[Trade Journal]
Publication: Verbatim Record of the Proceedings of the Temporary National Economic Committee
Washington , DC, United States
vol. 1, no. 13, p. 353-402, col. 1-3
VERBATIM RECORD
of the
Proceedings of the
TEMPORARY NATIONAL
ECONOMIC COMMITTEE
VOLUME 1
December 1, 1938 to January 20, 1939
CONTAINING
Economic Prologue
Automobile Patent Hearings
Glass Container Patent Hearings
Presentation on Patents by Department of Commerce
Published 1939 by
THE BUREAU OF NATIONAL AFFAIRS, INC.
WASHINGTON, D. C.
·
·
Appendix and
_______________
Cumulative Index
___________________
Dec. 12 Through Dec. 20.
__________________________
VERBATIM RECORD
of the Proceedings of the
Temporary National Economic Committee
Vol. 1, No. 13 WASHINGTON, D. C. Dec. 20, 1938
+ APPENDIX +
TUESDAY, DECEMBER 20 , 1938.
THE OFFICE OF THE TEMPORARY NATIONAL ECONOMIC COMMITTEE
MADE PUBLIC DECEMBER 20, 1938, TEXTS OF EXHIBITS
RECEIVED IN EVIDENCE IN THE HEARINGS IN THE WEEK BEGINNING
DECEMBER 12 , NOT HERETOFORE PUBLISHED. A SUMMARY
OF EXHIBITS INTRODUCED AT THE HEARINGS FOLLOWS:
A series of contracts between Owens-Illinois and Hartford-Empire, 1924 to 1935, referred to in the Verbatim Record, page 269, Dec. 14, and marked as Exhibits Nos. 135 to 141. These exhibits consisted of photostatic reproductions of the contracts, from two to sixteen pages each. Exhibit No. 139 was printed on Page 350 of the Dec. 19th issue. The others are printed in this issue as follows — Exhibit No. 135, Page 393; Exhibit No. 136, Page 402; Exhibit No. 137, Page 402; Exhibit No. 138, Page 354; Exhibit No. 140, Page 357; Exhibit No. 141, Page 358.
Letter dated Dec. 13, 1938 , signed G. S. Quay, Vice President of the Hartford-Empire Company, recapitulating the amounts paid to and received from the Hartford-Empire Company by the Hazel-Atlas Glass Company on royalties. Referred to in Verbatim Record, Page 272, marked Exhibit No. 142, and printed on Page 276 of the issue of Dec. 14th.
The "General Feeder License Agreement" between the Hartford-Empire Company and Ball Brothers, dated March 25, 1933, outlining an arrangement for patents on "Feeder" glass machines. A typewritten document of 44 pages. Referred to in Verbatim Record, Dec. 15, Page 278, as Exhibit No. 143, and printed on Page 374 of this issue.
Letter dated Sept. 1, 1932, from J. H. McNash, president, Hazel-Atlas Glass Company, Wheeling, W. Va., to William E. Levis, president, Owens-Illinois Glass Company, Toledo, discussing glass jar licenses to Ball Brothers. Referred to in Verbatim Record, Page 281, Dec. 15, as Exhibit No. 144. Printed on Page 281, of the Dec. 15 issue.
Hartford-Empire Company memorandum, dated Feb. 9, 1933, taken from the files of that company, on license negotiations with Ball Brothers. Exhibit No. 145. Referred to in Verbatim Record, Page 282. Printed on Page 282 of the Dec. 15 issue.
Photostatic reproduction of five pages of a memorandum dated Dec. 13, 1930, to President W. E. Levis, from Mr. Henry W. Carter, Vice President, Owens-Illinois Company, anent the general licensing agreement of that company with Hartford-Empire. Referred to in Verbatim Record, Page 283, Dec. 15, as Exhibit No. 146, and printed on Page 381 of this issue.
Letter from Hartford-Empire Company to the Hocking Glass Company, relevant to complaint from Ball Bros. of packers' jars entering domestic fruit jar field. Referred to in Verbatim Record, Page 285 as Exhibit No. 147. Printed on Page 285 of the Dec. 15th issue.
Correspondence between Ball Brothers and Hartford-Empire Company relative to competition from packers' ware. Referred to in Verbatim Record, Page 285, as Exhibit No. 148. Printed on Page 295 of the Dec. 15th issue.
