Document: 333 U.S. 287 68 S.Ct. 550 92 L.Ed. 701 UNITED STATESv.LINE MATERIALS CO. et al. No. 8. Reargued Nov. 12, 13, 1947. Decided March 8, 1948. Mr. Frederick Bernays Wiener, of Providence, R.I., for appellant. John Lord O'Brian, Washington, D.C., appellees. Albert R. Connelly, New York City, appellee, Westinghouse Electric Corporation. Appeal from the District Court United States Eastern Wisconsin. Justice REED delivered opinion Court. 1 The sought an injunction under §§ and 4 Sherman Act1 in against continuance violations that Act by allegedly unlawful combination or conspiracy between appellees, through contracts, to restrain interstate trade certain patented electrical devices. restraint alleged arose a cross-license arrangement patent owners, Line Material Company Southern Equipment Corporation, fix sale price devices which other licensees make vend, adhered supplemental contracts.2 2 Court, 64 F.Supp. 970, dismissed complaint as all defendants upon its conclusion rule v. General Co., 272 476, 47 192, 71 362, was controlling. That case approved lawful patentee's license vend required licensee sales conform licensor's schedule. taken directly this 32 Stat. 823, 15 U.S.C.A. 28, 29, probable jurisdiction noted here. 67 113. We have jurisdiction.3 I. Facts. 3 challenged arrangements enter r ound three product patents, are useful protecting electric circuit dangers incident short overload. Two them dropout fuse cutouts third is housing suitable use with any cutout. Dropout may be used without housing. found 40.77% manufactured sold these were produced patents. This substantially made States. There competitive perform same functions appellees others different patents than those here involved. dominant patent, 2,150,102, field double jointed hinge construction issued 7, 1939, assignee, on application George N. Lemmon.4 reads 2,176,227, reissued December 21, 1943, Re. 22,412, October 17, 1939 Company, Schultz Steinmayer.5 1,781,876, 31, 1931, 18,020, again February 5, 1935, 19,449, November 18, 1930 Line, W. D. Kyle. Kyle covers wet-process porcelain box great dielectric strength, economically constructed has been commercially successful. give no weight presence licenses. 5 applications Lemmon pending simultaneously. They declared interference contest resulted. decision Patent Office, awarding claims subservient it impossible manufacturer both when later some cross-licensing arrangement. Cf. Temco Motor Co. Apco Mfg. 275 319, 328, 48 170, 173, 72 298. Only could lawfully single maker public patentees obtain full benefit efficiency economy inventions. Negotiations started eventuated arrangements. 6 first definitive document bilateral, royalty-free, agreement May 23, 1938, after office award but before issued. This, so far pertinent, prospective appart us exclusive right grant licenses sublicenses others. also granted not sublicense patent. licensed defined equipment included apparatus. Sublicense royalties expenses divided Southern. Although memorandum January parties had such requirement, agreed sell covered at prices less fixed solely No requirement limitation manufacturers included. 7 Six manufacturers6 involved advised letter, dated June authority On 3, Kearney took practice price, term condition clause, governed Southern's prices, bound maintain five mentioned above offered contract standard agreement. discussed Chicago October, except Railway. Pacific participated. It never enforced. did issue until March, 1939. Those who making open enclosed wanted explore co-operatively (F.F. 15) validity failed find satisfactory basis attack. faced infringement suits. Other reasons developed refusal six accept form contracts 16 & 17) unnecessary detail One reason sublicensees preferred licensor because fact owner manufacturer, would proposed licensees. After mutual discussion patentees, new agreements submitted. A finding objection states: 8 'On 24, Electric, Westinghouse, Kearney, Matthews, Schweitzer Conrad, Railway met jointly drafts Lemmon, Schultz, Thereafter, identical sets revised sent attorneys Kearney.' 9 licensing contained essential elements provision ultimately circulated among letters date 6, 1969. 10 To meet various objections future licensees, 1940. Except substitution manufacturers, follows generally earlier royalty free cross-licenses before. given Lemmon.7 retained privilege, free, vending also. itself long do so.8 Even if assumed proper interpretation Line-Southern permitted manufacture control, practical result does products only successful fabrication Findings Fact 10. 