“I would like to ask,” said Mart, “if the Committee is prepared to recommend to the Congress that modifications be made to the Patent System if it can be shown that this is in the best interest of the public, whom the Patent Laws are designed to protect.”
“We are not committed to any action,” said Cogswell. “But if it can be shown that action is called for, the Committee is prepared to make recommendations accordingly.”
“Then I would like to state my case,” said Mart.
“Proceed, Dr. Nagle.”
“In the beginning of industry and manufacture,” said Mart, “the basis of success was often what came to be known as Trade Secrets. A man or a family, over a period of years discovered superior techniques for producing some item of trade. The process would be zealously guarded from disclosure to any possible competitor. Only by preserving the secrecy of these processes could the inventors and discoverers of them obtain any just remuneration for their work of discovery.
“Until very recently, historically speaking, this system of Trade Secrets prevailed. Obviously, it has drawbacks. It impedes the flow of knowledge. It prevents the progress which might result from the application of one man’s knowledge to another's discovery. Because of these drawbacks, the Patent System was born. In theory, this is designed to release the vast store of Trade Secrets and put them in the reservoir of common knowledge to be used by all men. In return for contributing his discoveries to the common store, a man is theoretically rewarded by the Patent System by being given a limited monopoly in the exploitation of the discovery.
“In addition to providing a reward, the Patent System is supposed also to provide an incentive for new discovery and invention. Actually, the present laws achieve almost none of these very idealistic objectives. The System has failed to keep pace with the technological and scientific progress of the world so that it fails to accomplish that for which it was designed. It protects virtually none of those who most deserve its protection.
“I, for one, am in the position of having what we may term a Trade Secret of great value both to myself and to Society. I would like to share it, but under the present Patent System there is no possible way I may do this and receive a remuneration which I consider adequate and equitable.”
A senator interrupted, frowning. “You mean you are not able to obtain patents on your discoveries under the present laws?”
“That is correct,” said Mart. “I cannot protect my discoveries, therefore, if I am to make any practical use of them I must keep them as Trade Secrets, as it were.”