In Lyon v. Perin and Gaff Manufacturing Company, the Supreme Court of the United States was asked to decide whether a contract between two parties was valid. The plaintiff, Lyon, had entered into a contract with the defendant, Perin and Gaff Manufacturing Company, to purchase a certain number of goods. The contract stated that the goods were to be delivered within a certain time frame, and that if the goods were not delivered within that time frame, the contract would be void. The defendant failed to deliver the goods within the specified time frame, and the plaintiff sued for breach of contract. The Supreme Court held that the contract was valid and enforceable, and that the defendant was liable for breach of contract. The Court noted that the contract was clear and unambiguous, and that the defendant had failed to fulfill its obligations under the contract. The Court also noted that the plaintiff had suffered damages as a result of the defendant's breach, and that the defendant was liable for those damages. In conclusion, the Supreme Court held that the contract between the parties was valid and enforceable, and that the defendant was liable for breach of contract. The Court also held that the plaintiff was entitled to damages for the defendant's breach.

In Lyon v. Perin and Gaff Manufacturing Company, the Supreme Court was asked to decide whether a patentee could recover damages for infringement of their patent after it had expired. The majority opinion held that they could not, as the right to exclude others from making or using an invention is only available during the term of its validity. Justice Field dissented on this point, arguing that a patentee should be able to recover damages even if their patent has expired due to infringers taking advantage of them by continuing production until expiration and then profiting off their invention without paying any royalties or other compensation. He argued that allowing such behavior would encourage people who are aware of pending patents not to wait for them but instead rush into production in order to reap profits before expiration occurs. Furthermore, he noted that Congress intended patents “to secure inventors in exclusive enjoyment” which includes both rights during its term and afterwards when it comes time for compensation for past use prior to expiration date.