11 maintenance feature reflected contract, variations provisions significant issues case. fair example appears below.9 execution Johnson Royal,10 followed within year. Licenses executed two 15, 1944, respectively. August 1, 1940, since number consultations held classify comparison devices.11 trial judge discussed. These advice appellee. can doubt, however, each knew circulation subsequent escrow agreement, fulfilled July 11, entered into fulfillmet acceptance subject Electric's license. awareness signer prior conceded appellees' brief. schedule became effective 1941. tried prices. Where there accidental variation, wrote calling attention failure.12 12 arm's length bargaining instance. Price actively opposed toto restriction scope several including largest producer appliances. energetically substitutes All forced terms cease manufacture. By accepting they secured release past effect system thei collections pecuniary reward their monopoly. Undoubtedly one purpose possible separate hands deadlock. his basic 'blocked' Schultz' improvement. Cross-lices es furnished solution. 13 consideration circumstances surrounding negotiation execution, arrangements, whole, good faith, devices, gain legitimate return inventions apart written undertaking prices.13 Being convinced, we indicated opinion, controlled disclosed complaint. Government attacks rationale urges overruled, limited explained differentiated. 14 II. Case. decided 1926 unanimous court, Chief Taft writing. bill equity enjoin further Act. While fixing resale articles (incandescent light bulbs) dealers bill, material pertinent violation lamps § e tungsten filament bulb, should licensor. considering bulbs filament, upheld valid exercise rights Speaking arrangement, said: 'If patentee * selling (by make), he limit limiting method price? think provided conditions normally reasonably adapted secure monopoly.' page 490, 197, 362. proviso must read directed vend. original context words just quoted makes clear carry implication approval tend increase earnings recognizes article puts control purchaser's beyond power patentee. 489, 196, Compare Univis Lens 316 241, 62 1088, 86 1408. Nor anything will serve argue otherwise precise define limits monopoly area freed competition service, quality otherwise. Mercoid Corporation Mid—Continent Inv. 320 661, 665, 666, 268, 271, 272, 88 376; Masonite 265, 277, 278, 280, 1070, 1077, 1078, 1079, 1461; Motion Picture Patents Universal Film 243 502, 510, 37 416, 418, 61 871, L.R.A. 1917E, 1187, Ann.Cas.1918A, 959. 17 provoked criticism approval. bare recognition Ethyl Gasoline States, 309 436, 456, 60 618, 625, 84 852. emphasized extension monopoly, 852, avoid buyers. pages 457, 458, 626, reconsider 1461, although whom claimed del credere agents. As concluded privilege exhausted transfer agents part organization competitors, required. In Edward Katzinger Metallic 329 394, 398, 419, where suit brought recover limitations, refused examine illegality If invalid, unlawful. affirmed action Circuit Appeals remanding determine cited Carbice America American Development 283 27, 51 334, 335, 75 819. courts distinguished rule.14 asking reexamine case, states types cases.15 Furthermore, point 'host difficult unsettled questions' ai sing holding simplest solution overrule precedent establish article.16 18 Such liquidation doctrine licensee's solve problems arising adoption. Since 1902, E. Bement Sons National Harrow 186 70, 22 747, 46 1058, decided, able monopoly.17 Litigation engendered proves business repeatedly, even though hesitatingly, reliance contractors' meaning. Appellees urge Congress steps modify rule.18 legislative attitude weighed counter balancing grew out judicial determination. writer accepts interpreted subdivision opinion. majority agree position, cannot reaffirmed basis. Neither Electric. circumstances, proceed assumption continues precedent. wise undertake explain, facts require, our views applicability situations listed Government. effort monopolize involved, another device shall stated leave aside many variables arise. For example, aggregation dominance field, broad narrow, peg attach former touching relations Gypsum today; 1461. 19 helpful specify points either contested agre ments, illegal, commerce contrary 31.) Tobacco 328 781, 788, 66 1125, 1128, 1129. say, charges charge 'monopoly' Act, need deal consolidation, merger, purchase competitors size tending toward attaining See Shoe Machinery 247 32, 44—55, 38 473, 477—481, 968; Aluminum America, Cir., 148 F.2d 427—31; 221 106, 181—83, 31 632, 648—650, 55 663; Steel 251 417, 451, 40 293, 299, 343, A.L.R. 1121. dealing pooling purchase, industry field. 968. Within process him authorized statutes. stipulated issue. With laid aside, presented record. III. Determination Issue. 20 Under above-mentioned ultimate question appeal stated, succinctly abstractly, whether prohibition note supra, more legally combine monopolies benefits themselves contractual 21 findings stand barriers violated evidence support Court's evidentiary necessarily credibility witnesses probative value testimony contentions, insist inferences conclusions drawn accepted us.19 heretofore dispute. From Nos. 36, inclusive, hereinbefore set 13. accept, do, preliminary correct, last sentence 34 crumbles asserted bar examination violative sentences language notes supra. empower others, violate previous summary compose demonstrates intended Interstate 306 208, 226, 59 467, 474, 83 610. Line's 9, gave exercised embodying own practiced sublicensing n Thus pattern additional over necessary 9. patentees' combined absence statutory20 authorization, recognized illegal per se Act.21 true reasonable unreasonable. producers distributor resale. equally well settled possession exemption monopoly.22 aggregating holder escape prohibitions Standard Sanitary 226 20, 33 57 107; today. During term, excludes protected product. 