Class. Book__ .:2.A_H-^_ GoiyrightN". COPYRICHT DEPOSIT. PATENTS A Manual Relating to UNITED STATES PATENTS for Inventors and Patentees HOWSON AND HOWSON 4th Edition Published by HOWSON AND HOWSON Counsellors-at-Law, Solicitors of Patents 32 South Broad Street, Philadelphia, Pa. 38 Park Row, New York, N. Y. 918 F Street, Washington, D. C. 1904 Jfc^ LIBRARY cf CONGRESS Two Copies Received NOV 17 1904 ^Copyrient tntry CLASS a. XXc- NOi COPY B. HOWSON & HOWSON Counsellors- at-Law AND Solicitors of Patents PHILADELPHIA West End Building, 32 South Broad Street NEW YORK Potter Building, 38 Park Row WASHINGTON National Union Building, 918 F Street Fiftieth Anniversary Edition Copyright, 1889, 1890, 1896, 1904, by Howson & Howson printed at ^s^ The Sign of the Ivy Leaf philadelphia v CONTEN TS Page United States Patents 15 Caveats 33 Opinions on Patents 39 Patent Suits 42 Trade-marks 59 Prints and Labels 71 Copyright 74 Foreign Patents 79 Corporations 83 PHILADELPHIA Charles Howson Henry Howson Hubert Howson Charles H. Howson Harry Smith NEW YORK Hubert Howson Resident Partner WASHINGTON Robert T. Frazier Resident Partner INTRODUCTION This little book, which, in the present edition, has been completely revised, is written with the view of giving, in com- pact and readily accessible form, answers to the most ordinary and constantly recur- ring questions as to the Lavv^ and Practice of Patents, Trade-marks and Copyrights, which are asked of us in the regular course of our business. It may be well to explain at the outset that the business of our firm has two dis- tinct, though related branches. Patent Law and Patent Soliciting, that is to say, we not only undertake the Soliciting of Patents, American and Foreign, and the Register- ing of Trade-marks and Copyrights, but also the conducting of suits in the Courts relating to Patents, Trade-marks and Copy- 8 Introduction rights. Both branches of the business have been conducted by us for many years. Our Philadelphia house was estab- lished by the late Mr. Henry Howson fifty years ago, since which time many thou- sands of patents have been applied for through our offices, and we have been counsel in many Patent suits in the Courts of the United States, and litigated cases in the Patent Office. Our Washington branch office has been established since 1868, chiefly to increase our facilities for making searches and pre- liminary examinations at the Patent Office, and for watching and expediting the prog- ress of pending applications in our care. That office is now under the management of a resident partner who has charge of our Southern practice. In 1887, to further meet the require- ments of our business, and for the conveni- ence of a portion of our clientage, we opened an office in New York, which is in Patent Soliciting 9 charge of a partner resident there, and we now receive and prepare applications for Patents at any one of our three ofifices. Our Philadelphia ofifices are in the West End Building, 32 South Broad Street; our New York offices are in the Potter Building, 38 Park Row, and our Washington offices are at 918 F Street. Communications sent to any of these ad- dresses will receive prompt attention. PATENT SOLICITING The importance of the Patent Solici- tor's work and the necessity of care in the selection of a Solicitor cannot be better set forth than in the following quotation from the "Rules of Practice," printed and gratuitously distributed by the Patent Office for the instruction and guidance of inventors : — ''As THE VALUE OF PATENTS DEPENDS LARGELY UPON THE CAREFUL PREPARA- 10 Introduction TION OF THE SPECIFICATION AND CLAIMS^ the assistance of competent counsel will, in most instances, be of advantage to the applicant; but the value of their services will be proportionate to their skill and honesty, and too much care cannot be EXERCISED IN THEIR SELECTION/' While in all cases we make our fees as reasonable as possible, we do not enter into the competition of ''cheapness''; do not exact or receive contingent fees, and do not make our fees conditional upon securing a Patent, nor undertake to return fees, or parts thereof, if a Patent be not obtained. We do not carry on a speculative business. In this connection it is proper to say that it is generally out of the question to pass a positive opinion as to the novelty of an invention without a special examina- tion, such as would necessarily cost the client considerably more than to apply for a Patent at once, and have the question determined by the Patent Office. Law Suits 11 This will be sufficiently obvious upon reflecting that, in the United States alone, Patents are being granted at the rate of more than twenty-five thousand yearly; that thousands are annually granted in other countries, and that many inventions never patented here or elsewhere are shown or described in some one or more of a multitude of printed technical books and journals. Under our law no inven- tion is new and patentable which, before it was made by the party claiming it, had been patented or described in any printed publication in this or any foreign country. LAW SUITS The Prosecution or Defence of Patent Suits is, as already stated, an important branch of our business. We have managed many Patent litigations, and some of great importance, both in the Courts and in the Patent Office. 12 Introduction A Patent Solicitor should be a Patent Lawyer to the extent at least of being thoroughly conversant with the rulings of the United States Courts in Patent cases, for by those rulings the practice of the Patent Office is, or should be, governed; and the more of a Patent Lawyer the So- licitor is, the better Solicitor he is likely to be ; at least so far as concerns the important work of drawing specifications and claims. On the other hand, it is a great advantage to the Patent Lawyer to be thoroughly conversant with the organization, practice and routine of the Patent Office, and to have the Solicitor's facilities for making searches, obtaining information, copies, etc., from the Patent Office. We believe, therefore, that by coupling the practice of Patent Soliciting with the practice of Patent Law we have secured special ad- vantages for the prosecution of both branches. As clients frequently ask our advice Law Suits 13 upon matters relative to the organization of corporations for the purpose of exploit- ing their inventions, we have prepared ourselves to attend to the formalities requisite for the securing of charters under the laws of the various States, and of advising our clients upon such matters concerning the law of corporations and other forms of association as are likely to prove useful to inventors or patentees. UNITED STATES PATENTS Patents of Invention are granted for any new and useful art (process) : machine: manufacture (article of) : or COMPOSITION OF MATTER (compOUuds, chemical or mechanical, used in medicine or in the arts) : or for any new and useful IMPROVEMENT of a kuown art, machine, manufacture or composition of matter. That an invention is patented, does not prevent the grant of a Patent, either to the same or to another person, for an im- provement on that invention. The owner of the "improvement'^ Patent cannot use the original invention during the life of the Patent therefor, without consent of its 15 16 United States Patents owner, and the patentee of the original in- vention cannot, during the life of the ^'im- provement" Patent, use said improvement without consent of the owner of it. An invention is new, within the mean- ing of the law, when it is original with the person claiming it, and had not, before he invented it, been known to, or used by any other person in this country, nor patented, nor described in a printed publication, in this or any foreign country. Prior knowledge or use of the inven- tion by others in a foreign country, as distinguished from a prior foreign patent or printed publication, will not defeat the rights of an American Patentee, unless it is made to appear that, when he applied for his Patent, he was aware of such prior foreign knowledge or use, and did not believe himself to be the first inventor. An invention new in the sense above explained, and useful in the senses that it is capable of being used for a lawful purpose, Patents of Invention 17 and is not mischievous, injurious, or abso- lutely frivolous, and that it has been so completely thought out by the inventor that he can make and use it himself, or explain it so as to enable another person skilled in the art to make and use it from the explanation, and without invention on his ov^n part, is patentable, provided that it has not, for more than two years before the application for Patent, been in public use or on sale in this country, nor patented nor described in any printed publication in this or any foreign country, or is not proved to have been abandoned by the in- ventor. Provided further, however, that where an invention has been first patented or caused to be patented by an inventor or his legal representatives or assigns in any foreign country, no patent can thereafter be secured in this country by the inventor unless his application here be filed within one year after the earliest application for the foreign patent. 