turing rubber combs, licensing another for hose pipes, another
for shoes, another for clothing, and a number of other different rights,
for which each company or partner paid a tariff. Lyall, inventor of the
continuous loom, also divided his patent into many different rights; one
company weaving carpets, another corsets, another bags, another
sheeting, etc.
In every case where the invention covers articles not in the same line
of manufacture, the patentee should not fail to divide the rights into
different classes, granting each party only such rights as they may be
interested in. In this way the patentee can quite often double or treble
the receipts from his invention.
The patentee may, if he desires, have his machines built and require the
purchasers to pay him a regular annual rental on each machine, or a
tariff upon the goods produced, in addition to the price of the machine.
Companies are sometimes organized to manufacture an invention, and
employ travelling men to place the article on annual rental instead of
selling.
[Sidenote: Selling by Territorial Rights.]
Another method is to sell State and county rights. This consists of a
license whereby the patentee, in consideration of a certain sum of money
paid him, grants unto another person or persons the exclusive right to
make and sell the invention, and to authorize others to make and sell
the same, within a specified territory, during the life of the patent.
This plan of disposing of a patent has often been highly profitable, but
it must be said that these territorial sales have been conducted in such
a manner in the past, as to bring the whole system of selling patent
rights into disrepute, and in recent years patentees have found some
difficulty in making sales in this way, unless the device is of unusual
great novelty and attraction to householders or the general public.
Occasionally, however, there are patents issued for meritorious
inventions that are susceptible of this mode of procedure, and which can
be disposed of to the greatest advantage by territorial grants. Such
inventions as household novelties possessing great merit and utility
have been most successfully placed upon this plan, but it must be
remembered that the value of the system rests upon its capabilities of
effecting sales of the manufactured article to a vast proportion of the
people.
In selling territorial rights it is a mistake to begin with the small
places with the idea of wo
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