Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1874-03-18
The Evils Of our Patent System.

uS NY congressman uHu Otuer nIgi
officials, are the wrongs arising from
our Patent Office System. Tho peo
pie of tho United States are annually
robbed of millions of dollars, while in
ventors, in nine cases out of ten, ar,
cheated out of their inventions, by
set of sharpers who have their head
quarters in the Patent Office at Wash
ington. We are glad to notice tha
Congress is taking hold of the matter
and that some check is likely TO b.
placed upon sharpers, provided th,
sharpers 10 not seduco Congressmec
from the path of duty and rcctitudc
A Washington telegram to the New
York Tribune, gives an inside view O
the question, as follows:
1t has been 30 long taken for grant.
cd as matter which admitted of nc
doubt that our present patent system
greatly benefited the people at large
by encouraging inventive genius, that
1t is rather surprising to hear this idea
seriously controverted. During the
Saturday session of the House Mr.
Sayler of Indiana delivered a carefully
prepared speech, in which he took the
ground that tho existing system Of
patent laws was exceedingly burden.
some to the people and practically
of small benefit to the inventors
while enabling powerful manufacture
ing corporations to reap immense
profits. To show how heavily the
people are taxed by the manufacturers
who hold patent rights on articles in
general demand, Mr. Sayler presented
striking array of facts and figures.
The India rubber industry, ho said
according to the census, paid SO per
cent. profit upon the capital employed
The cabinet organ business paid 6l
per cent. profit. In IL months, the
capital invested in tho manufacture OF
sewing machines doubled itself, besides
paying for all tho materials il used,
and the labor employed, the profit on
a $50 machine being s24. The profit
on patented agricultural Implements,
according to Mr.. Sayler, is SO per
cent. and on patent medicines llS per
cent. In these five branches of indus
try, the aggregate capital invested,
according TO tho census of 1870, was
$4,000, 900, and the profit s37 800, 900,
while the same amount of capital in
vested in producing pig iron would
net only eleven and two.thirds mill
lions, and in manufacturing cotton
goods only ten millions.
Mr.. Sayler has bill to permit any
person to manufacture patented
article by paying royalty to the
owner Of 10 per cent. upon the mar
ket value Of the article. This, he
thinks, would give the inventors as a
rule more money than they now re-
ceive and protect purshascrs against
the overcharges Of patent monopolists,
The following arc the main features
of his bill:
Tho first section Of my bill provides
that where a machine or other article
is manufactured or compounded by
virtue of single patent, it may be
manufactured, used, or sold by any
person, whether in his individual or
associated capacity, by payment Of a
royalty to the owner of the market
value Of the article manufactured, and
that he shall protect the owner Of the
patent right by fling in tho Patent
Office bond in the sum Of $4,000,
conditioned upon the accounting, every
six months, for this royalty and the
payment thereof lie is also to give
notice through the Patent Office of
his name, place of residence, and place
Of business.
Tho second section provides that
whenever any article or machine has
in its construction or composition an
improvement protected by letters pat.
ent, or where II is constructed or com
pounded under and by virtue of a
combination or consolidation of two
or moro patents, then any person in
bis individual Or associated capacity
may 90 into the United States Dis
trict Court in the district where the
owners Of those patents or the MAORI
ty Of them may reside, and by pro-
ceedings such as are now provided in
civil causes therein, have the royalty
determined by the Court, and that
this first proceeding shall be at the
cost Of the applicant, he protecting the
owners Of the patent by bond, as |
have before indicated, and it being not
altogether impossible that the first
adjustment of the royalty would be
inadequate or unjust. The bill further
provides that in the event it is desira-
bic, the owners of the patent, on 80
days notice, may have a readjustment
Of the royalty and that readjustment
shall be at their own cost and final. L.
The same provision applies to copy
rights
GENERAL PRESS DISPATCH.
WASHINGTON, Feb. S.-Tho House
Committee on Patents will probably,
q. their next meeting, adopt a series
Of rules TO govern them in the consld-
GRAFTON Of the business before them.-
The rules were considered on Friday,
but there was not q full attendance OF
members. 1t IS known that, hereto
fore, bills have boon reported from that
Committee for extensions, and passed,
when tho persons interested had little
or no standing at tho Patent Office in
the mcrits'of their claims or when the
cases did not clearly come under the
Patent Office law. In othor words,
there has been in former Congresses
special legislation for the benefit of
particular persons, irrespective Of its
effect on Tho public at large. But the
present Committee propose to give
the patentcc who has not realized
money on useful inventions. and whose
rights have been infringed, an oppor-
tunity TO have fair hearing before
tho Patent Office in behalf OF an OK
tension Of his patent; and whcrc IL is
shown that an inventor or patentco
has been largely or reasonably com