58, 482, Special Coe, 324 370, 378, 65 741, 745, 89 1006. mayb enjoyed exclusively assign 'or interest therein' Rev.Stat. 4898, amended 634, 35 47. pointed out, invention collect therefor. statutory monoply prohibition, attempt monopolize, every trade. Public policy condemned centuries. Case Monopolies (Darcy Allein) Co.Rep. 84-b. 428, 449. Employment 1946, 2, 1022. Our Constitution allows Art. I, cl. progress often said owe much stimulus rewards allowed legislation. enacted prevent restraints recognizing grants exception. 92, 755, 1058; Cong.Rec. 2457. service organizations, governmental private built largely Associated Press 326 12—14, 1416, 1420—1422, 2013. Validation exclude unusual.23 Monopoly protean threat tantalizing objective compelled efforts supply market. Perhaps manifests monopolized. clearer Whatever evil social cutthroat consumers lowering labor standards produce obliteration marginal surviving low-cost producers, advantages opening management, encouraging initiative, giving opportunity choose employment selection considered overbalance disadvantages. strength alone, disappearance small ever present competition. Despite stable efficient cartels firm products, crystal history interpretations congressional exceptions made, them. laws exception freedom consistently construed grant. 452, 455, 623, 624, 852; 1408; Hartford Empire 323 386, 373, 322. invalid. improperly. 23 development corporations cooperating units organized research group known phenomenon. However advanced lone inventor's experimentation seeking improvement practices arts sciences be, objection, score illegality, mere thoroughness research. true, Carlyle said, 'Genius infinite capacity taking pains.' Certainly outside violates understood interested parties. 24 thus called adjustment prohibited broadly already reached point, precedents now stand, validly competitor cases 22. 25 postulates mind limitations strictly, legal readily answered. Nothing statute specifically gives article. U.S.C. 40, 47, holds may, conditions, device, anti-monopoly statutes permit owners charged respective products. competitive, non-infringing impeded greater degree fixes struggle profit acute. when, here, consent dominant, statement good. seek reduced mutually advantageous Compare, acts entity done Swift 196 375, 396, 276, 279, 49 518; Reading 324, 357, 90, 98, 243; Lumber Dealers' Ass'n 234 600, 951, 58 1490, L.R.A.1915A, 788; Binderup Pathe Exch., 263 291, 44 96, 308. merging restrains way nonpatentable goods. 26 trade, answer but, assumed, accords law. undertakes exploit onyone, action. make, use, Gn eral construes price. suggestion prohibits runs afoul 27 turn situation argument respondents logical authorize seems us, fails take account cumulative multiple establishing intention restrain. obvious enable crosses barrier erected 28 early 1912, 107, unanimously pooled24 licenses.25 coupled jobbers indecisive jobber's provision. distinction departed condemnation fixing. Oil (Indiana) 163, 421, 926, pooled oil cracking upheld, theory reiterated se. 175, 423, 425, 926. Of course, plan found, 174, Government's contention element view regulators dominated industry. domination thought proven. 29 When synthetic hardboard formerly competing distributors, designated agents,26 came allegations invalidated scheme. competitor's disposition distributor. reasoned economy, 'a powerful inducement abandon competition' derogated 'from general law (against limitation) requirements statute.' 281, 30 clearly applies order properly inventions, join however stimulate broader exploitation vice promote production nothing pay compensate uses whole arrange shared subjects whenever things license, contract. Licensees provisions, knowledge prohibitions. decree reversed remanded entry appropriate accordance JACKSON Reversed remanded. DOUGLAS, BLACK, MURPHY RUTLEDGE, join, concurring. I joined problem me adequate understanding presented. My comes wisdom govern situation, premise accepted, logic might wholly defensible. But rid overruling start itself. 36 'To Progress Science Arts, securing Times Authors Iv entors Right Writings Discoveries.' Cl. inventors 'the Right' inventions; second secondary, aim being promotion science arts. cited. faithful standard, 'exclusive discovery.' 4884, 40. And 1853 speaking Taney, narrow follows. 