Part 8

“The Patent system, as constituted in all countries where it is established, is a monopoly that outrages liberty and industry. It has consequences that are disastrous, seeing there are cases where it may stop trade for exportation and even for home consumption, because it places manufacturers who work in a country where Patents are established at a great disadvantage in competing with others who live in States, such as Switzerland, where Patents are interdicted by law. Practice, experience, which is the supreme authority in the world, shows daily, in France particularly, that the system is a scourge to industry. What might be substituted is a system of recompenses, either national or European, as you have proposed, to be awarded when practical use has pronounced on the merit of each invention, and when the originality shall admit of being established. All the friends of industrial and social progress ought to unite their efforts to liberate industry from the shackles that have been bequeathed from the past. That of Patents is one of those which there will be most urgency to get rid of.”

The Continental Association for Promoting the Progress of Social Sciences favours such rewards. Allow me to quote from a Report of M. Tilliere, Avocât of Brussels, which was adopted by that body:—

“It is proper to introduce, in respect to industrial inventions, the principle of _expropriation_ [or acquisition for behoof of the public], with a view to general benefit, in order to reconcile the interests of industry and the requirements of free trade (_libre échange_) with the interests of the inventor.

“It is desirable, for the satisfaction of the same interests, to establish between the different countries by means of stipulations with reference to Patents in International Treaties, uniformity of system, and, pursuant thereto, to provide a depôt where, without the necessity to patent in every particular country, specifications might be lodged that shall be recognised and published in all.”

The House will observe that in connexion with the principle of State rewards, or, what is nearly allied to it, of expropriation, the Association commended another principle, that of international arrangements as to inventions. On the occasion when the report I quote from was adopted, another eminent French economist, Professor Wolowski, spoke as follows:—

“The free competition which ought to exist between peoples requires that Patents should be everywhere ruled by uniform laws. Intellectual property must everywhere have limits within which there shall be exchange, in order that its products may everywhere circulate under the same conditions. International legislation with regard to Patents is an object to be earnestly pursued. It responds to the demands of free-trade, satisfies the needs of liberty of manufacture, and provides a compensation for a shortened term of Patent-right by extension of area.”

But I come nearer home, and am happy to be able to quote concurrence in the idea of national rewards on the part of one of our great staple manufacturers, the sugar refiners. The refiners of Scotland many years ago petitioned Parliament in the following terms:—

“That, in the opinion of the petitioners, it is highly desirable that your honourable House should devise some means whereby discoverers of valuable inventions (to whom alone Patents should be granted) might be rewarded by the State, and trade be relieved from the restrictive operation and expense of Patents altogether.”

Tending in favour of rewards rather than Patents is the following evidence, given before the Royal Commission by Sir William Armstrong:—

“How would you give these rewards in the absence of a Patent-Law?—I am not prepared to say that. If the country would expend in direct rewards a tithe of what is paid for Patent licences and expenses, there would be ample provision for the purpose. As a matter of opinion, I believe that if you let the whole thing alone, the position which a man attains, the introduction and the _prestige_, and the natural advantages which result from a successful invention and from the reputation which he gains as a clever and able man, will almost always bring with them a sufficient reward.”

A successful inventor writes me:—

“I should be very glad to see a good round sum set apart by Government for the purpose of being awarded to real inventors by competent and impartial authority. Then the poor inventor might have some chance.”

It is not out of place to inform the House that so far back as the earliest years of the Patent system a precedent can be adduced. In 1625, Sir F. Crane received a grant of £2,000 a-year for introducing a tapestry manufacture. There are several other precedents for similar grants of public money.

Of course, to reward is not to purchase. We do not buy any man’s invention or secret. But if he thinks proper, as a good subject, to reveal that secret, we mean he shall have a substantial mark of favour. Something like this was, no doubt, the original intention of Patents; only the favour took the form of monopoly for introducing and working a manufacture, whereas we prefer to pay, as soon as the value and benefits of the invention made can be guessed at, such a sum of money as will be neither, on the one hand, from its magnitude made oppressive to the people, nor, on the other, from insignificance or paltry conditions unworthy of a noble mind, whatever the rank, to accept. What is given will be proportioned to merit or service, and will be, in the fullest sense, a _honorarium_, a complimentary gift, a mark of national approbation and gratitude. We all know, though few of us think of it as a striking proof how Patents have declined in public esteem, that among us to be a patentee is by no means usually reckoned an honourable distinction. It is the same in France.

“The title of patentee is falling into greater disrepute every day from the abuse which is made of it.”

This prejudice we must remove, and we can do it. I believe in the possibility and advisableness of presenting, as a substitute for Patents, a system of rewards which will reconcile the honour and interests of men of science and those of practical men, the interests of the master and those of his workmen, the interests of the many and those of the few. Such a system, while entirely emancipating commerce and industry, must, as its condition, deal out its rewards more equitably than the Patent system does, and with more regard to the just claims of inventors. It must distribute these without the tedious delays now suffered from. Its rewards must, in contradistinction to present experience be sure, easily attainable, and suitable for poor as well as rich. I respectfully submit the following scheme as one that at least may form a basis for some system that will obtain general acceptance.

