Full opinion text
FINDINGS OF FACT, DISCUSSION, CONCLUSIONS OF LAW, AND ORDER HUYETT, District Judge. TABLE OF CONTENTS TABLE OF CONTENTS.......................................................762 FINDINGS OF FACT.........................................................763 I. Parties.................................................................763 II. Patents-in-Suit..........................................................763 III. Eldon Hostetler, The Inventor...........................................764 IV. Development of the Ziggity Poultry Watering System....................765 V. Patent Infringement....................................................771 VI. Willful Infringement....................................................775 VII. Liability of the Defendants..............................................775 VIII. Patent Validity .........................................................776 A. 35 U.S.C. § 103 (Obviousness).......................................776 B. 35 U.S.C. § 102 (On Sale Bar).......................................779 C. Inequitable Conduct.................................................780 D. 35 U.S.C. § 112.....................................................780 E. 35 U.S.C. § 132 (New Matter).......................................781 IX. Damages...............................................................781 X. Breach of Contract Counterclaims .......................................782 A. The Settlement Agreement..........................................782 B. The Oral Agreement................................................783 DISCUSSION.................................................................783 I. Patent Infringement Analysis............................................783 A. Scope of the Claims at Issue........................................783 1. Scope of Claim 19 of the '345 patent ............................784 2. Scope of the remaining claims at issue...........................785 B. Literal Infringement................................................786 1. Literal infringement of Claim 19.................................786 2. Literal infringement of the remaining claims.....................789 C. Infringement Under the Doctrine of Equivalents.....................790 D. Willful Infringement................................................792 E. Liability of the Defendants..........................................794 1. Val.............................................................794 2. Vallorbs ........................................................794 3. Individual defendants............................................795 II. Patent Validity Analysis.................................................796 A. Invalidity Under 35 U.S.C. § 103 (Obviousness).......................797 1. Scope and content of the prior art...............................798 2. Level of ordinary skill in the art ................................799 3. Differences between the prior art and the claims at issue.........800 4. Secondary considerations.........................................802 5. Conclusion with respect to the defense of obviousness............807 B. Invalidity Under 35 U.S.C. § 102 (On Sale Bar)......................808 C. Invalidity Because of Inequitable Conduct............................812 1. Ziggity drinker 2................................................812 2. Ziggity drinker 3................................................813 3. Ziggity’s sale of “trigger action” drinkers to Cap-It-All in December 1978 .................................................. 813 4. Ziggity’s interrogatory answers and answer to request for production of documents..........................................814 5. Dutch Search Report and the Boegli Patent......................814 6. British Search Report and the Wilmot Patent.....................815 D. Invalidity Under 35 U.S.C. § 112....................................816 E. Invalidity Under 35 U.S.C. § 132 (New Matter).......................818 III. Damages Analysis......................................................819 A. Lost Profits........................................................820 1. Lost profits as a result of lost sales.............................820 2. Lost profits as a result of price erosion..........................824 B. Reasonable Royalty.................................................824 C. Sales Base..........................................................829 D. Prejudgment Interest................................................830 E. Increased Damages.................................................831 F. Attorney Fees......................................................832 G. Summary of Damages ..............................................832 IV. Analysis of Breach of Contract Counterclaims............................833 A. The Settlement Agreement..........................................833 B. The Oral Agreement................................................835 CONCLUSIONS OF LAW.....................................................837 APPENDIX...................................................................839 FINDINGS OF FACT I. PARTIES 1. Plaintiff Ziggity Systems, Inc. (“Ziggity”) is a corporation organized and existing under the laws of the State of Indiana and has its principal place of business located at 12456 Industrial Parkway East, Middlebury, Indiana 46540. (Stipulated). 2. Defendant Val Products, Inc. (“Val”) is a corporation organized and existing under the laws of the Commonwealth of Pennsylvania and has its principal place of business located at 2599 Old Philadelphia Pike, Bird-in-Hand, Pennsylvania 17505. (Stipulated). 3. Defendant Vallorbs Jewell Company is a corporation organized and existing under the laws of the Commonwealth of Pennsylvania and has its principal place of business located at 2599 Old Philadelphia Pike, Bird-in-Hand, Pennsylvania 17505. (Stipulated). 4. Defendant Frederick W. Steudler, Sr. (deceased) was an individual residing at 138 Musser Avenue, Lancaster, Pennsylvania 17603, and was an officer and director of both Val and Vallorbs. (Stipulated). 5. Defendant Jeanette Steudler, named in her capacity as Executrix for the Estate of Frederick W. Steudler, Sr., is an individual residing at 138 Musser Avenue, Lancaster, Pennsylvania 17603, and is an officer and director of both Val and Vallorbs. (Stipulated). 6. Defendant Frederick W. Steudler, Jr. is an individual residing at 311 Poplar Avenue, New Providence, Pennsylvania 17660, and is an officer and director of both Val and Vallorbs. (Stipulated). II. PATENTS-IN-SUIT 7. The patents-in-suit are United States Letters Patent No. 4,637,345 (“the ’345 patent”) and United States Letters Patent No. 4,491,088 (“the ’088 patent”). (Stipulated). 8. The ’088 patent issued January 1, 1985 on Application Serial No. 520,099, filed April 10, 1981. The sole named inventor was Eldon Hostetler, Vice President of Ziggity. Application Serial No. 520,099 was a continuation of United States Patent Application Serial No. 113,607, filed January 21, 1980. United States Letters Patent No. 4,284,036 (“the ’036 patent”) issued on Application Serial No. 113,059 on August 18, 1981. That portion of the 17 year term of the '088 patent subsequent to August 18, 1998, the expiration date of the ’036 patent, was disclaimed during the prosecution of Application Serial No. 520,099 in order to overcome the Examiner’s rejection over the already-then issued ’036 patent based on “double patenting.” On April 16, 1985, reexamination of the ’088 patent was requested. As a result of the reexamination proceeding in the United States Patent and Trademark Office, claims 1 and 2 of the ’088 patent were cancelled, and new claims 3, 4, and 5 were added and issued on March 31, 1987 as Reexamination Certificate No. B1 4,491,088. (Stipulated). 