'The franchise grants, consists altogether making, using, thing patented, permission patentee.' Bloomer McQuewan, How. 539, 549, 532. ingenuity man conceived ways graft attractive perquisites onto years expand Constitution, second, let self-interest come ascendency. B. Chemical Ellis, 314 495, 498, 406, 408, 367, enlarged convenient so, avail himself grant.' L.R.A.1917E, 959, overruled Henry A. Dick 224 364, 56 645, Ann.Cas.1913D, 880, International Salt 332 392, day, quite allow 'right exclude' expanded choose. enlarge evade applicable property. philosophy decisions summed up 376, necessities convenience justify create refuse expedient attaching use. privilege. conditioned purpose. results defines. ties something else invention, virtue property concerning He then imposes contracts.' line cases. 1926, sustained price-fixing invention. combinations outlawed (United Socony Vacuum 310 150, 811, 1129) what ths done? 39 sanction combinations. indeed silent about So relevant grant, noted, subject, seem outlaws keeping expressed legislation apply valuable concerned high possible. article, undersell him; protection contingency therefore inverted prime rather incidental object system. manner saddled vicious place, underwrites high-cost producer. lowcost strengthens enlarges reply he, patentee, anyway—that market chose. true. gets that. inherent exclusion flows suppression competitors. Then marketing facilities risks short, associates get right' invention; it's creates abandonment competition, cessation litigation matter how dubious, stabilized markets, assured margins, cutting alternative arduous methods maintaining positions. Competition tends become impaired public's preference increased profits doing promises. 41 perhaps most inducements offers security stability; eliminates uncertainty practices; promises profits. regiment industries exact public. disappear. regimented determined representatives public, electric, water gas rates, incline traffi bear. type inflict precisely injury condemns. scheme discoveries meaning Constitution. leverage combination, itself, create. Yet 'every' condemns, excluded. 42 say economic organization. am specified utilize protect costs eliminate suppress apparent promotes places secondary role. primary concern schemes reverse place second. receive relation Or harmonize closely anti-trust laws, strike down effectuate 43 Congress, author sanctions laws. 383, created it, initiative eliminating it. hard square plainly violence BURTON, THE CHIEF JUSTICE FRANKFURTER concur, dissenting. 45 dissent impelled regard soundness, ,General Anti-trust defendant cross-licensors, (here respectively Southern), ten hold complementary owned cutouts. alone Each twelve received improved product, having engaged fix, sold, commerce, disputed commerce. court's demonstrate, wih respect price-limiting licenses.2 show that, unless sustains constitute, se, dismissed.3 is: Do constitute Act? court below not.4 comparable which, cases, Act—'clearly refer kind arise imposed assignee thereof, restricting demanded act, contemplated framers.' 756, 1058. and, holder's 'We (the holder) acquire sold.' 50 agreements. each. nonexclusive, royalty-free question. prescribed 'not favorable customer established time sales.' difference Southern, instead paying cash inserted commitmen insert concerned, nonexclusive latter Assuming placed especially operations represented interests. evidenced normal manufacturing 'of sold.'5 ways, natural insertion royalties. evidently needed continue converted commercial failure success. demonstrated receipt unconditional not, convert invalid violating direct separately licensee-defendants. resembled other. payment modest are, such, entirely divide 52 licensee-defendants desiring so-called 'Kyle patent' boxes. Some carried suggested 53 asks rejects request seeks reversal judgment distinguishing precedents. emphasize soundness decisions, demonstrate principles sustain least equal force. initial omit division Line. upholding remaining portions te previously 'arise therefor'6 monopoly.'7 accordingly re-examines foundation emphasizes development, nature decisive main this. 54 Rights. An historical origin Great Britain. nation 'patents' times discoveries. 'literae patentes,' i.e., 'open letters,' sealed exposed Seal pendant bottom. addressed sovereign realm. instruments were, still common dignities, peerages, appointments offices kinds. Their form, therefore, similar 'monopolies' guilds, individuals, permitting conduct lines profitable business.8 contrast kinds British Parliament inventor had. hypothesis, dealt asset available civilization inventor. royal served encourage disclose granting using time, felt invention's disclosure, availability everyone. procedure popular. hand, enterprises existing favor funds expense highly unpopular. courts, date, invalid.9 1602, Francis Bacon, House Commons, supported princil 'new manufacture.' 