PATENT RIGHTS

Dominion, Volume 27, Issue 188, 8 May 1934, Page 10

PATENT RIGHTS

Royalties on Radio Apparatus NEW AGREEMENT By Telegraph.—Press Association. Auckland, May 7. A new agreement concerning the payment of royalties for patent rights has been made by representatives of the retail radio trade and representatives of the patentees, who met in conference at Wellington last week. For some years the Post and Telegraph Department has paid the holders of patent rights 3/- out of each listener’s fee to cover all claims for the use of patented apparatus. This arrangement has been terminated, and the new agreement will replace it. On and after June 1 no receiver will be imported, manufactured, or sold in New Zealand by a radio'dealer without a payment of 3/6 per anode stream. This is roughly 3/6 per valve. A fivevalve set will thus be subject to a royalty of 17/6 from June 1. All Importers and manufacturers of receiving sets will be required to provide a fidelity bond of £l5O for the patent right holders. On June 1 all radio dealers will be required to declare their stocks and all sets then unsold will be subject to the new charges. NOTICE TO COMPANY Old Arrangement to End The new agreement "'mentioned In the Press Association ( message from Auckland as having been, made between the patentees and the manufacturers and dealers in radio equipment, will remain in force until December, 1938. A similar agreement has already been made in Australia. The present New Zealand agreement terminates on May 31, when the new arrangement will come into force, whereby the royalty for the use of radio patents will be embodied in the apparatus concerned. In May of last year the Government decided to give twelve months’ notice of termination of its agreement with Amalgamated Wireless (Australasia), Ltd., .in respect of patent rights. As pointed out by the Postmaster-General. Hou Adam Hamilton, in his last annual report to Parliament, the agree men t was signed on October 30. 1928, to remain in force for a period of five years, and thereafter to be subject to twelve months’ notice of renunciation by either party. It provided for the payment to Amalgamated Wireless (Australasia), Ltd., of 3/- in respect of each radio receiving license to cover the use of the company’s patent rights for broadcasting apparatus, and of a percentage of the revenue accruing from portion of the commercial radio traffic handled by New Zealand radiotelegraph stations. The effect of the agreement was to absolve users and manufacturers of radio apparatus from any liability for claims in respect of the use of registered patents. License fees are collected in New Zealand by the Post and Telegraph Department, which retains 2/- out of every 30/- paid by listeners. This, together with the deduction of the royalty, leaves the Broadcasting Board with 25/- out of every 30/- to provide a broadcasting service. Evon when the new agreement between the patentees and radio trade comes into force, there seems little likelihood of the board receiving more than it alreadv receives out of each license fee. The 2/- at present retained by the department to cover the cost of collection of fees, the detection of “pirate” sets, and other purposes connected with broadcasting control, is believed to be insufficient for the pur pose. Tlie indications are that the extra money available by the non-pay-ment of the royalty out of license fees will be used by the department to reimburse itself for its present services, and possiblv to deal more effectively with the problem of interference