Brief for the United States (1914)

Record Details:

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6 PAET I. (11) All of the rules governing the disposition of the product in eonunerce have been oppressively enforced and were being enforced at the time this suit was brought. We have stated above some of the things which the defendants accomplished in respect to the commerce in the positive film. It is obvious that these restrictions are unlawful under many decisions of the Supreme Court. Accordingly, it becomes necessary to examine the defense. The defense is that the forni of combination, which is a licensing arrangement under patents, has made lawful acts which it is conceded would have been unlawful in the absence of the patents. We maintain (1) the form of combination can not atfect the result — the patent laws offer no justification for violating the Sherman Act, even in respect to commerce in patented articles; (2) the commerce restrained is conmierce in an unpatented article, namely, positive motion-picture film. Therefore, conceding that defendants' own valid patents used in the production and manufacture of the unpat(^nted positive film, the ownership of such patents does not authorize the defendants to restrain by means of patent licenses the commerce in the unpatented positive fihu. Even if the court should hold that the so-called negative film ])atent (No. 12192) covers the positive film, we maintain tliat a combinati(m restraining tiade in i)afente(l articles is prohibited by the Sliei'iiian Act.