1623, Statute (21 Jac. c. 1; Walker Patents, pp. 18—21 (Deller's Ed.1937) void sole Buying, Selling, Making, Working Using Thing Realm, *.' However, VI express inventions.10 Section Britain throughout world. result, historically principle, conflict mandates. standing approval, unique exercise, periods, paralleled emphatic disapproval representative unfaltering touched decisions. face attack underlying principles, importance justifies brief review hereof attacked. relate interpreter Congressional Acts beginning, entrusted intrusions crucial nation. population world increased, geographical frontiers shrunk. depends needs future. far, leading putting provides Power Inventors Discoveries; (Italics supplied.) primarily implementing state: 'Any person invented discovered art, machine, manufacture, composition matter, improvements country, discovery described printed publication foreign year application, country proved abandoned, fees law, due proceeding had, therefor.' R.S. 4886, amended, 1212, 31. 63 'Every contain title description discovery, correctly indicating design, heirs assigns, seventeen years, Territories referring specification particulars thereof. *' 40.11 therein assignable instrument writing, applicant assigns like convey (Supp. V, 1946), Conway P. Commissioner 1933 1945, significance establishment Temporary Economic Committee mechanical begun affect industrial economic, social, political status Europe Nation continent. f put work England Confederation realized statemen era. factors prompted write section empowering 'to provision, way, impressive major bestows complete raises constitutionality compel share title, presume point; contemplate hereafter. authors system, judging exclusiveness vested aid sciences.'12 Hearings Committee, 76th Cong., 1st Sess. 839—840(1939). analyzed 'patent rights' concluding antitrust follows: 69 'It occurs misapprehension distinguish sort sovereigns once conferred. appreciate understand Jefferson advocate while condemning traditional 70 'Americans detest sense ruthless power. Indeed, Revolution precipitated popular resentment tea East India would, exceedingly strange if, few later, delegates Constitutional Convention Massachusetts Colonies willing equivalent government creating. sixteenth seventeenth centuries king queen favorite salt life. beneficiary discoverer salt. ready-made Creator eons advent man. What darling her majesty supplying dictation. 'But i new, unknown, added sum total human knowledge, utility, well-being; discoverer, despising lure money fame, withheld fellow men. goes then, recompenses protects discovery. mutuality negatives old current concept. individual dominion existent. awards original, superadded store. bearing name nature. contended sometimes clash suggest 1890, coexisted irreconcilable conflicts objective, namely, retention acquired fact, accomplish rights. influence creative; operate multiply acquisitions public.' (Id. 840, 841.) 73 analysis 74 'Though characterized accurately speaking, executive prejudice community grantee Seymour Osborne, Wall. 516, 533, 33. connotes buying, selling, working, freely takes people. deprives adding knowledge. Bell Telephone 167 224, 239, 809 (810), 144; Paper Bag Case, 210 405, 424, 748, (753), 1122; Brooks Jenkins, McLean 432, 437, Fed.Cas.No.1,953; Parker Haworth, 372, Fed.Cas.No.10,738; Allen Hunter, 303, 305, 306, Fed.Cas.No. 225; Attorney Rumford Works, Bann. Ard. 298, 302. keep secret reap fruits indefinitely. disclosure consequent community, granted. enjoyment guaranteed expiration period, enures people, enabled Kendall Winsor, 322, 327, 165; 239 U.S., (at 810, 144). end requires skilled art use.' Dubilier Condenser 289 178, 186, 187,13 554, 557, 77 1114, 85 1488. constitutional specific generality 1890. ample guaranty impliedly repeal unreasonable periods continued exist together. new. kept rights, engaging 76 indicate intent change nation's towards widely regarded contribution exceptional progress. unquestionably applied abuse exceeded amounted Hooever, restricted LIMITED LICENSE AGREEMENTS. 78 issuance thereby excess licenses, agreements, scrutinized 79 limitations—as cases—upon corresponds raised case.14 Act's invalidation definition unreasonableness trade.15 permits where,f subterfuge amount concurrently case.16 80 accordingly, invalidate unconditional, holder, Accordingly, waiver non-exclusive decreased entitled. 81 next converts no. Just unlimited partial, lawful, relaxation correspondingly restraint. 82 answer, 'normally monopoly.'17 Here again, lawful. Therefore, reducing merely lesser restraint, argeements carefully sure introduce restrictions judicially construed, unreasonably instant possibilities reduce brings requires, all, Court: common-law induces clothe everyone words, confers (in bring infringement). descriptive invention.' ownership right, save right. supra (210 1122) idea others.' Crown Nye Tool 261 37, 254, 256, 257, 516. key us. unpatented exists right,' federal statutes, science, welfare. assigned. 47.18 exercising during life assignor assignment made. 87 Any attempted 'is sue infringement.'19 position simple, important.20 Before articles, important extent prevented changed withdrawing licensee, him. diminished. creating ground asserting thus, relaxed lessening see restaint resulting absolute is, withdrawal indirectly imposition ambit presents, special scrutiny royalty-yielding presents monopoly.'21 satisfy holder. Limitations best, only, adapted' situation. following statements illustrate directness repeatedly it: '* very exceptions, property, courts. render illegal.' 