etermining the
commercial value of the patent. "Does the invention in question possess
sufficient merit to successfully compete with existing devices of the
same class?" In order to do this, it must be of a simpler or cheaper
construction, so that it can be manufactured and put on the market at a
lower figure; or, it must yield better results, work quicker and at less
expense, or economize power, labor, or time. A patented improvement
upon an article that can be sold more cheaply, or one which will yield
better results than those now selling well on the market, has a decided
commercial value and can easily be disposed of at a good price. If the
inventor be fortunate enough to combine both of these features in his
invention, the value is doubled and success certain.

[Sidenote: Basis for Estimation.]

Perhaps one of the hardest questions that confronts the patentee is how
to arrive at a just valuation of his patent, and to know just exactly
what he should receive for it. This is a very important question, and
one which should be looked into before undertaking negotiations.
Patentees should not, of course, undervalue their patents, or accept the
first small offer made for fear of not receiving another; at the same
time, they should not fall into the common error of asking a price that
cannot be obtained, which too frequently precludes all chances of a
sale. Many business men would rather lose the patent than waste their
time constantly dickering about an unreasonable price.

Inventors should be reasonable in their demands, and consider that the
purchaser must have a fair share of the profits. He cannot expect to
realize all there is in the patent himself. Indeed, patentees usually
find that men willing to establish a business on the basis of their
untried patents will require the greater bulk of the profits to be
derived from it.

[Sidenote: General Rules for Valuation.]

It is evident that only the most general rules for valuation can be
given, as each invention must be studied and valued strictly upon its
own merits. Undoubtedly, the best and most practical method of
ascertaining the value of any invention which is susceptible of being
manufactured on a small scale is to have a limited quantity of the
articles manufactured--say five hundred or a thousand--and try the
experiment of introducing them in a small territory; that is, in a
certain county, city, or town, taking great precaution in selecting a
person who i