The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-03-25
PHONE COMPANY
HEAD EXPLAINS
WIRELESS SUITS
Monopoly Denied - 'Protec-
ton Of Patent Rights Is
Only Motive
Rv II. B. THAYFR.

President OF the American Telephone
and Telegraph Company
In view OF the conflicting accounts
and interpretations OF the suits re
Gently instituted by the company to
protect its patents affecting radio tele-
phone broadcasting, 1t will, perhaps.
be helpful to relate the circumstances
that resulted In the present patent
situation.
Some time before the war, the Bell
system research laboratories began
development of what Is now called the
vacuum tube, as a long distance wire
telephone amplifer or repeater.
The laboratories Of the General Elec-
trio Company had also undertaken the
development Of this apparatus for
other purposes,
AS was inevitable. with two great
experimental laboratories engaged IN
similar research, each company 40
CURED inventions and improvements
Of mutual usefulness.
Patent Considerations
When the end Of the war ended
the necessity for this emergency dis
regard OF patent rights. a valuable
art had ben developed which no one
in the business Of communications
could use without infringing upon the
rights OF others.
Under such conditions. there could
be no further manufacturing Of GER
tain apparatus. nor further develop
ment OF this art, and the Navy De-
partment requested this company and
the General Electric Company 20 try
to relieve the situation.
Negotiations were carried through
to en- arrangement OF cross licenses
to which other owners of patents in
this field were afterward admitted.
For practical operation under this ar
rangement, Il was necessary that the
parties to the agreement be given the
specific uses of the apparatus in ques-
ton that were logical TO their bust
ness.
II was in this way that licenses for
certain uses in connection with radio
telephony came to us, as our directors
reported to the stockholders at the
time.
Fundamental Purpose
This company's prime purpose in
operating under those licenses has
been such development Of the radio
art as would be useful in relation to
telephone service.
There was widespread popular in
terest In broadcasung, as was evil
denced by the growth Of the industry
furnishing apparatus for radio re-
ception A realization Of the extent
of this interest led to a sudden de-
mand for broadcasting stations.
From the financial standpoint it
would have been profitable to manu-
facture and install all the broadcast
ing apparatus sought for. We deemed
1t better policy, however. to point out
all the factors and risks of the situa-
ton, and for those wishing to broad
cast. to offer our own station at mod
crate rates, so far as our allotted time
limits for broadcasting would permit
Broadcasting Development
Broadcasting is made possible by in
ventions that have cost their owners
large sums not only in acquiring pat
ents, but ais DIN experimental and de-
velopment expense. We have recog-
nized the fact that many broadcasters,
in making wrongful use of our inven-
lions, have been ignorant Of their in
fringement. We have, therefore, es-
tablished reasonable license fees, the
payment of which. coupled with an
agreement to refrain from further in
fringement, would liquidate any
claims for infringement and would
give the broadcaster legal right to
the use of the patents during their
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