Lea v. Vasco Products, Inc.

HUTCHESON, Circuit Judge.

Appellants are owners of a secret formula for making hair tonic, a product known as Lea’s Never-Failing Hair Tonic, which prior to April 20, 1926, they had been manufacturing. On that date they leased and let to appellee for ninety-nine years the sole and exclusive right, for the United States and all the world, to sell and distribute that product. The contract made provision for the sale of different quantities in different periods. It provided for fixed royalties, for minimum quantities, and for $1 a gallon on all gallonage sold above the minimum.

On April 21, 1935,…