Inventions, discoveries, laws, and other things may be named after the person responsible. For example:
--the Edison effect (discovered by Thomas Edison)
--the Pribilof Islands (discovered by Gavriil Pribylov)
--the Whipple procedure (developed by surgeon Allen Whipple)
--the Diesel engine... etc. etc.
When there are two people who should be credited, they are often named by combining two surnames with a hyphen:
--the Smoot-Hawley tariff (developed by congressmen Reed Smoot and Willis Hawley)
--the Clausius-Clapeyron equation (developed by scientists Rudolf Clausius and Benoît Paul Émile Clapeyron)
--the Hertzsprung-Russell diagram (star classification system developed by Ejnar Hertzsprung and Henry Norris Russell)
The grammar, I guess, is that a) a compound word is produced by joining two surnames; b) the surnames are proper nouns, but c) in English it is quite common to use nouns as adjectives. In particular, instead of using the strictly correct possessive form ("Hudson's Bay"), it is common to simply use the name as an adjective meaning "developed by" or "discovered by" ("Hudson Bay.")