abuse, and vandalism. Anaconda fabricates TCA on a sophisticated profile and winding (. Metric is a Morrisville, Pennsylvania concern. Metric began to manufacture TCA after it was invited to bid on TCA by Western Electric Company, Inc., (. Western is the principal buyer of TCA in the nation, and Metric has now succeeded Anaconda as Western Electric's principal supplier of TCA. Anaconda claims that the misappropriation was achieved by industrial piracy: the hiring of Anaconda employees from its Mattoon, Illinois, plant and the unauthorized removal from that plant of certain tooling and drawings which served as a material aid to Metric in the construction of its own P& W machine for the manufacture of TCA. Metric's principal defense is that it designed, engineered, and built its P& W machine on its own, admittedly with some help from some former Anaconda employees, but essentially on the basis of the expertise of Metric's president and sole stockholder, Edward Hussian (. Inter alia, Hussian claims that Metric built the machine through . Metric has also interposed a number of other defenses: that Anaconda's P& W machine design did not constitute a trade secret because it was not sufficiently novel, because many of its component parts were publicly available, and because Anaconda had not protected the confidentiality of the machine's design; that the alleged misappropriation occurred more than six years before the initiation of this lawsuit, which consequently is barred by the statute of limitations; and that Anaconda was guilty of laches because of its delay in bringing this suit. Jury trial was waived by the parties. The trial of the case consumed eight days. Metric Tool and Die Company was founded in the Southern province of China known as Guangdong. We are a leading manufacturer of high pressure die-casting mould, Cavity mould,aluminum alloy die casting, Read more >>. Metric Tool Die Co.Ltd was founded in the Southern province of China known as Guangdong. We are a leading manufacturer of high pressure die-casting mould Cavity mould, aluminum alloy die casting, zinc alloy die casting, speed. Metric Die found in: RDX High Speed Metric Round Dies, Irwin 24-Piece Metric Tap & Hexagon Die Set, RDX High Speed Metric Left Hand Die, 60-Piece. Learn about working at Metric Tool Die Co.LTD. Join LinkedIn today for free. See who you know at Metric Tool Die Co.LTD, leverage your professional network, and get hired. Metric Tool & Die Co., Limited. ChuangFu Industrial Park, TongFuYu Industrial Area, ShiYan Town, Bao'An District, Shenzhen, Guangdong, China. For reasons which follow, we find that Metric misappropriated Anaconda's trade secrets in the design of its P& W machine, and enjoin Metric's use of those trade secrets for a period of 1. This opinion constitutes our findings of fact and conclusions of law pursuant to Fed. R. Civ. P. The Anaconda Profile and Winding (P& W) Machine. P& W machines are used for the production of a variety of strip- wound flexible metal hose products, ranging from oil cans, shower hoses, and small diameter cable to TCA. The machines have been designed by many companies and have been used and patented for sixty years or more. At present, there are approximately 3. United States which manufacture some type of flexible metal hose. P& W machines consist of 3 units: forming, winding, and hose take- up. In the forming unit, a metal strip of rectangular cross section is subjected to a number of rolling operations, each of which involves passing the strip through sets of specially designed rolls. These forming rolls are positioned and dimensioned so that the strip is shaped into a specific profile. The formed strip is next fed to the winding unit wherein winding heads or equivalent winding means are positioned to form the strip into a helically interlocked hose. Finally, the formed hose is led from the winding head using a guide or take- up unit. No P& W machines have been offered for sale to the metal hose industry by equipment manufacturers. Thus, companies in the industry have been required to design and build their own machines for internal use. Starting in about 1. Anaconda (acting through its Metal Hose Division) entered on a project to engineer and design an all- purpose full line P& W strip wound metal hose machine for use by the Division in producing a variety of metal hose products. A prototype of the P& W machine was built in 1. P& W machine was settled on in about 1. In all, over twenty man- years were devoted to the project. Anaconda's P& W machine was and is capable of producing a wide variety of strip wound metal hose from about 1/8 inch in diameter through 4 inches in diameter. By changing tooling, substituting parts and making machine adjustments, the Anaconda P& W machine could be set up to make shower hose, oil can hose, small diameter cable, telephone cord armor or a host of other metal hoses. A number of these P& W machines were built by the Metal Hose Division in the 1. Some were set up and operated at Waterbury, Connecticut, and others were shipped to the Division's manufacturing facility in Mattoon, Illinois. Later several