The citizen. (Honesdale, Pa.) 1908-1914, 1911-11-15

inventor is written to and advised
that his invention possesses much
merit and would sell well if placed
on the market, but that the first
step to take is the formation of a
company and the issuing of stock. 1t
is ingeniously set forth that the
stock cannot be sold until the COM
pany has been duly incorporated,
and the inventor is dazzled by the
large sum suggested as proper
capitalization of the company, which
may vary from 100000 to $1,000
900, according to the nature of the
invention. The inventor is general
ly induced to part with his patent
and is paid in the stock of the COM
pany. The object of the whole COM
edy is to induce the inventor to en-
ploy the services of a lawyer" to Sc
cure the Incorporation of the COM
pany. The fee for this service is
from 500 to $3.50, while the actual
outlay on the part of the lawyer" is
only small fraction of this amount.
After the company has once been
formed the interest of the promoter
or banker" suddenly languishes,
and the inventor awkes to discover
that he has transferred his patent to
phantom company, and that he has
received in payment of same an
elaborately engraved stock certificate
which is about as valuable as the
paper upon which it is printed. The
only gamer by the transaction is the
promoter and his colleague, the
lawyer" who has attended to the
incorporation of the company. If
such a proposition is made to the in
ventor, he can generally test the sim
cerity of the promoter by insisting
upon part payment being made in
cash.
If the invention is one of import
ance in the arts, or of such q nature
that it's originality and usefulness
are seen at a glance, evidently an
swering to public want, the paten-
tee will be able, without much ef-
fort, to make advantageous arrange
ments for the legitimate sale and
Introduction. Such are quick-selling
patents.
With the slow-selling patents the
case is different There is no easy
and royal road to the sale. 1t re-
| quires active effort and constant at
tention until it is effected. In gen.
eral the patentee himself is the best
selling agent, for he is familiar with
the merits of the invention.
To make the merits and import
ance of the Improvement publicly
known often effects the sale of pat
ent. This may be done in various
ways: by advertisements in newspa-
pers, by cards, circulars, pamphlets,
etc, by local and travelling agents.
Advertising should be done by the
| patentee, in his own name and ad-
dress. He thus makes the invention
! known to the public, receives the di-
rect benefit of all replies, and his
money does not go into the pockets
of swindlers.
The license and royalty plan is Of
| ten a most profitable method of en-
| ploying patents. This, in effect, in
wolves a sort of contract between a
patentee and partner or manufac-
| turer, by which the latter, in consid-
Grafton of license to make the thing,
agrees to pay to the patentee a speci-
| fed sum upon each article made or
| sold.
In some cases an excellent method
is to commence the manufacture of
the article in a suitable locality, and
when it is so far under way to eX-
| hibit progress and merit, then to
sell out the business with license un-
| der the patent. This method is Of
| ten very remunerative.
The patentee may subdivide his
| patent into as many different classes
| of rights as he chooses, and sell each
class by separate agents or other
wise, as he prefers.