9. The ’345 patent issued January 20, 1987 on Application Serial No. 644,612, filed August 27, 1984. Application Serial No. 644,612 was a continuation of application Serial No. 520,099. (Stipulated). 10. Ziggity has alleged infringement of claims 1-13 and 19-24 of the ’345 patent and claims 3-5 of the ’088 patent. (Stipulated). 11. Claims 14-18 of the ’345 patent are not at issue in this action. (Trial Transcript 2/16/90 at page 193, lines 5-8). 12. The ’036 patent is not at issue in this litigation. (Trial Transcript 2/20/90 at page 94, lines 21-25). 13. All ownership interest in the ’088 patent and the ’345 patent have been assigned to Ziggity by Eldon Hostetler. (Defendants’ Exhibit 281). III. ELDON HOSTETLER, THE INVENTOR 14. Eldon Hostetler is the sole inventor of the patents-in-suit. (Trial Transcript 2/13/90 at page 101, line 15 thru page 102, line 1). 15. Eldon Hostetler was born in an Old Order Amish home on a 280-acre farm near Shipshewana, Indiana in 1923. (Id. at page 25, lines 16-23). 16. Eldon Hostetler’s formal education concluded with the eighth grade. (Id. at page 25, lines 21-22). 17. He worked on the family farm until he was 21 years old. (Id. at page 25, lines 24-25). 18. In 1944 at 21 years of age, he went to work for Creighton Brothers of Warsaw, Indiana. At that time, Creighton Brothers was the largest poultry farm in the world. (Id. at page 25, lines 24-25; page 26, lines 13-15 & 21-22). 19. While employed at Creighton Brothers, Eldon Hostetler took a short course in poultry at Purdue University. (Id. at page 27, lines 5-6). 20. At Creighton Brothers, Eldon Hostetler was responsible for selection and blood testing of poultry. (Id. at page 27, lines 3-9). 21. After Eldon Hostetler left Creighton Brothers, he went into a partnership with Dr. Pringle, a large broiler grower who wanted to get into the hatchery business. (Id. at page 28, lines 5-10). 22. Eldon Hostetler developed a new strain of poultry which later became known as the White Meatier. (Id. at page 29, lines 1-6). 23. In 1984, Eldon Hostetler started research on an automatic feeder. (Id. at page 29, line 10). 24. Eldon Hostetler has been involved in research and development of poultry feeding and watering equipment since 1948. (Id. at page 29, lines 10-13). 25. Eldon Hostetler is the sole or co-inventor on close to 50 patents relating to poultry feeding and watering equipment. (Id. at page 29, lines 1-19). 26. From 1956 to 1976, Eldon Hostetler was employed by Chore Time, which is the largest poultry feeding and watering equipment manufacturer in the world. (Id. at page 30, lines 1-19). 27. Eldon Hostetler’s responsibilities at Chore Time were to research and develop poultry feeding and watering products. (Id. at page 31, lines 6-8). 28. Eldon Hostetler considers the centerless auger system developed for Chore Time and the nipple watering system developed for Ziggity to be his most significant developments. (Id. at page 29, lines 18-25). 29. In 1976, Eldon Hostetler’s wife was stricken with cancer, and he terminated his employment with Chore Time to take care of his wife’s health needs. (Id. at page 30, line 24 thru page 31, line 2). 30. During that time period, Eldon Hostetler commenced development of a new product and took steps to start a company to manufacture and distribute it. The product was a watering system for poultry. (Id. at page 31, lines 3-10.) 31. Ziggity was formed in 1977. (Id. at page 30, lines 19-23). 32. Eldon Hostetler has been the vice-president of Ziggity ever since the company’s formation. (Plaintiff’s Exhibit 23-78.) IV. DEVELOPMENT OF THE ZIGGITY POULTRY WATERING SYSTEM 33. Eldon Hostetler’s first efforts to develop a poultry watering system centered around the development of a cup system. (Trial Transcript 2/13/90 at page 31, lines 11-15). 34. In 1977, cup, bell, and trough systems were the water systems of choice by poultry integrators and growers. (Trial Transcript 2/15/90 at page 11, lines 12-17). 35. Cup, bell, and trough systems are referred to as open systems. (Trial Transcript 2/15/90 at page 12, lines 8-11). 36. In an open system, water is supplied to a container such as a cup, bell, or trough drinker. Chickens drink from these open containers. (Plaintiff’s Exhibit 51-B at page 10, lines 3-8). 37. Poultry cannot swallow. Poultry must trap water in their mouths and then raise their heads so that the water will run down their throats. (Trial Transcript 2/14/90 at page 70, lines 1-5). 38. Drinking in an upright position is more natural for a chicken and other fowl. (Trial Transcript 2/14/90 at page 70, lines 1-11). 39. In 1977, there were only a few nipple systems sold in the United States. The nipple systems sold at that time were manufactured in Europe. The Monoflo vertical action nipple with threaded attachment to the supply pipe is an example of the type of nipple drinker offered to the American poultry market in 1977. (Trial Transcript 2/13/90 at page 32, lines 4-12). 40. Nipple drinking systems are generally known as closed systems. (Trial Transcript 2/15/90 at page 12, lines 12-14). 41. In a closed watering system, water is supplied to the system through a regulator which controls the pressure of the water within the system. Nipple drinkers are attached directly to the water supply lines and the system is placed in a position with respect to the cage or floor so that chickens and other fowl get the water from the system by activating a triggering device on the nipple. (Trial Transcript 2/13/90 at page 33, line 22 thru page 34, line 24; page 38, lines 4-21). 42. The nipple systems offered in the United States market in 1977 did not perform well. They leaked and did not assure a constant and metered flow of water to birds when the nipple was triggered. (Trial Transcript 2/14/90 at pages 79-80; page 81, lines 16-23). 43. The poor performance of the nipple drinkers available in 1977 created negative good will for nipple systems in general. (Trial Transcript 2/15/90 at page 11, lines 17-22; page 16, lines 2-6). 44. Because of the resistance to nipple systems, Eldon Hostetler’s initial development of a poultry watering system concentrated on the use of a cup waterer. (Trial Transcript 2/13/90 at page 32, lines 13-25; page 33, lines 1-4). 45. Eldon Hostetler had a 12,000 square foot chicken house at his home which he used for research and testing. (Trial Transcript 2/13/90 at page 32, lines 17-19). 46. He purchased tooling to make a sufficient quantity of his cup watering system devices to test them in his own chicken house. (Trial Transcript 2/13/90 at page 32, lines 13-16). 47. The cup watering system developed by Eldon Hostetler in 1976 and 1977 is described in United States Patent No. 4,185,590. (Defendants’ Exhibit 5). 48. Eldon Hostetler’s cup watering system was not successful because it was too costly to manufacture and, therefore, too expensive to succeed on the market. (Trial Transcript 2/13/90 at page 32, line 13 thru page 33, line 4). 