Letter dated May 3, 1933, from Mr. Ball to Mr. Smith of Hartford-Empire Company relative to jars at cut rates. Received in evidence and marked Exhibit No. 149. Printed on Page 296 of the Dec.15th issue.
Photostatic copy, consisting of 30 pages, of agreement between Hartford-Empire Company and Lynch Corporation, dated August 23 , 1933. Referred to in Verbatim Record Page 297, Dec. 15, as Exhibit No. 150 and is printed in this issue on Page 382.
Letter from A. T. Safford, secretary and counsel, Hartford-Empire Company, to President Werbe of the Lynch Corporation, dated September 20, 1933, discussing terms for licenses of "forming" glass machines. Exhibit No. 151. Printed on Page 386 of this issue.
Photostatic reproduction of nine-page document entitled "Amended Agreement between Hartford-Empire Company and Lynch Corporation," dated Nov. 12, 1938. Referred to in Verbatim Record Page 298, Dec. 16 as Exhibit No. 152 and printed in this issue on Page 387.
Analysis of financial statements, Hartford-Empire Company. A mimeographed document of seven pages containing re-capitulation of income and profits of the company for more than twenty years. Referred to in Verbatim Record, Page 299, Dec. 16, as Exhibit No. 153. Printed in this issue on Page 388.
Photostatic copy of letter addressed to George Day, Detroit, Mich., written by an officer of the Hartford-Empire Company, dated Feb. 1, 1936, discussing proposed glass factory in Detroit. Exhibit No. 154 printed in the transcript text, Verbatim Record, Page 304, Dec. 16th issue.
Four letters exchanged between Lawrence C. Kingsland, patent attorney, Obear-Nester Glass Company of St. Louis, with the Lynch Corporation discussing licenses on glass machines. Referred to in Verbatim Record, Page 308, Dec. 16, and marked Exhibits Nos. 155 to 158. These letters were not set out in the extension of the record but were ordered filed by the committee.
Letter dated Nov. 20, 1937, to Amory Houghton, President Corning Glass Works, signed "Goodwin," discussing possible competition in heat resisting glass ware. Referred to in Verbatim Record as Exhibit No. 159 and printed on Page 314 of the Dec. 16th issue.
Copy of contract between the Owens-Illinois Glass Company and the Corning Glass Works for the formation of the Owens-Corning Fiberglass Corporation, October 28, 1938. A printed book of 40 pages certified as a true copy of the original. Referred to in Verbatim Record, Page 316, as Exhibit No. 160. Printed on Page 391 of this issue.
Copy of the contract between the Owens-Illinois Company and the Italian Modigliani Company, which set up provisions for control of re-import of materials made under Fiberglass patents. Document consists of nineteen typewritten pages. Referred to in Verbatim Record, page 318, as Exhibit No. 161. Printed on page 392 of this issue.
Photostatic reproduction of two-page letter to the Lynch Corporation from the Hartford-Empire Company, dated March 31, 1936, discussing opposing claims as to "forming machine" patents. Referred to in Verbatim Record, page 320, Dec. 16, as Exhibit No. 162. Printed on page 393 of this issue.
(Exhibit No. 138)
General License Agreement
between Hartford-Empire
Company and Owens-Illinois Glass
Company.
Agreement made and entered into as of the 1st day of July, 1932, between Hartford-Empire Company, a corporation of Delaware, having its principal place of business at Hartford, Connecticut (hereinafter called 'Hartford') and Owens-Illinois Glas [sic] Glass Company, a corporation of Ohio, having its principal place of business at Toledo, Ohio, (hereinafter called "Owens-Illinois").
Whereas Hartford is engaged in the manufacture of glassworking machinery and in the licensing of machinery and methods for the manufacture of glassware and Owens-Illinois is engaged in the manufacture of glassware and each respectively own many inventions, applications for letters patent and patents of the United States, relating to the manufacture of glassware, and
Whereas, Hartford and Owens-Illinois are desirous of avoiding patent litigation between themselves and desire further that Owens-Illinois be enabled to continue the use of its present machinery in the manufacture of glassware and to use other machinery developed by Hartford, and Hartford desires to obtain the right to extend to its other licensees, rights under the inventions and patents of Owens-Illinois;
Now, therefore, in consideration of the premises and of the mutual promises and covenants herein contained, it is agreed as follows:
Section 1. Definitions of Licensed Inventions: "Licensed Inventions" shall be defined as and held to include the following inventions and/or interests therein now owned or controlled, or hereafter and prior to January 3, 1945, owned, acquired or controlled by either party hereto, in so far as the same are included in the Inventions described below in this Section 1.
