South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-07-02
URGES CHANGES IN
TRADING LAW
Propose to Annul Power Of
Courts to Revoke German
Patent Licenses.

WASHINGTON, July RECON-
mendation that congress speedily
modify the enemy trading law by
revoking the power now given the
courts 70 terminate licenses granted
Americans 10 use German patents
was made today 10 the federal trade
commission 10y G. n. Mcdonald,
chief of the enemy trade division Of
the commission. He urged also that
the commission should be empOw-
cred TO y loyalty charges more
definitely and conclusively than the
law now permits.
These serious defects should be
cured 20 the end that the business
licensed by the commission may
rest on firm foundation Mr..
Mcdonald said I'm view Of the fact
that most of the licenses are means
TO establish i'm the United States in
justries which heretofore have
been monopOlized unfairly by Ger
man and Austrian interests TO the
very great disadvantage OF the
American public, il seems unWise in
high degree 10 have the commits
sion's licenses terminable by the
courts at the suit Of the enemy
owners.
Every license issued by the COM
mission has been granted nor for the
duration of the war, but for the
life of the right under which it is
granted. and this division is firmly
of the opinion that equity demands
that the loyalty prescribed in the Ii
cense be fixed with more definite
ness. In some instances five per
cent Of the gross sums received by
the licenses is not a sufficiently
high royalty TO be reasonable and
in other instances it is entirely too
high"
Ask Congressional Remedy.
Two suggestions have been made
10 congress by the commission in the
hope that further legislation may be
enacted which would remedy the
situation In substance they are
that the commission. in its license.
may prescribe a reasonable royalty
and that at the suit of the enemy
owner after the war, the court, al
though IL may also establish
reasonable royalty, shall accept that
prescribed in the license as prima
facie reasonable, while the power of
the courts TO terminate the licenses
is entirely cut off.
Mr.. NIcDonald's report, giving the
first comprehensive statement yet
made of what has been accomplished
under the enemy trading law, shows
that American manufacturers have
responded with characteristic energy
TO the opportunity offered for devel-
opening in this country industries
hitherto monopolized chiefly by Ger
mans. Applications have been
made 70 use 147 enemy pat
ents. of which so have been grant
ed and seven denied Three exclu-
sive licenses have been issued and
20 non-exclusive licenses. the dis.
crepancy between applications and
licenses being explained by the fact
that each application covers single
patent. while a license may include
several.
Three licenses TO use enemy trade
marks have been issued out of sew
en- applications made.
Drug Market Affected.
When the commission received its
authority TO grant licenses under
enemy patents in the fall of 1917. it
found an acute condition as To GER
tain synthetic drugs formerly inn
ported from Germany American
reliance on German industry had re-
suited in the crisis which might
have been foreseen as the result Of
the stoppage Of commerce By the
war Many persons suffering with
disease were unable To obtain treat
ment because of the shortage of
supply Those fortunate enough to
be able TO buy medicines were forced
TO paw exorhitant prices.
such situation never VIII occur
again. for the licenses have been is
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