91, 90 'As Unite 'upon performance entitled secure.' (upon only) character. one, Providence Rubber Goodyear, 799, 800, 566; Gamewell Fire-Alarm Telegraph Brooklyn, C.C., F. 255. appears, legality questioned.' Talking Pictures Western 305 124, 127, 116, 117, 81. 91 normality, reasonableness necessity inserting trespassing effectively summarized 362: sold. higher profit, prohibitory. retains account, 'Yes, you my destroy wish myself.' outright vest restricts goods proposes sell.'22 93 hearings familiar propriety electrical, communications automotive industries, usually represent intrinsic merit substantial investment research, promotion. If, reflect none investments above-mentioned. reimbursed expenditures, need, sufficient quantities commensurate prescribe restriction. monopoly.'23 function.24 94 comparatively large reimbursement danger smaller obvious. holders, Similarly, capital finance iti investors require operating period amortize time. shows insisted monopoly.'25 95 reinforces conclusions: 96 'Speculative encouraged fall behind enterprise represents expansion committee invent, rewarded investigate, believe corporations, firmly established, likely founded protection. opinions hereafter invent indisputable speculative back final crux question.'26 857, 858. 97 foregoing supports sufficiently lead 98 SUBLICENSES AND CROSS-LICENSES. 99 authorities, simple test involve, antedating reach tested Does difference? 100 sublicense, diminishes adds om Per certainly amounts value. transaction. apparently, event, hardly existed closer relationship reason, nature, combining feature, considered, 101 positive amounting multiplication produces repetition record addition licensor, suit. 715, 716. 102 apparently reaches 103 carries feature. At accompanied Provision 104 derived Because remove separately, production. together completely assigned sublicenses. 105 Line,c oupled Where, course circumstance existence 106 pools, unrelated distantly related involving forms royalty-bearing cross-licenses, picture screen for, to, facts. bases claim invalidity confronted owned. assignment. That, involve 107 consolidation purchase. conduced resulted diminution statute. was, Both producers. 108 Unless relationships parties, exchange. 109 defendants, rest substance alone. traditionally tests 110 pools holders noncompeting vitally dependent little value, together, spell success Cross-licenses monopolies, realization Far provide means releasing deadlocked desirable procedure. 170 seq., Its depend circumstances. 111 discloses agreement.27 lower commented 112 'A restrictive bar.' 975. 113 'even restrictive' 114 acquisition party machines Winslow, 227 202, 217, 253, 255, 481, Holmes, 115 essence conferred (Continental Co.) 429, 748 (755), 1122, 1132, groups best. As, compete another, why collective worse component parts. corporation cent collectively proportion disintegration aimed extend isolated lowest degree.' See, 45, 478, 480, 258 463, 464, 363, 708. 116 171, Brandeis spoke (except Jut ice Stone case): 117 concedes licensees; grants. contends renders illegal. urges, first, inclusion royalties, constitutes (15 seq.) evidences unsound. conclusive illegality. legitimately conflicting threatened interferences, settlement litigation, precluded interchange according attributed frequently technical advancement blocked litigation.28 118 impose commerce.' 119 context, presented, evident effecting fixation 'impose commerce,' laws.29 remain ambits 120 JUDICIAL LEGISLATIVE HISTORY SINCE GENERAL ELECTRIC CASE. 121 nor reasoning based rejected announced 819; 81: 122 'Appellants distributors films exhibition restrictions, it.' (Citing cases.) Circuit, Inc. 228, 475, 123 252, 1094, 124 stare decisis interpe tation occasion interpreting phrases. Burnet Coronado Gas 285 393, 410, 443, 448, 815. holdings decisis. 125 recent activity seeking, amendment, indicates widespread changed, remedy calls resistance shown impressive.30 dissatisfaction 126 neither fromt hem. 209, 1167, 4: 'Sec. 1. Every trust otherwise, conspiracy, nations, hereby 4. district invested act; duty districts, direction General, institute proceedings violations. names abbreviations hereinafter percentage below: Appellee Abbreviated Percent 29.2 25.4 James Corp. 18.9 Corp 7.9 5.3 Conrad 5.1 Industrial Engineering 3.8 Matthews 2.0 Porcelain Products 1.5 Royal .5 .2 T. 100.0 Johnson, Manufacturing Atlanta, Georgia. argued April 1947, reargued 12—13, 525, today, considers phases essentially expulsion tube end. moves closed locked latch engages terminal top place. released relatively complicated expensive solenoid mechanism becomes excessive Thereupon broken drops downwardly, upper disengaging latch, swing down. covering cutouts, dominates suit.' Fact, 6. cutout structure rigid link. overload, melts, breaking automatically, drop outwardly. simpler, considerably cost operated cutout, demand 7. Railway, Matthews. S.Ct.