ap. 18 corporation for $25,000, after having manufactured it for two years on royalty. And many others, who have realized from one to five thousand dollars on such slight improvements on which few would have thought worth applying for a patent.

Patentees who would realize any considerable amount from their patents must not sit down and expect the other fellow to make money out of their inventions for them.

Invention is sometimes called the "genius of the poor," and it is a singular fact that there are a greater number of inventions made by men and women of limited means than by those whose wealth, education, and other advantages would seem to have especially fitted them for success in a field dominated so completely by "brains." This may be explained in a measure by the fact that people of moderate means are brought into closer contact with the arts and manufactures, and are thus the first to discover and improve their defects.

A self-made millionaire, recently speaking to the writer about patents, said: "I know of no business or vocation requiring so small amount of capital, and yielding such immense profits as that of invention. Certainly no person of inventive genius can employ his time and ingenuity to betterp. 19 or more profitable advantage than to invent something that is really needed. Many poor men, through the art of invention, have risen from poverty to reputation, fame, and honor, and taken high places among noted men of all times.

Our moneyed kings may have enriched themselves by stock jobbing, but this precarious procedure requires large capital, and the few enormous fortunes accumulated are merely the monuments marking the graves of thousands of foolhardy unfortunates caught in the vortex of speculation."

p. 20

CHAPTER III

SECURING CAPITAL

It is a curious but well demonstrated fact that people who have inventive genius often lack the means to carry out their ideas. An inventor who has ample means can secure his patent and proceed to turn it into money without the necessity of being compelled to solicit financial aid from anyone. This, unfortunately, is not generally the case with inventors; indeed, many are often barely able to stand the expense incident to taking out the patent. Patentees laboring under this disadvantage are frequently tempted to part with a small interest in their patents for the sake of securing sufficient funds to carry on the promotion of their inventions and sale of the patent; and in doing this the inexperienced patentee is apt to make the fatal mistake of assigning to another an undivided interest in his invention.

Such an assignment may appear well enough on the face of it, and many patentees have been misled, supposing that under the assignment the proceeds from the patent should be divided pro rata, according to the several interests. This, however, is notp. 21 the case in such assignments, and joint-ownership of a patent, or interest therein, does not of itself, without an express agreement to that effect, make the parties partners. They are merely tenants in common, each having the right to separately make, use, or sell the invention so assigned without liability to account to their co-owners for any part of the profits derived from the invention through their own efforts.

In an assignment of an undivided interest, the assignee is afforded an opportunity of manufacturing, using, and selling to others to be used the article covered by the patent; also, to grant territorial grants, such rights being unlimited by the terms of the assignment, and it is actually of little consequence how small an interest is thus conveyed, the assignee can proceed with the patent in much the same way as if he were the sole owner; therefore, whenever it is intended that the relation of co-partnership shall exist between the patentee and the assignee of an undivided interest, and that the profits arising from the invention shall be equitable, for their joint benefit, there must be an express agreement between them to that effect, otherwise the assignee will have a decided advantage over the inventor, if he is inclined to be dishonorable, and there are numerous cases on record where patentees have virtually lost their patents by such assignments. Patentees shouldp. 22 especially guard against strangers who offer to purchase an undivided interest in their patents.

A better procedure to secure means necessary for the development, introduction, and sale of an invention is to borrow the money from a friend contingent on the sale of the patent, sell a State or county right, or enter into a contract with a party willing to furnish the means for a certain proportion of the proceeds derived from the invention. Generally speaking, it will not be hard to find a party willing to advance sufficient means to promote an invention which is protected by a patent for a certain percentage of the net receipts arising from its manufacture, sale, or territorial grants, and the patentee will probably find a person among his own acquaintances who will not only be glad to furnish the means necessary, but also be of value to the patentee in realizing from his invention. In any case, whatever is agreed upon should be put in the form of a contract, or an agreement, couched in such terms as will leave no doubt as to the understanding between the parties. The following form secures both parties, and will be suggestive of others:

Whereas I, Richard Doe, of Philadelphia, County of Philadelphia, and State of Pennsylvania, have invented certain new and useful improvements inp. 23 Telegraph Keys, for which I have obtained Letters Patent of the United States, bearing date January 1, 1901, and number 000,000, and whereas John Roe, of Camden, County of Camden, and State of New Jersey, is desirous of obtaining an interest in the net profits arising from the sale or working of the said invention covered by the said Letters Patent.

Now, therefore, this indenture witnesseth, that for and in consideration of one dollar by each of the parties hereto paid to the other, the receipt of which is hereby acknowledged, it is stipulated and agreed as follows:

First, That the said John Roe shall pay all moneys necessary to the construction of a suitable model to represent the said invention; that he shall pay all necessary expense in advertising and bringing said invention before interested parties (and such other clauses as may be deemed necessary and agreed upon, such as the expense of constructing a working model, or carrying out a process, etc.); that he shall make diligent effort to promote the said invention, its manufacture, and sale.

Second, That the said Richard Doe, sole owner of said invention and Letters Patent, in consideration of the payment of the moneys above mentioned, agrees to pay the said John Roe twenty-five per cent. (or other amount agreed upon) ofp. 24 all the net receipts in any manner arising from the sale or working of the said Letters Patent, during the term for which said patent is granted.

Witness our hands and seals this tenth day of January, A.D. 1901.

In the presence of:

John Smith,

Thos. Jones.

Should an inventor defer the