Competition; Monopolies -- United States; Trusts, Industrial
common property as air and sunlight, and the tool or device invented to
aid in their use.
Again, it is a notorious fact that the great multiplicity of inventions
has made the search to determine the novelty of any article submitted
for a patent for the most part a farce. No one is competent nowadays to
say surely of any ordinary mechanical device that it is absolutely new.
The bulky volumes of Patent-Office reports are for the most part a
hodge-podge of crude ideas, repeated over and over again under different
names, with just enough valuable matter, in the shape of the inventions
of practical mechanical designers and educated inventors, to save the
volumes from being an entire waste of paper and ink. Space, however,
will not permit us to discuss at length the faults of our patent system.
The important point for us to notice is that the patent system
establishes certain monopolies, and that these monopolies are not
always harmless. Patents are given to "promote the useful arts," but the
inventor whom they are supposed to encourage reaps but a small share of
the profits of his inventions. Valuable improvements soon fall into the
hands of large companies, who are able to defend them in the courts, and
reap all possible profits by their use.
Again, patents sometimes aid in the formation of trusts and
combinations. Two or three firms may control all the valuable patents in
connection with some important industry. If they agree to combine their
interests and work in harmony, they are far stronger than an ordinary
trust, because the patents they hold prevent outside competition. It was
pointed out in the opening chapter how the control of patents was
sometimes a feature helping to induce the formation of trusts. The
Standard Oil Trust had its origin in the superiority which one firm
gained over its competitors through the control of an important patent.
The envelope trust, which, at this date, has raised the price of
envelopes about twenty per cent., owes its chief strength to its control
of patents on the machines for making the envelopes. Instances
innumerable could be given where a few manufacturers, who by their
ownership of patents controlled the whole field, have ended a fierce
competition by consolidating or agreeing to work together harmoniously
in the matter of selling-prices. Very many of these are monopolies in
trade or monopolies in manufacturing, and as such have already been
considered in the preceding chapters; but it is proper here to point out
the part which our patent system has taken in their formation, and the
fact that it is due to their control of patents that many of the
existing combinations owe their security against outside competition.
Public-domain text, read in full here on John Shaqi.
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