Inventions of apparatus for or methods of feeding mold charges of molten glass (hereinafter called "Feeders") from furnaces to forming machines, excluding, however, from this definition apparatus for, and methods of, drawing glass by suction into molds. Drawing glass by suction into a gathering cup (not a mold) and discharging the gather into a mold, shall be included in "Licensed Inventions."
Inventions of apparatus for or methods of forming glass by forming machines (hereinfater [sic] hereinafter called "Formers") if and so far as such inventions are used or usable with, but only for use with, apparatus for and/or methods of glass feeding, other than said drawing glass by suction into molds, and other than hand-manipulated punties, hand-manipulated blowpipes or other hand process.
Inventions relating to furnaces as such and other apparatus, and not being functional parts of the feeding or forming process, shall not be included in Licensed Inventions.
Section 2. Hartford's Release and License to Owens-Illinois. Hartford releases Owens-Illinois, its present subsidiaries and each of them, from any and all claims and demands by Hartford in law or equity for profits and/or damages arising from any past infringement of any and all patents, owned or controlled by Hartford, on any Licensed Inventions.
Hartford grants to Owens-Illinois a non-exclusive, non-assignable (except to its successors in business) and non-divisible (except to its subsidiaries in accordance with the provisions of Section 13 of this Agreement) license to make or have made for it, and to use, machines and/or methods embodying Licensed Inventions for the manufacture of glassware (and parts thereof or therefor) subject, however, to all the exclusions of Hartford enumerated in Schedule A attached hereto. Such license to Owens-Illinois shall be under all Licensed Inventions and under all United States patents now issued or hereafter issued thereon in so far as such patents cover any Licensed Inventions, such license to run to January 3, 1945, unless sooner terminated as hereinafter provided, and shall be evidenced by the issuance to Owens-Illinois by Hartford of an individual license, in substantially Hartford's standard form as illustrated in Schedule B attached hereto, covering each mechanism used and owned by Owens-Illinois embodying any Licensed Invention.
Owens-Illinois shall not sell or otherwise dispose of any feeder mechanism so licensed by Hartford, except to a subsidiary of Owens-Illinois and subject to the license thereon.
Section 3. Royalties Payable by Owens-Illinois. Owens-Illinois agrees to pay to Hartford royalties on all merchantable glassware manufactured by Owens-Illinois, during the life of this Agreement, by the use of any Licensed Invention, at Hartford's Lowest Rates as defined below in this Section 3.
A. Feeders. Schedule C attached hereto is a schedule of Hartford's Lowest Rates applying to Feeders now operated by Owens-Illinois, except Howard Feeders. Hartford shall promptly notify Owens-Illinois of any change therein.
In the event that Owens-Illinois shall use, in lieu of Licensed Inventions relating to Feeders, any apparatus or method (other than apparatus for or methods of drawing glass by suction in molds) not embodying any such Licensed Invention, Owens-Illinois shall pay royalties upon glassware so produced; be if, in any calendar year, such production of glassware by Owens-Illinois shall exceed one-fifth (1/5) of the total glassware produced during that year by Owens-Illinois (other than with apparatus for or methods of drawing glass by suction into molds), then the payment by Hartford to Owens-Illinois for that year under this Agreement shall be reduced by an amount equal to two-thirds (2/3) of the royalties which would have been payable (at the rates provided by Schedule C or any modification thereof) on such excess production if such excess production had been manufactured by the use of Licensed Inventions relating to Feeders.
B. Formers. For the purpose of this Agreement, Formers are of different types when they have features or methods of operation differentiating them from other Formers. Such differences are illustrated by the differences among the Formers known in the glass industry as Lynch 1, Lynch LA, Miller MA, O'Neill No Boy, Owens AW, Owens AY, Hartford IS, Hartford Narrow Neck, Hartford 12, Miller Press and Hartford Milk Bottle Machines
(a) As to the individual Formers of any particular type, except as provided in paragraphs (c) (d) and (e) hereof, acquired by Owens-Illinois prior to July 1, 1932, no royalties shall be payable by Owens-Illinois until such time as Hartford is receiving from one or more of its Feeder licensees, other than Hazel-Atlas Glass Company royalties upon one or more Formers of the same type acquired by such licensee or licensees prior to July 1, 1932, in which event Owens-Illinois shall, from such time, pay royalties for its use thereafter of a number of Formers equal to the number (but not to exceed the number so used by it), of the same type, so acquired, as to which Hartford is thus, from time to time, receiving royalties.