18 United States Patents A Patent Covers and Protects only what is lawfully and distinctly claimed by the inventor in his specification, copy of which is annexed to and forms part of the Patent. Who May Obtain a Patent. — Any person (citizen or alien) who has invented any new, useful and patentable subject. The right to a patent, or an interest therein, may be assigned by the inventor before the Patent is granted, and in such case, the Patent will be issued to the assignee, or to the inventor and assignee jointly, as the case may be, upon request, and the record- ing of the assignment in the Patent Office in proper time. But in all cases, whether there be an assignment or not, application for Patent must be made and the necessary papers therefor executed by the inventor himself, if living, or if he be dead, by his executors or administrators. Preliminary Examinatio7t 19 For a Joint Invention, that is, an invention made by two or more persons jointly, the parties are jointly entitled to a Patent, and must join in applying for it. A Patent granted to one person for an invention made not by himself alone, but in conjunction with another, or other per- sons, is void. On the other hand, a Patent granted to two or more persons as joint inventors for what was, in fact, the sole invention of one of them, is void. Duration of Patents of Invention is seventeen years from the date of issue. No Extensions of Patents of inven- tion are obtainable, except by special act of Congress. PRELIiMINARY EXAMINATION The Patent Solicitor, who is properly equipped for his work, can, for a fee of five to ten dollars, make what is termed a ''preliminary examination.'' This 20 United States Patents preliminary examination is limited in scope, and is not, within that limit, to be regarded as conclusive or as more than approximately accurate. It does not deter- mine the question of novelty, and a pre- liminary examination report is not a cer- tificate of novelty or patentability. We are thus explicit on this subject because it is not uncommon for inexperi- enced inventors to suppose that a Patent Solicitor can decide whether an invention is new or not, without trouble to himself or expense to his client, and that, if he advises application for a patent, he tacitly certifies the invention to be new and patent- able. We generally advise the making of a Preliminary Examination before filing an application for a patent, unless there are special reasons for making application without a moment's delay. Our Wash- ington office enables us to make prelimi- nary examinations promptly, and to report Application for 21 the result to the party interested within a few days. All that we need for the pur- pose is an explanation of the supposed in- vention, oral or written, with a drawing or sketch, when the case admits of one. If there be any prior United States Patent in the same class, and which com- pletely anticipates the supposed invention, the preliminary examination will generally disclose the fact. Moreover, the inquiry into the prior state of the art, so far as exhibited in the United States Patent Records, is useful in enabling one to judge with some degree of accuracy the character and bounds of the claim or claims which may properly be presented, if application is made. APPLICATION FOR PATENT Application for Patent requires a petition to the Commissioner of Patents, a written specification, drawings, where the case admits of them, an oath of invention, 22 United States Patents and payment of first government fee of Fifteen dollars. All the documents should be prepared in substantially the form prescribed by the Rules of Practice of the Patent Office. Where a case is placed in our hands, we, of course, see to the preparation of all necessary documents, specification, draw- ing, etc. Models or Specimens are not now required to be filed wath the application, nor will the Office receive a model unless it dsks for one, and models are rarely asked for. The specification and claims form the most important part of an application for a Patent, and the part for which, most par- ticularly, inventors find the services of a competent Solicitor not only desirable, but necessary. If the specification incorrectly or insuf- ficiently describes the invention, so that persons skilled in the art cannot, from the Application for 23 description, practically make and use the invention, or if it fails to particularly point out what part of the matter described the patentee claims as his own invention, then the patentee has failed to comply with the conditions and requirements of the law, and his Patent is bad. As to the claim, it is the patentee's own definition of his rights, by which he must stand or fall. The law will not give him more than he has chosen to claim, nor help him out if he has not claimed all that he might have done. So far as ascertaining and defining the extent of the patentee's right is concerned, it is his claim which constitutes the patent. Numerous decisions of the Courts have established principles and rules applicable to the construction of specifications and claims, and these must be borne in mind in the framing of documents of the kind. Consequently the inventor will generally find the services of a competent Solicitor 24 United States Patents experienced in this class of work necessary or desirable. The presentation to the Patent Office of carelessly or unskillfully drawn papers is poor economy, looked at from any point of view. The Prosecution of Applications. — The work of examining applications for Patents, at the Patent Office, is at the pres- ent time divided among a large number of Principal and Assistant Examiners ac- cording to an elaborate system of classifi- cation of subjects of invention into "divi- sions," "classes," and "sub-classes." New applications are taken up for ex- amination in the order in which they are filed, and there is considerable difference between the different classes, and in the same classes at different periods, as to the length of time w^hich elapses before a case is reached for examination. If the Examiner, upon reaching a case, determines that, so far as the records of the Rejections 25 Patent Office show, the matter claimed by appHcant appears to be new, the applicant or his attorney is advised that the applica- tion is "allov/ed," and that a Patent will issue to applicant upon the payment of a further Government fee of Twenty dol- lars, provided it be paid within six months. The "allowance'' of an application is not the grant of the Patent. Applicant does not become a patentee until he has paid the final Government fee, and his Patent has been actually granted and issued. A period of about three weeks elapses between the payment of the final Government fee and issue of Patent. Rejections. — If the Examiner finds that what he considers to be the same, or substantially the same thing, as that claimed by the applicant, has been patented before, or described in some printed pub- lication, he sends to applicant, or to his attorney, a letter of rejection, citing the 26 United States Patents particular prior Patents or printed publica- tions which he thinks anticipate the inven- tion. It is then for the applicant or his attorney to judge whether the rejection be right or wrong, and whether the claim or claims rejected should be insisted on, as originally filed, or must be abandoned, or should be modified and limited, and to pre- sent any amendments and arguments that may seem necessary and proper. In these matters, the inventor will always find the experience and judgment of a competent Solicitor useful, if not absolutely neces- sary. The Patent Office does not under- take to advise the inventor as to how much he may claim, or whether the claim pre- sented is as broad as it might have been, or is in the best shape. For these things the inventor must rely on his own judg- ment, or that of his Solicitor. Amendments. — An application may be mnended as often as the Examiner pre- Appeals 27 sents any new references or reasons for rejection, so that a case may be prosecuted before the Primary Examiner through a longer or shorter series of alternate ''rejec- tions'' and ''amendments." Appeals. — When a claim has been Hvice rejected by the Examiner upon the same references, it must, if it is to be further urged, be appealed to the Board of Examiners-in-Chief. For this appeal the Government fee is Ten dollars. This fee, once paid, allows as many appeals from the Examiner to the Examiners-in-Chief as may be found necessary in the same case. From an adverse decision of the Board of Examiners-in-Chief, appeal may be taken to the Commissioner of Patents in person, upon payment of a Government fee of Twenty dollars, and from an adverse decision of the Commissioner of Patents, appeal may be then taken to the Court of Appeals of the District of Columbia, upon 28 United States Patents payment of a Government fee of Ten dollars. If an applicant who has resorted to all these appeals without success is still dis- satisfied, he may file a Bill in Equity in one of the Circuit Courts of the United States. Of course, where a series of appeals become necessary to secure a claim or claims, to which applicant considers him- self entitled, the time required for the prosecution of the case to a final result is greatly prolonged, and for this reason, and to save his client pecuniary expense, the careful and