United States of America v. Motion Picture Patents Company and others (1914)

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28 preme Court in an exhaustive opinion by Mr. Justice Hughes condemned the arrangement. It held that putting the restraints in the form of restrictions contained in agency contracts did not make the scheme a lawful one. The case at bar is far stronger than the Dr. Miles Medical Co. case, for the decision there concerned the acts of a single manufacturer distributing his product in commerce. There was no combination in that case. There was no attempt to control by agreement of numerous manufacturers the distribution of the products of each. Here we have a case where every restraint and unlawful condition was adopted by agreement of the different manufacturers. Subsequently, in Bobbs-Mcrrill Co. v. Straus, 210 U. S., 339, and in Baiter v. O'Donnell, 229 U. S., 1, the Supreme Court applied to copyrighted books and to patented articles the ruling which it had made in the Dr. Miles Medical Co. case in respect to unpatented articles. It is true that in the latter cases there was no attempt to retain title. That, however, does not affect the case. " The Sherman Act embraces every conceivable act which can possibly come within the spirit or purpose of the prohibitions of the law without regard to the garb in which such acts are clothed." (Mr. Chief Justice White in the Tobacco opinion, 221 U. S., 106.) The Sanatogen case decided that the patentee may not control the price from the jobber to the