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4. That the respective parties hereto, and their respective representatives will do and cause to be done all things necessary and convenient for enabling the arbitrator to make a just award without delay, and will in all things abide by and perform the award when 8. Parties to



aid arbitrator, and abide by award.

9. Special proof vision as to of costs of refe

5. That if the arbitrator shall decide that the purchasers are entitled to any compensation in respect the matters aforesaid, or any of them, all the costs and incidental to the present reference, and the award shall be paid by the vendors, but if the arbitrator shall decide that the purchasers are not entitled to any compensation, then all such costs shall be paid by the purchasers, and such costs shall be allowed (and if the parties differ, taxed) as between solicitor and client, and shall be paid immediately after the publication of the said award (f).

6. That the present reference may be made by either of the parties hereto, without the consent of and without

rence and


10. Reference may be made a rule in Chancery.

and it is reduced on taxation, the party paying it may recover back the excess from the arbitrator: Fernley v. Branson, 20 L. J., Q. B. 178; Barnes v. Braithwaite, 2 H. & N. 569; and see Re Coombes, 4 Exch. 839; 39 L. O. 245, Exch.; Globe Insurance Company v. Furnley, 14 L. T. 351, Exch. As to what are costs of the reference and of the award, see Russell, 367; and as to the duty of the arbitrator in awarding costs: Id. 370; Archbold's Practice, 9th edit., 1570. Re Young, 22 L. J. Ch. 160.

(f) Where the question is simply or mainly upon one point, such as the right to compensation, so that if the party in the wrong had conceded it there would be no need of a reference, it seems proper that the costs should follow the decision as to that one point, but otherwise they may be left to the discretion of the arbitrator, either by an express clause or by referring to them in the first clause, substituting for the words in brackets "including the costs and expenses of and incidental to the present reference and the award." In cases where more than one simple question is submitted to arbitration the costs should never be left, either expressly or by implication from silence (see supra, note (e)) to follow the event.



reference to the other party, a rule of the Court of Chancery (g). AS WITNESS the hands of the parties.




1. Parties.

As to making submission a rule of court.

Grant of letters patent under the Statute of Monopolies.

Statutory power


AGREEMENT between BRITISH SUBJECTS and a FOREIGNER for obtaining LETTERS PATENT (a) for an INVENTION discovered by the FOREIGNER.

AN AGREEMENT, made, &c., between A. B., of, &c., a foreigner residing abroad, of the one part, and C. D.

(g) In conveyancing transactions it is desirable to make the submission a rule of the Court of Chancery, that Court having a greater familiarity with such matters, and dealing with them upon broader principles, and more effectually. Only the named Court will have any jurisdiction, supra, note (c). At law, where there is a reference by Judge's order to arbitration, the costs of the action and reference to be in the discretion of the arbitrator, the costs of making the award a rule of Court are in the discretion of the Court, and will not be allowed unless deemed necessary; nor will they be deemed so if the step has been taken without a demand of the money: Carter v. Burial Board of Tonge, 5 H. & N. 523.

(a) The law respecting patents depends on the Statute of Monopolies (21 Jac. 1, c. 3), which, after declaring all monopolies void and contrary to law, contains the following saving (sect. 6):-" Be it declared and enacted, that any declaration before mentioned shall not extend to any letters patent and grants of privilege, for the term of fourteen years or under, hereafter to be made, of the sole working or making of any manner of new manufactures within this realm, to the true and first inventor or inventors of such manufactures, which others, at the time of making such letters patent and grants, shall not use; so, also, as they be not contrary to the law, nor mischievous to the State by raising prices of commodities at home, or hurt of trade, or generally inconvenient; the said fourteen years to be accounted from the date of the said letters patent or grant of such privilege hereafter to be made; but that the same shall be of such force as they should be if this Act never had been made, and of none other."

Under the Statute of Monopolies, the only things for which patents

and E. F., of, &c., brass makers and co-partners, of the other part: WHEREAS the said A. B. has represented to the said C. D. and E. F. that he has invented a new and improved method of manufacturing brass, and that his said invention (b) is not now and never has been used or known within this realm: NOW THESE PRESENTS WITNESS, that it is hereby agreed and declared as follows:

The said A. B. shall forthwith communicate, specify, and explain to the said C. D. and E. F. the nature of his said alleged invention of a new and improved method of manu



