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Lateral-cut disc records were developed in the United States by Emile Berliner, who named his system the "gramophone", distinguishing it from Edison's wax cylinder "phonograph" and Columbia's wax cylinder "graphophone". Berliner's earliest discs, first marketed in 1889, but only in Europe, were 5 inches (13 cm) in diameter, and were played with a small hand-propelled machine. Both the records and the machine were adequate only for use as a toy or curiosity, due to the limited sound quality. In the United States in 1894, under the Berliner Gramophone trademark, Berliner started marketing records with somewhat more substantial entertainment value, along with somewhat more substantial gramophones to play them. Berliner's records had poor sound quality compared to wax cylinders, but his manufacturing associate Eldridge R. Johnson eventually improved the sound quality. Abandoning Berliner's "Gramophone" trademark for legal reasons, in 1901 Johnson's and Berliner's separate companies reorganized to form the Victor Talking Machine Company, whose products would come to dominate the market for many years. Emile Berliner moved his company to Montreal in 1900. The factory which became RCA Victor stills exists. There is a dedicated museum in Montreal for Berliner.

Where were lateral cut disc records developed?
United States