responsible Solicitor will do all that he properly can to reach a satisfactory result without appeal. At the same time no discreet inventor and no Solicitor who has proper regard for his client's interests will consent (merely to save a little time) to forego an appeal at the expense of giving up some appar- ently substantial right. Solicitor' s Fee 29 Solicitor's Fee covers not only the preparing of the application but also our services in prosecuting the case to a reason- able extent before the Primary Examiner. As the proper and careful preparation of the specification and the prosecution of the application before the Patent Office in dif- ferent cases will require varying amounts of time and labor, it will be impossible to name the exact amount of the solicitor's fee for all cases, or even for a majority of the cases, but inventors may rest assured that our charges will be reasonable and we will always be ready to give an approxi- mate estimate of the cost of an application for Patent when the invention is sub- mitted to us. Of this fee, a part is payable on account when the order is given us to proceed with the preparation of the draw- ings and specification, and the balance of the fee when the case is ready for filing. When appeals to the Board of Exam- iners-in-Chief or to the Commissioner of 30 United States Patents Patents or the Court of Appeals of the District of Columbia become necessary, we ask reasonable fees for attending at the Patent Office to argue such appeals orally, and for preparing written or printed briefs of arguments, when deemed necessary or advisable. We have found, however, in our prac- tice that a patient, painstaking and reason- able prosecution of an application before the Primary Examiner will, in most cases, secure the allowance of all the claim or claims to which the inventor is fairly en- titled, so that the instances are exceptional in which we find it necessary to advise appeals. Drawings . — The cost of the drawings to accompany an application for Patent will in all cases be determined by the draftsman's time in making them. One of our draftsmen will be sent to a manufac- turing establishment or shop to make Design Patents 31 sketches of a machine when necessary, and an extra charge will be made when the invention is presented in the form of a crude sketch or model requiring extra time and care in preparing an acceptable Patent Office drawing. It is preferable in all cases to furnish us with accurate drawings or blue prints in order to save this expense. The Government Fee for a Patent of invention is (unless '^appeals" or an ^'interference'' be involved) : Thirty-five dollars ; payable, Fifteen dollars when th^ application is filed, and Twenty dollars within six months after it is allowed. The Patent will not be issued by the Patent Office until this final fee of Twenty dol- lars has been paid. DESIGN PATENTS Design Patents are granted for any new, original, and ornamental design for an article of manufacture. Such Patents 32 United States Patents are intended to encourage the decorative arts in connection with articles of manu- facture, and concern matter of appearance, and not matters of mechanical function or effect, and in determining whether one design is or is not an infringement of an- other, the test is "sameness of appearance." Duration of Design Patents. — Three years and a half, seven years, or fourteen years, as the applicant may, in his application, elect. A Design Patent granted for one of the shorter terms can- not be extended. A design to be patentable must involve ''invention," and the requirements as to novelty are the same as in the case of "mechanical" patents. What has been stated as to the proper party to apply for Patents of invention is true of Design Patents. The Government Fees for Design Patents are: For three and a half years, Caveats 33 Ten dollars; for seven years, Fifteen dollars; for fourteen years, Thirty dol- lars. CAVEATS Any person who, having made a new invention or discovery, desires further time to mature the same, may, upon payment of a Government fee of Ten dollars, file in the Patent Office what is known as a caveat. The caveat must clearly set forth the object of the supposed invention and its distinguishing characteristics. Caveat papers are filed in the confidential archives of the Patent Office. If within one year from the date of filing of the caveat, or from the date at which the caveat was last renewed (for it may be renewed from year to year by the payment of successive Government fees of Ten dollars each) application is made by any other person for a Patent with which 34 United States Patents such caveat would in any manner inter- fere, it is the duty of the Commissioner to give notice thereof, by mail, to the person by whom the caveat was filed. If the caveator desires to avail himself of his caveat, he must make application for Patent within three months from the time at which notice was mailed to him (during which time the conflicting application is suspended). His application will then be placed in interference with the conflicting application, to determine the question of priority of invention. (See *'Interfer- ences.") The caveator's right to notice extends only to notice of applications filed ajter the filing of the caveat, and before the expira- tion of the year for which the caveat was originally filed or last renewed. A caveat is not a Patent for one year, nor in any sense the equivalent of a Patent. No suit for infringement can be based on a caveat. Caveats 35 The filing of a caveat is an advisable precaution, where considerable practical experiment is necessary to determine the operativeness or completeness of an inven- tion, or to discover what is required to make it operative or complete, and when the necessary experiments involve expos- ure of the invention, or where, owing to the particular situation- of the inventor, or character of his invention, considerable time must elapse before he can be in a posi- tion to apply for a Patent. For preparing and filing caveat papers our fee will vary, according to the nature of the case, and, with the Government fee of Ten dollars, is payable after the papers have been prepared, approved and executed by the inventor, and before they are for- warded to the Patent Office. The fees paid for filing or renewing a caveat do not go towards the expense of subsequent application for Patent. 36 United States Patents RE-ISSUES When a Patent is invalid because of a defective or insufficient specification, or because the patentee has claimed more than he had a right to claim, if the error has arisen by inadvertence, accident or mis- take, and without fraudulent or deceptive intention, the patentee, his executors, ad- ministrators or assigns, can, on surrender- ing the defective Patent and paying a Gov- ernment fee of Thirty dollars, obtain a new Patent for the same invention for the unexpired part of the term for which the original Patent was granted. The object of a re-issue is simply to correct mistakes in a Patent, not to add new matter to it. By "new matter'' is meant something not to be found in the specification, drawing or model of the original Patent. Very few re-issues can be regarded as valid, so far as their claims are broader than those of the original Patent, if there Disclaimer 37 has been any considerable lapse of time between the grant of the original Patent and the application for re-issue or unless the delay can be satisfactorily shown to have been involuntary. Patentees will do well, therefore, to see to it that proper care and skill are exercised in preparing and prosecuting their original applications, and if they have any reason to be dissatisfied with the scope of the claim or claims obtained, to take advice upon the subjectassoon as possible after they receive their patents, and if a re-issue to secure an enlarged claim appears necessary, to apply for such re-issue without delay. Our charge for preparing and prose- cuting a re-issue application will vary with the character of the case. DISCLAIMER Where, by mistake, and without fraud or intent to deceive or mislead, the patentee has claimed in his Patent something of 38 United States Patents which he was not the original and first in- ventor, suit may nevertheless be main- tained by the patentee, or those claiming under him, for infringement of any part of the Patent, which was hona iide his own, if it is a material and substantial part of the thing patented, and distinguishable from the part or parts claimed without right. But unless a proper '"disclaimer" of the parts claimed without right has been en- tered at the Patent Office before the com- mencement of the suit, plaintiff, if success- ful, can yet recover no costs, while, if it appears that he has unreasonably neglected or delayed to enter ''disclaimer," he cannot maintain the suit at all. OPINIONS ON PATENTS Searches and Reports. — Persons thinking of investing in a Patent, or in the manufacture or sale of a patented inven- tion, should exercise the same amount of caution that they would were a piece of real estate the proposed subject of invest- ment. They should take proper steps to satisfy themselves as to the title of the per- son from whom they propose to purchase, and in the case of a Patent, the search means not only an inquiry into