National Phonograph Co. v. Schlegel

Citations

• 117 F. 624
• 1902 U.S. App. LEXIS 5122

Syllabus

<p>1. Injunction—Stipulation of Parties—Discretion of Court.</p> <p>An injunction is not granted as of course, but only in tbe discretion of the court, where it is necessary to prevent irreparable injury, for which there is no adequate remedy at law; and in the exercise of such discretion the court will refuse to award the writ where the cause has not been litigated on the merits, and it appears from the fact that defendant has interposed no defense, but has stipulated that a permanent injunction shall issue against him; that it is not necessary to protect any rights of complainant as between the parties, but is apparently sought solely for the effect it may have upon others with whom complainant has similar contract relations.</p> <p>2. Specific Performance — Contracts Enforceable — Restrictions upon Sales of Patented Articles.</p> <p>Complainant alleged in its bill that it was exclusive licensee for the sale in the United States of Edison phonographs, blanks, and records, which were covered by patents owned by its licensor; that, in order to protect the public and dealers, it required all purchasers, whether jobbers or retail dealers, to. sign a contract that they would not sell the instruments at less thán the list prices furnished by complainant. Held, that such a contract was not one which a court of equity would enforce by an injunction restraining a purchaser from selling instruments which he had bought from complainant, and paid for, at less than the prices fixed by complainant.</p>