49. One feature of Eldon Hostetler’s cup watering system did, however, contribute to the success of the Ziggity nipple watering systems developed later. That feature was an arrangement allowing for the drinker to be snapped onto a saddle affixed to the water supply pipe. (Trial Transcript 2/13/90 at page 33, lines 7-16; page 42, lines 8-22). 50. The snap-on feature allowed for easy removal and cleaning of drinkers and reattachment of the drinker to the supply line. (Plaintiffs Exhibit 36). 51. In 1977, John Fredericks, general manager of Creighton Brothers and a longtime friend and associate of Eldon Hostetler, suggested to Eldon Hostetler that he develop a nipple watering system which utilized the snap-on feature. (Trial Transcript 2/13/90 at page 33, lines 7-10). 52. Creighton Brothers had experimented with European style nipple drinkers. The European style nipple drinkers often became clogged, resulting in leaks or inadequate water supply to the chickens. (Trial Transcript 2/13/90 at page 33, lines 7-8). 53. Eldon Hostetler’s cup watering system was of the active type. The chicken was required to peck at a trigger pin to release water into the cup. (Trial Transcript 2/13/90 at page 31, line 11 thru page 32, line 3). 54. The designer of a nipple watering system for poultry must keep several factors in mind. Principal among these factors are: Leaks must be avoided, a proper amount of water must be dispensed when the nipple is triggered, and the system must be “user friendly,” i.e. it must be a system that the chickens, including day-old chicks or “peeps,” can and will use. (Trial Transcript 2/13/90 at page 43, line 4 thru page 45, line 13). 55. In a nipple watering system, the birds must water themselves by activating the triggering device on the nipple drinker. (Trial Transcript 2/13/90 at page 45, lines 2-9). 56. There are two broad categories of chicken house systems using nipple drinkers. One is a cage system, and the other is a floor system. (Trial Transcript 2/13/90 at page 37, lines 4-23; Trial Transcript 2/14/90 at page 73, lines 1-9). 57. Cage systems are primarily used for laying hens, including pullets, which are laying hen chicks. In a floor system, the birds using the drinkers are broiler chickens. (Trial Transcript 2/15/90 at page 26, lines 22-23; page 27, line 24 thru page 28, line 3). 58. Broiler chicks are brought to a chicken house in flocks of 20,000 or more to be fed and watered for a period of approximately six and eight weeks, at which time the chickens are processed for human consumption. (Trial Transcript 2/15/90 at page 23, lines 13-19; page 29, lines 11-20). 59. Water leaks or an over-supply of water from a nipple drinker when triggered can cause a condition in chicken houses known as “wet pits.” Wet pits cause disease, mortality, and condemnation of the chickens when processed. Additionally, wet pits increase the labor required to maintain a proper environment for the growth of broilers and the production of eggs in cage operations. (Trial Transcript 2/15/90 at page 16, lines 4-6; page 24, lines 12-24). 60. The designer of a nipple watering system for chickens must also be mindful of the labor and maintenance cost of the use of the system. Some broiler houses accommodate up to 100,000 chickens at a time. (Trial Transcript 2/13/90 at page 43, lines 10-14; Trial Transcript 2/14/90 at page 76, lines 10-16). 61. Eldon Hostetler’s first nipple drinker consisted of the triggering device in his cup watering system with the cup having been removed and the nipple attached to the saddle on the water supply line. (Plaintiff’s Exhibit 3, Drawing No. 1). 62. This first nipple drinker was made from an injection molded plastic body and had a machined stainless steel insert which defined the outlet and the seats for the head of the trigger pin and two ball valve elements. (Trial Transcript 2/13/90 at page 47, line 22 thru page 48, line 9). 63. Eldon Hostetler tested this first drinker in his own chicken house. The drinker was unsuccessful because dirt and other debris in the supply line got caught in the seats preventing an effective seal of the ball valves and the head of the trigger pin, resulting in leaks. (Trial Transcript 2/13/90 at page 48, lines 10-21). 64. After recognizing the difficulties and failures of his first nipple drinker, Eldon Hostetler modified the drinker. His second prototype drinker was made with a solid injection molded plastic body. The second prototype drinker used a cup headed trigger pin, wherein the head of the pin was radiused on the bottom and flat on the top. The second prototype nipple drinker used only one ball valve. The cup headed trigger pin and the ball valve cooperated with seats integrally molded into the plastic body. (Plaintiffs Exhibit 3, Drawing No. 2; Trial Transcript 2/13/90 at page 48, line 22 thru page 50, line 24). 65. Nipple drinkers are used with very low water pressures. If the water pressure becomes too high, baby chicks cannot trigger the drinker against the force of the water pressure. Typically, water pressures in the nipple drinker system are less than one-half pound per square inch. (Trial Transcript 2/13/90 at page 34, line 25 thru page 35, line 18). 66. The water pressure is reduced through the action of the regulator attached to the system. (Trial Transcript 2/13/90 at page 39, lines 10-20). 67. Low water pressures are a factor that the designer of a successful nipple drinker must take into account. (Trial Transcript 2/13/90 at page 34, line 25 thru page 35, line 18). 68. Eldon Hostetler’s third prototype nipple drinker used the same ball and trigger pin as used in his second prototype. However, the housing or body of the drinker was changed to provide for a cylindrical bottom to the valve chamber upon which rested a molded thermal plastic seat which was somewhat resilient. (Plaintiff's Exhibit 3, Drawing No. 3; Trial Transcript 2/13/90 at page 50, line 25 thru page 51, line 15). 69. The third prototype nipple drinker was considerably more successful than the previous two. However, sealing problems continued and Eldon Hostetler sought to correct those problems by redesigning the insert molded thermal plastic seat. (Trial Transcript 2/13/90 at page 136, lines 14-20). 70. In the fourth nipple drinker in the evolution of the Ziggity nipple drinker watering system, Eldon Hostetler modified the seat to provide for an upstanding circular leaf at the bottom of the seat. The modified seats provided a seal at the lower leaf where the cup head of the trigger pin rested and a seal at the upper leaf on the seat which cooperated with the ball valve element. (Plaintiff’s Exhibit 3, Drawing No. 4; Trial Transcript 2/13/90 at page 51, lines 16-24). 71. The fourth drinker developed by Eldon Hostetler was successful and was the product sold commercially in large quantities in 1977 and 1978. It was referred to as the model No. 50 nipple drinker. (Plaintiff’s Exhibit 23, at pages 3, 4, 7, and 31). 72. The No. 50 nipple drinker worked reasonably well in cage operations with adult laying hens. It was not as successful for baby chicks and start-grow pullets. (Plaintiff’s Exhibit 23, at page 196). 73. Eldon Hostetler found that the shrinkage of the plastic in the molding process for the drinker body, or housing, resulted in the so-called “straight” outlet having a somewhat reverse taper. The restriction at the lower most point of the outlet could become clogged with material such as a grain of sand, which would hold the trigger pin in an up position resulting in a flow of water into the pits. Additionally, the restricted outlet made the trigger pin harder to activate. Eldon Hostetler made several changes to the molding process in an attempt to solve this problem. First, the molds were changed to allow for a two degree open taper of the outlet. This fifth change to the nipple drinker was helpful but not sufficient. (Trial Transcript 2/13/90 at page 53, line 18 thru page 54, line 16). 