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- The company agreed to pay Selden $10,000 for the rights to his patent and also a royalty for every automobile based on his design. Selden and that company, however, had to contend with a drawn-out legal battle over patent infringement with Henry Ford and other competing automobile manufacturers.
transportationhistory.org › 2018/05/08 › today-in-transportation-history-1879-the-first-us-automobile-patent
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May 8, 2018 · The company agreed to pay Selden $10,000 for the rights to his patent and also a royalty for every automobile based on his design. Selden and that company, however, had to contend with a drawn-out legal battle over patent infringement with Henry Ford and other competing automobile manufacturers.
Nov 27, 2022 · It has enabled the Ford Company to carry out its plans of building the highest grade Touring Car for $2,500.00 by building them in quantities never before attempted and a 4 Cylinder Runabout for $500 by building more of them than the combined output of all the Automobile factories in the U.S.
Automakers were freed from patent fees and Ford became a folk hero. The Association of Licensed Automobile Manufacturers believed George Selden's 1895 patent covered all internal combustion automobiles. When Henry Ford refused to pay royalties to ALAM, the organization sued.
When Henry Ford refused to pay ALAM's requested royalties, the organization took him to court. After a lengthy legal battle, the U.S. Court of Appeals found in Ford's favor in 1911. Automakers were freed from patent fees and Ford became a folk hero.
- The Myth
- Facts from John Howells and Ron Katznelson
- Conclusion
The enforcement of the Selden automobile patent 'did certainly slow… [Henry Ford] down' while the enforcer, the Selden assignee, 'the Association of Licensed Automobile Manufacturers' (ALAM) did not 'orchestrate the efficient improvement of automobile technology' while it collected 'hundreds of thousands of dollars in royalties – raising costs and ...
'Freedom to operate' analysis is a reason why the enforcement of the Selden patent had no measureable deterrent effect on automotive development. Shortly after its creation in March 1903, ALAM began advertising in the press to warn prospective buyers of automobiles that they faced an infringement suit under the Selden patent should they buy from an...
The Selden patent case illustrates how business responds to threats of suit: it conducts a prior art analysis, commonly known as 'freedom to operate' analysis, and if the threats are not backed by a valid patent it ignores them. Robert P Merges and Richard R Nelson, "On the Complex Economics of Patent Scope," Columbia Law Review 90, no. 4 (1990): 8...
Jun 26, 1996 · Henry Ford called the patent preposterous. He refused to pay licensing charges, and his stubborn, independent stance is credited with changing the entire shape of the industry.
Oct 20, 2018 · Melvin Barger’s story of how Henry Ford beat the Association of Licensed Automobile Manufacturers (ALAM) attempt to impose the 1895 Selden patent on the fledgling US auto industry in 1903. Read Melvin’s article here.