what, if any, conveyances appear to have been pre- viously made of the Patent, or of interests or rights therein or thereunder, but also as to the character of the Patent itself. This involves a careful study of the Patent, to determine what we may term its "face" 39 40 Opinions on Patents value, and a careful comparison of it with prior patented or published inventions to determine, as far as possible, how far the real value of the Patent and its face value correspond; whether or not the claims suffice to fairly cover and protect the in- vention, and whether or not the manufac- ture of the invention will involve infringe- ment of any prior valid Patent. Similar searches frequently become necessary to determine whether suit for infringement can probably be maintained or successfully resisted. Patent litigation is apt to be sufficiently expensive to warrant the exercise of all possible care and caution before entering upon it. The making of searches and reports as to the validity and scope of Patents is a very considerable part of our business, and one for which both our office in Washing- ton and our large Patent and technical library give us great advantages. Searches and Reports 41 The cost of searches and reports of this kind varies greatly, according to the char- acter of the inventions involved, and the extent, therefore, of the search which may be necessary. LAW SUITS INFRINGEMENT AND INFRINGEMENT SUITS A Patent is infringed when what is lawfully claimed in it is either made, sold or used without the consent of the owner of the patent. If the Patent contains sev- eral valid claims, infringement of any one of those claims is infringement of the Patent. Persons jointly infringing are both jointly and severally liable to the party injured for the damages resulting from the infringement. Suit for infringement must be brought in the Circuit Court of the United States, in the judicial district in which the in- fringer resides, or in which he shall have 42 Infringement and Infringement Suits 43 committed acts of infringement and have a regular and established place of business, and must be brought in the name of the owner or owners of the whole interest in the Patent, for the territory within which the suit is brought. A mere licensee can- not bring suit in his own name; although in equity, he may and should be made a co-complainant in any suit brought for the protection of his rights. Suit for infringement may be at law to recover damages, or (in a proper case) in equity, to obtain an injunction to prevent continuance of the infringement, and also to recover the profits which the infringer has derived, and the damages, if any, in excess of the amount of those profits, which plaintiff may have suffered from the infringement. Injunctions are either final or prelimi- nary. A final injunction is one granted upon a decree in favor of the plaintiff, 44 Patent Law after final hearing of the cause. A pre- Hminary injunction is one granted in ad- vance of final hearing, upon motion based upon affidavits. As a rule, this latter class of injunctions is granted only where the Patent has already been litigated and judi- cially sustained, or where the Patent has been in existence for a number of years, and there has been long-continued public acquiescence in the patentee's alleged rights, and where the infringement com- plained of is admitted or entirely clear. The Courts, as well in equity as at law, are empowered by the Statutes to enter judgment for any sum above the amount found for actual damages sustained, not exceeding three times the amount. In a suit for infringement the Patent is evidence for the patentee to the extent of raising a prima facie presumption of its own validity and throwing upon the de- fendant the burthen of proof to show its invalidity if he can. On the other hand, Infringement and Infringement Suits 45 the burthen is upon the patentee to prove the infringement which he charges. We have had an experience of many years in the prosecution and defence of infringement suits, and the management of such suits forms a large and important branch of our business. Litigation sometimes arises between parties to agreements relating to patent rights. Such, for example, are suits brought by a patentee to recover royalties from a licensee, suits to enforce agree- ments to sell patents, etc., etc. Suits of this character, while they frequently in- volve the interpretation of the patents con- cerned and also indirectly questions of infringement, are not within the jurisdic- tion of the Federal Courts except in cases of diverse citizenship (that is, where plaintiff and defendant reside in different States) and so between citizens of the same State must be brought in the local Courts. It is apparent, however, that 46 Patent Law knowledge of, and experience in, the Patent Law are often quite as essential, on the part of the attorney conducting such litigation, as in ordinary infringement suits. The prosecution and defense of suits relating to patent contracts is a branch of our business. INTERFERENCES An interference is a proceeding in the nature of a Law Suit instituted in the Patent Office to try the question of priority of invention between two or more appli- cants, or between an applicant and a patentee, claiming the same patentable invention. If two or more applications, containing conflicting claims, are pending in the Pat- ent Office at the same time, the Commis- sioner must declare an interference, and determine the question of priority of in- vention before granting a Patent to either Interferences 47 applicant for what is thus claimed by both, and must award the Patent to that contest- ant whose proof shows him to be the first and true inventor, within the meaning of the law. Again, if an applicant for a Patent, having been rejected upon an unexpired Patent claiming the same invention, be- lieves that he made the invention before the patentee, he is entitled to an interfer- ence to try the question of priority of in- vention, and, if the interference be decided in his favor, to have a Patent granted to him, notwithstanding the existence of the prior Patent. The Commissioner cannot revoke a Patent once granted, but can grant a Patent to a second party proving himself to have been the prior inventor, and the United States Courts have power to vacate or declare void either of two or more interfering Patents in a suit insti- tuted by the owners of either of the Pat- ents. 48 Patent Law An interference is instituted by notice from the Patent Office to each of the con- flicting claimants, stating the particulars in which their cases are considered to conflict, and requiring each of them, if he desires to contest the matter, to file in the Patent Office, on or before a specified date, what is technically termed a ''preliminary state- ment," under oath, giving the date of his original conception of the invention, etc. If, upon opening and examining these statements the Examiner concludes that the case is one which must be decided upon proofs to be presented by the respective parties, he notifies them to that effect, and assigns times within which each party must take testimony in support of his case, and a time, after the closing of the testimony, at which he will give the parties a hearing. Each party must give notice to his opponent of the time and place at which he will take testimony, and opportunity to Interferences 49 cross-examine the witnesses, if he desires to do so. The testimony thus taken before a proper officer is reduced to writing and filed in the Patent Office; besides which, each party must furnish printed copies to the Office and to the opposing party or par- ties, unless such copies are dispensed with on special application based upon reasons satisfactory to the Office. The Interference Examiner hears the arguments of the respective parties, or their counsel, at the time appointed, and proceeds to determine the question of pri- ority of invention upon the evidence and arguments before him, and files a written decision. From his decision an appeal lies to the Board of Examiners-in-Chief upon pay- ment of a Government fee of Ten dollars, and from the Board, appeal may be taken to the Commissioner of Patents in person upon payment of a fee of Twenty dollars. 