A. W. A. Patents

Radio Record, Volume I, Issue 49, 22 June 1928, Page 2

A. W. A. Patents

A MELBOURNE JUDGMENT oo COMPANY’S TWO CLAIMS ENDORSED CABLE message from Australia reports that the Supreme Court of Victoria, sitting in Melbourne, gave a verdict in favour of Amalgamated ‘Wireless, Lid., against the Myers Emporium Co. for infringement of patents ‘rights held by the former company. Costs and damages were awarded Amalgamated Wireless, Ltd., and that company’s rights over two patents were confirmed by the Court. Until details of the patents referred to are available the effect of the Court’s decision with respect to New Zealand cannot be determined. Some rather alarming and pessimistic Press statements have been made on the strength of the cable message, but it remains to be seen whether such an attitude is justified by the facts. In the meantime an understanding of the position may be helped by extracts from the Australian Royal Commission on wireless, . The Patent Position. . i eos report of the Royal Commission on Wireless set up by the Com-) monwealth Government stated that the evidence disclosed that the opera-| tions of Amalgamated Wireless, Ltd., extended over every field of radio. "The company has become legally entitled to a large number of patents concerned with wireless, and it has been

‘claimed for it that no valve receiving set can be manufactured without utilising one or more of the company’s patents, and likewise no broadcasting transmitting station can be lawfully operated without a license from the company. Conflict with Dealers. "Under these circumstances the company has been brought into conflict with the dealers throughout the Commonwealth who are engaged in the sale of radio goods, and with several of the broadcasting companies. an the meantime, the Parliament of the Dominion of New Zealand has passed legislation which was apparently intended to invite Amalgamated Wireless (Australasia), Limited, to a contest on the question of the validity of the patents used in broadcasting ‘stations, Evidence has been given that radio dealers in New Zealand are in ‘some instances carrying on the sale of goods employing patents of which ‘Amalgamated Wireless (Australasia), Limited, clai..s to be the owner without any attempt on the part of that company to protect its rights. If Amalgamated Wireless (Australasia), Limited, were in a position to commence litigation against residents of the Commonwealth in respect of infringements of its patents rights, it is difficult to understand why it was not equally prepared to defend its rights in New Zealand "As a result of the company’s acts and omissions, the company is regarded with suspicion, and its business methods disapproved throughout Australia. Its own selling agent in Western Australia said: ‘I know that Amalgamated Wireless (Australasia), Limited, is undoubtedly the worst hated firm in Australia.’ ‘Not only has the company made (lemands on radio dealers, which, in the opinion of the commission, are excessive, but they have sought to impose terms and conditions in their licenses which are oppressive and unfair. "The managing director of the company has deseribed the proposals of his company as being merely bases for discussion, and stated that it was open to the proposing licensee to suggest and negotiate for better terms. High-Handed Methods. "This attitude is better appreciated when it is realised that the license form is a stereotyped printed document and that the liceusee is aware when asked to sign it that in effect if Amalgamated Wireless (Australasia), Limited, chooses, it can prevent him from carrying on his business. "Moreover, the printed license form includes a list of about 150 patents, the existence and yalidity of which the livensee is asked to bind himself not to challenge. ‘The evidence before the commission shows that at least twenty of these patents lave expired, and a considerable number of them have no yelation to wireless peceaivinge cote.

"There is no ‘doubt in the ‘opinion of the commissioners that the conduct of the company in relation to its patent rights has been high handed and overbearing. Must Establish Validity. "ye seems of first importance, therefore, that the Commonwealth should see that the yalidity of the patents claimed by Amalgamated Wireless (Australasia), Limited, in which company it s. the largest shareholder, should be established at the earliest possible inoment." The Commonwealth Goverment, after considering the commissibn's report, agreed that it would pay Amalgumated Wireless (Australasia), Limited, the sum of 8s. on each receiving set providing that the company established the validity of its claims for such patents inyolyed in the receiving sets, such validity to be establixhed not only in the Commonwealth, but also in New Zealand. The Commonwealth Government also agreed to the payment of royalties on transmitting stations in which certain patents Claimed by the company were involved, but the company was required to establish the validity of such patents in Australia and New Zealand, N.Z. Government to the Rescue. A FEW years ago prior to the formation of the Radio Broadcasting Company of New Zealand, when broadcasting in the Dominion was carried out by individual companies, these companies were threatened with legal proceedings by Amalgamated W ircless, Ltd., for alleged infringement of patents ¢laimed as the — property of Amalgamated Wireless, Ltd. As a yesult of this threatened litigation ,the proprictors of the New Zealand stations ceased transmission sooner than be engaged in costly legal proceedings. New Zealand listeners were then in the position of having no broadeasting in New Zealand to listen to. The New Zealand Goyernment, however, cune to thei rescue by passing legislation appointing the ] ‘ondcasting proprictors the Goyernment’s agents so that any legal proceedings contemplated by Amalgamated Wireless Ltd would necessarily have to be directed against the Dominion Goyernment, as representatives of the people. Following this step by the Goyernment, no action was taken by Amalgimated Wireless Ltd., and no further mention of legal proceedings in New Zealand has been heard from the company, Royalties Paid In U.8.4. tt is of interest to mention that royalties ave already been paid in America by the manufacturers of the many thousands of American sets owned by listeners in New Zealand. Many of the "key" patents of these American sets are held by the Radio Corporation of America, which is associated with the Marconi Company of Great Britain,

with which, in turn, Amalgamated Wireless Limited is said to be associated. Further Details Awaited. In conclusion, it may be emphasised that the cable message from Australia states that the Supreme Court of Victoria confirmed the validity of only two patents claimed by Amalgamated Wireless Ltd. Whether more than two patent rights were involved in the action and the nature of the two patents referred to remains to be seen,