—35 1/2 fully paid sell, sub-licenses interrupting interruption caused thermally initiated rupturing carrying tube, coming 25, G. 'Circuit Breaker' and/or division, continuation, substitute, renewal reissue thereof.' '15. herein shall, Letters sales. directly, indirectly, modification instance, transaction parts, labor, services, regular parts furnishing services allowances freight employed Company. 'Prices, notice writing (10) days' go effect. (but excepting paragraph Schenectady, York, 19,449), partyof section, relieved obligation section.' Line-General '9. Licensor Licensee purpose, ampere voltage rating, capacity, Licensor, Licensee's aforesaid Patent, Steinmayer force forth Schedule annexed hereto forming hereof. Licensee. '10. spirit contemplates instance prevailing accustomed furnish named time.' repeated variable subsidiary Lemmon. aggregate percent Royal, attended conferences. conference. adequately records sale, inspection thereof cancellation breach. Fact: '32. believing Apart evidence, implied, '33. minimum with, regularly ready customers order. '34. practicable entering inflexible independently discussions cheaper facilitate income. '35. promoted sources obtained, increasing particularly service. vigorous '36. them, therein.' illustration issues, call following: Barber—Colman 136 339. injunctive relief compliance denied. hobs machine. Cummer—Graham Straight Side Basket Corp., 142 646. denied failing comply provisions; attachment basket machine baskets Vehicular Parking, Ltd., 828. Antitrust company parking meter meters practices. ordering compulsory royalty, principally meters; distinctions active concert weakness restrictions. Allegheny Ludlum D.N.J.Civil 83, stainless steel owning particular steel. Optical S.D.N.Y.Civil 10—391, optical licenses; sublicensed Bausch Lomb S.D.N.Y. Civil bifocal lenses, lenses wholesalers retailers lenses. Catalin 7743, phenolic resins agreeing Cable 40—76, cross fluid filled cable, adhere uniform observe territorial limitations. 1364, providing quantitative Fried.Krupp, S.D.N.Y.Cr. 110—412, carbide Instrument D.N.J.Cr. 3960—C, 8586, condenser explicit subsequently removed tacit Phillips Screw N.D.Ill.Civil 47—C—147, recessed head screws screw manufacturers; produced.* lists: Uncertainty control; device; licensees' prices; U.S.Brief seq. wide Hench, 299; Quick, 130, grounds, 236. Tire Wheel Milwaukee Works 154 358, Indiana J. Threshing Mach. 365, fixing, Blount Yale Towne 166 555, Bills introduced outlaw licenses: H.R. 22345, 62d 2d (1912); S. 2730, 77th (1942); 2491, (1942), thereon; 7713, 109, 78th (1943); 1371, 3874, 97, 79th (1945); 3462, 2482, (1946); 72, 80th (1947). Final Report Sen.Doc. 35, (1941), p. 36; Planning Commission, H.Doc., (1943), Rules Procedure, Rule 52, 723c: Court.—'(a) Effect. actions jury, specially state thereon judgment; refusing interlocutory injunctions similarly grounds Requests purposes review. erroneous, witnesses. master, adopts court.' E.g., Miller-Tydings, 693, Dr. Miles Medical Park 220 502; Boston Store Graphophone 246 551, Ann.Cas.1918C, 447; Trenton Potteries 273 377, 700, 989; Secony—Vacuum 222—224, 843—846, 1129; 250, 1093, 1406; Sola 317 172, 416. Appalachian Coals 288 344, 471, 825, view. prices.' 479, 825. Socony-Vacuum 214, 129 arbitrary Appalachian. 359, 371, Lead 1634; Hartford-Empire 384, 322; 169, cited; 48, 49, 14, 107. Transparent—Wrap Stokes Smith 637, 641, 647, 610, 613, 616, Commerce authorizes carriers pool revenues mergers carriers, Commission obtained. ia pplicable 5(1), (2) (11), 5(1, 11). pool' art. expression linking 107: clearly, transcended passed accomplished companies constituted treated receiving patet ed benefits. 645 (Ann.Cas.1913D, 880.), contravenes expressed.' (Findings fact.) found: plaintiff action, '27. None moving '28. defendant. '29. structures classification schedules attached implement evasion provisions. devise 22,412 19,449. '31. defendants. (Line's) agreements.' industry-wide follw ing finding: '5. cutouts; non-dropout materials cast wetprocess porcelain, Prestite; automatic breaker Defendants' Exhibit L—23. average annual 1940 1944 $1,918,247.78 distributed 29.2%; (,) 25.4% (;) 18.9%; 7.9%; 5.3%; 5.1%; 3.8%; 2%; Procelain, 1.5%; 0.5%; Pacific, 0.2%; 0,2%.' '2. preceding (Conclusions law.) Flemish weaver 1331. merchant, 1347, exporting Cornish individual, 1376, sweet wines City London. dates 1561 saltpetre. Meinhardt, Inventions, Monopoly, 30, (London, 1946). Monopolies, Darcy Allein, (Q.B.) 159, Part XI—84b; Abb.Pat.Cas. Webs.Pat.Cas. playing cards realm Parliament. 12—16 Ed. 1937). 'VI. Provided also, enacted, Declaration before-mentioned Grants Privilege Term fourteen Years under, Making Manufactures Inventor Manufactures, Time Law, mischievous State, raising Prices Commodities home, Hurt Trade, inconvenient: accounted Date Grant Force other.' (1623). people; simply declaratory Sovereign, doctrines affirmed, Magna Charta (9 III, Ch. XXXVII, A.D. 1225) liberties infringed usurpation, prerogative definite exercised. reservation working manufactures inventor; conferring years.' 