Recent discussions on the abolition of patents for inventions in the United Kingdom, France, Germany, and the Netherlands

by Unknown

REPORT OF THE CHAMBER OF COMMERCE OF COLOGNE ON THE PATENT QUESTION.

For the following translation I am indebted to the Hon. J. C. Heustler, of the Legislative Council of Queensland:—

The resolution to abolish Patents on inventions, arrived at by the Chamber of Commerce of Cologne, at their sitting of the 15th Sept., 1863, has been confirmed in a report to the Ministry of Commerce, as follows:—

The Patent is a monopoly, and if it has been said in its favour that it is justifiable and only temporary, it is, notwithstanding, subject to all the disadvantages in its consequences which are common to all monopolies.

Endeavours to compete in the sphere of inventions are suddenly checked by Patents, while, on the other hand, many a patentee, instead of continuing to work with zeal, and to advance in the direction commenced, simply occupies himself to watch with jealousy possible infringements of others on his monopoly during the currency of his Patent.

Consumers pay exorbitant prices during a number of years for the manufacture so patented, or receive the same in a less perfect condition than would be the case if competition had exercised its wholesome influence on the manufacture of the article in question. It may be rejoined, that nobody is forced to buy the patented article, or to make use of the patented invention; also that the common weal would profit more by the utilisation of an invention, even if burthened for a period of from five to fifteen years, than not have it in use at all.

To this it could be replied, with good reason, that with the constant activity which working minds develop upon all fields of industry, the invention of it would have been made shortly after by B, and by him possibly would have been brought to light in still greater perfection. If the invention of A, however, is patented, the inventive perfectioning of the object by B must rest until the expiration of A’s Patent.

The more an invention is to the purpose for general adaptability, the more reasonable appears the supposition that others would have arrived at the same invention.

In spite of the contrary intention, Patents proved themselves an impediment to the progress of human ingenuity, and by each newly-granted Patent an unrelenting “halt” is shouted to the competition in that direction.

On closer reflection, even persons who move in circles which, from personal interest, have hitherto used their influence to give the greatest possible stability to Patent-rights, will come to the conviction that the disadvantages outweigh by far the advantages.

The Patent system, viewed from a standpoint of political economy, produces a similar influence as the Lottery. The “grand prize” dazzles all; however, only one can have it, and the multitude of those who contributed to the solving of the problem lose very often a not inconsiderable stake in uselessly-incurred costs, and lost time and trouble.

Many have been induced by the system to rush after doubtful reward in the shape of a Patent, instead of steadily applying their ability and knowledge to regular industry.

Besides, it is not sufficient to make up one’s mind to make an invention capable of being patented; such proceedings lead to a success in the most rare cases. The most important discoveries have proceeded, on the contrary, from those who thoughtfully prosecute their regular avocations. The fear that with abolition of Patents the ingenuity of mankind would slacken, we cannot share, because the germ of progress is embodied in human nature, and because the joy over an invention made, and the satisfaction felt at a new discovery, in themselves are powerful impulses for the employment of energies in such directions. A strong proof of the correctness of this assertion the men of science furnish, whom we have to thank for the most important discoveries, in so far as the application of physical and chemical laws to industry are concerned—which have been always handed over immediately to the public with the utmost liberality. Others have based their inventions on such laws, and managed to acquire for this one or that other a Patent, and thus, to their own advantage and to the cost of the public, made an invasion of territory hardly legitimately theirs. They reaped where others had sowed.

Let us take, for instance, all the lighting apparatuses during the last twenty-five years. The different lamp contrivances during this period for which Patents have been granted by the industrial States of Europe will number several hundreds. Now, if we sift the matter, we will find that all these patented combinations are simply variations of a principle which Berzelius established and applied to his spirit-lamp.

Similar is the experience with the invention of Bunsen, who reduced the costs of the electric battery considerably, by applying a hard sort of coke in place of the platinum in Grove’s Battery.

In a still higher degree has Morse acted meritoriously. It is true, Morse, in consideration of the signal importance of his invention, has received a public reward in the shape of money, and this mode of acknowledging real merit in the province of inventions recommends itself for adoption even in individual States.

After the abolition of Patents, apart from such acknowledgments as aforesaid, very soon associations of the various interested parties who, by each discovery, would be equally benefited, will be formed for the purpose of rewarding new inventions made in accordance with indicated problems, the solution of which may be felt to be most important to them.

For State rewards only such inventions should be taken cognizance of as, according to their nature, cannot be kept secret, and are not of a kind that will ensure to the inventor an adequate reward by his own use of them.

Principles, which hitherto have not been admissible for Patents, would be likewise excluded from rewards. There could be also no premiums for new modes of manufacture, such as simpler or cheaper manufacture of materials already known, and in the same manner manufacture of new articles directly going into consumption, because, in the first case, the secret use of the invention would present an equivalent, while in the latter cases the start which the inventor has with regard to manufacturing, as well as disposal, before and over his competitors, in most cases is more than sufficient reward for the merit of having given mankind new means of satisfying human enjoyments and necessities. It was consequently a timely Convention between the States of the Zollverein, which already, under date of 21st September, 1842, acknowledged the principle that the granting of a Patent henceforth could establish no right to prohibit either the import or the sale, nor the use of articles agreeing with those patented, as far as articles of consumption are concerned, and that a right of that nature was only applicable to machinery and tools for manufacturers and artisans.[10] Accordingly, the granting of rewards would have to be restricted to inventors of useful machinery and tools, who do not use them solely in their own interest and keep their construction a secret, but, on the contrary, make them accessible to everybody by multiplication.

With such regulations as to Patent-right in force in Germany, it will be observed that here, as in other countries, the great disadvantage arises from this, that by the patenting of an invention its utilisation or trial is prohibited to home industry, while the foreigner is quite at liberty to make use of it and to bring the articles in question to market in the country where the Patent exists.

In this manner foreign industry is actually enjoying a preference, to the detriment of the industry of that country in which the Patent is granted; consequently even the patentee, through such foreign competition, loses the intended reward partially. The example furnished by the Patent on the manufacture of aniline colours in France illustrates the case. On the whole, it is not to be denied that those advantages which the Patent monopoly should guarantee are often not in harmony either with the value or the importance of the patented invention; just as often these advantages do not reach the author of the invention at all, but flow into the pockets of such people as make it a business either to purchase Patent-rights, and so work them for their own account, or in partnership with the patentee, taking care to secure for themselves the lion’s share. It is further proved by experience that insignificant and most simple inventions have often brought extraordinary advantages to the patentee, while the discoverers of important novelties (we instance only Reissel, who introduced the screw as a motor in navigation), in spite of Patent-rights, could not find gratitude nor reward for what they accomplished.

We arrive, consequently, at the conclusion, that the partly imaginary advantages of Patents are outweighed by the disadvantages attached, and that, as the industrial condition of Switzerland exemplifies, no further use of such means is any longer required in helping to elevate industry in all its branches to a very high standard, or to keep pace with the development of other countries in that direction.

[10] I cannot but think the patenting of machinery a great disadvantage to any community. Yet if importing were allowed in spite of the Patent, the exaction of heavy royalties, and of royalties graduated according to work performed (which is the greatest source of evil), would be impossible, and the disadvantage be neutralised.—R. A. M.