PATENT RIGHTS AGREEMENT

Evening Star, Issue 21630, 27 January 1934, Page 4

PATENT RIGHTS AGREEMENT

In the latest copy to hand of the ‘ Listener In ’ details are supplied of an agreement intended to settle an,\ difficulties in the way of live use <n patent rights in respect of radio manufacturers' in Australia. Incidentally, the agreement is intended to be a bar against imported radio receivers. . For the past five years, up to March 1, 1934, the Commonwealth Government has been collecting 3s a year out of each listener’s license of 245, and paying that amount to Amalgamated Wireless (Australasia) Ltd., winch company holds the Marconi patents, and many American and European patents. The Government, early in 1933, gave notice that this arrangement would bo discontinued as from March 1, 1934, after which date any interest holding, or claiming to hold, patent rights, would have to make its own arrangements with manufacturers. This indirectly led to the formation by the principal manufacturers of Radio Interests Ltd. To conserve their interests. Amalgamated Wireless, Standard Telephones and Cables, and Philips Radio formed a body known as Australian Radio Technical Services and Patents CompanyLtd., for the purpose of pooling theninterests, and dealing jointly with the users of their patents. After nine months of negotiation, an agreement has been reached, by which manufacturers, after putting up a deposit of £l5O, may receive a license entitling them to the use of all the patents of the throe companies on payment of royalties at the rate of 3s 6d per valve socket up to 1,999 values used in receivers (say, 200 sets), with a sliding scale down to. 2s per valve socket in the case of large manufacturers. Users of over 4,000 valves will pay 3s 4d per socket, 10,000 valves 3s, 60,000 2s 7d. This agreement will date as from March 1, 1934. in respect of Amalgamated Wireless, and from January 1, at the rate of Is Cd per valve socket, in respect of Standard Telephones and Philips. The new agreement seems likely to cost the public more than the old arrangement. If the average life of a receiver is five years, a listener has hpen paying (at the rate of 3s a year) 10s on his set Now the manufacturers will pay, say, 14s jier set, and that is for three patent holders only. In addition, the Mazeltine group are collecting 5s a set from any manufacturers. So that, under the new arrangement, users of receivers will pay very close to £1 on each instrument. That amount will be in cash, or spread over twelve months, whereas now they pay 15s, spread over five years.