74. Next, the molds were further changed to allow for notches in the drinker body right below where the thermal plastic seat is inserted. This sixth change appeared to solve the problem created by shrinkage of the part in molding. (Plaintiffs Exhibit 3, Drawing No. 6; Trial Transcript 2/13/90 at page 55, lines 5-21). 75. When Eldon Hostetler started developing of his nipple drinker at the suggestion of his friend, John Fredericks, General Manager of Creighton Brothers, he had his attorney prepare a letter to Mr. Fredericks confirming that in April of 1977, Mr. Hostetler had installed prototype nipple drinker systems for testing by Creighton Brothers and that, from time to time, modifications to those nipple drinkers would be placed in the Creighton Brothers nipple drinker system for further testing. (Plaintiffs Exhibit 23, at page 1). 76. Although not documented in a letter, a similar arrangement was made with Mr. Hostetler's friend of 30 years, Frank Horwood, who was general manager of Cap-It-All Chore Time Poultry, Ltd. of Australia and New Zealand. (Trial Transcript 2/13/90 at page 71, line 15 thru page 72, line 13). 77. Eldon Hostetler knew, as did other designers of nipple watering systems, that extensive testing in the field was required to develop a good nipple drinker system. (Trial Transcript 2/14/90 at page 15, lines 17-18; page 59, lines 11-15; Trial Transcript 2/21/90 at page 198, lines 13-15). 78. The tests at Creighton Brothers and Cap-It-All and the use in the field of the No. 50 drinkers established that the constant pecking by the chickens on the trigger pin resulted in the outlet of the drinker body being worn from the inside. The worn outlet allowed for a substantial increase in the flow of water. In the nipple drinker systems developed by Mr. Hostetler, the water released to the chicken upon activation of the trigger is metered. The metering is accomplished by carefully defining the clearance of the cylindrical shank of the trigger pin within the outlet opening of the drinker body. (Plaintiffs Exhibit 23, at page 195). 79. Fiberglass impregnation of the drinker body material strengthened the material but did not prevent the water on the drinker body which resulted in excessive flow of the water to chickens. Excessive flow of water to the chickens also results in wet pits because the water which cannot be consumed by the bird simply runs down the bird’s breast to the pit. (Plaintiff’s Exhibit 23, at page 78; Trial Transcript 2/13/90 at page 90, lines 10-22; Trial Transcript 2/15/90 at page 24, line 15-19). 80. In October of 1978, Eldon Hostetler attempted to solve the problem of the worn outlet by insert molding a cadmium plated steel washer at the throat of the outlet in the drinker body. (Plaintiff’s Exhibit 3, Drawing No. 7; Trial Transcript 2/13/90 at page 55, line 22 thru page 56, line 14). 81. Mr. Hostetler believed that the steel washer would provide a durable surface against which the trigger pin would strike and control maintenance of the metering orifice at the throat of the drinker outlet. Several thousand drinkers of this type were constructed and delivered to Creighton Brothers for testing. They failed. Mr. Hostetler found that the flow of water across the ball valve, the trigger pin, and the washer resulted in electrolysis of the steel parts and adversely affected the concept behind the insertion of a washer in this seventh nipple drinker development. (Plaintiff’s Exhibit 23, at page 196). 82. Eldon Hostetler again modified the molding to open the outlet even further to a seven degree angle in the hopes that some side to side motion of the trigger pin and the freedom of motion would result in ease of use by the baby chicks. Drinkers of this type were supplied to Cap-It-All for testing in New Zealand. Trials of these drinkers were not successful. The tapered opening and the problem of wear of the drinker body caused by activation of the trigger pin resulted in excessive water flow and wet pit problems. The results of these trials using this eighth version of the nipple drinker at Cap-It-All in New Zealand were reported to Eldon Hostetler in a letter dated February 1, 1979. (Plaintiff’s Exhibit 3, Drawing No. 8; Plaintiff’s Exhibit 23, at pages 123 thru 126; Trial Transcript 2/13/90 at page 56, lines 15-23; page 57, lines 6-8). 83. After the failure of the seventh version of the nipple drinker which included the washer inserted at the throat of the nipple outlet, Mr. Hostetler changed the drinker design to include a stainless steel insert in the outlet of the drinker body which had a straight bore providing for a defined clearance around the cylindrical shank of the trigger pin. This ninth version of the nipple drinker was very successful for adult laying hens in cage operations. The first of the No. 50 trigger drinkers with straight action and stainless steel inserts were delivered to Creighton Brothers in January 1979. (Plaintiffs Exhibit 3, Drawing No. 9; Plaintiffs Exhibit 23, at page 121; Trial Transcript 2/13/90 at pages 57-59). 84. Chickens are cannibalistic. In recognition of this fact, poultry managers debeak the baby chicks to prevent them from doing harm to the other chicks. (Trial Transcript 2/13/90 at pages 95-96). 85. One method of debeaking which was popular until the mid to late 1970’s consisted of removing a portion of the upper beak in front of the nostrils. This method resulted in a projecting lower beak. This method of debeaking was popular in the midwest where Eldon Hostetler was performing his developmental work. The projecting lower beak made it very easy for even young chicks to trigger a vertical action drinker where the trigger pin moves along its axis only. (Trial Transcript 2/13/90 at page 96, lines 5-20). 86. The European style nipple drinkers offered to the United States market in 1977 were of the vertical action type. 87. All of the nipple drinkers developed by Eldon Hostetler in 1977 and 1978 were vertical action drinkers. (Plaintiffs Exhibit 23, at pages 194 & 195). 88. In 1978, use of the Lyons debeaking equipment was popular in the midwest. The Lyons debeaking equipment removed both the upper and lower beaks of baby chicks in front of the nostrils. (Trial Transcript 2/13/90 at page 97, lines 2-13). 89. Baby chicks debeaked in this manner could not use vertical action drinkers. (Trial Transcript 2/13/90 at page 97, lines 12-14). 90. After the introduction in the market of the Lyons Debeaker, removal of both the upper and lower beaks on baby chicks had became more and more prevalent in the poultry industry. Mr. Hostetler recognized that his vertical action drinker was difficult, if not impossible, to use by baby chicks debeaked in this manner. (Trial Transcript 2/13/90 at page 97, lines 15-25). 91. At the same time that Mr. Hostetler was solving problems with the straight action drinkers, he commenced working on a nipple drinker which could be triggered with side-to-side movement of the trigger pin from 360 degrees. The motivation behind this development was (1) the change in the debeaking methods of baby chicks and (2) Mr. Hostetler’s recognition that chickens tried to get the water drop released from the drinker off of the side of the pin rather than the bottom of the pin. (Plaintiff’s Exhibit 23, at page 196). 