(b) As to the individual Formers of any particular type except as provided in paragraphs (c) , (d) and (e), hereof, acquired by Owens-Illinois subsequent to July 1, 1932, no royalties shall be payable by Owens-Illinois until such time as Hartford is receiving from one or more of its Feeder licensees, other than Hazel-Atlas Glass Company, royalties upon one or more Formers, of the same type, acquired by such licensee or licensees subsequent to July 1, 1932, in which event Owens-Illinois shall, from such time, pay royalties for its use thereafter of a number of Formers equal to the number (but not to exceed the number so used by it), of the same type, so acquired, as to which Hartford is thus, from time to time, receiving royalties.
(c) As to Formers of any particular type used by both Owens-Illinois and Hazel-Atlas Glass Company, but by no other Feeder licensee of Hartford, no royalties shall be payable by Owens-Illinois until such time as Hartford is receiving royalties upon one or more Formers, of the same type, from Hazel-Atlas Glass Company, in which event, Owens-Illinois shall
from such time, pay royalties for its use hereafter of a number of Formers equal to the number (but not to exceed the number so used by it), of the same type, as to which Hartford is thus, from time to time, receiving royalties.
(d) As to Formers hereafter acquired by Owens-Illinois otherwise than from Hartford and covered by any patent of Hartford relating to Licensed Inventions, out of a type not used by Hazel-Atlas Glass Company or by any other Licensee of Hartford, the question of whether or not royalty shall be payable by Owens-Illinois and the amount of royalty, if any, shall be determined by agreement, or in default thereof, by arbitration. In the event of such arbitration, no royalty shall be payable unless the arbitration decides that Hartford has made a substantial contribution, which is utilized in said Owens-Illinois Formers.
(e) As to Formers acquired hereafter by Owens-Illinois from Hartford, royalties shall be payable from the date of acquisition, and as to Formers heretofore so acquired, royalties shall be payable in accordance with existing contracts.
In case of any disagreement between the parties hereto regarding the foregoing provisions of (a), (b), (c) or (e) as to Formers, or as to whether the use of any particular method or apparatus by Owens-lllinois does or does not constitute a use of Licensed Inventions, the matter shall be settled by arbitration.
C. Hartford's Lowest Rates. This shall mean the lowest rates of royalty for any given ware (whatever form such royalty may take) which shall at the given time be charged by Hartford to any licensee in the United States for the production of the same class of ware by the same type of machine and/or process. If Hartford has no licensee for a given class of ware by a given type of machine and/or process, and if Owens-Illinois and Hartford are unable to agree upon such rates, the same shall be determined by arbitration with due consideration of the lowest rates under similar conditions charged others by Hartford for the manufacture of similar, but not necessarily identical, ware by the same machine and/or process, or the identical ware by other, but not identical, machine and/or process and the relative efficiency thereof.
D. All royalties shall be paid monthly, at Hartford's office , in New York funds, on or before the fifteenth (15th) day of each month, for and upon all merchantable glassware manufactured by Owens-Illinois under this Agreement during the preceding calendar month.
Section 4. Owens-Illinois Right to Lease or Buy Machinery from Hartford. Owens-Illinois shall have the right to take, on lease from Hartford, for the uses within the licenses herein granted to Owens-Illinois and at the Royalties provided in Section 3, such mechanisms embodying any of said Licensed Invention, as shall be built by or for Hartford, paying therefor a license fee as low as is charged any other licensee by Hartford for any such mechanism under similar conditions. The leasing of each such mechanism shall be evidenced by the issuance to Owens-Illinois by Hartford of a lease contract in substantially the same terms and conditions as are at the time of such leasing contained in Hartford's standard lease contract relating to similar mechanisms; provided, however, that the terms and conditions of such lease contract shall not conflict with any of the terms of this Agreement.
