Broadcasting (Jan - Mar 1949)

TV PATENTS Consent Decree Entered Against Three Firms A CONSENT JUDGMENT against three firms controlling television patents — Paramount Television Productions Inc., General Precision Equipment Corp., and Scophony Corp. of America — was entered in New York Federal District Court last Wednesday, according to the Justice Dept. The judgment was greeted by Arthur Levey, Scophony president, as "a great victory for free enterprise." He said it will mean release to industry of the Scophony advances including patents and processes on the "supersonic" and "skiatron" systems of television transmission and reception. The supersonic cell, he said, "will make available — both in homes and in theatres — largescreen video reception in varying sizes vastly superior in quality and substantially lower in cost than that now offered by the cathoderay tube method." Paramount Television Productions is a wholly-owned subsidiary of Paramount Pictures, one of the most active motion picture producers in the TV ownership field. Paramount owns KTLA Los Angeles and WBKB Chicago and is associated with several pending applications. In addition, FCC has issued a proposed finding that Paramount by virtue of a 29% interest controls Allen B. DuMont Labs, which has three TV grants [Broadcasting, Dec. 20]. FCC Notation When it issued the grant for KTLA, FCC took notice of the existence of the anti-trust suit but concluded that "the nature of the charge against applicant does not appear to be such as to require a denial of a grant on that ground" [Broadcasting, Dec. 23, 1946]. If further proceedings in the suit should develop justifying grounds, FCC said at that time, then consideration could be given in passing on license-renewal applications. In the complaint, filed in December 1945, the three defendants were charged with conspiring with Scophony Ltd., a British firm, to monopolize the manufacture and sale of television equipment embodying patents and processes developed by the British corporation. Scophony Corp. of America, the Justice Dept. said, was formed by the three other defendants to hold and license the U. S. and other Western Hemisphere rights under Scophony patents and processes. The complaint also charged that General Precision Equipment and Paramount Television Productions refused to exploit these patents and processes themselves, and that they kept Scophony Corp. of America from exploiting them. The consent judgment requires General Precision and Paramount Television to divest themselves of all stock interests in Scophony Corp. of America, and terminates the exclusive licenses involved. Herbert A. Bergson, assistant attorney general in charge of the Justice Dept.'s Anti-trust Division, said "the system of television reception embodied in the Scophony patents is said to permit the use of large-size viewing screens suitable for homes, schools and motion picture theatres. Successful exploitation of these patents would therefore open up new possibilities in the entertainment and educational world." The supersonic and skiatron television projection systems are methods differing from cathode ray picture tube methods. It is claimed that the supersonic TV system is cheaper, easier to produce, has longer life, can be operated at low voltages, does away with distortions found in curved cathode ray tubes. SCA also holds basic patents to a video subscription device which operates over the air without intervening telephone hook-ups. The consent judgment was delayed until the defendants were able to work out cross-claims among themselves. SCA President Levey had asked treble damages aggregating $270,000 and SCA treble damages amounting to $1,500,000. Conferences held after the order "VfC" DIEHM SAYS: Don't Forget! Have a ''Look' . . at WAZL's half -page '49 Yearbook ad when planning your '49 advertising budget. It will tell _ you in facts and figures just why your WAZL spent advertising dollars will re of judgment, it is understood, resulted in General Precision turning over to Mr. Levey 660 B shares of Scophony Corp. and Paramount Television another 340 shares. Still to be decided is the disposition of shares of SCA held by the British corporation. It obtained them in consideration for the patents granted to SCA use. It is expected that the Anti-Trust Division of the Justice Department in New York soon will proceed to take judgment against the British company, which has failed to file an answer in U. S. action against it. MEREDITH Mr. Jameson FCBA ELECTION Jameson Named President GUILFORD JAMESON, Washington radio attorney, was elected president of the Federal Communications Bar Assn. at its annual election last Friday. He succeeds Carl I. Wheat of the Washington law firm of Wheat, May, Shannon & St. Clair. Other officers elected were Neville Miller of Miller & Schroeder, former president of NAB, first vice president; William A. Porter, of Bingham, Collins, Porter & Kistler, second vice president; Corwin R. (Lockwood Jr., of Hogan & Hartson, secretary, and Joseph F. Zias, of Loucks, Zias, Young & Jansky, treasurer. New members of the executive committee: Vernon L. Wilkinson of Haley, McKenna & Wilkinson, former FCC assistant general counsel, and Omar L. Crook, of Wheat, May, Shannon & St. Clair. The election preceded the FCBA's annual banquet, which was to feature an address by NAB President Justin Miller on "Functions of the FCBA." Members of the FCC, department heads and hearing examiners were guests of the bar association, along with notables from other local bar associations. Mr. Jameson, the new president, was graduated from Georgetown U. Law School in Washington, D. C, in 1920 and has practiced law since that time except for the period from 1930 to 1933 when he served as commissioner of the U. S. Court of Claims. He was also clerk of the House Committee on the Judiciary from 1921-30, during which time he was also associated with special investigating committees of the House. He is the author of several legal papers including "The Judiciary Committee of the House of Representatives, Its Origin, Jurisdiction and Procedure." Members of the FCBA nominating committee were Frank W. Wozencraft, chairman, and Herbert M. Bingham, Eliot C. Lovett, Duke M. Patrick, Paul A. Porter, and Philip G. Loucks. Vies With CBS for WRTB MEREDITH ENGINEERING Co. has offered to match CBS' $242,122 bid for WRTB (TV) Waltham, Mass., owned by Raytheon Mfg. Co. The broadcast subsidiary of Meredith Pub. Co., Denver, filed its application with FCC last Tuesday, AVCO deadline in the transfer. The CBS application for purchase of the Channel 2 (54-60 mc) outlet was filed in November [Broadcasting, Nov. 1 and 15, 1948]. Meredith Engineering is 100% owner of Meredith Syracuse Television Corp., owner of WHEN (TV) Syracuse, which is now on the air under interim operation authority. Meredith Engineering also owns Meredith Champlain Television Corp., TV applicant at Albany, and has minor non-voting interest in Champlain Valley Broadcasting Co., licensee of WXKW-AM-FM Albany. Champlain Valley in turn has minor non-voting interest in Meredith Engineering. Parent firm, Meredith Pub. Co., publisher of Better Homes and Gardens and Successful Farming magazines, itself is television applicant at Rochester, N. Y. Meredith Pub. Co. is 95.97% owner of Meredith Engineering and has guaranteed all obligations of the subsidiary firm. Reason for Purchase Meredith Engineering in its application stated it wished to purchase WRTB because, in view of the TV freeze, the only way to "expand television operations is by the acquisition of outstanding licenses and permits." Application continued that "Boston (with its access to network programs) affords an ideal economic and 'geographical tie-in' with Meredith's present television operation in Syracuse" and with applications pending in Rochester and Albany. It was stated that the installation and construction of the station would be under the supervision of Television Assoc. Inc. KLAC-TV EXCLUSIVE Angels, Stars Game Rights SPORTS is the apparent program personality that KLAC-TV Hollywood is seeking to establish. Last week Don Fedderson, vice president and general manager, announced signing exclusive rights to the Los Angeles Angels professional baseball games. In addition Mr. Fedderson expressed hope of obtaining telecasting rights to the Hollywood Stars baseball team. Station has also signed Kelvinator to sponsor 12 basketball games of USC and UCLA. Reported price is under $15,000. :AFF(LIAT€D WITHNBC MBS Page 52 • January 17, 1949 BROADCASTING • Telecasting