American Tarso Co. v. Advanced Products Ass'n

The opinion of the court was delivered by

Case, J.

On October 4th, 1932, plaintiff and defendant entered into a contract relating to the use by defendant of certain processes in the manufacture of felt. Paragraph 6 of the contract provided:

“Advanced [defendant] agrees to pay to Tarso [plaintiff] a royalty fee for the use of said patents and or secret processes, methods or trade secrets, of five cents (5c) per square foot, on all of the said felt manufactured in connection with the said processes. It is agreed between the parties that the amount of royalty fees for each month’s business shall be…