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

Record Details:

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Home of electronic progress—RCA's David Sarnoff Research Center, Princeton, N. J. RCA Asks Court to Dismiss Government Anti-Trust Suit R .adio Corporation of America, in an answer filed on March 29 in United States District Court in New York to a Government civil anti-trust complaint filed November 19, 1954, said that RCA's patent licens- ing policies have been "a major factor in the spectacular growth of the electronics industry, including the radio- television industry, and the pre-eminence of the United States in that industry." Branding the Government's request for relief as "unreasonable, unnecessary and contrary to the public interest," RCA denied each and every allegation in the complaint charging violation of the Sherman Act and asked the court to dismiss the suit. Electronics is today the fastest growing and most dynamic industry in the world, the answer said, and any charges that RCA "has in any way restrained the elec- tronics industry, including the radio-television industry, ignore the facts." On the contrary, it was stated, RCA has pioneered and been responsible for the creation and expansion of much of this industry. Pointing out that it "has been in the forefront in all major industry advances, from the beginning of sound radio and broadcasting, through black-and-white televi- sion and now color television," the Corporation stated that its policies have meant more and better radio and television sets for the consuming public at lower prices. RCA declared that its leadership has been "leadership by example, not by control in any way, shape or form. "If RCA's leadership has been followed," RCA con- tended, "it is because RCA's courage, vision and fore- sight have been right and RCA has acted in the best interests of the industry and the public, and not through any dominance, restraint or control." Flatly denying allegations in the complaint charging RCA with "package licensing," or compelling any pro- spective licensee to accept a license under more patents than he wants, RCA said that: "it grants patent licenses to competitors and others on reasonable and non-dis- criminatory terms and without restriction." Describing the license agreements the answer stated that RCA's "licenses contain no restrictions as to price, quantity, territory, or anything else, require no minimum royalty, and are offered under any one or more patents and for any apparatus as may be desired by any prospec- tive licensee." The answer continued: "RCA's present royalty rates are further reduced, now being only Vi of 1 percent for radio broadcast receivers using tubes, U/8 percent for radio broadcast receivers using transistors, l 1 /* per- cent for black-and-white television receivers, 1% percent for color television receivers, 1*4 percent for electron tubes other than color tubes, 1M percent for color tubes, 72 RADIO AGE