Evening star., 1938-12-11
By John C.. Henry.

pdtentS. TOydltt
patents, Packard has granted manufac-
turing rights on its patents on royalty
system. Income from such plan, it was
explained by Packard official, has been
applied mostly to offsetting research
costs.
Although the general reaction from
committee members and others toward
the policy disclosures of the automobile
industry was one of approval, the testi-
mony served not only as a springboard
for voicing what apparently were pre-
conceived opinions of committee mem
bers, but also for some criticism.
See Potential Danger.
For instance, it was apparent during
appearance of representatives of the A.
M. A. that potential danger was seen in
system by which an organized group
could toss patent rights back and forth
among themselves, but with the 17-year
protection Of the law insofar as they
might decide upon excluding others
from use of the patents.
Senator Borah. Republican, of Idaho
and Representative Summers, Democrat
OF Texas. made particularly clear their
disapproval of such basic condition,
the former expressing his favor for
shorter term of patent-lfe while the
latter extended a suggestion for an
amendment to patent law by which the
granting of licenses would be mandatory
on payment of reasonable fee by the
applicant.
From Senator King, Democrat. of
Utah, came suggestions in the form of
questions on the advisability of furnish
ing the Patent Office with larger staff
OF examiners in order that more ex-
haustive examinations might be con-
Quoted and perhaps the number of
patents issued cut down. The Utah
Senator also displayed an interest in the
idea OF requiring yearly fee of patent
holders as means of discouraging the
holding of worthless patents or of keep
ing them from general use.
Reluctant to Liberalize.
Despite their comparative generosity
in allowing use of their own patents, the
automobile executives were virtually
unanimous in their defense of the patent
system as protective one and equally
reluctant to offer any encouragement to
proposals for its liberalization. With
usages in the glass industry, which is to
be considered during the coming week,
generally believed more monopolistic in
character, it is not expected there will
be much support from that quarter for
any changes which might upset the
status quo.
Having granted the logic of the COM
mittee's selection of patent practices as
its initial subject of study, it might be
well to point out that the patent system
is merely one of several Government in
struments to be examined for their effect
on the business structure and the public
in general.
First among others, perhaps, is the
tax system; the degree to which it is q
| harmful burden upon industry, its rela-
f, ton to expansion and possibilities of
new capital investment. Indicated, also,
are studies of Governments effect upon
the Nations economy through farm pro-
grams, foreign trade policies, housing
efforts, social security, regulation
through such agencies as the Interstate
Commerce Commission, the Securities
and Exchange Commission, the Wage
and Hour Administration and many
others. Direct Government intervention
through such machinery as the Home
Owners Loan Corp, the Reconstruction
Finance Corp. and comparable agencies
also is due for analysis. Further study
of antitrust policies both here and
abroad is planned.
That this many sided examination ot
governmental policies is but single
item in the whole field of the committees
work is understood, of course. the very
tendency toward government interven-
| ton In the picture being but one o'