New-York tribune., 1918-06-22
Aircraft
Discoveries
By Theodore M. knappen

w T ASHINGTON, juno 21.-One can
wv acquire ponderable reputation
in aircraft matters these days by
shaking his head ominously and pronounc-
ing the word "cross- licensing" On cross
licensing, be it known, is based the alleged
ring of plane manufacturers who are going
to monopolize the production of planes in
the future, and who are supposed to have
held up the government in the making Of
planes for war. 1t is the term given to
the scheme whereby concise arrangement
for opening up general access to basic air.
plane patents was arrived at, so that the
industry would not be hamstrung by royalty
quarrels cxtortion and patent litigation.
There may be surreptitious African in
this particular aircraft woodpile, but
can't find him, and l have looked for him
in tho course of investigations that have
taken me month, two thousand miles of
travelling, and have probably made me more
familiar with aircraft production than any
other layman in America. The facts ap-
pear to be perfectly definite and clear. The
reader can put his own construction on
them.
The basic patents controlled by the
Curtiss and Wright Martin companies, the
former being the Curtiss inventions and
the latter those Of the Wright brothers.
Ihe government didn't want to pay an ex-
cess price for royalties, and it did not
want alrplane construction limited to the
two companies and to those they might
license by private negotiation.
clean-cut general arrangement and
understanding seemed to be desirable. So,
DV
of airplane manufacturers was formed
membership in which entitled all manufact-
urers to the use of the primary Curtiss
and Wrlght-Martin patents and secondary
patents of other members. The fee is
$1,000, and membership is open to any re-
sponslble firm or corporation that desires
to make airpanes.
For each machine he makes for the 9ov-
ernment the manufacturer pays the asso-
citation $10O, and for each commercial ma
chine $780, Out of each s100 of ROYALTY
tees now paid in the Wright Martin COM
pany receives $62,50 and the Curtiss COM
pany S26, the other $12.50 going to the as
soclatlon for expenses. When the total of
the Wrlght-Martin fees shall have reached
$2'ooo'ooo The Curtiss people will receive
the whole of the $3.50 until their total
reaches s2,00o,oOo. After that no further
royalties will be collected.
To the total sums to be paid for rov.,-
ties the government probably will con-
tribute three-fourths and the public one.
fourth. At present there are about twenty
members of the association. If access to
membership is without prejudice, and It
appears that such is the case. the main
question is whether the government is pav-
ing an excessive royalty
1t might be argued that the patcntees
should have been content with their nrofts
on manufacture for the government and
have licensed other manufacturers doinc
government work similarly engaged with
out charge. This would have been fne
piece of patriotism, but it would have heen
most unusual and was hardly to he ex-
pected. Conceding that the patentees we're
morally as we'll as legally entitled to soma
remuneration, is $10O for each ,nlane +oo
much?
Anyway, it looks to me as if the so-co,,.d
ring that has resulted from the cross
licensing arrangement is rather an anti.
ring.