Radio Age - 1955, April - 36 Pages, 2.8 MB, .PDF - VacuumTubeEra

2 percent for color television commercial apparatus except
government apparatus, 1 V\2 percent for other commercial
apparatus except government apparatus, and 1
percent for all commercial apparatus manufactured for
government use.
"All RCA license agreements provide for various
deductions which make the actual rates even lower.
Moreover, RCA royalty rates are based on the manufacturer's
selling price. Applied to retail selling prices to
the public, these royalty rates are substantially cut in
half.
"The fact that RCA's royalty rates compare most
favorably with those of other licensors in this or any
other industry is beyond dispute.
"In return for these reasonable royalty rates, licensees
have the privilege of obtaining a license under, or using,
any one or more patents under which RCA has the right
to grant licenses. This licensing policy has resulted in
licensees of RCA having complete freedom to manufacture
apparatus in competition with RCA under any and
all patents available to RCA, to the extent to which RCA
has the right to grant such licenses. No royalties are
payable on any apparatus under any license agreement
granted by RCA unless the apparatus uses patents
licensed by RCA."
Progress of the Industry
To substantiate the fact that RCA has not restrained
the industry in any way, the answer to the Government's
complaint said:
"Sales in the electronics industry, including the radiotelevision
industry, following the termination of wartime
restrictions demonstrate its vitality, rapid growth and
freedom from the monopoly and resrraint alleged.
"From the mere handful of companies and the relatively
small amount of capital which made up the electronics
industry in the early days, the industry has continuously
expanded. Today there are literally thousands
of companies in which billions of dollars have been invested
engaged in this industry."
It was stated that today a very large number of
that more station owners buy RCA television transmission
equipment than any other make.
RCA further avers
that in all of the categories of radio and television equipment
there is intense and effective competition."
Reporting that as of January 1, 1955, there were
128,900,000 radio sets and 33,816,000 television receivers
in the United States, RCA said that its policy
"has contributed substantially to the ever-increasing number
of radio and television receivers in the hands of the
American public and to a continual lowering of the price
of such receivers."
It was pointed out that during 1951 RCA spent on
research and developmenr a sum in excess of the amount
received by it in royalty payments and that under its
patent licenses it made the fruits of such research and
development available to the electronics industry. In
addition, the RCA answer pointed out that it makes
substantial payments to others for the rights to use
patents developed through their research and development
in competition with RCA.
Cross-Licenses Enabled Industry to Develop
RCA traced its history from 1919 when it was
formed "at the urgent request of the United States Government
in order to free American communications from
foreign domination and to create a new American radio
company."
In order to accomplish this objective, it was necessary
to set up various patent cross-licenses with General Electric
Company, American Telephone and Telegraph Company,
Westinghouse Electric & Manufacturing Company
and others because no one could manufacture or use
{Continued on page 30)
Through symposia such as this on RCA's first commercial
color TV receiver, RCA has shared the results of its research
with the electronics industry.
independent companies are now manufacturing and selling
television receivers and all of these companies are
in open and active competition with RCA and with one
another.
The industry's sales of radio and television receivers,
RCA pointed out, increased from $54,400,000 in 1932
to $1,470,000,000 in 1953, a percentage increase of
more than two and one-half thousand percent.
RCA admits that "more people buy RCA television
receivers than any other make of television receiver and