Radio age research, manufacturing, communications, broadcasting, television (1941)

Licenses and Royalties {continued from page 16) the RCA, after December 31, 1954, royalties on all radio, television and other electronic patents in our field which they use and which were developed by GE, Westinghouse, the Telephone Company or RCA before December 31, 1954. Second, it is the opinion of our experts—and I fully share it—that the most important inventions for the future of our business and for the business of those whom we license, are not the GE and Westinghouse inventions. Among the areas for licensing which we regard as most important, are color television and transistors. In color television I'm sure you all know that RCA has made the basic inventions. In transistors the basic in- ventions have been made by RCA and the Telephone Company. So, while we naturally hope to be able to sub-license under Westinghouse and GE inventions, nevertheless, we feel that the inventions of our own Laboratories, and the patents and applications on them, are of such value for the future that they represent the important inven- tions in our field. Another point not generally appreciated is that be- cause we are in the patent licensing business we take the disadvantages that go with that business as well as the advantages. Policy Encourages Competition If RCA were not in the business of licensing its competitors on the inventions which it makes, we would be the only one able to market our own important devel- opments and to retain for the RCA all the benefits from such exclusivity. As matters stand now, we share our inventions with our competitors at a very moderate royalty rate of less than two per cent of the manufac- turers' selling price of apparatus which uses our inven- tions. And, our very liberal license agreements contain no restrictions at all as to price, quantity, territory or anything else. In fact, it is this liberality in our licensing policy which has contributed to making the television industry the highly competitive industry it is today. If RCA were to give up its licensing business and stop licensing the rest of the industry, it would be RCA's competitors who would suffer most in relative standing and not the RCA. Some of our largest competitors have become success- ful and have grown prosperous because they benefited greatly from the research and development work of the RCA. The pioneering efforts of RCA have opened new fields of opportunity for the entire industry. I believe it will also be conceded that we would not have the highly competitive, highly successful television industry that we have today, were it not for the positive assistance which RCA has made available to its com- petitors through its inventions, licenses, "know-how" and pioneering efforts to create and develop new products and services for the public. We are confident that we have basic inventions in the important fields for the future of our business irre- spective of what may happen to our sub-licensing rights. For that reason, we believe that an RCA license will con- tinue to have as great or even a greater value for our competitors after 1954, than it has today. Hagerty Named (continued from page 9) the Board created by the resignation of Mr. John K. Herbert from NBC. At NBC, George H. Prey has been promoted to Vice- President in Charge of Television Network Sales. Thomas McAvity was elected Vice-President in Charge of Tele- vision Network Programs and Carl M. Stanton became Vice-President in Charge of the Film Division. Dr. Douglas H. Ewing was named Director of a newly-formed Physical and Chemical Research Labora- tory of the Research Department, RCA Laboratories Division, with headquarters at the David Sarnoff Re- search Center in Princeton, N. J. Dr. Ewing was formerly Director of Research Services for the Division. In other RCA Laboratories' promotions, Ralph S. Holmes was appointed Director of Research Contracts, responsible for the administration of governmental and university contracts as well as the supervision of publi- cations of the Division. Arthur W. Vance has become Director of the newly established Special Projects Re- search Laboratory of the Research Department. Now a Portdbk Battery Kit Lets a Man Shave Anywhere A handy battery kit that will allow the owner of an electric razor to do his shaving anywhere is now being produced by the Tube Department of the RCA Victor Division. Designed for travelers, fishermen, hunters, campers and anyone else who takes to the open spaces, the RCA Shaver Battery Kit is built around two batteries and a standard-type receptacle into which any AC/DC electric shaver can be plugged. The elements are packed into a small simulated leather traveling case with a flap- over top that protects the plug, and the assembly is re- movable for easy replacement of batteries. The whole unit was designed to fit into luggage or outdoor gear. 28 RAD/O AGE