The talking machine world (July-Dec 1928)

The Talking Machine World, New York, December, 1928 3.:; Kolster Radio Corp. Closes Deal Involving 600 Important Patents Acquisition of Patents and Inventions by Kolster Corp. Marks Largest Single Transfer in Radio's History — Contracts Entered Into With Wired Radio, Inc. Frank L. Dame, president of the North American Co.; Rudolph Spreckels, chairman of the board of Kolster Radio Corp., and Ellery W. Stone, president of Kolster Radio, announced the closing of two contracts of far-reaching importance between Wired Radio, Inc., a subsidiary of the North American Co., and the Federal Telegraph Co., a subsidiary of the Kolster Radio Corp. Under the first of these contracts, Kolster Radio Corp. secures title to some 600 patents, patent applications and inventions in the communications, radio, wired radio, electric phonograph, television and talking motion picture fields. These patents and inventions have been acquired by the North American Co. during the past six years, and their acquisition by the Kolster Radio Corp. marks probably the largest single transfer of radio patents in the history of the industry. Mr. Stone, discussing the contracts, said, "These 600 patents acquired by Kolster Radio include several groups which patent attorneys state are widely infringed in the radio industry to-day, and are expected to yield large royalties to Kolster as well as to place the company in an exceptionally strong position in the radio, electric phonograph and talking motion picture fields. "Exclusive licenses are granted back to Wired Radio, Inc., by Kolster in the field of wired radio only, and Kolster retains full title to all of the patents and exclusive manufacturing and selling rights in all fields other than that of wired radio. By acquisition of the North American group of patents, Kolster has further increased its already strong patent position in the radio and allied industries. "The second agreement, which remains in force until September 2, 1941, with renewal options, provides that Wired Radio, Inc., will purchase not less than one-third of its total requirements for apparatus from Kolster Radio Corp. on a cost plus 25 per cent basis." Mr. Dame said: "The second contract forecasts the arrival of the industry's latest development, wired radio, which in the future will supplement but not displace present broadcasting on the air. Wired Radio, Inc., has been doing very important development work during the past six years, on the transmission of radio programs over electric light and power lines. Experimental installation is now being made in Cleveland. There has been sufficient progress to make it necessary for the company to be assured of manufacturing facilities upon a large scale. In the contracts with Kolster, Wired Radio, Inc., is retaining all rights . necessary to the development in its particular field. When plans have been completed, wired radio will become available to all of the major public utilities of the United States." The sending of wired radio programs into homes over electric light wires will require special socket plug-in receiving equipment which will be manufactured by Kolster Radio Corp. and furnished to electric light customers at a nominal monthly rental. The sets will also be adaptable for reception from present-day radio broadcasting stations. Rental charges for wired radio apparatus, which will include maintenance, will be a moderate monthly fee. There will be three channels in operation at the outset, according to present plans. One will carry a program of classical music, another of more popular entertainment, and a third will be devoted to lectures and educational programs. It is planned to establish a master studio for the entire United States from which programs by well-known artists will be sent out to wired homes in all parts of the country. The North American Co. is one of the oldest and largest public utility holding companies, Ellery W. Stone controlling through stock ownership five main groups of electric light and power companies operating in important areas of the United States. The electric properties in each group form a distinct inter-connected power system, serving 1,150,000 customers in more than 800 communities. Rudolph Spreckels, chairman of the board of the Kolster Radio Corp., and of its subsidiary, the Federal Telegraph Co., when interviewed regarding the contracts executed between Wired Radio, Inc., and the Federal Telegraph Co., be of great strategic value to the Kolster Co., still further improving the strong position h already occupies through the ownership of important patents previously acquired. With an exceptionally strong patent situation and with contracts that insure for a considerable period a large volume of profitable manufacturing business, the outlook of the Kolster Radio Corp. is now exceedingly promising." United Reproducers Open an Export Dept. The United Reproducers Corp., Rochester, N. Y., manufacturer of Newcombe-Hawley and Peerless reproducers, has organized an export department to handle foreign trade. Offices have been opened at 130 West Forty-second street, New York City, under the management of H. H. Pollock. The company makes a complete line of dynamic, magnetic and air column reproducers in a variety of models. N. Y. State Dealers Visit the A. K. Plant New York State Atwater Kent dealers headed by their respective distributor organization representatives visited the Atwater Kent plant on November 14 and attended a meeting at which a series of talks by department heads were delivered. Dealers served by the following jobbers formed the party: Albany Distributing Corp., Albany; Stiefvater Electric Co., Inc., Utica; Roth & Zillig, Inc., Buffalo; Elliott Radio Sales Corp., Binghamton, and Starter & Ignition Service Co., Rochester. RMA Inspires Protest An attempt in Brazil to secure exclusive trade-mark rights to the word "Radio" has caused an official protest by the United States Government to Brazil, and the Radio Manufacturers' Association, representing virtually all American manufacturers, was recently advised by the Federal Government that protests against the proposed Brazilian monopoly would be successful. The Robert B. Rose Corp., New York City, was recently incorporated at Albany to deal in pointed out that "radio patents acquired will radio with a capital of 200 shares of common. When you sell MARATHON RECORDS "By the YOU sell 6, 12 and more to a BOOK" customer. She gets the finest records — compacted — that ever came to market. Understand this: although MARATHON is a 7-inch record, it plays as LONG and as WELL as a full-size record. And the dance and vocal hits we release monthly are the LATEST, as a glance through our current catalog in the back of this magazine will indicate. The beauty of our Plan of Retailing is that you can do an extra business, and a very Send profitable one, without affecting your business , j • in larger records or tying up expensive floor ' t a\t space. Every music dealer interested in PLAN bigger volume and profits should get a copy of the free folder here illustrated. Write today! NUTMEG RECORD CORP. 553 Fifth Avenue New York City See current MARATHON Releases in back of this issue