50 Patent Law From the decision of the Commissioner an appeal may be taken to the Court of x\p- peals in the District of Columbia. This brief and very general explana- tion of the nature of an interference, and the proceedings therein, will suffice to show that it is simply a species of litiga- tion. We are fully prepared to give prompt and careful attention to the prosecution of cases of interference. It is simply impossible to give any gen- eral estimate of the cost of such proceed- ings, as that cost must vary greatly, ac- cording to the circumstances and char- acter of each particular case. ASSIGNMENTS AND AGREEMENTS A Patent or interest therein may be assigned either before or after the grant of the Patent. The assignment must be in writing, signed by the party making it, but no particular form of instrument and no Assignments and Agreements 51 particular method of execution are pre- scribed by the Statute. Acknowledgment is, however, desirable. Strictly speaking, an assignment is a transfer either of the whole interest or of an undivided part (as a half or a fourth) of such whole interest in the Patent, through- out every part of the United States. By "undivided interest" is meant simply that there is no territorial division of interest; that the interest conveyed is some frac- tional part of the entire interest through- out the whole country. The patentee may also assign the ex- clusive right under his Patent to make, use and sell, or to grant to others the right to make, use and sell, the thing patented, within and throughout some specified part of the United States, and this kind of as- signment is technically termed a grant. An assignment or grant which is not recorded in the Patent Office within three months from its date is void as against any 52 Patent Law subsequent purchaser or mortgagee of the same interest or right for a valu- able consideration without notice. As between the parties themselves, or as against a subsequent purchaser, without consideration, or with notice, actual or constructive, an unrecorded assignment or grant is valid. The recording of an as- signment or grant at any time after its date is notice to the world from and after such record. Joint ownership of a Patent, or interest therein, does not of itself make the parties partners. They are merely tenants in com- mon, each having the right to separately make, use or sell the invention without lia- bility to account to his co-owner or owners for any part of the profits derived from such exercise of the patent privilege, and each of said joint owners may separately sell and convey his part of the interest, or may license other persons to make, use or sell the invention. License 53 Whenever, therefore, it is intended that the relation of copartnership shall exist between joint owners of a Patent, or inter- est therein, or that such interest shall be enjoyed only by the parties jointly, for their joint benefit, there must be an ex- press agreement between them to that effect. An assignment purporting to convey an invention or inventions not yet made* may operate as an agreement to assign, and give an equitable, but not the legal, title to such invention or inventions if subse- quently made. An assignment of the interest or part of the interest in a Patent does not carry with it the right to, or any interest in, damages for infringements of the Patent which may have occurred prior to the assignment. License. — An instrument which con- veys less than either the entire interest or 54 Patent Law an undivided part of that entire interest in the Patent throughout the entire country, or some specified part of it, is a license. Licenses are not required to be recorded. An assignment or grant must be in writing, but a license can be merely oral, and what is known in law as a constructive license may arise out of acts done or per- mitted by the inventor. For example, a person who buys from the inventor, or, with his knowledge and consent, con- structs a newly invented or discovered ma- chine or other patentable article, before the inventor has applied for a Patent, or who sells or uses one so constructed, has the right to continue to use, or to sell to others to be used, the specific machine or article so made or purchased after the inventor has obtained his patent. Again, where an invention is made and put into practice by an employee in the time and at the expense of the employer, or by one member of a partnership at co- License 55 partnership expense, such circumstances will, as a rule, amount to constructive li- cense to use the invention, to the employer in the one case, or the partnership in the other; a license purely personal and not transferable. A mere license is never transferable from the original licensee to another party, unless the terms of the written instrument, where there is one, expressly provides that it shall be transferable, and a transferable license is not, unless expressly made so, "apportionable,'' but can be transferred only as an entirety. For preparing assignments, licenses, agreements, powers of attorney, etc., relat- ing to Patents, we charge reasonable fees, according to the character and complexity of the documents. 56 Patent Law MARKING PATENTED ARTICLES It is made the duty of all ^'patentees, their assigns and legal representatives, and all persons making or selling any patented article for or under them/' to give suffi- cient notice to the public that the same is patented. This is to be done, either 1. By fixing on the article itself the word ''patented'' together with the day and year the Patent was granted; or 2. Where, from the character of the articles, this cannot be done, by fixing to the article itself or to the package wherein one or more of the articles is contained a label containing the like notice. The penalty for failure to comply with this requirement of the law is ''that in any suit for infringement by the party failing so to mark, no damages shall be recovered by him, except on proof that the defend- ant was duly notified of the infringement, and continued, after such notice, to make, use or vend the article so patented. False Marking 57 Failure to mark does not deprive the plaintiff of the right to an injunction to prevent continuance of infringement; it affects only his right to recover damages for past infringement. False Marking. — The law further provides that every person shall be liable to a pecuniary penalty ($ioo for each offence), who, in any manner, 1. Marks upon anything made, sold or used by him, for which he has not obtained a Patent, the name or any imitation of the name of any person who has obtained a Patent therefor, without the consent of that person, or his assigns or legal repre- sentatives; or 2. Marks upon or afifixes to any such patented article, the word "patent," "pat- entee," or "letters patent," or any word of like import, with intent to imitate or coun- terfeit the mark or device of the patentee, without having the license or consent of y 58 Patent Law such patentee, his assigns or legal repre- sentatives; or, 3. Marks upon or affixes to any un- patented article, the word 'Tatent," or any word importing that the same is patented, for the purpose of deceiving the public. TRADE-MARKS A Trade-mark is a name, symbol, fig- ure, letter, form or device affixed by a manufacturer or merchant to goods which he makes or sells, in order to designate them, and distinguish them on the market from goods of the same kind made or sold by others; to the end that they may be known in the market as his, and that he may thus be able to secure to himself the profits resulting from a reputation for su- perior skill, industry or enterprise. Trade-mark property has little, if any- thing, in common with that which exists in Patents or Copyrights. '^Invention'' does not enter into the matter. Words, marks or devices well known and in com- 69 60 Trade-Marks mon use may be adopted as trade-marks, provided they have not been previously used for the purpose of designating the same or similar kinds of goods. The property in a trade-mark is not a property in the mark abstractly considered, but is simply an exclusive right to use the mark upon some particular class or kind of goods for the purpose of pointing out origin or ownership. Thus, different parties may lawfully appropriate the same mark, provided each uses it for an entirely different kind of goods, and each one of them will in that case have the exclusive right to the use of that mark in connec- tion with the particular class of goods for which he has appropriated it. As the office of a trade-mark is to point out the origin or ownership of the article to which it is affixed, i, e,, to give notice who is the maker or seller of that particular article, only such words, marks, etc., as, either in themselves or by associa- Trade- Marks 6 1 tion, point distinctively to the origin or ownership of the article, can form valid trade-marks. Generic names, or names merely de- scriptive of an article of trade, of its quali- ties, ingredients, or characteristics, or which, from the nature of the facts they are used to signify, other persons may employ with equal truth, and therefore have an equal right to employ for the same purpose, cannot be claimed as trade-marks. Congress, by Act of March 3, 1881, provided for the registration at the Patent Office of certain trade-marks, i, e., such as are used in commerce with foreign na^ tions or with the Indian tribes^ and the owners of which are either domiciled in the United States, or located in some for- eign country or tribe, which, by treaty, convention or law, affords similar privi- leges to citizens of the United States. At the present time, Austria, Belgium, Brazil, Denmark, France, Germany, Great 62 Trade Marks Britain, Hungary, Italy, Japan, Nether- lands, Russia, Servia, Spain and Switzer- land have trade-mark treaties or conven- tions with the United States. To be registrable under the Act, a trade-mark must appear to be lawfully used as such by the applicant in foreign commerce or commerce with Indian tribes, or to be within the provision of a treaty, convention, or declaration with a foreign power. The mark must not be merely the name of the applicant, nor be identical with a registered or known trade-mark owned by another and appropriated to the same class of merchandise, nor so nearly resemble some