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14 EDISON PHONOGRAPH MONTHLY, FEBRUARY, 1916
Important Legal Decisions
ENJOINED FROM USING NAME "EDISON"
SHORTLY before Christmas, 1915, the Timke Distributing Corporation of New York was quite active in attempting to create interest in and obtain orders for a small, low-priced phonograph called the Best-Phone, by sending out letters with reference thereto to many Edison jobbers and dealers, both in Canada and the United States. These letters were written upon the letterhead of the Timke Distributing Corporation and were signed by John J. Brophy, who will be remembered as a former Edison demonstrator. In the letters, use was made of our trade mark and trade name "Edison" in a manner designed to injure our business and reputation, namely, by representing that the Best-Phone was equipped with a genuine Edison reproducer or had a genuine jewel Edison reproducer. As a matter of fact, the reproducer of the Best-Phone is not "a genuine Edison reproducer" or "a genuine jewel Edison reproducer," and is not manufactured or marketed by or for Mr. Edison or Thomas A. Edison, Inc. Accordingly, on December 17, 1915, we brought suit against the Timke Distributing Corporation and John J. Brophy in the United States District Court for the Southern District of New York, on the grounds of unfair competition and the infringement of our exclusive rights in the trade mark and trade name "Edison." On December 30, 1915, less than two weeks after the filing of the suit, a decree was entered in our favor as to all points in issue, and on January 8, 1916, an injunction was issued perpetually enjoining the Timke Distributing Corporation and John J. Brophy, and each of them, from in any way using the word "Edison" as a designation for any phonographic apparatus or any phonograph reproducers not manufactured by or for Thomas A. Edison, Incorporated.
A copy of the injunction in full follows herewith:
UNITED STATICS DISTRICT COURT. SOUTHERN DISTRICT OF NEW YORK.
THOMAS A. FJ)ISON, INCORPORATED,
Plaintiff,
TIMKE DISTRIBUTING CORPORATION AND JOHN T. BROPHY,
Defendants.
THE PRESIDENT OF THE UNITED STATES OF AMERICA TO TIMKE DISTRIBUTING CORPORATION AND JOHN J. BROPHY, AND EACH OF THEM, AND THEIR AND EACH OF THEIR OFFICERS, AGENTS, ATTORNEYS AND EMPLOYEES, GREETING:
Whereas, it has been represented to us in our District Court of the United States, for the Second Circuit and the Southern District of New York, in Chancery sitting, on the part of Thomas A. Edison, Incorporated, plaintiff, in a certain bill of complaint exhibited in our said District Court before the judges thereof, against you, the said Timke Distributing Corporation and John J. Brophy, to be relieved touching the matters complained of, and in which said bill of complaint is stated, among other things, that your actings and doings in the premises have infringed upon the rights of the plaintiff and are contrary to equity and good conscience.
And it being ordered that a writ of perpetual injunction issue out of such court upon said bill, enjoining and restraining you and each of you, as prayed for in said bill, we, therefore, in consideration thereof, and of matters in said bill set forth, do strictly command and enjoin you, said Timke Distributing Corporation and John J./ Brophy, and each of you, and your and each of your officers, agents, attorneys and employees, that you do absolutely and perpetually desist and refrain from using the word "EDISON" in any circulars, advertisements, announcements, placards, or in any other way as a designation for any phonographic apparatus, other than that of the plaintiff, Thomas A. Edison, Incorporated, and from in any way representing, circularizing, or advertising, or soliciting orders for or selling, or in any manner disposing of, as Edison reproducers or genuine Edison reproducers, any phonograph reproducers not manufactured by or for the plaintiff, Thomas A. Edison, Incorporated, and from infringing upon or violating the rights of plaintiff, Thomas A. Edison, Incorporated, in the premises in any manner whatsoever. Hereof fail not under the penalty of what the law directs.
WITNESS the Honorable Charles M. Hough, Judge of the District Court of the United States for the Southern District of New York, at New York, in said District, this 8th day of January, in the year of Our Eord One Thousand Nine Hundred and Sixteen, and of our Independence, the 140th year.
(Signed) AEEX. GILCHRIST, JR.,
Clerk. (SEAE)
A TRUE COPY of a writ issued January 8, 1916. AEEX. GIECHRIST, JR.,
Clerk.
In Equity.
THE DECISION OF THE CIRCUIT
COURT OF APPEALS IN THE
"MACY CASE"
A DECISION of considerable interest and importance as bearing on the question of the right of the manufacturer to control the price at which his product shall be sold is that rendered on January 11, 1916, by the United States Circuit Court of Appeals for the Second Circuit, in the case of Victor Talking Machine Company vs. Straus and others (conducting a well-known New York department store, under the name of R. H. Macy & Co.), and generally referred to by the trade as the "Macy Case."
The Macy Company had acquired a large quantity of Victor machines and records and offered the same for sale at prices less than those prescribed by the Victor Company as royalty fees for the license given to use the machines and records. The Victor