Joseph McKenna

“ The advantages of the instrument over the hand process are decided. It is more efficient and more economical. It makes a better article and in less time. There is no waste in defects or 'seconds.' The workman is relieved to some extent from 'fierce heat conditions,' to quote from the answers.
At the time of the contracts which are attacked by the government the Standard Sanitary Manufacturing Company was the owner of the patent and manufacturer of 50 per cent of the ware, and used in its production the patented device. Some of the other manufacturers were infringing and controversies existed. ”

“ By fixing prices 'he hoped,' he said, 'as one of the features of the license agreements, to enable the companies to abolish ruinous competition,' and to get a 'revenue for each of the companies to enable them to make a reasonable profit.'
But motives and inducements may not be easily estimated, and we will pass to a consideration of the agreements. On March 30, 1910, the Manufacturers' Association passed a resolution and a committee of five was constituted, to be known as the price and schedule committee, to which the license agreements and resale agreements should be referred. ”

“ The resale prices as established from time to time were required to be maintained by all jobbers and dealers, and sales could not be made from one jobber to another for any better prices than 'established by the sheets,' and the purchaser agreed to 'observe and strictly maintain . . . the selling prices as they are set forth in the schedules, and observe and adhere to the rules and regulations as embodied in the price sheets,' or embodied in price sheets which might be issued by or under the authority of the licensor. Articles might be added to or removed from the schedules at any time. ”

“ Rights conferred by patents are indeed very definite and extensive, but they do not give any more than other rights a universal license against positive prohibitions. The Sherman law is a limitation of rights, rights which may be pushed to evil consequences, and therefore restrained. ”

“ Nor is the justification of defendants made more adequate by the representation that 'Wayman's motive was to make money for himself, not as a manufacturer, but as the owner of the patent, receiving royalties from those whom he licensed to use his patented invention.' Wayman testified to another motive. ”

“ The law is its own measure of right and wrong, of what it permits or forbids, and the judgment of the courts cannot be set up against it in a supposed accommodation of its policy with the good intention of parties, and, it may be, of some good results. ”

“ There was a contention in that case that the contract of the National Harrow Company with Bement & Sons was part of a contract and combination with many other companies and constituted a violation of The Sherman law, but the fact was not established, and the case was treated as one between the particular parties, the one granting and the other receiving a right to use a patented article with conditions suitable to protect such use and secure its benefits. ”

“ The testimony as to the state or interstate character of its business is that it manufactures at Elizabeth, New Jersey and buys also from other manufacturers and jobbers. It ships from there to its warehouses in New York, Worcester, Massachusettes, and Brooklyn. The trade of its Worcester branch covers about 200 miles around Worcester, its efforts being to localize its business. It is doubtful, it is testified. If the trade goes beyond Massachusetts, the trade there being circumscribed. Sales in Connecticut are made through the New York office from the warerooms. ”

“ A breach of any of the conditions subjected the contract and all unfilled orders to cancelation, the forfeiture of rebates, and the power to obtain the ware manufactured under the letters patent from any of the licensed manufacturers. The purchaser further agreed not to sell any goods on hand manufactured in accordance with the patents, irrespective of by whom manufactured, except in accordance with the prices, conditions, and regulations of sale established by the licensor. ”