§ 63. Major ARCHER-SHEEasked the Postmaster-General whether, in view of the discovery that the Marconi Company has no patent rights in British East Africa, 732 he can say whether the company has patent rights covering all its patents in Egypt and India, respectively
69. Mr. PIKE PEASEasked the Postmaster-General if he will state what inquiries have been made by him, other than inquiries of the Marconi Company, as to the existence or the validity of patents covering the Marconi inventions in the localities where the proposed Imperial stations are situated; and, if no such inquiries have been made, whether the contract for the payment of royalties will be made before he is satisfied that such patents are in existence?
§ Mr. HERBERT SAMUELMy inquiries have for the most part been made of the Marconi Company. They state their inventions are fully protected both in Egypt and in India. The hon. Members are under a misapprehension if they suppose that the Government would lose should it prove to be the case that the inventions are not protected in these countries. The contrary would be the case, as under the terms of the contract royalty would then not be payable.
§ Major ARCHER-SHEEIs it not a fact that the 10 per cent. royalty was for the use of patents? If there is no patent, what is the 10 per cent. royalty for?
§ Mr. HERBERT SAMUELIf there is no patent the 10 per cent. royalty will not be paid.
§ Mr. GRETTONWill the right hon. Gentleman consider the advisability of employing a competent patent agent to search the registers to inform him whether any royalty is payable?
§ Mr. HERBERT SAMUELBefore any royalty is paid the most careful inquiries will be made.
§ Major ARCHER-SHEEMay I ask who found out that there was no patent rights in East Africa? Was it the Post Office or the Marconi Company?
§ Mr. HERBERT SAMUELThe Marconi Company asked for a special concession on the ground that their patents were not protected in East Africa.
§ Lord ROBERT CECILIs the definition in the new contract the same as in the old?
§ Mr. HERBERT SAMUELThere are some verbal alterations, but it is substantially the same.
§ Lord ROBERT CECILDid not the old definition include all the inventions, whether subject to patents or not?
§ Mr. HERBERT SAMUELNot for the purpose of paying royalty. We have the right to use, without any extra payment, any invention, whether patented or not, which the Marconi Company possess. We do not pay any royalty unless we are using any actually patented invention of which the patent is valid and unexpired.
70. Mr. PIKE PEASEasked the Postmaster-General whether, in view of the fact that it is proposed that the second three wireless stations may be constructed on a system other than the Marconi system, he will defer the construction of four out of the six aerials stated by him to be necessary for a Marconi station in East Africa (that is to say, those aerials required for communicating with South Africa and India), until the system to be used in the second three stations has been selected, particularly in view of the fact that another system might not require such an expenditure on masts and aerials as is required by the Marconi system?
§ Mr. HERBERT SAMUELUnder the proposed agreement with the Marconi Company, the company are to be paid a specified average price per station; and it is therefore obviously in the financial interests of the Government that the East African station, which is designed to be the largest of all, should be completed as designed. The Advisory Committee recognised in paragraph 29 of their Report that the Marconi directive aerial has special advantages, and my advisers do not agree that it will necessarily be more costly than those of other systems. The Marconi aerials at the East African station could be used without disadvantage even though some other system of transmission were adopted for the South African and Indian stations.
72. Mr. PIKE PEASEasked the Postmaster-General, in view of the fact that the proposed agreement gives the Government the right to use all patents which the Marconi Company may from time to time be entitled to use without further payment of royalties, whether he will say what is the object of the proposed clause in the contract giving the Marconi Company the right to contract for the installation of any new system which the Government may wish to adopt, since, if the system is one which the Marconi Company 734 are in a position to use, it would, under the contract, be part of the Marconi system; and if, on the other hand, the Marconi Company have not the right to use such system, whether it is contemplated that the Government should make use of Section 29 of the Patents Act in respect of such rival system and allow the Marconi Company to contract for its installation?
§ Mr. HERBERT SAMUELThe hon. Member has not rightly apprehended the nature of the provision in the contract to which his question relates. The contract itself is in the printer's hands, and will be laid almost immediately, and perhaps the hon. Member would allow me to refer him to its terms instead of attempting to give a full answer to his question within the limits of a Parliamentary reply.