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AUTOMOBILES, MANUFACTURE

NATIONAL AUTOMOBILE CHAMBER OF COMMERCE

Has adopted form of contract by which members may exchange patent rights on automobiles, parts and accessories, provided the inventions are not revolutionary. This contract is accompanied by the following statement of:

REASONS IN FAVOR OF CROSS LICENSING
AGREEMENT

1. It is obviously for the interests of the manufacturing members of the Chamber to remove the possibility of patent litigation between them.

2. No matter how many patents any single member may own, it is certain that license rights under the aggregation of patents which will come under this agreement will be much more valuable than the member's individual patents.

3. It will cement the industry together in a co-operative spirit which is in keeping with the tendency of the times.

4. There has been little or no money made out of patents in the automobile industry, and it is not likely that any money can be made out of patents by litigating them, as the winner in a patent lawsuit seldom receives very much.

5. Legitimate profit should come from proper manufacturing and selling of cars, and not from exploitation of patents which generally do not represent more than the incidental development of motor cars, for which engineers are generally responsible whether they take out patents or not.

6. The main thing is to establish a substantial business with patents only as a protection against patent litigation. Primarily, it should be the object to get business, as patents are merely incidental to business.

7. While everyone hopes to obtain good patents in the future it is apparent that the patents taken out by any one member are not likely to be as valuable to him as rights under patents taken out by 75 to 100 other members.

8. Each member will be left free to display his originality along the line of design patents.

9. The agreement is largely limited to chassis units and parts that is to say, units and parts that are common to either trucks or motor vehicles primarily adapted to private passenger use. No attempt has been made to include undeveloped and rapidly evolving things such as loading and unloading devices, fire apparatus, tractors, etc.

AUTOMOBILES, RETAIL

NATIONAL AUTOMOBILE DEALERS ASSOCIATION Members must have been in business two years and have a credit rating of $10,000. Adopted 1922:

QUALIFICATIONS OF A MEMBER

He is a business man.

He reflects his personal integrity in every transaction.
He has capacity, credit and financial standing.

He is one with whom you enjoy dealing because his methods inspire confidence.

He handles only proved merchandise of merit which he has bought at a price that will return to him a legitimate profit. He is courteous and demands courtesy of his employes for his customers.

He does not disparage his competitor.

He advertises truthfully. He is building his business for

permanence.

He departmentizes his business. He specializes for his own benefit and economizes for your benefit.

He is a clear thinking, aggressive business man who knows how to conduct his business and does it.

He believes in the Golden Rule for himself and insists

on it for his customers. ....

RECOMMENDATIONS ON METHODS

Resolved by the National Automobile Dealers' Association in convention assembled in Chicago, January 29-30, 1923, that we herewith condemn the so-called "used car trading allowance" as an unfair and unethical business practice and a deceit upon the public in its operation, and, be it further

Resolved that we respectfully suggest to the manufacturers of motor cars that the time has come to undertake such surveys of marketing conditions as will determine accurately the absorption power of a marketing territory and that production schedules of all manufacturers should be drawn up with due regard to this absorption power rather than on the mechanical facilities of plants to turn out products, or based on the similar

production schedules of competitive manufacturers, and be it further

Resolved that inasmuch as dealers and manufacturers have jointly borne items of expense in the merchandising of new motor vehicles in the past that we recommend that a greater cooperative study of the used car situation be made by both the manufacturers and dealers through their respective organizations and that such information be secured and plans outlined as will result in a satisfactory method of merchandising of all automotive vehicles.

Resolved that we herewith recommend to automobile dealers generally that they make a survey of the cars in general demand in their territory, that they take only such used cars in trade for which there is an active and measurable demand and then only at a price that will permit the handling of the used vehicle at a profit. And we herewith condemn as suicidal the "unloading" of new motor vehicles by any factory on any dealer who is thus compelled to accept used car deals at prices which are ruinous to himself and demoralizing to the motor merchandising market.

AUTOMOBILE EQUIPMENT

AUTOMOTIVE EQUIPMENT ASSOCIATION

Formerly Nat. Assn. of Automobile Accessory Jobbers.
Adopted July 1921; condensed form:

FAIR TRADE PRACTICES

Reciprocity: No. 1. Encourage reciprocity, harmonious and friendly relations between all members,-treat others as you would like to be treated-Act on the policy of "those who help me, I help."

Branch Houses: No. 2. Branch houses under same name and ownership as parent organization, may receive such matters as go to the home office.

Arbitration: No. 3.

Arbitrate differences The Asso

ciation has every facility-Keep out of the courts.

Piracy: No. 4. Piracy all kinds denounced, or anything tending to deceive the buyer or the public-Refer such matters to the Association.

Patent Controversies: No. 5. Do not send threatening letters to jobbers on patent controversies-Contending parties should adjust matters between themselves-If desired refer to the Commissioner.

Advertising: No. 6. Oppose advertising schemes of a temporary or transient nature. Refer them to the Commissioner. Advertising Demands on Manufacturers: No. 7. Disapprove jobbers making demands on manufacturers for advertising in bulletins, papers having no regular circulation, especially publications, local dailies or trade papers.

House Organs: No. 8. Jobbers should not ask manufacturers for contributions to house organs. It cheapens and detracts from its value.

Syndicate Catalogues: No. 9. Syndicate or stock catalogues are harmful and not helpful. Do not better conditionsNo manufacturer should give money or merchandise for space in any jobber's catalogue.

Inserts: No. 10. Manufacturers should not supply inserts for catalogues. All right to supply inserts for office or salesmen's use.

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