Brief for the United States (1914)

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i'.\i;r III. 15 and cxicnsixc, l>iil llicy do nnt L;i\'(' any more than otlicr I'i^lits a iiniNci'.sal license against positive proiiihitions. 'I'lic Slici-nian law is a limitation of* rii^'lits wliicli nia\ he |)iish('d to ('\ il ('ons('<iuen(*(\s and 1 lici'ct'oi'c ycstraiiiod. He also said : (lU)) 'I'lie {'liar.i;'e eliall('n<;'es consideration of the relation between that whieli the manufacturers engaged to do and the protection of the exclusive right attached to the invention. Upon such considei'ation how far the licenses transcend such right and violate the Sherman law we can then determine. And w^e shall keep in. mind and apply the prin' ciple expressed in Bemcnt v. National Harrow Co, (186 U. S., 70, 92), that the Shennan law clearly does not refer to that kind of a restraint of interstate commerce which may arise from reasonable and legal conditions imposed upon the assignee or licensee of a patent by the owner thereof, restricting the terms upon which the article may be used and the price to be demanded therefor. Such a construction of the act we have no doubt was never contemplated by its framers.'' In our inquiry we shall accept arguendo the statement of defendants of their inducement and purpose. We say " arguendo because the asserted inducement and purpose are denied by the Government, it contending, as we have seen, that the Arrott