92. In September of 1978, he laid out on paper a trigger action nipple drinker with 360 degree action on the trigger pin. The trigger pin was changed to include a drum type head with a flat bottom and the upper surface containing a large concave recess in the head of the pin. The layout also called for a new seat which included the shoulder and leaf of the previous seat used in the No. 50 straight action drinkers but provided for a flat surface upon which the flat underside of the trigger pin head could rest. (Trial Transcript 2/13/90 at pages 59-61). 93. Mr. Hostetler’s hope was to provide for a leveraged actuation of the trigger pin lifting the ball valve element off of its seat so that baby chicks without upper and lower beaks could trigger the drinker. (Plaintiff’s Exhibit 23, at pages 196-197). 94. Mr. Hostetler ordered pins of this type from Eleo Industries, which manufactured the pins by using a cold headed process. (Plaintiff’s Exhibit 23). 95. The first 2,000 sample pins manufactured by the cold headed process and of the design laid out by Mr. Hostetler in mid-September 1978 were delivered to Ziggity for tolerance check on September 29, 1978. (Plaintiff’s Exhibit 23, at page 70). 96. At the same time, Eldon Hostetler was working with his mold shop, Bender Mold and Machine in Mishawaka, Indiana, with respect to development of a seat that would work in cooperation with the new recess headed pin having a flat bottom on the head. (Plaintiffs Exhibit 23, at page 44). 97. Upon receipt of prototype pins and seats, Mr. Hostetler assembled some drinkers of this design and placed them in his own chicken house for testing. (Trial Transcript 2/14/90 at page 59, lines 6-15). 98. On October 2, 1978, Elco provided Mr. Hostetler with a quote for production quantities of the recess headed trigger pins. The first 6,500 trigger pins were received by Ziggity on December 11, 1978. These were also assembled in drinkers with prototype seats for testing in Mr. Hostetler’s chicken house. (Plaintiffs Exhibit 23, at pages 71 & 109). 99. In January of 1979, Mr. Hostetler was satisfied that the concept of the 360 degree trigger action nipple drinker was good and might develop into a very good nipple drinker if Elco and the seat manufacturers could deliver products within the narrow range of tolerance that Mr. Hostetler sought and specified. 100. Satisfied that the concept was good, but recognizing that manufacturing tolerance problems could prevent use of the drinker design, and mindful of the fact that other nipple drinker systems, initially thought to have good and workable designs, later developed problems in the field, Mr. Hostetler decided to show the poultry industry his new concept nipple drinker at the Southeastern Poultry Association Trade Show, the premier annual trade show held in Atlanta, Georgia. (Trial Transcript 2/13/90 at page 60, lines 1-8; Trial Transcript 2/14/90 at page 30, lines 4-9). 101. The 1979 Southeastern Poultry Association Trade Show opened on January 25,1979. (Trial Transcript 2/13/90 at page 60, lines 4-7). 102. Samples of the 360 degree trigger action nipple drinkers were given out at that trade show. (Plaintiffs Exhibit 23, at page 104; Trial Transcript 2/14/90 at page 29, line 25 thru page 30, line 4.) 103. At the 1979 Southeastern Poultry Association Trade Show, 360 degree trigger action nipple drinkers were offered for sale by Ziggity. (Trial Transcript 2/14/90 at page 29, line 25 thru page 30, line 4). 104. The tenth version of the Ziggity nipple drinker, the drinker shown at the 1979 Southeastern Poultry Association Trade Show, was the forerunner of the Model 60 Trigger Action Drinker which became the standard nipple drinker product in mid-1979 and continued as Ziggity’s standard nipple drinker until early 1989. (Plaintiffs Exhibit 23, at page 198; Trial Transcript 2/13/90 at page 60, lines 1-8). 105. The tenth version of the Ziggity nipple drinker contained a machined stainless steel insert in the drinker body with a seven degree taper in the drinker outlet to provide for the side motion of the trigger pin which extended through and out of the drinker body outlet. (Plaintiff’s Exhibit 3, Drawing No. 10). 106. In February 1979, Mr. Hostetler sought quotes on a modified seat arrangement to use with a modified drinker body arrangement. Mr. Hostetler had found that in both the 360 degree trigger action nipple drinkers and the straight action nipple drinkers, it was possible for the ball valve to adhere to the thermal plastic seat and for the seat to become dislodged in the drinker body upon triggering of the trigger pin. (Plaintiffs Exhibit 23, at pages 136, 137, & 138). 107. The eleventh version of the Ziggity nipple drinker provided for a shoulder or collar on the inserted thermal plastic seat which cooperated with a change in the cap portion of the drinker body so that the cap would hold the seat in position within the drinker body and the valve chamber. (Plaintiff’s Exhibit 3, Drawing No. 11; Trial Transcript 2/13/90 at page 61, lines 12-19; page 62, lines 2-14). 108. The 360 degree trigger action nipple drinkers incorporating this eleventh design change were manufactured and sold in March of 1979 and thereafter. (Plaintiffs Exhibit 23, at pages 141, 143-46; Trial Transcript 2/14/90 at page 53, lines 14-23; page 34, line 1-10). 109. The twelfth version of the Ziggity nipple drinker, which did not become the standard drinker until 1989, became available in late 1979. In the twelfth version of the Ziggity nipple drinker, the machined stainless steel insert in the outlet of the drinker body was replaced with a stainless steel eyelet. Additionally, the drinker body was shortened and made more compact and the 0-ring which sealed the drinker body to the saddle in which the drinker body was mounted was moved from the side of the drinker body to the upper surface of the cap. This change made it easier to insert and remove the drinkers from the saddles. (Plaintiffs Exhibit 3, Drawing No. 12; Trial Transcript 2/13/90 at page 63, line 4 thru page 64, line 9). 110. The twelfth version of the Ziggity nipple drinker became very successful and as a result of the Ziggity nipple drinker’s success, resistance to nipple drinker systems was broken down to the point where in the mid to late 1980’s, the Ziggity nipple watering system was the preferred water system among poultry integrators and growers. 111. Throughout the development of the Ziggity nipple drinker, Mr. Hostetler has experimented with numerous seat materials in the hopes of finding a material with the right amount of resiliency, but one which was not adversely affected by the presence of chlorine or chemicals in vitamins and medications supplied to the chickens through the watering system. The search for the ideal material continues today. (Trial Transcript 2/13/90 at page 74, lines 20-24; Trial Transcript 2/15/90 at page 47, line 6 thru page 48, line 13). 112. Mr. Hostetler long ago discovered that stainless steel seats were not the answer because of the electrolysis problem. Further, stainless steel seats can become gummy and inoperative like any other seat material when certain vitamins and medications are placed into the watering system by poultry growers. (Trial Transcript 2/15/90 at page 51, lines 21-25; Trial Transcript 2/22/90 at page 73, lines 9-14). 