Monday, Apr. 21, 1930

Patent War

With fanfare of a $10,000,000 advertising campaign, Gillette Safety Razor Co. (oldest, largest) last month announced a new razor, a new blade, promptly proceeded to distribute them. Last week gloating Gillette advertisements said: "We had planned to produce 80,000 of the new razors daily. We have found it necessary to increase this to 100,000 a day." Earnings for their first 1930 quarter were $2,164,348, compared to $4,531,218 in 1929. The decrease was attributed to the cost of preparing the new blade and razor. Jubilant none the less sounded Gillette though, as nearly everybody knew, there was a butterfly in its ointment.

This was the Probak "butterfly" blade (so called because of a filigree design in its center), invented by Henry J. Gaisman (also inventor of the autograph system used in Eastman Kodaks), chairman of AutoStrop Safety Razor Co., manufacturers of Probak. This blade, which fits the Gillette razors, was patented in 1928; a patent was reissued for it in January 1930. New Gillette blades bear the legend "Patents Pending," are, therefore, not patented.

Fortnight ago what every razorman had been expecting occurred. AutoStrop filed suit against Gillette for patent infringement, asked I) that Gillette discontinue manufacture of its new blade & razor; 2) that Gillette turn over to AutoStrop all profits earned from the new blade & razor; 3) that Gillette pay damages to AutoStrop for loss of AutoStrop sales caused by Gillette's blade & razor. Gillette had been awaiting the suit. In March a statement to shareholders said, in part: "We are not only prepared for any legal controversy but we invite it." As in the case of the Youngstown-Bethlehem steel merger the law became the final and most important arbiter in a business battle.

Rumors that AutoStrop had surreptitiously obtained plans of the new Gillette razor, had quickly designed a blade to fit it, are roundly denied. AutoStrop claims that its blade will fit any double-edge razor. In November 1929 when first AutoStrop's Probak blades were marketed they fitted the following razors: Elite, Loew, Renard, Darwin, Holtz, H & T, Kace, Via and, of course, Gillette. Probak manufactures its own holder but has not advertised it.

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