_New System of Rewarding Inventors and Promoting the Publication of Inventions._

1. The Patent-office to be turned into an office for recording inventions.

2. (Forms for specifications to be furnished gratuitously.)

All specifications to contain a certificate that the inventions promise to be useful, and are believed to be new, from three persons familiar with the trade chiefly concerned; one of whom, if the inventor is an _employé_, to be his employer.

3. These specifications to be registered.

4. Any time after an invention has been tried and proved practically useful, a fact to be duly certified, the inventor to be allowed to claim that the invention shall be reported on.

5. A Chief Commissioner for Inventions shall appoint one or more examiners for this purpose, whose duty it shall be (after, if needful, first visiting the scene of operations, and conferring with practical manufacturers) to recommend, if they think it worthy, classification for a reward, prize, or certificate of merit.

6. Once a year the head of the Invention-office, with the help of an Adjudicatory Committee, who shall form an Invention Commission, shall classify the several inventions that have been in the previous twelve months certified as having been for the first time brought into beneficial use.

7. In his classification the first rank shall entitle to a

reward of £10,000. 2nd 5,000. 3rd 1,000. 4th 500. 5th 100. 6th 50. 7th, Gold Medal, or value in money. 8th, Silver Medal ” 9th, Bronze Medal ” 10th, Certificate of Merit.

8. Parliament shall annually place at the disposal of the Invention Commission £200,000, from which shall be defrayed the expenses of the staff, and fees to “reporters,” as well as of the several publications showing the progress of Invention that shall (as now, but on an improved system) be issued; the balance to be distributed in rewards and prizes, with an understanding, however, that the amount must be reduced if the total awards of the Commission shall exceed the money at its disposal.

9. In appointing Commissioners Government shall consult the various trading interests of the nation in order to select the most acceptable persons. Inventors collectively might have a veto or the initiative.

10. The prizes may be divided between the originator of the idea of any invention and the successful introducer into practical use.

11. Where there are rival claimants, the expense of deciding priority in respect of time and merit to be borne by themselves.

12. The Commission to be at liberty to correspond with foreign nations, and act in concert with any that shall establish instead of Patents a system of rewards.

13. In cases in which pre-eminent merit, especially if there has been a course of costly experiments antecedent, appears to entitle to a reward greater than the largest in the schedule, Government may propose to Parliament special augmentations. I do not presume to recommend Royal decorations and titles, though such honours would be much valued.

A writer on Patents has judiciously said—

“It would seem very desirable that a system of registration for all improvements or ideas which an inventor may think of minor importance should be instituted, whereby any one could, at a moderate cost to defray expenses, deposit at the Patent-office, a description of any new idea, improvement, or invention.”

My scheme is calculated to answer this good end.

Here I may fitly call attention to an interesting and instructive analysis which Mr. Woodcroft submitted to the Commission. He showed—

RESULTS of the EXAMINATION of the first hundred inventions, for which applications for Patents were made in each of the years 1855, 1858, and 1862 (abridged).

1855.

“Of the first hundred inventions for which applications for Patents were made in the year 1855, none are apparently of considerable value.

“Four of the hundred inventions appear to be of some, but not of great value, and Patents were granted for all of them.

“The remaining ninety-six of the hundred inventions seem to be of little or no value; and Patents were granted for sixty-six of them.”

1858.

“Of the first hundred inventions for which applications for Patents were made in the year 1858, none are apparently of considerable value.

“Three of the hundred inventions appear to be of some, but not of much value.

“The remaining ninety-seven of the hundred inventions seem to be of little or no value; and Patents were granted for sixty-two of them.”

1862.

“Of the first hundred inventions for which applications for Patents were made in the year 1862, one is apparently of considerable value.

“Of the same hundred inventions one appeared to be of some, but not of great value.

“The remaining ninety-eight of the hundred inventions seem to be of little or no value. Patents were granted for fifty-nine of them.”

I conceive, on the basis of this evidence, that the estimate I am now about to give represents, relatively, but I will not venture to say absolutely, a fair view of probable claims. It also affords some guide for anticipating what, coming from the Exchequer, would be a reasonable total vote for rewards. Such a sum, or even a larger, Parliament should willingly grant. It can be proved to be true national economy. The nation, as individuals, is paying vastly more now. For that burden Parliament, by not removing Patents, is alone responsible.

1 at £10,000 3 at 5,000 15,000 12 at 1,000 12,000 84 at 500 42,000 250 at 100 25,000 400 at 50 20,000 Medals and Certificates of Honour and Merit 1,000 --- -------- 750 £125,000

I am aware that inventors have hitherto drawn such large sums in some cases (in many or most cases claiming more than they got), that they may at first hardly be pleased with my proposal. But they should remember that the sums set down are those derivable from one country alone—one of the between forty or fifty countries which give Patents now. The revenues from these other countries, therefore, are to be added. They will also consider that it is optional whether or not they apply for rewards. Let them work in secret, if they will and can. But if they resolutely contend for Patents, let them know the time for abolishing these is at hand; and abolition may come, if they resist it, without even this substitute.

