In the case of Leach & Company, Inc. v. Peirson in 1927, the U.S Supreme Court ruled on a dispute regarding patent rights and royalties. The plaintiff, Leach & Co., had purchased a patent for an invention from its original owner and subsequently entered into an agreement with Peirson to manufacture products using this patented technology. However, disagreements arose over royalty payments that were due under their contract which led to litigation between both parties. Leach & Co claimed that they were entitled to collect royalties based on all sales made by Peirson regardless of whether these sales involved items produced using the patented process or not while Peirson argued otherwise. The court sided with Peirson stating that only those products manufactured utilizing the specific patented process should be subject to royalty payments as per their agreement's terms. It was held that any interpretation allowing Leach & Co to collect royalties beyond this scope would unjustly enrich them at Pierson’s expense without any corresponding benefit being provided in return.

In the dissenting opinion for Leach & Company, Inc. v. Peirson, it was argued that the majority's decision to uphold a Pennsylvania law prohibiting out-of-state corporations from removing cases to federal court violated constitutional principles of equal protection and due process. The dissent contended that this law unfairly discriminated against foreign corporations by denying them access to federal courts—a right granted to in-state companies—and thus created an unjustifiable inequality between domestic and foreign businesses operating within Pennsylvania. Furthermore, they asserted that such discrimination had no rational basis or legitimate state interest since both types of entities were equally subject to local laws and regulations. They also expressed concerns about potential bias or prejudice in state courts towards non-local litigants which could affect their ability to receive fair trials—another reason why access to neutral federal forums should be preserved for all parties regardless of their origin.