Ironing Out Important Issues At The Early Stages Of The Industry (1917)
Aviation Week & Space Technology has always been forward looking, each year publishing detailing a ‘look ahead’ of the challenges and opportunities presented to the industry. Even in the early days, when the magazine (then called Aviation & Aeronautical Engineering) was less than a year old, the editors were focused on the future.
In a January 1917 editorial, the magazine acknowledged the previous year as “notable for the commercial development of the industry and for the creation of a popular interest in aeronautics.” It predicted the year 1917 will be a period of real expansion. The editor hoped that through the magazine’s “efforts in presenting technical information, it will in some measure assist the growth of this new industry on which the Nation is dependent for its protection and its peace.”
It was also clear the aviation industry was “becoming big business” and the new subject of “basic patents” needed to be discussed.
An example of this is the Wright –Martin Aircraft Corporation license agreement, which was printed in the same issue. The editorial noted that The Curtiss Company suggested it will “expect” royalties for the building of seaplanes under its patents. “Until this question of basic patents is finally determined the aeronautic industry in this country will be in an unsettled condition. For this reason the sooner the matter is adjusted the better for the owners of the patents, the constructors and the Government.”
The editorial explains that there are three parties in the agreement; the owners of the patents, the possible licensees. In terms of “important inventions” the finances were considered “short sighted” in the past.
“Today conditions have altered. Aeronautics is thought of in large figures. When thousands were considered extravagant ten years ago, millions are now regarded as inadequate for [the] increasingly important arm of military and naval service. Large investments have been made in the industrial development of airplanes and accessories. The future is to be that of big business.”
It explains why each party is important in the patent’s discussion: “The Government has a direct interest because it is the chief purchaser of airplanes in the country and as the ultimate consumer who will have to pay the royalties. The possible licensees will have to determine the probable validity of the patents while the owners of the patents will naturally make every effort to exact what is their judgement is a fair royalty.”
Next the industry will need to agree on whether it is preferable to litigate or pay a royalty, as well as “what protection against unlicensed competition that they can guarantee to licensees.”
England had by now sorted this issue out with an agreement with the Wright Brothers. The editor said that it would be “unfortunate” if aerial equipment was delayed due to suits or negotiations. He urged: “All interested parties to reach a settlement.”
In the current day, the issue of IP and big data is now a hot topic for the industry. Not much changes in 99 years.
Read the full editorial in Aviation Week’s digital archives