The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1918-07-02
PATENTS
ARE N USE HERE
Enemy Trade Division
Wants Congress to
Modify the Law.

WASHINGTON, July 2.-Recom.
mendation thst Congress speedily
modified the Elemy Trading law by
revoking the power now given the
courts to terminate licenses granted
Americans to Use German patents wds
made today 10 &c Federal Trade Com
mission T.. &. Mcdonald, Chief OF
the I'r- &c Division OF the Com
mis- 3d.. J. urged also that the Com
mis- -' ,a.Ild be empowered 10 fix
re. -.,y charges more definitely and
conclusively than the law now per.
mits.
These serious defects should he
cured, 10 the end that the business H.
censed by the Commission may rest
on a firm foundation" Mr.. Mcdonald
said. "In view Of the fact that mos;
OF the licenses ale means 10 establish
in the United States Industries which
heretofore nave been mOn0Olized un.
taiTlv by German and Austrian inter.
csts to the very great disadvantage
Of the American public, it seems un-
wise in high iesiee OF have the Com.
missions licenses tcTminable by the
courts al tine suit OF the enemy own.
ers.
Every license issued by the Com
mi5s!on has Deen granted. not for tn
duration Of the war but for i.s iii.
Of the right under which il is gvanted,
and this Division is firmly Of the opin.
ion that equity demands that the roy.
atty prescribed in the license he fixed
with more dctinitene-1. In some in
stances FIVE per cent of the gross
sums received by the licenses is not
a sufficiently lish rcyclty to be rea.
sonable and II other instances it Is
entirely TOO high"
Two sugg>st.D"s have been made D
Congress b. tnu Commits, in the
hcps that furtncr legislation may be
enacted which would remedy the stu.
alton In substance they are that the
Commission, in its license, may pre-.
scribe a reasonable royalty and that
Il the suit o. the enemy owner aft2r
the wa. the court. although it may al.
80 establish reasonable royalty,
,hali accept lhat prescribed in the ii.
cence a pl.ml lace reasonable. while
The power OF tic courts - terminate
the licenses &, entirely cut or.
Mr.. McDonsids report, giving the
irzt comprehensive statement y2t
made of what has been accomplished
under the Enemy Trading law, shows
that American manufacturers have re.
sponGc1 with characteristic energy to
the opportunity oiiered for develop.ng
in this country industries hitherto mo.
uO7olized chiefly ty Germans. App!i.
cations have bc3n made TO use li7
cncmyo.wnej patents, OF when so
have been granted and sevcI denied.
Three eZclu5i,c licenses have been Is
sud and 20 n0u-cXc.usive licenses, the
discrepancy )etwoea applications ana
I license berg explained by the fact
4 that each application covers a single
! patent. vh.:e a license may include
{ several.
/ Three licenses 10 use enemy trade
/ MARKS have been issued out OF seven
q applications made
( When the commission received its
authority to grant licenses under ems
( my patents IN the tall Of 1917. it found
/ an acute conunion as TO certain syn
/ thctic drugs .ormerly imported from
! Germany. American reliance on Gee.
man industry Aad resulted in tie
8 crisis which might have been foresecl
/ as the result Of the stoppase OF con-.
MERGE by the war. Many per5ons SUI
. lerinS with disease were unable to ob'
tain treatment Decause OF the q short.
I age OF supply. Those fortunate
enough to be al(e OF buy medicnss
were forced 10 pay exorbitant prices.
Such a sitTatiOn never will occur
| again, for licenses have been ISSUED
for the manufacture in this country
Of the drugs most urgently needed and
an American industry Is being built up
! rapidly. New names have been pre-
/ scribod in the licenses to prevent me
! Germans from Te-entering the mGrke,
after the war TO reap the benefit .!
having had their business sustained
for them Whit :hey we're fighting 0.
destroy this country
Some hesitation on the part OF the
I public TO accept the new names i'd,
been encountered. apparently fostered
/ by a propaganda designed to cIca;c
distrust OF the Iow articles in favor vi
. the German products. This is being
overcome and the Commission desires
+ % state that drugs manufactured up.
DER the Commissions license and so:i
under the American name designa.
ted By the Commission are exactly the
same chemically and consequently are
as safe and ehiCSt.ous as those so,d
under the German meme for the p.Oht
! OF enemies.
The ATSt dTuE licensed Tor manuilc