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Dispute Resolution Keyed to Carbonneau, 8th Ed.
American Safety Equipment Corp. v. J. P. Maguire & Co.
Citation:
391 F.2d 821 (1968)Facts
In August 1963, American Safety Equipment Corp. (ASE) and Hickok Manufacturing Co. entered into a License Agreement under which Hickok granted ASE an exclusive license to use the “Hickok” trademarks for safety protective devices, primarily seat belts. The agreement contained several provisions that ASE later challenged as anticompetitive, including requirements for royalties on all safety devices sold (whether or not using Hickok’s trademark), restrictions on sublicensing to Hickok’s competitors, and limitations on ASE’s business activities. The agreement also contained an arbitration clause covering all controversies arising from the agreement. After several years of apparently successful business relations, ASE filed a declaratory judgment action against Hickok in October 1966, alleging that certain provisions of the License Agreement violated the Sherman Act. Shortly thereafter, J.P. Maguire & Co., claiming to be Hickok’s assignee for royalty rights, demanded arbitration for unpaid royalties. ASE then filed a second declaratory judgment action against Maguire, seeking to enjoin the arbitration.
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