univis lens argued decided may appeals district southern district new york francis biddle atty samuel isseks sp asst atty thurman arnold asst atty toulmin dayton ohio univis lens et al chief justice stone delivered opinion cases come direct appeal cross appeal judgment district granting part denying part government prayer junction restraining violations sherman act make unlawful contract combination conspiracy restraint trade commerce among principal questions decision first whether system established maintained univis corporation appellee cross appellant licensing manufacture sale patented multifocal eyeglass lenses excluded patent monopoly operation sherman act second whether excluded resale price provisions licensing system within prohibition sherman act exempted provisions act amendment sherman act stat appellee univis lens company owner number patents two trademarks relating multifocal lenses organized appellee univis corporation lens company acquired holds majority stock corporation individual appellees principal stockholders lens company stockholders corporation principal officers corporations may purposes suit treated though single corporation upon organization corporation lens company transferred interest patents trademarks presently involved corporation proceeded set since maintained licensing system government assails relevant features system follows corporation licenses lens company manufacture lens blanks sell designated licensees corporation upon lens company payment corporation agreed royalty cents pair lens blanks rough opaque pieces glass suitable size design composition use ground polished multifocal lenses eyeglasses blank composed two pieces glass different refractive power size shape composition disposed fused together blank said conform specifications claims one corporation patents corporation also issues three classes wholesalers finishing retailers prescription retailers licenses wholesalers authorize licensees purchase blanks lens company finish grinding polishing sell prescription licensees prices fixed corporation licensor finishing lenses make effective aid vision prospective wearer prescription retailer sells necessary wholesaler grinding blanks conform curvatures prescription supplied retailer order terms license wholesalers required keep full accounts sales showing sales prices lenses names purchasers make available representatives corporation licenses finishing purchase blanks lens company grind polish adjust lenses frames supports eyes similar provisions retailers licensed purchase blanks lens company sell customers prices prescribed corporation licensor licenses wholesalers finishing retailers require licensee notify corporation violation part jobbers licensees agreements respectively made corporation assist corporation possible ways securing evidence enforcing agreements jobbers licensees licenses prescription retailers without facilities grinding finishing lenses prescribe adjust glasses customers signed corporation licensor wholesaler grant retailer prescribe anf fit univis lenses return prescription retailer agrees sell finished lenses consumers prices prescribed corporation licenses wholesalers retailers recite corporation ownership lens patents purport confer licensee privilege selling patented invention manner extent stated royalties exacted licensees cents collected corporation pair blanks sold lens company rewards corporate appellees exploitation patents patented lenses derived wholly sales lens company blanks proceeds cent royalty paid prices prescribed maintained licensing system pair blanks sold lens company wholesalers pair sold finishing retailers pair finished lenses sold wholesalers pair white tinted lenses sold consumers prescription finishing retailers corporation pursues policy issuing licenses licensees said required maintain standards practice skilled performance services undertake render according corporation instructions field representatives cutters eligible prescription retailer licensees inquiry made ascertain whether prospective licensees advertise prices whether considered communities price cutters corporation cancels licenses principally failure licensees adhere price fixing provisions also advertise prices acceptance installment payments forms advertising objectionable selling univis lenses customers designated corporation giving certain percentage licensees multifocal lens business univis licensee located drug department jewelry store licensee engaged price cutting sale products manufacturers time corporation licensed approximately per cent retailers locality licenses larger percentage per cent approximately wholesaler licensees finishing retailer licensees prescription retailer licensees located various union including new york district columbia corporation representatives solicits licenses negotiates licensees towns cities conduct business including southern district new york lens company whose annual sales volume approximately ships blanks interstate commerce factory ohio wholesalers finishing licensees various places located including southern district representatives visit licensees purpose instructing finishing lens blanks promoting sales univis lenses facts amply established venue eastman kodak southern photo sixteen patents owned corporation three unrelated issues present case five methods producing lenses utilized lens company manufacturing blanks concern method process employed licensees finish lens blanks remaining eight patents relates shape size composition disposition pieces glass different refractive power blanks fused district found claims eight patents finished lens consequently wholesalers finishing retailers grinding polishing lens practice part patent conformity lens company manufactured blanks supplies thought without granted license final step finishing lens infringe patent concluded reason corporation condition licenses upon maintenance licensee prescribed retail price see general electric held prescription retailer licenses unlawful restrictions upon resale finished product within patent monopoly proscribed sherman act also held certain trade agreements entered lens company licensees control resale prices finished lenses within exception sherman act created act lens company undertaken fix resale price finished lenses different product lens blanks manufactures sells accordingly limited relief granted injunction restraining respondents carrying enforcing restrictive provisions prescription retailer licenses fair trade agreements using licensing done one means preventing particular competitor manufacturing distributing multifocal lens blank similar appearance produced lens company government put issue validity lens patents argues scope extend beyond structure lens blanks consequently affords basis corporation restrictions sale finished lenses wholesalers finishing retailers fashion blanks purchased lens company insists novel features invention include combination shape size arrangement described pieces glass fused blank grinding polishing blank involve practice add feature common finishing types multifocal lenses covered patents scope lawfully extended procedure novel merely applied article embodies novel features alleged invention sale become lawful subject commerce