If Hartford sells any such mechanisms, Owens-Illinois shall have the right to purchase such mechanisms on the most favorable terms granted under similar conditions to any other.
Section 5. Owens-Illinois Release and License to Hartford. Owens-Illinois hereby releases Hartford, and Hartford's present licensees, from any and all claims and demands, in law or equity, for profits and/or damages arising from any past infringements of any and all patents, owned or controlled by Owens-Illinois, on any Licensed Inventions.
Owens-Illinois grants to Hartford, a non-exclusive, divisible and assignable license to make or have made for it, license, use, lease and/or sell machines and/or methods, under all the Licensed Inventions of Owens-Illinois as to which Owens-Illinois has or shall have the right to grant licenses, and under all United States patents now issued or hereafter issued thereon in so far as such patents may cover Licensed Inventions, such license to Hartford to run to January 3, 1945, and to be subject to the exclusions of Owens-Illinois set forth in Schedule D attached hereto. Owens-Illinois expressly reserves the right to grant to others licenses under all said Licensed Inventions as to which it has or may have the right to grant licenses."
Section 6. Payments by Hartford. In consideration of said release and licenses granted by Owens-Illinois to Hartford, and licenses granted hereby agreeing to furnish Hartford the advantage and benefit, with respect to Licensed Inventions, of the knowledge and experience of Owens-Illinois' engineers and technically trained employees, obtained in the practical commercial use of Licensed Inventions, at the cost to Owens-Illinois of furnishing such advantage and benefit, and provided that such furnishing does not interfere substantially with Owens-Illinois' production, Hartford agrees to pay to Owens-Illinois one-third (1/3) of the Net Income of Hartford earned between the date hereof and the 3rd of January, 1945, and collected, and also one-half (1/2) of all moneys heretofore or hereafter recovered and actually received by Hartford (whether by way of damages, profits or settlements) on account of any infringement of Licensed Inventions occurring prior to the date of this present Agreement, and also one-half (1/2) of any amount by which Hartford's payments to Hazel-Atlas Glass Company (under the third paragraph of Section 3 of the General License Agreement between Hartford and Hazel-Atlas Glass Company, dated July 1, 1932) are reduced.
(a) In order to make the fiscal year under this Agreement correspond to the calendar year, the following method will be followed:
(b) For each quarterly period ending March 31st, June 30th and September 30th in each calendar year the Net Income of Hartford shall be computed by deducting Two Hundred Twelve Thousand Five Hundred Dollars ($212,500) from Hartford's Income from Licensed Inventions for said quarterly period, and then Hartford shall on that basis make payment on account.
(c) At the end of each calendar year, the Net Income of Hartford shall be re-computed for the year (but only for the last half year in the case of the year 1932), making due allowance for any payments on account made by Hartford. Payments shall be made by Hartford on or before May 1st, August 1st, November 1st and February 1st of each year on the Net Income for the preceding quarterly period.
(d) Hartford's Income from Licensed Inventions. This phrase shall be held to include, and be limited to, the total collected income of Hartford derived from (a) royalties, (b) net difference between license fees and cost of manufacturing of licensed machines, (c) profits on manufacturing, lease, or sale of machines, or parts, (d) settlements for damages and profits arising out of infringements of Licensed Inventions which infringements shall have Occurred subsequent to the date hereof, and (e) other revenues from the disposal of rights in Licensed Inventions, all of the aforesaid items being restricted to income arising from Licensed Inventions; provided, however, that there shall first be deducted from said total collected income for any year, all sums which Hartford may by judicial decree be compelled to pay during such year for settlements of damages or profits arising out of infringements by Hartford of the patents of others, or which Hartford may by judicial decree be compelled to pay by reason of any assumption or guarantee by Hartford of such damages or profits recovered from its licensees, all arising from the manufacture, use or sale of mechanisms and/or methods embodying Licensed Inventions, provided that any such deduction because of such assumption or guarantee on any given mechanism shall not exceed the equivalent of two years' royalties thereon.
(e) Net Income of Hartford. The net income of Hartford shall be calculated as follows:
From Hartford's yearly Income from Licensed Inventions there shall be deducted yearly the sum of Eight Hundred and Fifty Thousand Dollars ($850,000), which sum shall be retained by Hartford for its own use. The annual excess or remainder over and above such deduction shall constitute and be held to be the Net Income of Hartford.
