The talking machine world (Jan-Dec 1914)

THE TALKING MACHINE WORLD. TALKING MACHINE INTERESTS OPPOSE THE KAHN LAW. Horace Pettit, of the Victor Talking Machine Co., Chief Spokesman at Washington for Talking Machine Interests in Opposition to Kahn Act Which Will Cause Great Confusion, Especially in Regard to Patents— The Present Status of the Oldfield Bill Set Forth. (Special to The Talking Machine World.) Washington, D. C, January 10. — Talking machine interests are very active in opposition to what .is known as the Kahn Act. Indeed, the protest against this legislation which is now being registered at Washington by the talking machine trade, is second only to the fight which is being made against the Oldfield bill which aims to prevent the fixing of a resale price on talking machines, records and accessories. Already the talking machine manufacturers are up and doing in their agitation against the Kahn Act, and the dealers are following suit as they come to realize that what menaces the interests of the manufacturers also menaces, indirectly, the retail end of the business. Horace Pettit, of the Victor Talking Machine Co., has thus far been the chief spokesman at Washington for the talking machine interests in their protest against the Kahn Act and he has made a strong case. Talking machine interests might not be so adversely interested by the Kahn Act as by the Oldfield bill, but there is danger enough of damage. Furthermore the status of these two measures is very different. The Oldfield bill has been merely introduced in Congress. It has not as yet passed either house of Congress nor been signed by the President, so that it is far from being a law. The Kahn Act, on the other hand, is a law. It slipped through Congress last autumn and was signed by the President before the manufacturers of the country awoke to the injury it might do. The Purpose of the Kahn Law. The purpose of the Kahn law, as most of our readers are aware, is to protect foreign manufacturers who desire to exhibit their products at the San Francisco exposition. Some of these foreign exhibitors complained that when they exhibited at the St. Louis world's fair, their exclusive designs were pirated by unscrupulous American competitors. Hence they gave notice in advance that they would not exhibit at the Panama-Pacific Exposition unless assured that their models would be protected from reproduction. To mollify the foreigners, Representative Kahn of California, introduced the bill which bears his name. In effect it enables any foreign exhibitor who has a foreign patent on a talking machine or other product, to secure, merely for the asking, American patent protection for his device, following the date on which it arrives for exhibition at San Francisco. There is a wide difference of opinion as to just what construction the courts would place on this law — in other words, how much the protection accorded foreigners is worth — but there is a widespread feeling among American manufacturers that at any rate it is liable to result in confusion and litigation. Worst of all is the fear that even if the law does not actually justify interference with American patented goods, it might be used by unscrupulous persons to annoy, by a system savoring of blackmail, manufacturers and dealers who were not fully informed as to their rights. llasic patents on some of the elementary features of sound-reproducing instruments having expired, there is no fear on the part of talking machine men that this new law will cause controversy regarding the talking machine in its fundamental form, so to speak. But there is grave fear that it will precipitate disputes as to the right to use some of the patented improvements which make the talking machine of to-day so distinctive. ■ That talking machine men have an opportunity to register protest now, even though the Kahn measure lias become a law, is due to the fact that a bill to amend the Kahn Act by striking out the objectionable portions, has been introduced in the House of Representatives by Representative Bulkley — who will be remembered by talking machine interests for his opposition to the Oldfield bill last year. Hearings on this Bulkley bill are now in progress before the Patents Committee of the House of Representatives — that self-same body be fore which representatives of the Columbia, Edison and Victor companies appeared last winter to oppose the Oldfield bill. Arguments of Horace Pettit. The Victor representative, Mr. Pettit, when he appeared before the Patent Committee a few days ago to protest against the Kahn Act, said in part : "It seems to me that there is no question that there has been a mistake in passing the Kahn bill. The intention probably was good, but unfortunately the wording of the bill is such that great confusion is. going to occur doubtless in it's" administration, " especially in regard to patents for utilities. "This bill is going to work, in my mind, a great hardship on many manufacturers. I represent talking machine manufacturers" wTiose "industries I" think would be considerably affected. Talking machines may be imported. There are some of them patented abroad, under foreign patents, which could not, perhaps, be patented in this country. Those n achines would -come in here under the guise of a foreign patent and would be exhibited in the Panama Exposition and a certificate issued of three years' proprietorship. The result would be that we would perhaps be infringing, technically, some of those rights, which could never have been protected under the patent of the United States." Then followed the following conversation between Mr. Pettit and Chairman Oldfield of the Patent Committee. Representative Oldfield: "May I ask a question? I understand your position to be this : Take the talking machine companies, some of whom you represent here. They have their patents that have been granted abroad, and probably those patents have run for five or ten years." Mr. Pettit: "Yes, sir." Mr. Oldfield: "Now, then, if a foreign talking machine corncern would send talking machines to the exposition grounds and they have a patent in their own