113. In recognition of these developments after nearly a decade of use of nipple drinkers, Mr. Hostetler conceived the idea of using a plastic metering pin in the inlet of the drinker body to control and meter the quantity of water supplied to a chicken upon triggering of the nipple. This thirteenth version of the Ziggity nipple drinker is the current standard product offered for sale by Ziggity since early 1989. (Trial Transcript 2/13/90 at page 66, lines 5-22). V. PATENT INFRINGEMENT 114. Val became involved in the poultry watering industry in the mid-1970’s. (Trial Transcript 2/21/90 at page 75, lines 2-4). 115. Yal’s first product was a cup watering system which it manufactured and sold until it commenced making and selling nipple drinkers in 1983. (Trial Transcript 2/21/90 at page 75, line 6; page 185, lines 17-20). 116. Val’s first nipple drinkers copied many of the features of the Ziggity nipple drinkers on the market in 1983. The Yal nipple drinkers used a pin substantially identical to the trigger pin used in the Ziggity 360 degree trigger action nipple drinker. Other features which were nearly identical were the body, the snap-on hook features, and the ball. (Trial Transcript 2/21/90 at page 20 thru page 21, line 14). 117. The Val nipple drinker could be mounted in the Ziggity saddles, and the Val drinker was physically interchangeable with the Ziggity drinker. (Trial Transcript 2/21/90 at page 24, lines 1-6). 118. The only significant distinction between the Val nipple drinker and the Ziggity nipple drinker in 1983, and subsequently, was the stainless steel machined seat used by Val as compared to the resilient injection molded seat used by Ziggity. (Trial Transcript 2/21/90 at page 20 thru page 21, line 14; Trial Transcript 2/22/90 at page 96, line 21 thru page 97, line 1). 119. After 1983 when Val Products commenced selling nipple drinkers, Ziggity’s 360 degree trigger action nipple drinker had enjoyed substantial commercial suecess. (Trial Transcript 2/16/90 at pages 67-69). 120. In 1985, Ziggity commenced an action against the same defendants that are named in this action in the United States District Court for the Eastern District of Pennsylvania, Civil Action No. 85-0378. The Honorable Edward Cahn presided over that action. (Plaintiff's Exhibit 65). 121. In that action, Ziggity alleged that defendants had infringed Ziggity’s '088 patent by the manufacture, use, and sale of a 360 degree trigger action nipple drinker which included a trigger pin substantially identical to Ziggity’s trigger pin. (Plaintiff's Exhibit 65). 122. On February 4, 1987, a Stipulation of Dismissal of that action was filed after the parties had reached agreement on the terms of a settlement of the issues alleged in that action. (Plaintiff’s Exhibit 65). 123. Pursuant to the terms of that settlement, Val was given until April 1, 1987 to exhaust inventory of drinkers alleged to infringe the ’088 patent. (Plaintiff’s Exhibit 76; Trial Transcript 2/16/90 at page 127, lines 6-9). 124. In the Settlement Agreement, Ziggity agreed that a nipple drinker containing a pin with a flat upper surface on the head of the pin would not infringe the ’088 patent. (Plaintiff’s Exhibit 76). 125. In the Settlement Agreement, Ziggity released the defendants from claims of past infringement and covenanted not to sue the defendants for infringement of its patent with respect to any drinker made by the defendants which included a flat head trigger pin as shown in Exhibit A to the Settlement Agreement. (Plaintiff’s Exhibit 65). 126. Subsequent to April 1, 1987, Ziggity moved to enforce the Settlement Agreement contending that Val had sold 360 degree trigger action nipple drinkers having a trigger pin therein which had a recess in the head of the pin after April 1, 1987. (Plaintiff’s Exhibit 65). 127. At a hearing before Judge Cahn on June 10, 1987, Judge Cahn found that the charges made by Ziggity pertaining to the breach of the Settlement Agreement had been established and pursuant to an order of Judge Cahn, Val paid $12,000.00 to Ziggity and represented and warranted that 156,628 drinkers were sold by Val after April 1, 1987 containing the large recess headed trigger pins. (Plaintiff’s Exhibits 65 & 76). 128. At all times, the seat and trigger pins used in the Val nipple drinker have been manufactured by Vallorbs. (Trial Transcript 2/14/90 at page 128, lines 14-17; Trial Transcript 2/21/90 at page 53, lines 14-17). 129. Prior to April 1, 1987, Vallorbs commenced manufacturing trigger pins with a smaller recess for use in Val drinkers. (Trial Transcript 2/21/90 at page 197, lines 13-22). 130. The first operation in the manufacture of the trigger pins by Vallorbs was performed on a screw machine. Production of trigger pins on a screw machine results in the formation of a burr when the part is cut off of the bar stock in the screw machine. (Trial Transcript 2/14/90 at page 133, lines 3-4). 131. For a period of time after April 1, 1987, the trigger pins were manufactured on the screw machine with the large head portion of the pin coming out first and being part of the bar stock when machined. Using this method of manufacturing the trigger pins, the machined part is cut off of the bar stock at the small end of the trigger pin. (Trial Transcript 2/16/90 at page 49, lines 11-24). 132. This method of manufacture resulted in a very small or, in some cases, non-existent burr at the center of the upper surface of the head of the trigger pin. (Trial Transcript 2/16/90 at page 49, line 25 thru page 50, line 3). 133. Sometime in 1987, Val changed its method of manufacturing the trigger pins by machining the small end of the pin while the pin remained attached to the bar stock in the screw machine and cutting the pin off at the large head. (Trial Transcript 2/16/90 at page 51, lines 13-15). 134. This procedure resulted in the formation of a screw machine burr on the upper surface of the head of the trigger pin. (Trial Transcript 2/14/90 at page 51, lines 13-15). 135. Vallorbs implemented a secondary manufacturing operation for the removal of the screw machine burr. (Trial Transcript 2/14/90 at page 132, lines 14-20). 136. The deburring operation used by Vallorbs consists of bringing a saw in contact with the burr on the head of the pin to remove a portion of the burr including the loose “slag” normally associated with a screw machine burr. (Trial Transcript 2/14/90 at page 136, line 8 thru page 137, line 1). 137. The saw contacts the flat surface of the pin with the plane of the saw being vertical to the plane of the head of the trigger pin. (Trial Transcript 2/14/90 at page 137, lines 2-13). 138. The saw operation leaves a portion of the burr projecting from the flat surface of the head of the trigger pin. (Trial Transcript 2/14/90 at page 137, lines 8-11). 139. In the next step of the deburring operation, the pin head is struck with a spherical punch. (Trial Transcript 2/14/90 at page 137, lines 17-20; page 138, lines 7-15). 140. The radius of the spherical punch is the same as the radius of the ball valve element used in the drinker — .156 inch. (Trial Transcript 2/14/90 at page 138, lines 16-18; Trial Transcript 2/16/90 at page 15, lines 17-23). 141. Some of the production drawings for the head of the trigger pin call for a tolerance of .001 inch in the overall height of the head of the pin from the lower flat surface to the upper flat surface. (Trial Transcript 2/21/90 at page 202, lines 20-23). 