Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-04-09
MAKER GAN NOT
DICTATE PRICES
Supreme Court Makes I'm
portant Ruling Regarding
Patented Articles.
Resale Prices Not Under Control Of
Manufacturers Decision Made in
Case Of Victor Talking Machine Com
pany-supreme Court Rules on Sew
eral Other Important Questions

Washington, April 9. - Determining
important questions regarding control
by patentees Of retail prices of their
products, the supreme court today pro-
nounced unlawful the Limited license
plan, under which the Victor Talking
Machine Company and other products
are distributed.
The principal question raised was
whether: in disposing Of its machines
by giving license only for their "use"
for royalties tduring the patents term)
and not outright title to purchasers the
Victor company might thus lawfully
regulate and restrict distrib,Ition Of its
PRODUCTS A secondary question was
whether the Srestrictionk of distribution
sthru 4. 900 IS deuiers was al ii='
legal combination and monopoly under
the Sherman antitrust law
Other talking machine manufacturers
and other patentees generally use the
license plan, restrictions upon actual
sale prices having been held illegal by
the court.
That the license plan is a mere sub
terfuge adopted to control retail prices
to the public was contended by the
Macy company in the present proceed
ings. The appellate court below. how
ever upheld the license plan. stating
patentees could thus limit the use. up
on payment Of royalties, Of their prod
ucts when not actually parting with
the legal title.
An injunction was secured in the
lower courts by the Victor company
against threatened cut-rate sale of its
machines.
Under the so-called patent monopoly
decisions Of the supreme court in the
Dick Mimeograph and other cases, the
Macy company contended that the lie
ense giving the right only to use the
products was unlawful. In the mimeo-
graph decision from which Chief JUS
tice White and former Justices Hughes
and Lamar dissented, the court held
that patentees could prescribe what re-
lated articles could be used with pat
ented machines. However, in a patent
medicine case with Justices Mckenna,
Holmes, Lurton and Van Devanter dis
senting. the court held that patentees,
after having once actually sold and lost
all interest in a patented article, can
not further restrict RESALE prices.
The Macy company contended in the
Victor cases that upon receipt of full
royalty upon delivery Of machines fur
ther restriction upon resale prices,
thru license is merely an attempt to
evade the law.
Film Case Decision.
In another similar patent infringe
ment suit Of the Motion Pictures Pat
ents Company against the Universe,
Film Manufacturing Company and
others the court held invalid restric-
tions Of the patents company upon use
Of competitors Aim in its projecting
machines.
The court held that patent grants
for machines give others the right to
use them subject to the patent right,
with all appropriate material or sup
plies.''
Matter For state Courts.
Federal authority to prosecute frauds
IN general state elections and sena-
torial primaries were materially re-
stricted by supreme court decisions to-
day.
4 OuCiai inUiCIsH~sss- sSI hiiSSSU cor
ruption "conspiracies' In 1914 Rhode
Island congressional elections and the
1915 senatorial primary In West Vir-
ginia were dismissed. The courts de-
cided the state and not the federal
governments are to act in such cases.
Other Decisions.
Oregon's law fixing minimum wages
for women, the first compulsory mini :
mum wage statute ever before tlIe sue
preme court. today was upheld as con-
stitutional by an evenly divided court.
Similar laws Of Colorado. wisconsin,
California, Utah, Minnesota and Ohio
were likewise sustained.
The supreme court upheld as con-
stitutional the Oregon law limiting the
labor OF men in mills, factories and
manufactures to ten hours day but
permitting thirteen hours labor II paid
time and a half for overtime. 1t was
the first general hours Of labor state
law ever before the supreme court,
Z u. ~