country, do you think that your selling your patented machine in conflict with theirs after the exposition ended would put you in the position of infringing on their patent?" Mr. Pettit: "I think that it would during a period of three years provided our machine contained some construction which they had patented abroad under right which they could not have gotten here." Mr. Oldfield: "And you have a patent now?" Mr. Pettit: "Yes, sir." Mr. Oldfield : "These machines can not possibly come in for some months yet?" Mr. Pettit: "No, sir." Mr. Oldfield : "Do you think that your patent that is valid now could be an infringement on those patented machines that may come in for three and a half years?" Mr. Pettit: "I am speaking of improvements and new constructions which we are constantly adding to the machines. The machine might embody some improvement that might come in as having been patented under a German patent which would never have been granted here." Mr. Oldfield : "I can see where we might get into trouble writing patents on your machines that were taken out after their machines were shipped here." Mr. Pettit : "It is quite possible, on the other hand, reading the Kahn Act as it stands, that, supposing we had had it before it come into this country, the proprietorship abroad in their foreign patent would warrant them in getting a certificate here, which, according to the Kahn Act. would preclude us, even though we might have manufactured it here before." Representative Oglesby asked leave to put a question to the representative of the talking machine interests. Said he : "Suppose you were manufacturing a machine in which you were using an appliance which was not patentable here at all. It may have been patented heretofore, or the patent may have run out, or else it was nothing new. They might come in here with an appliance of that char acter and file a-e'ertifi'cate-afid strop -ybu-f¥%m*ma^ing a machine which you had previously been marpr ufacturing?" "Under the Kahn Act they could do so," was Mr. Pettit's rejoinder. ^ ■ In concluding his remarks, the representative of the talking machine interests said : "It. seems tjq me that this law is going to occasion great coril fusion and is going to be greatly to 'the -detriment and prejudice of the American 'manufacturer." % Kahn Law Hurting Panama-Pacific Exposition? It has lately developed that the situation precipe tated by the passage of the Kahn Act is likely ttf have considerable influence upon talking machine exhibits at the Panama-Pacific Exposition. Maiiy! manufacturers in all lines are threatening to hoy* cott the exposition unless the exposition officials consent to have. the. Kahn law amended. Some o% the manufacturers simply wish to show their re'-i: sentment. Others say that they are afraid to exhit their goods at San Francisco, lest thejnere cir-l cumstance of their exhibition ther_e.s.er.Y_e.tx)ucaU-lt.o the attention of foreign exhibitors patented -features, the right of possession of which-might-be-made a subject of controversy. , . ._. i Of course, the' talking machine "manufacturers! have not given any intimation as "to wffat policy they will pursue with regard to" "sending "exhibits if the objectionable actis not amended, "Buf~'tfie' situation presented is certainly an interesting one, particularly in view of the announcement that a number of leading American piano manufacturer's will (from entirely different motives)"refrain from exhibiting at the San Francisco show'. It is significant that the present United States Commissioner of Patents is opposed to the Kahn Act as it stands. He spoke on the subject at "the same session of the committee at which Mr. Pef'tit" appeared, but he made it clear that "he was 'opposing the Kahn Act because it would subject" the Patent Office to unpopularity and injury, and not because he wanted to serve the manufacturers. On this score he remarked : "If I am right it is a matter that affects the business interests of the country at large and the business interests of the country can take care of themselves." The Oldfield Bill Is Coming Up Again. Of course this has nothing to do with the effort to amend the Kahn Act, but it is an interesting piece of news for talking machine dealers and manufacturers who had supposed, many of "them, that the Oldfield bill was dead, due to opposition in the talking machine field and other lines.. Congressman Oldfield tells The" Talking MaV chine World that he hopes to have his bill 1Tre: ported out" by the Patent Committee by February 1, and inasmuch as Mr. Oldfield is chairman qf;. the Patent Committee he presumably knows whereof he speaks. If the bill is reported favorably, by the Patent Committee, as its author predicts it will be, the measure will presumably come to a vote in the House of Representatives during the spring., An effort will also be made to have tnis ...measure, voted in the Senate before Congress adjourns.-.. _: The Oldfield bill in so far as it affects .the talking machine trade is just the same as it was a^year or. so ago when the talking machine companies began their great fight against it and enlisted.,.alljobbers and local dealers in talking machines, throughout the country to the extent of having therri^ make protests to their respective Congressmen. Speaking for the benefit of readers of The Talking Machine World, Mr. Oldfield said that he considered it likely that the Dill would be changed or rewritten in some minor respects in committee during the next few weeks when the measure will be under consideration, by the Patent Committee (which must send a report, and recommendation with the completed bill to. Congress), but he predicted very decisively that the. bill as it comes to the House for a :vote by that body will have no changes in that section which hits hardest the talking machine -industry —namely, the section which provides that.it shall, not be possible to proceed for infringement of patent against a person who sells patented products, sffen as phonographs, talking, machines, records or. ac; cessories at "cut prices" or at prices lower tjjaii have .been fixed by the manufacturers. ~