Case ID: ohio-law-abs_4/html/0482-01.html
Source: Caselaw Access Project
Author: {"author": "MIDDLETON, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

No. 560
    INTERNATIONAL PAPER BOX MACHINE v. WOLF ENVELOPE CO.
    Ohio Appeals, 8th Dist., Cuyahoga Co.
    No. 6408.
    Decided Jan. 25, 1926
    Mauck, P. J., Sayre and Middleton, JJ., of fourth Dist., sitting.
    1037. RESTRAINT OF TRADE — When a company grants an exclusive right to another company, providing it will not sell a given article within certain territory, such covenant is not in restraint of trade, for a vendor by its rights granted thru its patents, can make any sales agreement.
    Attorneys — S. H. Weitz, for Machine Co. and Mooney, Hahn, Loeser & Keough for Envelope Co.; all of Cleveland.
   MIDDLETON, J.

The record of this case shows that Paper Box Machine Co. sold to the Wolf Envelope Co. an envelope making machine under the following covenant—

“not to sell to any person or persons a machine of similar make or design in any portion of the territory within two hundred miles of Cleveland, Ohio.”

The Envelope Company instituted an action against the Machine Company in Cleveland Municipal Court for breach of the covenant, and recovered a substantial amount. The Machine Company is here on errer contending that said judgment should he reversed and that the covenant aforesaid is illegal and void because in restraint of Lade.

The Court of Appeals held:

1. This is not a case where a limitation is sought to be placed upon the vendee of any commodity, the restriction being entirely on the vendor.
2. The 'Machine Company under the protection of its patents had the right to gran': whatever sales agreement they wished, as it was erercising a legal right given to it by its patents.

Judgment affirmed.