machines were sent to the Division's plant in Amsterdam, Holland. A set of blueprints of the drawings have since the 1. Mattoon for servicing and maintenance purposes. The P& W machine has many parts due to its adjustability and versatility as well as its complicated function. Over two hundred (2. Seventy to one hundred separate sets of tooling are held in inventory by the Division for making a variety of metal hoses as required and demanded by the Division's customers. As we have noted, Anaconda designed and built its P& W machines for its internal use in manufacturing products for sale. Competitors have been required to do likewise since no P& W machines have been offered for sale to the metal hose industry by equipment manufacturers. The Anaconda P& W machine was specially tooled in the early 1. TCA. Until Metric began manufacturing TCA, no other American manufacturer had a P& W machine capable of such production. Anaconda has manufactured TCA only in its Mattoon, Illinois, plant. Since the early 1. Anaconda has sold TCA to a number of customers, though its principal customer was Western Electric. Because Anaconda was its sole supplier, Western Electric attempted throughout the 1. However, until Metric entered the business of TCA manufacture, Western was unable to find a second supplier. While the question whether plaintiff possesses a trade secret is ultimately a question of law, there must be a factual predicate for resolving that question. We conclude, see discussion infra, that plaintiff possesses a trade secret in its P& W machine which makes TCA. As the essential factual predicate, we find that the specific items listed below in Appendix A,* which are used in combination as part of a P& W machine for the manufacture of telephone cord armor, are the trade secrets of the plaintiff. Each of the items accomplishes a useful function, directly or indirectly, in forming, guiding, and winding a metal strip to produce a finished hose. B. The Proprietary Nature of Anaconda's P& W Machines. All of Anaconda's P& W machines have been held in secrecy in the Metal Hose Division's three plants in Waterbury, Connecticut; Mattoon, Illinois; and Amsterdam, Holland. Porzio, manager of manufacturing and engineering of Anaconda (. He also stated that none of the machines have been patented, thus precluding public inspection of the patent records. As we have noted, until Metric began manufacturing TCA hose no other American manufacturer had a machine capable of such production. Since Anaconda began to produce hose on its P& W machines, it has maintained plant security against plant visitors in all of its metal hose production facilities. Porzio identified a document which he had written and placed in the standard practice instructions manual of Anaconda, relating to plant visits and the restrictions on visitors in Anaconda's plants. The instruction, which was promulgated in 1. Waterbury plant, prohibited even escorted visitors from being brought to machines which were deemed proprietary in nature, including the P& W machines. Thus, to view the machines, visitors were relegated to . Although plaintiff has not produced a similar document applicable to the Mattoon plant prior to 1. Porzio testified that the same company policy had existed since 1. Mattoon. We credit that testimony. Although Anaconda's employees were never specifically instructed in ipsis verbis as to the proprietary nature of the P& W machine, we find from the evidence that the employees had such knowledge. First, Porzio testified that employees of the maintenance crew of the tool and grinding group, the machine shop, and the department in which the machines operate were aware of the policy concerning visitors to the plant. Second, the maintenance people erected screens and barriers around the machines when tours were to be conducted, with the greatest screening surrounding those machines closest to the tour aisle. Finally, Charles Van Meter, a former Anaconda employee who assisted Metric in building its P& W machine, testified that he and others believed or were told that the Anaconda machines were . To a layman, the belief that something is patented conveys an image that the item in question is the exclusive property and right of the patentee. We find that Van Meter's testimony is further evidence of the proprietary nature of the Anaconda P& W machine. C. Metric's Construction of Its P& W Machine. The genesis of Metric's entry into the business of TCA manufacture was a 1. Hussian to Western's purchasing offices in Baltimore, Maryland, on other business. Hearing about Western's desire to secure a second source of TCA, Hussian conferred with Western engineers and received samples of and specifications for the finished product. He also learned at that time that Anaconda was then Western's sole supplier of TCA, and that Anaconda's production facility for TCA was at Mattoon, Illinois. Hussian thereupon decided that Metric would enter the TCA market. Hussian's first approach was to attempt to buy a P& W machine from Tubest, a large French company located in Paris.
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