record gives account prior art provide us material available resort might appropriately determining nature alleged invention validity scope patent claims founded upon event find unnecessary circumstances case decide whether held patent claims rightly said include finishing blanks appellees concede invention single lens patent utilized making blank finishing lens therefore put one side questions might arise finisher particular lens blank utilized invention patent patent practiced part manufacture blank assume present purposes without deciding patent fully practiced finishing licensee ground polished blank serve purpose lens merely licensee takes final step manufacture patented product work blank purchased patentee licensee follow patentee control price finished lens sold notwithstanding assumption made scope patent blank appellees insist embodies essential features patented device without utility ground polished finished lens patent may assume also appellees contend sale blanks unlicensed manufacturer unlicensed finisher completion constitute contributory infringement seller leeds catlin victor talking machine cf carbice american patents case plain sale blank patentee lens finisher use put object sale enable latter grind polish use lens prospective wearer incident purchase article whether patented unpatented right use sell upon familiar principles authorized sale article capable use practicing patent relinquishment patent monopoly respect article sold leitch mfg barber chemical ellis sale lens blank patentee licensee thus complete transfer ownership blank within protection patent law license practice final stage patent procedure present case entire consideration compensation purchase price paid finishing licensee lens company question stipulations royalties otherwise might exacted part entire transaction seek control disposition patented article sale question whether patentee licensee longer aided patent may lawfully exercise control declared purpose patent law promote progress science useful arts granting inventor limited monopoly exercise enable secure financial rewards invention constitution art cl full extent monopoly patentee right make use vend invention discovery patentee may surrender monopoly whole sale patent part sale artile embodying invention monopoly remains long retains ownership patented article sale exhausts monopoly article patentee may thereafter virtue patent control use disposition article bloomer mcquewan adams burke wall hobbie jennison hence patentee control resale price patented articles sold either resort infringement suit consistently sherman act unless act applies stipulating price maintenance vendees bauer cie boston store american graphophone ann straus victor talking machine ethyl gasoline cases cited think considerations support results lead conclusion one sold uncompleted article embodies essential features patented invention within protection patent destined article finished purchaser conformity patent sold invention far may embodied particular article reward demanded received article invention embodies vendee practice upon thus parted right assert patent monopoly respect longer free control price may sold either unfinished finished form one doubt patentee licensee sold blanks wholesaler finishing retailer without purchaser infringe grinding selling added stipulation patentee fixing resale prices derives support patent must stand footing sherman act like stipulations respect unpatented commodities ethyl gasoline supra decisions uniformly recognized purpose patent law fulfiled respect particular article patentee received reward use invention sale article purpose realized patent law affords basis restraining use enjoyment thing sold adams burke supra wall page keeler standard folding bed motion picture universal film see cases collected general talking pictures western electric note construing applying patent law give effect public policy limits granted monopoly strictly terms statutory grant morton salt suppiger particular form method monopoly sought extended immaterial first vending article manufactured patent puts article beyond reach monopoly patent confers whether licensee sells patented article completed form sells completion purpose enabling buyer finish sell equally parted article made vehicle transferring buyer ownership invention respect article extent parted patent monopoly either case received purchase price every benefit monopoly patent law secures permitted control price sold others extend monopoly quite much one case extend beyond fair meaning patent statutes construction hitherto given thus occasion reconsideration government asks general electric supra appellees rely case paints point patentee manufactures product protected patent fails retain ownership control price sold distributors page page accordingly neither lens company corporation virtue patents sale lens blank exercise control article sold price fixing features appellees licensing system within protection patent law violate sherman act save fair trade agreements may bring within act agreements price maintenance articles moving interstate commerce without unreasonable restraints within meaning sherman act eliminate competition trenton teries socony vacuum restrictions imposed seller upon resale prices articles moving interstate commerce enactment act stat consistently held violations sherman act ethyl gasoline supra page page cases cited act provides nothing sherman act render illegal contracts agreements prescribing minimum prices resale commodity bears label container bears trade mark brand name producer distributor commodity free open competition commodities general class produced distributed others whenever agreements lawful resale made contracts entered lens company licensees corporation stipulate maintenance prices prescribed licensing system appellees assert assume present purposes blanks lens company sells finished lenses marked appellees trademark required statute contracts lens company designated manufacturer glass lenses distributed sold manufacturer lens company manufactures blanks finished lenses resale prices apply therefore manufacturer licensees sell licensees engaged commodity buy find nothing language act legislative history indicate provisions applied products manufactured successive stages different processors first free control price successors prescribed prices thus within tydings exception sherman act appellees stress features licensing system said protect public interest good selection licensees specially skilled competent render service undertake assume restrictions might otherwise valid cf fashion guild trade commission features interwoven identified price restrictions core licensing system case appropriate one suppression entire licensing scheme even though features independently established might ued lawful purposes ethyl gasoline supra page page injunction district therefore continued extended suppress license contracts maintenance licensing system appellees established corporation license lens company judgment affirmed judgment reversed cases remanded district entry appropriate decree conformity opinion ordered affirmed part reversed part remanded directions justice jackson took part consideration decision cases