142. The Vallorbs secondary operation results in the formation of a recess in the center of the upper surface of the head of the trigger pin which is designed to vary between 0 and .003 inches. (Trial Transcript 2/16/90 at page 20, lines 18-20). 143. Measurements of the recess in trigger pins in Val drinkers found in the field after sale by Val were conducted by Eldon Hostetler on Ram Optical Measuring Equipment and revealed that the recess varies in depth from .002 inch to .0075 inch. The trigger pins manufactured by Vallorbs and assembled in the Val nipple drinkers are not flat, i.e. the upper surface of the Val trigger pin is not a continuous horizontal surface without a noteworthy depression. (Trial Transcript 2/13/90 at page 104, lines 14-25; page 105, lines 1-12; page 107, lines 2-23). 144. There is a recess in the upper surface of the head of the Val trigger pin of varying depth. (Trial Transcript 2/15/90 at page 43, lines 6-20; Trial Transcript 2/16/90 at page 20, lines 18-20). 145. As noted above, the recess is placed in the head of the pin by a spherical punch. (Trial Transcript 2/16/90 at page 15, lines 12-15). 146. The horizontal width of the recess increases with an increase in the depth of the recess. (Trial Transcript 2/21/90 at page 17, lines 9-12). 147. The recess made by the spherical punch has a circumferential edge where the recess meets the upper flat, or horizontal, surface of the Val trigger pin. (Trial Transcript 2/13/90 at page 107, lines 20-23). 148. The recess is a precise, carefully formed recess — it is not a surface irregularity. (Trial Transcript 2/14/90 at page 150, lines 10-23). 149. The small or bottom end to the Val trigger pin is smooth and has no burr or recess. (Trial Transcript 2/22/90 at page 50, lines 8-21). 150. There is a functional advantage to having the above described recess in the upper surface of the head of the Val trigger pin. (Trial Transcript 2/14/90 at page 123, lines 7-12). 151. The secondary deburring operation results in a uniform, within tolerance, clearance between the lower most portion of the ball valve element when seated in the drinker and the upper surface of the head of the trigger pin. (Trial Transcript 2/14/90 at page 150, lines 20-23; page 151, lines 14-21; Trial Transcript 2/22/90 at page 142, lines 8-25). 152. Clearance between the trigger pin and the ball valve element is necessary to assure that the ball valve element will not be held off of the seat when the drinker is not activated by a chicken. (Trial Transcript 2/14/90 at page 151, lines 14-21; page 125, lines 22-25). 153. When triggered, the edge region of the recess provides the initial point of engagement with the ball valve element resulting in leveraged off-center activation of the ball valve element. (Trial Transcript 2/14/90 at page 86, lines 4-8; page 87, lines 2-7). 154. When the trigger pin is tilted by the chicken, the long lever arm from the point of contact on the shank of the trigger pin to the fulcrum at one edge of the lower surface of the head of the trigger pin where it contacts the seat is greater than the lever arm from that fulcrum point to the point of contact of the trigger pin and the ball. (Trial Transcript 2/21/90 at page 20 thru page 21, line 14). 155. Simple laws of mechanics and physics dictate that, the shorter the second lever arm, the greater the advantage of force, and that, the longer the second lever arm, the greater the advantage of distance. (Trial Transcript 2/21/90 at page 24, lines 1-6). 156. The presence of the recess in the upper surface of the head of the Val trigger pin makes the nipple drinker easier to trigger by baby chicks and decreases the response time between activation of the trigger pin and the delivery of water to the chicken utilizing the drinker. (Trial Transcript 2/21/90 at page 26, lines 15-17). 157. The upper surface of the trigger pin can be made flat and within the desired tolerance of finish. (Trial Transcript 2/16/90 at page 145, lines 10-11; Trial Transcript 2/22/90 at pages 24-25). 158. The term “flat” requires a continuous horizontal surface without noteworthy peaks or depressions. The term “finish” relates to the smoothness of the flat surface and is measured in micro-inches. (Trial Transcript 2/14/90 at pages 146-150). 159. The chosen method of manufacturing the trigger pin by Vallorbs results in cost savings. (Trial Transcript 2/14/90 at page 153, lines 12-15; Trial Transcript 2/16/90 at page 16, lines 14-15; page 22, lines 8-14; page 33, lines 11-12). 160. The method of manufacturing the Val trigger pin creates a recess, that recess has an edge, and that edge provides the initial actuation engagement with the ball valve at a location spaced apart from the lowermost portion of the ball valve. (Trial Transcript 2/16/90 at page 15, lines 12-15; Trial Transcript 2/13/90 at page 107, lines 20-23). 161. Defendant Frederick W. Steudler, Jr. testified that he believes that the terms “confront” and “confronting” mean “touching.” (Trial Transcript 2/16/90 at page 70, lines 16-24). 162. Nothing in the dictionary definition of “confronting” requires that term to mean “touching.” Claim 19 contains no special requirement that the ball valve must actually be touching the valve actuator, other than of course during actuation engagement. Therefore, the spatial orientation of the recess as “confronting” the ball valve is not limited to actual contact between the recess and the ball valve. 163. In the Val nipple drinker, the recessed region and the ball valve are confronting. 164. The 360 degree trigger action nipple drinkers manufactured by Vallorbs and sold by Val containing the above-described recess in the center of the upper surface of the head of the trigger pin literally infringe Claim 19 of the '345 patent. 165. The 360 degree trigger action nipple drinkers manufactured by Vallorbs and sold by Val containing the above-described recess in the center of the upper surface of the head of the trigger pin also literally infringe Claims 1-2, 6-13, and 20-24 of the ’345 patent. (Defendants’ Exhibits 3 & 4). 166. The 360 degree trigger action nipple drinkers manufactured by Vallorbs and sold by Val having a recess in the center of the upper surface of the head of the trigger pin, as described above, perform substantially the same function in substantially the same way to yield substantially the same result as does the claimed invention. (Trial Transcript 2/21/90 at page 24 thru page 26, line 14). 167. The 360 degree trigger action nipple drinkers manufactured by Vallorbs and sold by Val having a recess in the center of the upper surface of the head of the trigger pin, as described above, infringe Claims 1-13 and 19-24 of the ’345 patent and Claims 3-5 of the reexamined ’088 patent under the doctrine of equivalents. {See, e.g., Defendants’ Exhibits 3 & 4). VI. WILLFUL INFRINGEMENT 168. Vallorbs, the manufacturer of the trigger pin used in the . Val nipple drinker, as well as the two individual defendants, have been and still are (with, of course, the exception of Frederick W. Steudler, Sr.) involved in the screw machine industry and have developed an expertise in manufacturing small precision parts. Ziggity, on the other hand, does not manufacture any of the component parts of its nipple drinker and has no expertise in the screw machine industry. 169. The term “flat” has a special meaning in the screw machine industry. (Defendants’ Exhibits 163-172). 