emed necessary in regard to locating and
building the plant and getting the company in shape.

The patentee should receive about one-half the capital stock in
consideration of his transferring his rights and franchises to the
corporation, the remainder of the stock is sold for the benefit of the
company to create a working capital. The patentee may sell a portion of
his stock, if he desires, but should also retain a good portion of it to
show his own confidence in the business.

After the meeting of the stockholders, the direction of the business
will probably be taken out of the hands of the inventor, and the control
will lie in the board of directors of the company. As a rule it is
better that the inventor does not take an active part in the management
of the company's affairs, unless he is specially fitted for the
position.

If the company is provided with ample capital, and if the business
manager is a competent man, there is little chance of failure if the
invention has real merit.

[Sidenote: Trading as a Last Resort.]

Patentees are sometimes offered securities or other property in trade
for a patent. It is not deemed a wise course by most inventors to
consider any proposition for a trade, especially in the early life of a
patent. Only as a last resort, after failing to realize from a patent by
any other means, is it advisable to trade a patent; and, before finally
agreeing upon a trade, the patentee should have a reputable attorney to
look fully into the value and title of the property offered. He should
also insist upon receiving an abstract of title, or a title guarantee
from a reliable title insurance company.

Unless known to himself, the patentee should never engage the services
of an attorney or broker recommended by the parties offering the trade
to look into the value and title of the property. Inventors should be on
the lookout for a set of sharpers who make a business of offering
worthless securities and property in exchange for patents.

CHAPTER VII

ABOUT CANADIAN PATENTS

The geographical nearness of Canada to the United States, and the
intimate commercial relations existing between the two countries, render
Canada, in one sense, a part of the industrial market of America; and
owing to its liberal patent laws, which are based closely upon our own,
inventors generally find it advantageous to protect their interests in
this country, which can be done from time to time by a very smal