other person's lawful trade- mark as to be likely to cause confusion or mistake, or to deceive purchasers. Application for registry of a trade- mark must be made by the person, firm or corporation owning the mark, must state the name, domicile, location and citizen- ship of the party applying, and the class Trade-Marks 63 of merchandise, and the particular de- scription of goods within that class to which the trade-mark has been appropri- ated, and must give a description of the mark, with jac similes thereof, and a statement of the mode in which the same is applied and affixed to goods, and the length of time during which the mark has been used. Furthermore, the application must be accompanied by a written declaration veri- fied by the person, or a member of the firm, or officer of the corporation applying, to the effect that applicant has at the time a right to the use of the mark, that no other person, firm or corporation has the right to such use, either in the identical form, or in any such near resemblance thereto as might be calculated to deceive; that the mark is used in commerce with foreign nations or Indian tribes, and that the de- scription and fac similes presented for registry truly represent the mark. 64 Trade-Marks The Government fee for registering a Trade-mark is Twenty-five dollars, pay- able upon filing the application. Trade-mark applications are subject to examination, by the trade-mark Examiner in the first instance, and from an adverse action by him an appeal lies to the Com- missioner of Patents, no Government fee being required for such appeal. If a trade-mark is adjudged by the Examiner, or by the Commissioner on appeal, to be lawfully registrable, a Certifi- cate of Registry is issued by the Commis- sioner, to which certificate is attached a fac simile of the mark, and a printed copy of the registrant's statement and declaration. In cases of conflicting applications for registry, or conflict between an applicant and a prior registrant, the Patent Oflice declares an Interference, in order to deter- mine the question of priority of adoption or right. The proceedings in such Inter- ferences follow, as nearly as practicable, Trade-Marks 65 the practice in Interferences upon applica- tions for Patents. A certificate of registry remains in force for thirty years, except where the mark is claimed for and applied to articles not made in this country, and receives pro- tection under the laws of some foreign country for a shorter period. In such cases the certificate of registry here will cease to be in force at the same time that the trade-mark ceases to be exclusive property elsewhere. Registration for a further period of thirty years may be obtained upon applica- tion at any time during the six months before the expiration of the first term, and payment of a further Government fee of Twenty-five dollars. The property in a lawful trade-mark does not necessar- ily cease with the expiration of the term of registry, the Act especially providing that nothing contained in it shall be construed 66 Trade-Marks as unfavorably affecting a claim to a trade- mark after the term of registration has ex- pired. Congress did not, in this Registration Act, undertake to create any new law as to what is or is not a valid trade-mark ; it merely provided for the "registry'' of cer- tain classes of lawful trade-marks. Whether a given mark is or is not a lawful trade-mark must be determined by refer- ence to precedents established by decisions of the Federal and State Courts. Regis- tration does not create the property in a trade-mark. It will not legalize any mark not in itself a legal trade-mark, and on the other hand a legal and valid trade-mark is property, and can be protected as such, al- though it is not registered under the act. The Federal Registration Act does not apply at all to a very large, and probably at the present time much the largest class of trade-marks, those, to wit, which are used only in domestic or Inter-State commerce. Trade-Mark Suits 67 Such marks may, however, be regis- tered under the respective State Acts in the various States, and under some circum- stances it is advisable to so register them. We shall be glad to give, upon application, full information as to the advantages, re- quirements and cost of registration in any State. Trade-mark Suits. — The proprietor of a duly registered lawful trade-mark may in a proper case bring suit against infringers in the Courts of the United States, either at law, to recover damages, or in equity to enjoin wrongful use, and to recover compensation therefor; the United States Courts having in such a case orig- inal and appellate jurisdiction without re- gard to the amount in controversy or to the citizenship of the parties, provided the registered mark is being used in commerce with foreign countries or the Indian tribes, and that use is being wrongfully interfered with by the defendants. In such a suit the 68 Trade-Marks registration is prima facie evidence of ownership. Congress did not, however, undertake to take away or interfere with the jurisdic- tion of State Courts in trade-mark cases. On the contrary, the Act provides that nothing contained in it shall prevent, les- sen, impeach, or avoid any remedy at law or in equity, which any party aggrieved by any wrongful use of any trade-mark might have had, if the Act had not been passed ; so that, even as to trade-marks properly registrable and duly registered under the Act, the owners may still, if they prefer it for any reason, resort to the State Courts for a remedy against infringement, instead of bringing action in the Federal Courts under the Registration. Assignments. — As trade-mark prop- erty does not exist in the mere mark, abstractly considered, but only in the use of it with reference to some particular per- Trade-Marks Abroad 69 son or property, an assignment of a trade- mark, to carry anything, must be in con- nection with the business of manufactur- ing or selling the particular merchandise to which the trade-mark has been attached. The Patent Office rules provide for the recording of assignments of registered trade-marks. Such assignment must be by an instrument in writing, no particular form of instrument being prescribed, save that the trade-mark must be identified by the number. The instrument must be re- corded in the Patent Office within sixty days after its execution, in default of which it may be void as against any sub- sequent purchaser or mortgagee for valu- able consideration without notice. The fees for recording such assign- ments are the same as those for recording assignments of Patents. Trade-marks Abroad. — American manufacturers exporting their goods to 70 Trade Marks foreign countries, and having valuable trade-marks connected therewith, may ob- tain registration of such marks in most of the countries throughout the world. We are prepared to attend to the regis- tration of trade-marks in foreign coun- tries, as well as in the United States ; and information as to the cost of registry in different foreign countries will be given upon inquiry. In some countries the right to register a trade-mark is not dependent upon pri- ority of adoption and use but solely upon priority of application to register. This is true, for example (with certain qualifica- tions), in both Germany and Cuba, and in both of those countries manufacturers have been compelled to abandon the use of marks rightfully theirs merely because they have failed to register in the respect- ive Patent Offices and some one else has chosen to do so in his own name. This 5ubject of foreign registration of trade- Prints and Labels 71 marks is, therefore, important, much more so, indeed, than many manufacturers be- lieve. Besides acting as solicitors in the mat- ter of applications for registry of trade- marks in this and foreign countries, we act as counsel in trade-mark suits in the Courts of the United States, and of the several States. PRINTS AND LABELS Congress, by Act of June, 1874, en- acted that the words ''engraving," "cut," **print," in the copyright statute, should thereafter be applied only to pictorial illus- trations or works connected with the fine arts, and that prints or labels designed to be used for any other articles of manufac- ture should not be entered under the copy- right law, but should be registered in the Patent Ofifice. Such registry must pre- cede publication. 