Hymen L. Lipman is credited with registering the first patent for a pencil with an attached eraser on March 30, 1858 (U.S. Patent 19,783).
In 1862 Lipman sold his patent to Joseph Reckendorfer for $100,000, who went to sue the pencil manufacturer Faber for infringement[1]. In 1875 the Supreme Court of the United States ruled against Reckendorfer declaring the patent invalid because his invention was actually a combination of two already known things with no new use[2].