New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-22
AMERICAN INVENTORS RIGHTS.
THE RELATIONS OF AMERICAN AND FOR
EIGN PATENTS DETERMINED.
SUPREME COURT DECISION OF THE UTMOST
rMPoRrANCE--How THE EDISON PATENTS
ARE AFFECTED.

Washington, Jan. 81 SpeciaD.-The Supreme Court
Of the United States to-day rendered decision IN the
famous patent Of the Eate Refrigerator Company
against Hammond which will be moro far-reachng In
IT'S effects than any other decision which this court
has rendered for the last ten years. Tho point IN
volved the effect which a foreign patent has on
the duration of American patent subsequently
issued 10 tho same inventor. American patents are
granted for tho term OF seventeen years. Section
4ss7 of the Revised Statutes provides that the pre-
vous issue Of foreign patent for the same invention
shall not nvadate the American patent provided that
the subsequent American patent shall be so limited as
TO expire with the foreign patent or II there are
two moro foreign patents, with that one having
the shortest term In constituting this section OF the
statute complication early from the fact that
many foreign countries grant patents for short term
of one. five or six years. which terms may be ex-
tended on the payment OF certain fees. The question
was, whether the American patent should
expire at the end OF the shorter term
for which foreign patent for the same In
vention was originally granted, whether It should
be extended with the possible extension of the foreign
patent
The Circuit Courts have uniformly held that the
American patent lapsed with the expiration of tho
original term Of the foreign patent and unaffected
by any possible extension of the latter. Thus II
John Smith took out Canadian patent for five years
with the privilege Of extending It to ten or mteen
years on payment of fees and subsequently took ouf
an American patent the courts have held that the
American patent must expire absolutely at the end OF
the first five years whether the Canadian patent was
extended or not. To-day the Supreme Court has
swung the pendulum to the other extreme and held
that the American patent shall for fifteen years
absolutely whether the Canadian patent Is kept alive
for that term or is permitted TO lapse
Perhaps, of all those who will be benefited by
the change Edison is the greatest gainer. largo
number of HIS patents of five or six years ago have
been held invalid under the former construction OF the
law on Of prior patents granted him in foreign
countries Now some of them will be Of fabulous
value Ono patent alone on what is known as the
system OF electrical distribution by multiple arc covers
every incandesccn electric light plant in the country
It is impossible 10 incandesccnt plant on any
other principle. This patent was regarded as void
from the beginning because Of a previous italian
patent. Now It is good for monopoly of the incau-
descent electric lighting business until 1so1 Not
only does II cover the future, but the past as well,
for Edison can collect royalties from all rival COM
panles for the plants operated during the last two
years.
The original phonograph patents como In the same
category. Unless Mr.. Lippincott, who is understood
to have purchased the monopoly Of the improved
phonogaph and grsphophone patents for million
dtllars cash, has provided against this Unforeseen
turn in the legal wheel Of fortune By buying up the
Of 1s7s the old phonograph company to which those
patents were assigned, can ruin him and send the
inflated stocks OF the recently formed graphophone
and phonogaph companies tumbhng down 10 inc
bottom OF the stock List
The Otto Gas E,gine patents have becn sustained
in England after costly litigation but oroFthroun
In Germany after an equally hard night Their
toltod states patents were reported void on examine
tion because OF previous Italian patents. Now II
they are TO be overthrown II must DO after pro
longed struggle tie merits Of the case as was done
In Germany.
Hundreds Of investors who have only put their
money Into the manufacture Of patented articles after
having been advised by their lawyers that they
might safely do SO without being compelled 70 pay
rufnous tribute to the OF prior patents with
broad claims because said prior patents were worthless
in view OF previous foreign patents granted Tor short
terms see ruin staring them In the face.
III this decision viii stand IL Will form as FAMOUS
a precedent as the great case OF O'Relly against
Morse IN which the invention of the electric telegraph
was involved and win be more widely felt In Us
financial influence than the decision In the case OF
the Green driven we'll patent. which threatened to
lay the farmers Of the country under triDue ior many
rnlllinns Of dollars.