Soviet Union; Background, Ideology, Realty, a Symposium, The (book).. 3, 17 S 48 13, 14 33 41 45 22 17 19 13 33 35, 52 28, 29 48 39, 43 42 Un-American Activities, Special House Committee on.. Union Republicana Democratica (student organization). 32, 50, 53 45 27-29, 34, 40, 41, 45, 46 37 1, 31-53 37, 46 49 3 52, 53 15, 19, 23, 24 55-57 17 49 28 29 3 2d Session CATALOGED COMPULSORY PATENT LICENSING UNDER ANTITRUST JUDGMENTS 52186 STAFF REPORT OF THE SUBCOMMITTEE ON PATENTS, TRADEMARKS, OF THE COMMITTEE ON THE JUDICIARY PURSUANT TO S. Res. 240 LAY LIBRARY FEB 21 1972 UNIVERSITY OF CALIFORNIA PERKELEY Printed for the use of the Committee on the Judiciary UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1960 COMMITTEE ON THE JUDICIARY JAMES O. EASTLAND, Mississippi, Chairman ESTES KEFAUVER, Tennessee JOSEPH C. O'MAHONEY, Wyoming SAM J. ERVIN, JR., North Carolina JOHN A. CARROLL, Colorado ALEXANDER WILEY, Wisconsin EVERETT MCKINLEY DIRKSEN, Illinois ROMAN L. HRUSKA, Nebraska KENNETH B. KEATING, New York NORRIS COTTON, New Hampshire SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTS JOSEPH C. O'MAHONEY, Wyoming, Chairman OLIN D. JOHNSTON, South Carolina PHILIP A. HART, Michigan ALEXANDER WILEY, Wisconsin ROBERT L. WRIGHT, Chief Counsel FOREWORD How much use has been made of the compulsory patent licensing provisions in the antitrust decrees which were entered during the years 1941-57? This is a question that the Senate Judiciary Subcommittee on Patents, Trademarks and Copyrights set out to answer in an investigation carried on with the cooperation of the Antitrust Division of the Department of Justice. The results of the study are set forth in this report. The investigation, begun by Marcus A. Hollabaugh, former Chief Counsel of the Subcommittee, was concluded under the supervision of Robert L. Wright, the present Chief Counsel. Although the finished report is based largely on the work of Mr. Hollabaugh and his associate, Ephraim Jacobs, the present subcommittee staff participated in and accepts the responsibility for the conclusions expressed. Prior to its publication the report was submitted to both the Antitrust Division of the Justice Department and to the Patent Office, where helpful comments were received from Robert C. Watson, Commissioner of Patents, and Mr. William Kilgore, Chief of the Judgment and Judgment Enforcement section of the Antitrust Division. This report represents the first publication of the efforts which have been made by the Patents Subcommittee and the Antitrust Division to determine what the practical effects of these antitrust decrees have been. It lists in the appendix all of the decrees which were the subject of the study, together with the kind of patent provisions contained in each. In addition to a survey of the extent to which patent licenses were actually sought and granted under these compulsory licensing provisions, the report contains an account of all the judicial proceedings which have been brought to determine royalty rates. This resume should be extremely helpful to all persons interested in the administrative problems which arise when compulsory patent licensing is judicially decreed. The report includes a series of concrete recommendations and suggestions for improvements in the procedures by which antitrust decrees with patent provisions are negotiated and enforced. It notes that substantially all of the decrees in which no licensing actually occurred as a result of the decree provisions were consent decrees and there was no opportunity for a judicial appraisal of the relationship of the patents involved to the antitrust law violations that the decree was supposed to remedy. The report suggests that in such consent decree negotiations the Department may have been relying upon patent licensing relief to remedy restraints on competition which, if a trial had occurred, might have been shown to be restraints more appropriately dealt with by other antitrust remedies. While no legislation is recommended, the report concludes that in any situation in which the Antitrust Division is unable to obtain adequate relief against an industrial monopoly, the Department of |