Evening star., 1938-12-06
Patent Law Changes
Likely 10 Be Urged
After Monopoly Quiz
Boroh AssoiIs 17-Yeur
System-knudsen
Defends Auto Policy
BY JOHN C. HENRY,

Individual members of the Monop-
oily Committee indicated clearly to-
day that important revision of the
patent laws will be recommended
out of their examination Of patent
usages in the automobile industry.
Drawing particular fire from sew
eral committee members, notably
Senator Borah, Republican, of Idaho
and Representative Summers, Demo-
crat, of Texas, is the present pro-
vision for 17-year "monopolistic'
life of patents which might be ex-
changed freely among a group but
withheld from industry in general.
An example of such an inter-
change among a group is afforded
in the practices of the Automobile
Manufacturers Association, for
more than 20 years engaged in
patent pooling among its own men,
bership
Knudsen Takes Stand.
Questioned as to preferability of
the Ford policy of free extension of
its patents to any applicants for
use, William S. Knudsen, president
of General Motors Corp, told the
committee:
Perhaps it is fine from his stand
point.
ITO say that we should do the
same thing without considering the
interests of the stockholders, l
think would be wrong"
General Motors is a member of
the Automobile Manufacturers AS
sociation and a participant in the
patent pool of the A. M. A.
In any circumstances. the tall
gray-haired motor executive said. he
saw little danger of an individual or
single company deviSing and ap-
plying a patent which would revo-
lutlonlze the automobile industry.
I'VE would either make a licensing
agreement with such patent owner
or work seven nights week until
we had something better" he told
the committee.
Free System Held Evil.
Suppose the patent system we're
aoollshed tomorrow, would it have
any effect on the competitive posi-
ton OF General Motors?" Hugh Cox
assistant to the Attorney General,
asked.
NO, but it would be bad for in
dustry in general. for inventors par
ticularly.' Mr. Knudsen said.
Later, he told reporters the auto
mobile industry is having a good
season.
We are working 40 hours and
everything is going along fine. OF
course, in January and February
we expect the usual seasonal de-
cline, but no more
AS far as he knew. he said busj-
ness in general is rejecting the same
improved conditions.
Borah Questions Witness,
Discussion of the patent law issue
today came while Milton Tibbetts
vice president of Packard Motor Co
was on the stand. Packard belongs
to the association, but has remained
out of the pool
This is a case of group ar
ranging among themselves to null
lily the l7-year provision of the
law Senator Borah said. "Why
isn't it a good idea to eliminate the
monopoly and make the patent
available to all industry?
why should this monopoly be
maintained for II years? Person.
ally. l would be in favor of a short
er term"
THE l7-year term has worked out
very we'll in the past; why change
it?' Mr.. Tibbetts countered in de-
fense.
It's worked out we'll for some
people, Senator Borah concluded.
rs there any good reason why
anybody in industry should not be
allowed use of beneficial inven-
ton on payment of some reason
able sum- Representative Summers
asked.
We'll. there are many small con-
Germs that depend for their very
existence upon the exclusive rights
granted them in the patents" Mr.
Tibbetts replied.
Changes Proposed.
Among the proposed changes in
the patent laws is one by Senator
King, Democrat, of Utah, that
the United States Patent Office
be given a larger staff of examin-
erS with a view to making speedier
and more exhaustive investigation of
applications and eventual award
of fewer patents. Senator King
yesterday indicated his own sup
port for this idea in questioning I
Joseph Farley, patent counsel for
the Ford Motor Co.
The Utah Senator also disclosed
that he is considering a proposal
to require a yearly fee from patent
holders as means of discouraging
the retention of worthless or OBJ
structive patents. and another pro-
posal to provide for recovery of
cumulative damages and costs
where infringement suits are found
uniustifiable.
From Edsel B. Ford, president of
the Ford Motor Co. and son of its
founder, the committee heard yes
terday how Ford dedicates all of its
own patents Ito public service" in
the sense of making them freely
available to any who request their
use and prove intention of actually
applying them. Neither license fees
nor royalties are charged by the
Ford Co., Mr.. Ford said, and no in
fringement suit has been brought by
the company for unauthorized use
since 1909.