I have endeavoured to show what I believe to be true—that Parliament, when it, by the Act 21, Jas., 3, tolerated monopolies for inventions, did not sanction any system at all like that into which Patents have developed, or degenerated; that, in defiance of the Act, Patents are granted so as to create the evils which Parliament expressly sought to shield the nation from; that recent legislation has aggravated the great evils that pre-existed; that a Commission has satisfied itself that no radical or sufficient remedy can be applied; that the arguments of the defenders of Patent monopolies are untenable; that the most eminent statesmen, lawyers, engineers, manufacturers, and philosophers plead for abolition; that the State is at liberty, and has the power, to devise, if it wills, a better method of dealing with inventions, but that such a method must be one that leaves manufacturers free, and able to compete with continental rivals by at once adopting, without any burden of royalties, every most recent improvement.

To conclude: this great and vital question cannot longer be deferred. It must be taken up, and that early, by what is expected to be a working Parliament—a Parliament, too, which for the first time can claim to represent labour and operative industry. Parliament has legislated in order to the preservation of salmon, and required the removal of obstacles on the coasts and in the rivers. Here are far worse obstacles, affecting not a luxury, but all our necessaries of existence, and every means of earning a livelihood.

Again: are we not asked to remove light-dues at the sea and tolls on the land? But what are these unimportant, sparse, and withal equitable taxes, compared with the close-recurring stoppage and the indefinite and heavy demands for questionable “service” which Patents constitute? Yet, again: By arrangement with France we recently abolished the time-sanctioned petty exemptions of free-men; but here we are continuing to levy more burdensome private taxes, with exemptions in favour of foreigners! It is they, indeed, whom the provisions of the Patent-Law strangely serve. Foreign countries are not so liberal to British subjects as we are to theirs;—why should they? The number of Patents we grant in a year to foreigners has increased within a short period tenfold—to about 880, or about twelve times the whole number that Prussia grants to her own subjects and all the world besides. Well may Sir William Armstrong remark in his evidence:—

“Unless you wish to benefit the foreigner, unless that be the sole object, as a matter of policy, I do not see what the motive to apply the Patent system is.”

The same witness said also:—

“Is it the fact that Patents are taken out in this country for processes which are in operation abroad, but which have not been previously introduced into this country?—Certainly. A process in actual operation abroad, which has not been published in this country, can be made the subject of a Patent.

“Is it practically the case that processes which are carried on abroad are brought into this country by parties who patent them here?—Yes.

“A great number every week?—Yes, constantly.”

Any one who has followed me in the statements I have presented will see that, while we have been retrograding and making our system of monopoly wider and worse, the Continent, to which a Patent system was first introduced just three-quarters of a century ago, is ahead of us in respect of the prudence with which exclusive privileges are granted and administered. There, as a rule tolerably general, Patents of importation are treated less liberally than those granted to inventors. The early and almost continuous working of the Patent within the kingdom is required; it lapses when expiry abroad exposes to foreign competition; expropriation is provided for; there is more scrutiny; medical appliances and food are excluded, &c.

But this is merely one, and a comparatively unimportant, fault of the system. There are many faults, as we have seen, much more serious, and which the Commission deem irremovable. I must, therefore, protest against injury done by the Patent system to our manufacturers and artisans, and through them to the nation.

These interests, the interests of us all, cannot with impunity be subjected longer to the hardships that I have endeavoured to expose. Times are changed. British and Irish manufacturing pre-eminence is passing away, not indeed by its actual retrogression, but by a simultaneous and relatively more rapid progression of rivals on the Continent, who, in not a few cases, are competing successfully, even in our home markets, in those articles of commerce and manufacture in which but lately we, perhaps conceitedly, supposed we had outstripped, without a chance of being overtaken, all conceivable rivals. The motion, of which notice has been given, is:—

“That, in the opinion of this House, the time has arrived when the interests of trade and commerce, and the progress of the arts and sciences, in this country would be promoted by the abolition of Patents for inventions.”

Unless, indeed, Government and the House prefer in the first instance fresh inquiries through a Committee or Royal Commission, in behalf of which course it is fair to allege the circumstance that artisans and operatives were not represented among the witnesses in former investigations, I submit that this motion ought to be at once adopted. Such action on our part will commend, and, in a sense, inaugurate, a principle which the nations of the world, who copied our present system, will not be slow to appreciate and embrace. Restoration of that effete system to its earlier moderate dimensions—rectification, however thorough, of the wrongs it involves towards inventors, will not suffice, and need not be attempted. The time has come, not for palliatives nor remedies, but for removal out of the way.

[2] Another illustration naively presented us, even by Mr. Hindmarch, of the characteristic logic and boldness of the Patent interest, which may surprise “inventors’ friends” accustomed to rely that our system of Patents is legal and constitutional, will be found in the Appendix.

[3] What would Adam Smith think of his commentator?

SPEECH OF SIR R. PALMER, K.B., M.P.