H.—lo.

The efforts of these inventors have been mainly responsible for the marked increase that has occurred during the year in the number of inventions in class Gas-manufacture for lighting, heating, or 'power purposes. The average number of proceedings coming within this class during the ten years up to and inclusive of 1939 was 7-4. During 1940 the total in the class rose to the high figure of 60, and the prospects are that the current year will see a continuation of interest by inventors in this important subject. In my report presented last year I drew attention to the reputation that certain New Zealand inventors have acquired overseas, and to the pronounced effect that such inventors have had on the economic and social development of this country. My remarks were prompted by an increased activity with reference to inventions in class Milking-machines, in respect of which New Zealand has so often given the world a lead. This marked activity has been maintained in 1.940, the number of proceedings relating to milking machinery having been 59. Adding this figure to the 83 cases instituted in 1939 and the 71 cases in 1938, brings the total proceedings for the last three years to more than double the total for the prior three years. Class Explosives, firearms, &c., constitutes another group of inventions in which an unusual degree of interest has been manifested since the commencement of the war, the numbers received having risen in 1939 to over three times the total in the previous year (1938) and in 1940 to over five times that total. There has also been an increase in the class Aeronautics, in which the figures rose from 15 in 1939 to 19 last year. Other classes in which increases occurred are Drying, 20 (15) ; Medicines and surgical appliances (including ear-instruments, dental work, &c.), 30 (26); Printing and photography, 16 (10); Sewing and knitting, 30 (27) ; Washing and cleansing, 32 (29). A heavy increase in the cases coming within class Engines (air, gas, and oil) also occurred in 1940, the figures having risen to 58, as against 22 in 1939. Considering that the total number of cases for the year was, as indicated, less than the total for 1939, it is all the more remarkable that the above classes should have shown not only a relative increase, but a positive increase in the figures for the previous year. In view of this, a number of classes are necessarily reduced in a greater degree than would have otherwise have been expected. Among the classes in which a falling-off has occurred is Telephony and telegraphy, which showed 223 cases in 1940, as against 512 in 1939. This class includes inventions relating to radio, and is one of the groups in connection with which extraordinary activity has been shown over a considerable period. It was pointed out in my report presented in 1938 that the high numerical level in the class was not likely to be maintained, and the figures have in fact fallen from 578 in 1938 to 512 in 1939 and 223 in 1940. Even at this figure, however, the radio group is easily the largest in the Patent Classification, the next largest being Illuminating (except gas-manufacture), which comprised 81 cases as against 86 in 1939. Decreases also occurred in the number of proceedings relating to classes Electricity and magnetism, 64 (106); Amusements, music, exercises, games, dec., 27 (47); Dairying, 22 (31) ; and Vehicles, 27 (52). Designs. As in the period covered by my last report, there has been a further decrease in the number of proceedings instituted for the registration of designs. The figure for 1940 is 108, as against 137 in 1939 and 160 in 1938. The number received last year is in fact the lowest since 1920, but is greater than the number received in any one year during the 1914-18 war, with the exception of 1916, when the proceedings instituted were 113. The total number of design proceedings commenced at the Patent Office as at the 31st December, 1940, is 4,502. In regard to the number of design registrations in force as at that date the total is now 987, the number of cases registered during the year being 103. Design registrations which became void during the year owing to the non-payment of renewal fees numbered 144. The term of copyright for the second term of five years was renewed in 43 cases, and renewal for the third term of five years was effected in 5 cases. In regard to the countries from which applications for registration were received, the greatest number were received from persons resident in New Zealand 88 (91). Next in numerical order were applications received from persons in Great Britain and the Commonwealth of Australia, the number received from these two countries being equal. Turning to the question as to the classes in which design proceedings were instituted during the year, Class 1 (Articles composed wholly of metal or in which metal predominates, and jewellery) again heads the list with a total of 52, as against 65 in 1936 and 70 in 1938. The next highest class is Class 3 (Articles composed wholly of wood, bone, ivory, papier-mache, or other solid substances not includei in other classes, or of materials in which such substances predominate), in which 32 applications were received, as against 44 in the prior year. Then follow Class 4 (Articles composed wholly of glass, earthenware, or porcelain, clay (burnt or baked), or cement, or in which such materials predominate), 14(11), and Class 5 (Articles composed wholly of paper, cardboard, millboard, or strawboard (except articles included in Class 2, and paper hangings), or in which such materials predominate), 5 (6). Trade-marks. As vas indicated earlier in this report, the number of proceedings instituted in respect of the registration of trade-marks kept up very well during 1940 as compared with the proceedings instituted in the Pitents Division. This is all the more satisfactory in view of existing world conditions, and appears 1o indicate a degree of commercial activity greater than might have been expected in the circumstances.

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