Business & Finance: Soft Collars

Not so long ago, an enterprising gentleman named Van Heusen invented a soft collar for male wearers, and obtained basic patent rights to the product. Subsequently, he sold these patents to the Phillips-Jones Co., and has received $1,000,000 in royalties for this invention. So many consumers became converts to the soft collar that existing makers of hard collars began to feel the competition seriously, began to make soft collars themselves, in alleged violation of the Van Heusen patents. Chief among these were Cluett, Peabody & Co., Earl & Wilson, Manhattan Shirt Co., Hall Hartwell Co., George P. Ide Co., Vanzandt, Inc. and Lion Shirt Co.

The Phillips-Jones Co., whose losses under this alleged patent infringement have been stated at $4,000,000, brought suit against the above-mentioned concerns a year and a half ago. Prolonged litigation ensued, which has only recently been terminated by settlement out of court. The Phillips-Jones Co. have received a “substantial sum,” and under agreement with the defendant concerns will issue licenses permitting the latter to manufacture the two-piece collar on a royalty basis. The Phillips-Jones Co. continues to hold the exclusive right to make the one-piece collar.