(f) License Fees and Royalties. "License fee" shall be held to mean any initial payment, in installments or otherwise, made upon the leasing or licensing of any mechanism embodying any Licensed Invention. "Royalty" shall be held to mean any recurring periodical payment made inconsideration of the right to use such a mechanism or process.
Section 7. Manufacture by Hartford. In the event that Hartford, its successors in business, any subsidiary of Hartford, or any one or more of them shall prior to January 3, 1945, engage in the commercial manufacture of glassware using Licensed Inventions, Hartford shall thereupon, until such date, pay into its Income from Licensed Inventions, royalties at rates not less than those payable by Owens-Illinois for corresponding ware, made under similar conditions.
Section 8. Validity and Scope. Duringthe life of this Agreement and while aparty is enjoying the benefits of the Li-censed Inventions it acknowledges withinthe scope of its license the validity andbroad scope of all United States patentsissued or to be issued on Licensed Inven-tions.Section 9. Inventions by Employees.Each party hereto will use reasonableefforts to cause each of its present andfuture officers and employees engaged inthe designing and/or development of ma-chines, processes, methods or inventions ,to sign an appropriate agreement with itto transfer and assign it to the full UnitedStates rights in and to any and all in-ventions, patents and patent rights de-signed, developed or discovered by him inthe course of and during his such employ-ment and coming within the definition ofLicensed Inventions, to the end that suchparty hereto may be enabled to, and will,license the same as contemplated by thisAgreement.of Inventions.Section 10. DisclosureEach party hereto agrees to disclose tothe other all of its Licensed Inventionswithin a reasonable time after their acqui-sition.Owens-IllinoisSection 11. Accounting.shall keep proper books and records show-ing the length of time each day that ma-chines embodying any of the Licensed In-ventions are operated by it and the loca-tion thereof, respectively, and the number,kinds and sizes of glassware producedto each machine and all other factseach day thereby, all stated separately asnecessary or advantageous for carrying outthe purpose of this Agreement, all in suchform, within reasonable limits, as shallbe specified by Hartford. Such books andrecords shall at allreasonable times beopento the inspection of Hartford or its dulyauthorized agents . Owens-Illinois and itssubsidiaries shall on or before the 10thday of each month, furnish to Hartford,upon blanks provided by Hartford , de-tailed statements giving in itemized formall the data above mentioned, properlycertified, as to their respective operations,so far as may be required by Hartford,forthe preceding calendar month.Hartford shall likewise keep proper booksand records showing its receipts of in-come from Licensed Inventions and suchbooks and records shall at all reasonabletimes be open to the inspection of Owens-Illinois or its duly authorized agents.Hartford shall, on or before the 25th dayof each month, render to Owens-Illinois astatement, properly certified , showing thereceipts of income from Licensed Inven-tions during the preceding calendarmonth, showing separately the amountsreceived from the various sources of suchincome mentioned in Section 6 (d) hereof.Section 12. Termination of Agreementby Owens-Illinois. Owens-Illinois may, onsix months ' written notice to Hartford .terminate this agreement and the GeneralLicense Agreement between Hartford andIllinois Glass Company dated May 9, 1924,as amended, and the General Agreementbeween Hartford and Berney-Bond GlassCompany, dated February 15 , 1926. andthe Settlement Agreement between Hart-ford and Illinois Pacific Coast Company,dated October 18, 1930, and all the rightsand obligations hereunder and thereunder,except (a) the releases provided in Sec-tions 2 and 5 hereof, and (b) the non-exclusive, assignable and divisible licenseherein granted to Hartford by Owens-Il-linois under Licensed Inventions acquiredby Owens-Illinois prior to the date ofsuch termination, and (c) the right ofHartford to extension of license to itunder the provisions of Section 16 herein ,and (d) the obligations to pay amountsdue or accrued at the date of such ter-mination, and (e) the obligation of Owens-Illinois and of Owens-Illinois Pacific Com-pany) to return the leased machinery inaccordance with the Sections of said agree-ments, and of the individual leases heldin accordance with said agreements and/or this Agreement, entitled "Repossessionof Machinery."Section 