10, 1790. provided: 'Section petition persons Secretary department war, setting forth, she, they, hath engine, knowm used, praying therefor, deem important, cause bear teste President reciting suggestions petition, describing truly fully, thereupon petitioner petitioners, his, heirs, administrators exceeding liberty constructing, discovery; 110. referred subject: 'No contemporaries successors achieved reputation opponent Thomas Jefferson. sanctioned, eloquently advocated cite commentary act presumably 1790, administration collaborated Knox, War, Edmund Randolph, General. "An authorizing spring conception. acquainted "In arts, ingenious consequence patent-right years. "Certainly ought Nobody wishes liberal encouragement." 840. conception resorted Coe's 2,000,000 issued, design reissues. figure approximately 2,500,000 100,000 1870. showed 60% filed finally 844, Exhibits 179 180.) Official Gazette, U.S.Pat.Off., Vol. 605, 714, 885 (Dec. 1947). report Executive Order 8977, 1941, C.F.R.Cum.Supp. 1040, comprehensive survey study things, 'consider maximum stimulating inventive genius people evolving furthering prompt utilization good; obstructions eliminated; plans employment, defense times.' appointed Charles Kettering, Chairman, Chester C. Davis, Gaines, McGrady Owen Young members Committee. transmitted o 1943 (H.R.Doc. 1), following; 'Power Arts,' 150 old. framers intended. entire rests. recognize fundamental rightness fairness creations preserved. contributed growth greatness Nation; has— '(1) Encouraged inventiveness creativeness, producing processes ahead countries scientific technological endeavor; '(2) Stimulated originate portion years; '(3) Facilitated rapid country; '(4) Contributed achievement highest living enjoyed; '(5) creation arm wage war; '(6) health safety; '(7) Operated concerns formative enterprise. strongest nations systems careful study, best world.' recommendations added: coextensive principle intellectual sound Constitution.' 9.) Raymond, Pet. 218, 242, 243, Marshall declares 'shall grantees contained.' amendatory 1793 contains language, doubted h been, confer exertions exertions. ought, think, made; execute fairly actually received: transcending statute, countenancing fraudulent prove mischievous. yields yield; receives contracted receive. preserved; faith pledged. employs compensation individuals labour devoted discoveries, corresponding examined agency Another 'agencies' bona fide agencies. turn, (316 1461): 'we Company.' 179, 180, 348, 663. 619, L.R.A.,N.S., 834, Ann.Cas.1912D, 734. sharply 420, 959; Straus Victor Machine 500, 501, 412, 415, 866, 1186, 955; Bauer O'Donnell, 229 16, 1041, L.R.A., N.S., 1185, Ann.Cas.1915A, 150. 926; 708; Adams Burke, 453, 700. discussing ago thing, assign, convey, (1) comprising States; undivided right; (3) 4898. transfor, these, infringement. 4919; Gayler Wilder, 477, 494, (13 504); Moore Marsh, 515, (19 37.)' Waterman Mackenzie, 138 923. "As passes patentee' Quoted De Forest 236, 366, 368, 625. Taft, 491, references case: 'This float tool harrows delivery purchasers objected Peckham, (186 U.S.) (22 755), 1058); "The 'Speaking 1058): condition. tended implements recognizeing in, vl ue do. can, choose, article." Judge Westenhaver, whose conceivable safely terms; risk destroyed, hence, ordinary prudence, feel obliged hands. 1058.' 718. supra; 839 857 seq.; Joseph Farley, Counsel, Ford Detroit, Michigan, 262 Vannevar Bush, President, Carnegie Institution, 898 Ralph Flanders, Jones Lamson, Springfield, Vermont (now Senator Vermont), 928 Graham, Improvements, Inc., Newark, Jersey, 938 Frank Jewett, Laboratories, 958 Maurice H. Independent Inventor, Minneapolis, Minnesota, 1076 Baekeland, Vice Bakelite 1082 testified reissues, (having $50,000,000 assets) 17.2%, 34.5%, 5.4% 42.9%. Subsequent assignments materially proportions. 846. Clarence Carlton, president Automotive Parts Manufacturers Association, industry: 'Patents valued manufacturer. happened hurt anyone manufacturer.' 1057, 1058.) (Westinghouse) agrees (General Electric) owns controls incandescent paragraphs a, b, c d Article territories hereof, personal, non-assignable, indivisible non-transferable force.' Par. (8) Agreement A, Supreme 113, O.T. 1926. footnote stated: process, another. rendered useless, 'blocked,' unexpired process. reached, hampered litigation. And, frequently, minor improvement.' statement, Many bills relating committees. Not reported Congress. Sess., Department recommended changes Preliminary Report, Sen. Doc. 95, (1939). opposite position. submitted retaining improving policies. incorporated proposals Justice. recommendation (1941). submit questions report. (See supra.) examples reforms 'would beneficial innovation system,' 'outlawing (1943). Committees further. Among 2491 (§ 4), 2730 3), 7713 1371 29), 3874 3462 assignment, conveyance thereunder, connection condition, purchaser, grantee, (licensee) producible customarily marketed

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