72 Prints and Labels The Commissioner of Patents has, since this Act, had charge of the super- vision and control of the entry of such prints or labels, in conformity with the regulations provided by law as to copy- rights and prints, except that the Govern- ment fee for recording the title of any such print or label (not being a trade- mark) is Six dollars, which covers the ex- pense of furnishing a copy of the record under the seal of the Commissioner of Patents, to the party entering such print or label. The prints and labels registrable in the Patent Office under this Act have been defined as any device, picture, word or words; figure or figures {not a trade- mark) impressed upon an article of manu- facture or upon paper or other material to be attached to such an article, or to bales, boxes and packages containing the same, to indicate the contents of the pack- age, the name of the manufacturer, or the Prints and Labels 73 place of manufacture, the quality of goods, directions for use, etc. In applying for the registry of a print or label, five copies of the same must be filed in the Patent Office, and one of these copies is certified under the seal of the Commissioner of Patents and returned to the registrant. The certificate of registra- tion continues in force for twenty-eight years. Under the law as established by recent decisions, a print or label to be registrable under the Act must be more than a mere statement of the character, etc., of the goods; it must be or contain something "original" and having by itself some value as a composition, at least to the extent of serving some purpose other than a mere advertisement or designation. Manufacturers desiring to protect their trade circulars, catalogs, etc., and the pic- torial matter contained therein, from un- authorized use by competitors, to that end 74 Copyright frequently make use of this law providing for the registration of prints and labels. COPYRIGHT The Revised Statutes provide that the author, inventor, designer or proprietor of any book^ map, chart, dramatic or MUSICAL COMPOSITION, ENGRAVING, CUT, PRINT (connected with the fine arts) or photograph or negative thereof, or a PRINT, DRAWING, CHROMO, STATUE, STAT- UARY, and of MODELS or designs intended to be perfected as works of the fine arts, and the executors, administrators or as- signs of any such person shall, upon com- plying with certain provisions of the statute, have the sole right of printing, re- printing, publishing, applying, executing, finishing and vending the same, and in the case of a dramatic composition, of pub- licly performing or representing it, or Copyright 75 causing it to be performed or represented by others. The person wishing to copyright must, on or before the day of pubHcation, deliver at the office of the Librarian of Congress in Washington, or deposit in the mail to his address, a printed copy of the title of the book or other article, or a description of the drawing, painting, chromo, statute, statuary, or model or design for a work of the fine arts, for which he desires a copy- right. He must, not later than the day of publication thereof, deliver at the office of the Librarian of Congress, or deposit in the mail addressed to him, two copies of such copyright book or other article, or, in the case of a painting, drawing, statue, statuary, model or design for a work of the fine arts, a photograph of the same. Copyrights are granted for the term of twenty-eight years from the time of re- cording the title thereof, and the author, inventor, or designer of the copyright 76 Copyright article, if still living, and a citizen of the United States, or resident therein, or his widow or children, if he be dead, may have the same exclusive right continued for the further term of fourteen years. A Copyright is assignable by an instrument of writing, the assignment to be recorded in the office of the Librarian of Congress within sixty days after its exe- cution, in default of which it is void as against any subsequent purchaser, or mort- gagee, for valuable consideration, without notice. The owner of a copyright is required by the statute to give notice thereof by inserting in each copy, on the title-page, or the page immediately following (if it be a book), or if a map, chart, musical com- position, print, cut, engraving, photo- graph, painting, drawing, chromo, statue, statuary, or model or design, by inscribing upon some visible portion thereof, or of A Copyright is Assignable 11 the substance on which it is mounted, either the words "Entered according to Act of Congress in the year , by , in the Office of the Librarian of Congress at Washington," or at his option, the word "Copyright," together with the year the copyright was entered, and the name of the party by whom it was taken out. No party failing to comply with this requirement of the statute can maintain an action for the infringement of his copy- right. The Circuit Courts of the United States have sole original jurisdiction of actions under the copyright statute, and have power, upon bill in equity, filed by any party aggrieved, to grant injunctions to prevent violation of copyright, on such terms as the Court may deem reasonable. The statute likewise provides for the recovery of damages for infringement of copyright, and for the forfeiture by the offending party, to the proprietor, of every 78 Copyright copy of the infringing book (if the case be that of a book), and for sundry other forfeitures in the case of an infringing map, chart, print, cut, etc. Forfeitures under the copyright statute must be en- forced by action at law. We undertake not only the obtaining of copyrights but also the prosecution or defense of suits for infringement of copy- right. Copyright Abroad. — Citizens of the United States may obtain copyright in Great Britain, France, Germany, Belgium, Italy and Switzerland, under certain inter- national copyright arrangements with those countries. Through our correspondents abroad we attend to the securing of copyrights in the countries named. FOREIGN PATENTS It sometimes becomes important to inventors to patent their inventions abroad, as when such inventions are of unusual general value or of especial value in particular countries, or when there are exceptional opportunities of disposing of the Patent rights which may be acquired in foreign countries. Should an inventor desire to protect his invention abroad, we advise that in all cases he delay making application in for- eign countries until the application for the United States Patent has been allowed, for the reason that the prosecution of the case in the United States Patent Office is calculated to inform the inventor as to the 79 80 Foreign Patents real scope of his invention and he may thus determine the breadth to be given to his claims abroad. On the other hand, in pro- curing foreign Patents, steps should be taken to have the papers prepared and sent abroad during the time allowed for the payment of the final Government fee, and before the issue of the United States Patent, because in some of the most im- portant foreign countries, valid Patents cannot be obtained for inventions which have been published prior to application there. It is not advisable, however, to delay the payment of the final Government fee for the United States Patent longer than necessary, since there is a possibility of the issue of the Patent here being stopped for an interference with some later applica- tion. On receiving notice, therefore, from a client, whose case has been allowed, that he intends to procure foreign Patents, Foreign Patents 81 immediate attention will be paid to the preparation of the papers, so that there may be no unnecessary delay in the issue of the United States Patent. The terms of patent protection in some of the principal foreign countries are as follows : England . .14 years Italy . . . . 15 years France . . . . 15 '' Norway . , . 15 '* Germany . . 15 " Sweden . . . 15 " Belgium . . . . 20 '' Japan . . . . 15 ** Austria . . . . 15 '' Canada . . . . 18 '' Hungary . . . 15 " Mexico . . . 20 '* Switzerlanc i . . 15 '' Russia . . . . 15 '' Spain . . . . 20 '' Cuba . . . . . 17 '' In most of these countries patentees are required to pay an annual fee or tax so long as they desire to keep the patent in force and there is in most cases a re- quirement that the patent be commercially exploited in the country where protection is granted. In the previous editions of this book we have set forth at some length the in- 82 Foreign Patents formation usually required by our clients with respect to the patent laws and prac- tice in the various foreign countries. Owing to the frequent changes in such laws and practice, and the increasing inter- est taken by our clients in the subject of foreign patents generally, we are about to issue a separate pamphlet on that sub- ject, and have accordingly omitted detailed information here. Those of our clients who desire information as to foreign pat- ents are referred to said ''Foreign Patents'' pamphlet, which may be had upon applica- tion. CORPORATIONS The corporation is frequently resorted to by inventors and patentees as a medium for exploiting their inventions without un- necessary risk. The owner of a patent may desire to exploit the invention himself or he may desire to enlist the aid of others in so doing. In either case it is frequently desirable to incorporate the undertaking in order that in case of failure the amount of liability may be limited to the actual sum agreed to be devoted to the project. The facility with which a corporation can in- crease its working capital by the sale of stock is another feature peculiarly adapt- ing it for use in the development of inven- tions. We are prepared to take the neces- sary steps to secure charters under the laws of the various States and to attend to the various other details connected with 84 Corporations the organization of corporations and other forms of stock companies or joint enter- prises, for our clients. The following in- formation is that most frequently desired : At the common law (that is to say, ac- cording to general legal principles inde- pendent of statutory provisions) persons associated together in a business enterprise are