General Electric - Westinghouse: Agreement As To Patents

Saturday, March 14, 1896
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502 March 14, 1896 'l`Il_l§ (}Hk.ON1(lL1<}. (vor. Lxn. General Electric-Westlnglmnsn Electric Ka Jlannfnc- turing-Agreement as to Patcttts.-Late Thursday afternoon the directors of these companies reached an agreement lor pooling their patents. This agreement will stop the costly litigation so long in progress and ensure the joint use of thc patents during their lile. Certain patents are excluded, hut Charles A, Collin, President of the General Electric, is quoted as stating: that in A general way it can he said that all the patents held by the two companies for lighting and power will he included except those pertaining to cables and uri- dergrounrl trolley material. A statement given out hy the two companies describes thn agreement as follows: “ The General Electric Go. has r‘0n» trilwtttt d 02% per cent and the \\'ostin;_fl\ouse l§|cr:tr1c& Mann- facturing Cu. 37% per cent in value ut the combined patents, and each company is licensed to use the patents of the other company. except as to the matters exci\nled,,eac|\ paying: n royalty for any me of the r~omhi|u d patents in vx<»vna nf thn value nf its r~r\ntri\>ntion lu tho |»=\|,r-n|><. '|‘hn pal:-nts urn In Im mnnagt-rl hy u hoard ul’ cuntml r-rnwistirru of llvne tm-mhr-ra, two appointed by each company and a. lifth elected by the four so appointed." The statement adds that it is expected the economics to be ellected hy this arrangement will be vcry consi¢lerahl:~. The especial incentives leading to it were the recent decisions in favor of patents of the General Electric Company controlling the overhead system of electric railways, the approaching trials on s. number of other important General Electric pat- ents and the equally strong position of the Westinghouse Czmpany in respect to power trans i ' fi b h patents uf Nikola Tesla, etc. m Salou covers y t e Ah interesting account of the patents ot' the Westinzhou-ra Company, including that on the underground trolley. was in the CHRONICLE of July tl. p. 25.-V. 61, p. 871; V. 62, p. 320.