Radio Royalties

Radio Record, Volume II, Issue 8, 7 September 1928, Page 8

Radio Royalties

» Reduction in England . A TIENTION has been focused lately ~, on the conditions in England regarding the sale of valves and valve sets. Up to’the present every valve set sold has been subject to a royalty of i2s. 6d. per valve, payable to the Marconi Company. This has considerably raised the price of sets and made them beyond the reach of many listeners, who are thereby restricted to the use of the crystal. The question of their reduction was introduced by the Loewe Radio Company (Germany) by an application to the Patent Office, London, for a revocation. of the patent rights or for a special license to permit of their manufacture in England. They were prepared to pay royalties equal to that paid the Telefunken Company in Germany, which were not, however, as great as Marconis were collecting from Hnglish manufacturers. It was claimed that wireless sets, equivalent to three-valve, could be produced in England for £1 10s. each and eventually at £1 5s. The wholesale price in Germany was £1 5s. and retail £1 19s. 6d. Under the existing system these sets could not be produced at less than £3 7s. 6d. — Tribunal Decides. DURING the hearing of the application it was pointed out that the refusal of a reduction would prejudice the establishment of a new British industry, and that a commercial policy, excluding large sections of the publie from the full enjoyment, was not justifiable. . . In granting the license, subject to the applicants paying royalties of 10s. for each triple valve and 7s. 6d. for each ‘double valve, the tribunal expressed the opinion that the monopoly rights were being abused. HE decision is of momentous importance to the British radio trade. It has been followed by an application. by the Brownie Wireless Company for the reduction of the royalties on valve holders, from 12s. 6d. to 10 per cent. on the wholesale selling price, subject to a minimum charge of 5s. on the first valve holder and 2s. 6d. on each additional holder. This means a reduction of approximately £2 10s. on a six-valve receiver and 7s. 6d. on a single valve outfit. | | The Dominion is not immediately affected by these decisions, although they may have a very definite influence on the position relating to royalties. ala