separately liable for all debts con- tracted by, or on behalf of, the firm within the scope of its business. Modern legisla- tion has, however, brought forth several forms of association in which the personal liability of the members is limited to the amount which they have agreed to put into the business. Of these forms the corpora- tion is one. To secure the benefits of incorporation formal application for a charter must be made to the proper authorities, and certain statutory requirements must be fulfilled. The mode of application and the varying requirements in some of the principal in- corporating States are as follows : Corporations 86 PENNSYLVANIA In Pennsylvania application for a charter may be made by three or more per- sons, one of whom at least must be a citi- zen of the State. The capital stock may be any amount and duration for any term of years or perpetual. Any nature of busi- ness may be undertaken, but no corpora- tion can transact more than one kind of business, which must be set forth in the charter. Before commencing business ten per cent, of the entire authorized capital stock must be actually paid into the cor- porate treasury in cash ; the balance of the capital stock, or any part thereof, may be issued for property at a reasonable valua- tion. The incorporating fees are $30, plus a bonus of one-third of one per cent, of the total amount of capital stock authorized. The annual franchise tax is five mills on the dollar of actual value of the capital stock (excepting so much of the stock as is invested purely in the manufacturing plant within the State) . 86 Corporations NEW YORK In New York a charter can be obtained by three or more persons, one of whom must be a resident of the State and two- thirds of whom must be citizens of the United States. Capitalization may be for any amount not less than $500, and the term any number of years. A corporation may be formed for the purpose of carrying on any lawful business. No definite amount of stock need be subscribed for at the time of incorporation, but the capital with which the company will begin busi- ness must be stated definitely and be not less than $500. Until this amount is paid in cash or property the company may not begin business. At least one-half of the total capital must be paid in within one year after incorporation. Stock may be issued for property at such reasonable valuation as the directors may give it. The filing fee is ten dollars and one-eighth of one per cent, of the total amount of Corporations 87 authorized capital must be paid to the State Treasurer upon organization. The annual tax varies according to the amount of dividend declared, and is reckoned on the capital stock employed in the State. If the dividends be six per cent, or more, the tax is one-fourth of a mill for each one per cent, of dividends declared ; if the dividends be less than six per cent, the rate is one and one-half mills per one dollar on such part of the capital stock as would equal the proportion of its assets employed within the State. CONNECTICUT Corporations may be organized in Con- necticut by three or more persons for the transaction of any lawful business. The term may be limited or perpetual, and capital stock may be authorized to any amount not less than $2000. The par value of each share of stock must be not less than $25. Not less than $1000 must 88 Corporations be actually paid in before the commence- ment of business. The cost of incorporat- ing is a fee of about $5, payable to the Secretary of State, and a franchise tax payable upon incorporation, at the fol- lowing rate, to wit: 50 cents per $1000 of authorized capital stock up to $5,000,- 000, and 10 cents per $1000 of stock in excess of $5,000,000. Stock may be paid for in property at actual value and the bona ade judgment of a majority of the directors as to value is conclusive. There is no annual franchise tax. NEW JERSEY Three or more persons may incorporate in New Jersey and none need be residents of the State. The capital stock may be as large as desired and duration may be for a term or perpetual. Any lawful busi- ness may be carried on. The entire capital stock may be issued for property and the bona ade judgment of the directors as to LofC. Corporations 89 the value of the property will not be re- viewed by the Courts. At least one thou- sand dollars of the stock must be sub- scribed for before the commencement of business. The incorporation fee is twenty cents for each one thousand dollars of capitalization, but in no case less than $25. The annual franchise or license tax is at the rate of one-tenth of one per cent, on capital stock actually issued up to $3,000,000; between $3,000,000 and $5,000,000, one-twentieth of one per cent. DELAWARE The requirements in Delaware are the same as in New Jersey, save that the au- thorized capital stock must not be less than two thousand dollars. The organization fee is fifteen cents for each one thousand dollars of capitalization, but in no case less than $20. The annual franchise tax is one-twentieth of one per cent, for all stock 90 Corporations issued up to $3,000,000. Between $3,000,- 000 and $5,000,000, the rate is one- fortieth of one per cent. MAINE There must not be less than three incor- porators, none of whom need be resident in the State. Authorized capital stock may be any amount, not less than $1,000, and the duration any period or perpetual. Subscriptions may be paid in property and the directors' judgment as to the value is conclusive in the absence of fraud. No part of the capital need be actually paid in before commencing business. The incor- porating fee is $10 for any amount of authorized capital up to $10,000; $50 up to $500,000; $10 for each $100,000 over $500,000. The annual license fee is $5 on authorized capital not exceeding $50,000 ; $10 when not over $500,000; $25 up to $500,000; $50 up to $1,000,000; $25 for each additional $1,000,000. Corporations 9 1 WEST VIRGINIA Five or more persons may incorporate in West Virginia and none need reside in the State. Capital stock may be any amount and the duration fifty years with privilege of renewal. Subscriptions may be paid in cash or property and ten per cent, must be paid at the time of subscription. The fee for incorporating is from $15 tO' $20, plus the first annual franchise tax as follows : Twenty dollars for authorized capital up to $25,000; $50 for capital up to $100,- 000 ; and 40 cents additional on each $1,000 in excess of $100,000 up to $1,000,000. Additional and more detailed informa- tion as to the laws relating to the organi- zation and management of corporations will be furnished upon request. Index 93 INDEX PAGE Abandonment of Invention 17 Accident (see Reissue) 36 Actions (see Law Suits) 42 Administrators 18 Agreements 50 Allowance 25 Amendments 26 Appeals 27 Applications for Patents 21 " Who May Make 18 Art (process) 15 Assignments of Patents 50 " OF Trade-marks 68 " OF Copyright "j^i Caveats 33 Claims 18,21,26 Composition of Matter 15 Contracts (see Licenses) 53 Copyright 74 Corporations 83 Courts (see Law Suits) 42 Damages for Infringement 43 Defective Specification (see Reissue) z^ Description (see Application for Patent) 21 Design Patents 31 Disclaimer 2>7 Drawings 30 94 Index PAGE Duration of Patent 19 Equity, Suits in (see Law Suits) 42 Examination of Applications 21 Examination, Preliminary 19 Executors 50 Extensions 19 False Marking 57 Fees for Application (Government) 31, 22 " " " (Solicitors) 29 " " Designs 32 " " Caveats ZZ " " Reissue Z^^2>7 " " Preliminary Examination 19 " " Trade-marks 64 " " Prints and Labels 71 ** " Appeals 27 Foreign Patents 79 " Trade-marks 69 " Copyright 78 Improvements, Patents for 15 Inadvertence (see Reissue) z^ Infringement 42 " Report as to 39 Injunction 43 Interferences 46 Invention, Patent for 15 Inventor, First (see Interferences) 46 Issue of Patent 25 Joint Invention 19 Index 95 PAGE Labels 71 Licenses 53 Law Suits 42 Machine, Patent for 15 Manufacture, Article of 15 Marking Patented Articles 56 AliSTAKE (see Reissue) 36 Mode of Application 21 Models Not Required 22 Novelty of Inventions 16 Opinions on Patents 39 Preliminary Examinations 19 Priority (see Interferences) 46 Prior Knowledge or Use 16 Prior Publication 16 Profits, Infringers 43 Prosecution of Applications 21 Public Use 17 Publication, Prior 16 References, Cited by Examiner 26 Reissue z^ Rejection of Application 25 Remedy for Infringement (see Suits at Law) 42 Reports and Opinions 39 Rival Inventors (see Interferences) 46 Searches 39 Searches, Preliminary 19 Solicitors 9 Solicitors' Fees 29 96 Index PAGE Specification 21 Specimens, Not Required 22 Stamping Patented Articles 56 Stamping Unpatented Articles 57 State of the Art (see Searches) 39 State Laws (see Corporations) 83 State Courts, Suits in 45 Suits in the Courts 42 Surrender and Reissue (See Reissue) 36 Term of Patent 19 Trade-marks 59 " " Foreign 69 Suits 67 " " Assignments 68 Transfer of Letters Patent (see Assign- ments) 50 Utility of Invention 16 Validity — Reports 39 Who May Obtain a Patent 18 Wrongs and Remedies (see Law Suits) 42 NOV 17 1904 Deacidified using the Bookkeeper proc Neutralizing agent: Magnesium Oxide Treatment Date: Sept. 2003 PreservationTechnologi A WORLD LEADER IN PAPER PRESERVA' 1 1 1 Thomson Park Drive Cranberry Township, PA 16066 r794\77Q.9111