Advisory opinion letter to Mr. Levin
78 F.T.C. 1671 · Feb. 25, 1971 ·
source volume section (78 F.T.C. 1671)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
Dear Mr. Levin: Thank you for your letter of February 25, 1971. I hope to answer the various questions you posed in the aforementioned letter —_— (1) No further services are contemplated to the purchasing company by either Mr. Tamarin or Baron & Company.
(2) If an outright sale of the patent is consummated, neither Mr. Tamarin nor Baron & Company would receive any compensation for the placement and disposition of the vectograph. _ *Iustrations of the Vectograph are not reproduced in this volume, but are available for public inspection at the Federal Trade Commission, Washington, D.C. .
(3) Since we have not negotiated the purchase of our patent at this time, it is impossible to describe in detail any arrangements which we may have with the purchaser with respect to the use of the device in retail outlets which sell the company’s products. (4) Neither Mr. Tamarin nor Baron & Company have any intention of promoting the vectograph on behalf of a company or companies which might purchase the aforesaid patent rights. The inventor, Mr. Tamarin, has the patent or invention for sale. Once it is sold to a customer, the customer has the sole and exclusive right as to what is to be done with the invention. Both Mr. Tamarin’s interest and Baron & Company’s interest in the invention generally will terminate after the sale isconsummated. Tf there is anything further we can do to help you, please do not
hesitate to contact me.
Very truly yours,
(S) RoserrR. Baron,
President.
Supplemental Letter Relative to Request
Frsrvary 25, 1971
Dear Mr. Baron:
This is in further reference to your letter of October 9, 1970, requesting advice as to the legality of a proposed plan to sell to certain Manufacturers an electric operated advertising apparatus called a vectograph. By letter of February 12, 1971, you indicated that this device will be marketed by outright sale of the patent and jts manufacturing rights. On February 19, 1971, you informed me by telephone that your client was Mr. B. J. Tameron, and that the ultimate clients will be the companies who purchase the vectograph. T have studied your proposed plan, but it is still unclear to me what, if any, arrangements you will have with or services you will perform for the companies to whom you have sold the rights to the vectograph. The answer to the following questions, therefore, will be most helpful to further consideration of this plan: 1. After the sale of the vectograph, are any further services provided to the purchasing company by Mr. Tameron or Baron and Company 4 9, Does Baron and Company or Mr. Tameron receive any compensation from the purchasing company for the placement and distribution of vectographs with retailers who sell the companies products ? 3. Please describe in detail any arrangements which Baron and Company or Mr. Tameron may have with the companies who purchase vectographs with respect to the subsequent use of or the avail