June 18, 1927.
P R E S T 0-T I M E S
COINOLAS
FOR
RESTAURANTS, CAFES and
AMUSEMENT CENTERS
Style C-2
FROM THE BIGGEST
ORCHESTRION
TANGLED RADIO PATENTS
Dealers Attending Chicago Radio Trade Show
Discuss Cleaning Up Conditions in Situ-
ation Regarded as Desperate.
Dealers attending the radio convention in Chicago
this week were confessedly desperate over the in-
volved patent situation effecting the industry. They
attended the first Radio Trade Show at the Coliseum
in the hope that light might be thrown on the situa-
tion, allowing them to go back home and do business
without the fear that they may be ruined by being
caught in an infringement suit.
It was not until the Federal courts began to un-
tangle the radio patent snarl that these dealers began
to worry. As one court decision follows another the
distributors and dealers, as well as the manufac-
turers, are becoming more and more alarmed. They
have suddenly realized that the Federal laws give
the owner of a patent the exclusive right to manu-
facture, use and sell his device. This means, in the
eyes of the law, that the small dealer may be a patent
infringer just the same as the wholesaler or manu-
facturer of an unlicensed set, and the lawful penalty
for such infringement may force the dealer to return
to the patent owner all the profits he has made in
handling the infringing device, in addition to triple
damages if the court so decides.
The show at the Coliseum was a private affair for
the dealers and the general public was not admitted.
The trade was presented with three patent situa-
tions of vital importance to them. The first was that
of the hundreds of patents owned or controlled by
the "R. C. A. Group," of which the members are the
Radio Corporation of America, the General Electric
Company, the Westinghouse Electric and Manufac-
turing Company and the American Telephone and
Telegraph Company. The second was the Latour
patent situation which includes 81 patents and patent
applications relating to radio. The third is the Hazel-
tine situation which embodies four or five patents
covering various types of receiving apparatus.
An important angle of the general patent situation
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seen was the discovery that the protection of any
one or two of these groups of patents is not suffi-
cient to allow a dealer to legally sell any modern
radio now on the market. Practically all the dealers
attending the show understood the patent situation
as regards the "R. C. A. Group," and insisted that
the manufacturers be licensed under its patents. This
is due to the fact that the group has been vigorously
protecting its patents in the courts for several years,
and a number of important decisions have been ren-
dered.
The situation as it effects the trade was summed
up today by a prominent dealer of New York City
who said that he and his fellow dealers were in a
serious predicament since they realize that unless the
sets they sell are fully licensed under the R. C. A.,
Latour and Hazeltine patents, 'there is a possibility
that years hence the owner of any one of these
patents may take from the dealer by court action all
his profits on selling the infringing set during the
intervening years.
RUBBER RESTRICTION EFFECTS.
Realization that the Stevenson rubber restriction
scheme will, in the long run, benefit Dutch rubber
production at the expense of the British plantation
interests is very slowly and surely coming to the
rubber trade in England. With Malayan exports
once more restricted to 60 per cent, consumption still
failing to improve, and rubber prices displaying a
decided weakness at a shilling, 7 pence and a half
penny a pound, an increasing number of the pro-
ducers are realizing that the price paid for restric-
tion by the British industry may be too high.
KEEPING YOUNG WITH RADIO.
Radio is keeping Americans young by spreading
youthful thoughts and ideas throughout the nation,
according to V. Edward Scott, special investigator
of the Freed-Eisemann Radio Corporation. The in-
fluence of the average entertainment program is felt
even in communities where there are but weekly
newspapers and citizens in the most sparsely settled
districts are able to keep up-to-date and in touch with
world events through their radios.
TO RECTIFY INTERFERENCE.
Hearings intended to rectify radio broadcast inter-
ference that result after the June 15 allocations go
into effect were announced June 9 as the procedure
contemplated by the Federal Radio Commission. An
order (General Order No. 15) providing that any
station may file complaints with the Commission for
signal interference by other stations was issued simul-
taneously with .the statement.
A reorganization meeting of the Moose Drum and
Bugle Corps, Elgin, 111., was held last week with the
director, T. Cotton, all the former members, number-
ing twenty, being present to rejoin. An effort will
be made to enlarge this membership.
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