170. Within the screw machine industry, the heads of defendants’ trigger pins are considered flat. (Trial Transcript 2/22/90 at page 109, lines 5-13; page 121, lines 5-7). 171. In June 1987, Val presented Mr. Ramik, defendants’ patent counsel, with examples of what it considered to be flat-headed trigger pins. (Defendants’ Exhibits 278-1 thru 278-4; Trial Transcript 2/20/90 at page 98, line 11 thru page 100, line 24). At that time, Mr. Ramik provided Val with his verbal opinion that the head of its new trigger pin was flat and, thus, that the new trigger pin did not infringe either of the patents-in-suit. (Trial Transcript 2/20/90 at page 100, line 25 thru page 101, line 18; Trial Transcript 2/21/90 at page 86, line 2 thru page 87, line 9). 172. On June 12, 1987, Ziggity raised some concern over whether defendants had breached the Settlement Agreement reached in the previous litigation between the parties (Defendants’ Exhibit 9) by manufacturing and using the trigger pins with the smaller recesses. (Plaintiff’s Exhibit 65). However, for nineteen months thereafter, Ziggity did not raise any more objections concerning Val’s newly designed trigger pins. (Trial Transcript 2/21/90 at page 124, line 9-15; page 206, lines 1-16). 173. Defendants did not become aware that Ziggity did not consider the head of their new trigger pin to be flat until Ziggity initiated this lawsuit in January of 1989. (Trial Transcript 2/21/90 at page 206, lines 10-16). 174. Based on the totality of the circumstances, I find that defendants acted in good faith in attempting to design around the patents-in-suit and had a reasonable basis for believing that their new trigger pins were flat and, thus, not infringing the patents-in-suit. Consequently, I further find that defendants’ infringement of the patents-in-suit was not willful. VII. LIABILITY OF THE DEFENDANTS 175. Val makes, uses, and sells the infringing nipple drinkers. 176. The seats and trigger pins manufactured by Vallorbs are components of the infringing drinkers sold by Val. (Trial Transcript 2/14/90 at page 128, lines 14-17). 177. The seats and trigger pins manufactured by Vallorbs and assembled into the nipple drinkers sold by Val are a material part of the invention of the ’088 and ’345 patents. (Plaintiff’s Exhibits 49-B, 50-B, 51-B, and 68). 178. The seats and trigger pins manufactured by Vallorbs and assembled into the nipple drinkers sold by Val are specially made for use in such drinkers and are not staple articles or commodities of commerce suitable for substantial non-infringing use. By manufacturing the seats and trigger pins for use in the Val drinker, Vallorbs has contributorily infringed the ’088 and ’345 patents. (Plaintiff’s Exhibits 66 & 68). 179. Vallorbs manages Val and controls Val’s actions. (Plaintiff’s Exhibit 68, page 24, line 9 thru page 25, line 9). The management of Vallorbs makes the decisions concerning the products which are sold by Val. Therefore, Vallorbs has induced Val to infringe the patents-in-suit. 180. Val and Vallorbs are almost totally integrated through common management, common employees, and common physical facilities. (Plaintiff’s Exhibit 68, at page 24, lines 5-24; Trial Transcript 2/21/90 at page 182). In essence, Vallorbs is the manufacturing arm for Val’s nipple drinkers. (Plaintiff’s Exhibit 68, at page 24, line 12 thru page 25, line 9). 181. Frederick W. Steudler, Sr. and Frederick W. Steudler, Jr., along with Richard Steudler, have total and final authority and control over Vallorbs and Val. (Trial Transcript 2/14/90 at page 155, lines 13-15; Trial Transcript 2/15/90 at page 175, lines 20-15; pages 187-190; Trial Transcript 2/20/90 at page 148, lines 1-12). 182. Frederick W. Steudler, Sr. and Frederick W. Steudler, Jr. were the principal officers, directors, and managers of all activities of Val and Vallorbs on a day to day basis. (Plaintiff’s Exhibit 68, at page 75, line 20 thru page 76, line 11; page 442, line 24 thru page 443, line 1). As corporate officers, they were certainly aware of what they were doing and of their activities. 183. Frederick W. Steudler, Sr. and Frederick W. Steudler, Jr. actively participated in both the manufacture and sale of the infringing products. (Trial Transcript 2/26/90 at page 119, lines 8-18; page 42, line 21 thru page 43, line 19). 184. Frederick W. Steudler, Sr. died on August 16, 1989. (Stipulated). 185. Ziggity moved to substitute Jeanette Steudler, in her capacity as executrix and representative of the estate of Frederick W. Steudler, Sr., for Frederick W. Steudler, Sr. as a party defendant. By order dated February 9, 1990, the court granted this motion and ordered that the caption of the case be amended accordingly. 186. Defendant Frederick W. Steudler, Sr., prior to his death, and defendant Frederick W. Steudler, Jr. have induced Val and Vallorbs to infringe the patents-in-suit. VIII. PATENT VALIDITY A. 35 U.S.C. § 103 (Obviousness) 187. The relevant prior art is that art which a person with ordinary skill in the art of nipple-type watering drinkers for fowl and small animals could reasonably be expected to look for solutions to problems relating to nipple drinkers, such as controlling water leakage and obtaining water flow upon slight lateral movement of the trigger pin. With respect to the problem of controlling water leakage, the general art of fluid valves is potentially relevant. With respect to the problem of obtaining water flow upon slight lateral movement of the trigger pin, the relevant art is the more specific art of designing and manufacturing nipple-type watering devices for poultry, wherein the poultry, including day old chicks, must affirmatively activate a triggering device to obtain water. 188. The content of the prior relevant art is (1) the fourth and nine versions in the development of the Ziggity nipple waterer, (2) the nipple waterer described in the 1977 EZ Sip brochure published by Ziggity, and (3) United States and foreign patents defined to be prior art within 35 U.S.C. § 102. (Defendants’ Exhibits 5 & 8.) 189. Defendants contend that the most relevant of the prior art is the Clark patent, assigned to Fox Products Company, U.S. Patent No. 3,756,199, hereinafter, “the Clark patent” or “the Fox drinker.” (Defendants’ Exhibits 2, 3, 4, 5, & 12; Trial Transcript 2/16/90 at page 155, lines 19-23). 190. Fox Products Company manufactured and sold nipple drinkers constructed as described in the Clark patent from the early to mid-1970’s. (Trial Transcript 2/21/90 at page 57, lines 22-25 thru page 58). 191. The Fox drinker met with minimal commercial success, and Fox Products Company eventually ceased production. (Trial Transcript 2/20/90 at page 125, lines 12-25; page 126, lines 1-6). 192. More recently, the inventor, Clark, has commenced manufacturing a drinker similar to that shown in Figure 1 of the Clark patent, which has been redesigned to attempt to correct problems prevalent with the earlier Fox drinker. (Trial Transcript 2/21/90 at page 177, lines 20-24; pages 178-180). 193. The Clark patent was issued September 4, 1973, and commercial embodiments of the drinker described in the Clark patent were manufactured and sold at that time and thereafter. (Defendants’ Exhibit 5). 194. Ziggity has approximately 70 percent of the nipple drinker market, and defendant Yal has approximately 30 percent of the nipple drinker market. All others offering nipple drinkers for sale, including the redesigned Clark nipple drinker, account for less than 5 percent of the nipple drinker market. (Trial Tr