13. Extension of Rights andObligations to Subsidiaries of Owens-Illinois. All the rights and obligationsacquired by and assumed by Owens-Illinois in this Agreement are hereby ex-tended to each and every present and fu-ture subsidiary of Owens-Illinois, whichrights and obligations are to continue onlyso longas it remainsanOwens-Illinois sub-sidiary. Owens-Illinois shall be respon-sible for the performance by every suchsubsidiary, while it remains an Owens-Illinois subsidiary, of all obligations of thisAgreement as assumed by Owens-Illinoisherein.Section 14. Arbitration. All matters forwhich arbitration is specifically providedfor by this Agreement, or any dispute aris-ing out of or relating to this Agreement,or as a result thereof, shall be settled byarbitration under the rules of the Ameri-can Arbitration Association and judgmentmay be entered on the award in any Courthaving jurisdiction .Section 15. United States Rights Only.This agreement covers rights under UnitedStates patents and does not extend to anyrights in countries foreign to the UnitedStates ortoincometherefrom , or to incomefrom machines sold or leased for foreigncountries .Section 16. Status After January 3, 1945.On January 3, 1945 , Hartford , and Owens-Illinois if it has not theretofore exercisedits option to terminate under Section 12,shall each have the option, by givingwritten notice at least six months priorthereto , to continue, for such period oftime as specified by the party giving thenotice, some or all of the license rightsunder Licensed Inventions granted to ithereunder. If such option be exercised ,the amount of royalty and the conditionsof such license shall be determined byagreement, or, in default thereof, by arbi-tration in accordance with the provisionsof Section 14 hereof.All the rights and obligations providedby this Agreement, except those containedin this Section 16, and except the obliga-tions to pay amounts due or accruedat that date, shall wholly cease and ter-minate on January 3 , 1945.Section 17. Definition of "Subsidiary".Forthe purpose ofthis Agreement, a "Sub-sidiary" of any corporation is any corpor-ation or association of which such prin-cipal corporation owns over fifty per cent.(50%) of the voting capital stock or hasequivalent ownership. The words "OwensIllinois" and "Hazel-Atlas Glass Com-pany," when used in this Agreementshall include their respective subsidiariesSection 18. Binding on Successor. ThiAgreement shall extend to and be bindingupon the successors in business of eachparty to this Agreement.In witness whereof, the parties heretohave hereunto set their hands and sealsacting herein by their respective afficersduly authorized therefor.Hartford-Empire Company,by F. GOODWIN SMITH,President.Attest:ARTHUR T. SAFFORD , JR.,Secretary.Owens-Illinois Glass Company,By WM. LEVIS,President.Attest :LLOYD T. WILLIAMS ,Asst. Secretary.Owens-Illinois Pacific Coast Company,a corporation ofDelaware and a subsidiaryof Owens-Illinois, hereby accepts, concursin, and agrees to be bound by, all the pro-visions of the foregoing General LicenseAgreement.Owens-Illinois Pacific Coast Company,By WM. LEVIS,Chairman.Attest:LLOYD T. WILLIAMS ,Asst. Secretary.SCHEDULE AAnnexed to General License Agreementbetween Hartford-Empire Company andOwens-Illinois Glass Company, DatedJuly 1 , 1932.EXCLUSIONS OF HARTFORDThe following articles are expressly ex-cluded and shall not be produced underthis General License Agreement.(a) Bulbs and tubing and cane all whenfor use in the manufacture of incandes-cent electric lamps or for any other per-manently sealed enclosure for electricalpurposes.(b) Signal and optical ware.(c) Ware intended and adapted for usewhere its heat resistance, physical strengthor chemical resistance or electrical pro-prieties in such ware is of substantial val-ue, and made from glass having a linearcoefficient or thermal expansion of lessthan .000006 per degree centigrade, or con-taining more than five per cent. boric oxide, or having a higher clectric strengthor higher thermal endurance or higherchemical resistance than a glass contain-ing 80% silicia, 10% sodium oxide, 5% boricoxide and 5% calcium oxide.(d) Ware intended and adapted forholding food in the process of cookingor sterilizing , other than ware intendedand adapted for packages for storage andsale of goods or for transportation 0goods.(e) Hot mold or paste mold tumblerslantern globes ; gas globes ; chimneysdrawn tube and cane.(f) Marbles and lithographers ' balls.(g) Flat glass, that is to say, plate glasssheet glass , window glass, rough rolled anribbed glass and also figured glass, colore
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