2. Recites that

A. B. has invented a new mode of manufacture.

3. Witnesseth agreement and covenants.


Patents to be granted only

to "true and

can be obtained are "" new manufactures;" and the Patent Law to grant patents Amendment Act, 1852 (15 & 16 Vict. c. 83), makes no alteration in for "new manuthe conditions of the subject-matter of a patent: see sect. 55. Therefore, the subject-matter of a patent must be a manufacture, and it must possess the incidents of novelty, non-user within the realm, and utility: see Webster's Subject-Matter, Webster on Patents, Norman on Patents. When issues are directed from the Court of Chancery to try a question of novelty, one of such issues must be whether the novelty is or is not a new manufacture. Spencer v. Jack, 1 N. R. 114. (b) A patent is to be granted only "to the true and first inventor" of the new manufacture, i. e. to the first person who discloses the invention to the public within the realm by means of a specification of the invention: 7 Man. & Gr. 842; Stead v. Anderson, 4 Com. B. 806; and it makes no difference whether the invention were made in this country or introduced from abroad, nor whether the inventor or importer of the new manufacture was a foreigner or not: Norman's Patent Law, p. 45. But the invention must be that of the patentee himself or of a person making a communication to him, for the express purpose of enabling him to take out a patent. If he has borrowed it from some other person, if he has taken it from a book, or learnt it from a specification, or any other source in this country, he will not be entitled to a patent.

In practice, however, patents are frequently granted in the joint names of the inventor and of a capitalist who assists him, the capitalist suggesting some trifling modification or improvement, and then joining in the declaration. Where the capitalist will not make or join in the declaration, the agreement must provide as is done by clause 3 of the Precedent for an assignment of the patent.

first inventor."

Letters patent have been granted to trustees for joint inventors, Joint inventors. each inventor being allowed a free licence for himself and partners.

Re Russell's Patent, 2 De G. & J. 130.



That A. B. shall disclose

his invention;

and assist in preparing the specification;

--and personally show the process of manufacture;

-and prepare plans, models, &c.

facturing brass, and the whole process of the said manufacture, in such a manner as will enable the said C. D. and E. F. to manufacture brass according to the said new and improved method, and to prepare and furnish such complete specification (c) of the said invention as will be required, in case letters patent for the sole use of the said invention shall be applied for as is hereinafter mentioned; and shall, if required, aid and assist, so far as he is able, in preparing such specification as aforesaid; and also, that he the said A. B. shall personally exhibit and explain to the said C. D. and E. F. all the process and details of the said new method of manufacture, in such a manner as may enable them fully to understand and practise the said several processes and details; and shall at his own costs and charges prepare and furnish all such plans, drawings, models and other things as may be necessary for fully instructing the said C. D. and E. F. in the said new method of manufacture, and all the processes and details thereof.

The specification.

(c) The specification must be so framed as that others may be taught by it to do the things for which the patent is granted; and it must put the public in possession of the secret in as ample and beneficial a way as the patentee himself uses it. The specification may, under the Patent Law Amendment Act, be either provisional or complete. A provisional specification contains only a general description of the nature of the invention; and when it has been approved of by the law officers of the Crown and filed in the office of the commissioners of patents, it confers on the applicant what is termed provisional protection, which is the right of using the invention during the term of six months from the date of the application, without prejudice to any letters patent to be granted for the same: Coryton, p. 151. If the applicant deposit with his petition for letters patent and his declaration, which is required to accompany it, a complete specification, he at once obtains provisional protection: Id. p. 152. It is unnecessary, in a work of this nature, to go further into the subject of preparing specifications, as it never falls to the conveyancer to prepare such instruments, or to investigate their sufficiency as a matter of title. The subject is fully and ably examined in Mr. Macgregor's work on the Language of Specifications. Such an agreement as the present should stipulate that the inventor shall aid in preparing the specification.



2. The said C. D. and E. F. shall, within - from the date of these presents (in case the said A. B. shall then have communicated the nature and details of the said invention at the time and in manner aforesaid), determine whether they will or will not use the said invention, and of such their determination give notice in writing to the said A. B., in case he shall be then living, and the place of his abode shall be known to the said time. C. D. and E. F.

3. In case the said C. D. and E. F. shall determine not to use the said invention, then they or either of them shall not disclose or communicate the nature of the said invention, or any part thereof, to any person whomsoever, nor make any use whatever of the said invention or any part thereof (d).

4. In case the said C. D. and E. F., shall determine to use the said invention, or any part thereof, the said A. B. shall forthwith, at the cost of the said C. D. and E. F., apply for and use his best endeavours to obtain letters patent (e),

4. That C. D. accept or reject within a limited

and E. F. shall

the invention

5. That if

C. D. and E. F.

reject the invention, they

shall not dis

close or use it.

6. That if

C. D. and E. F.

accept invention, they shall patent.

obtain letters

Use of a secret obtained in

breach of contract restrained

(d) The Court of Chancery will grant an injunction to restrain the use of a secret in violation of the contract of the party by whom it was communicated, and in breach of trust and confidence: Morison v. Moat, 9 Hare, 241; S. C., on App. 16 Jur. 321; and a plaintiff by injunction. not having the privileges of a patentee, having no title to be protected in the exclusive manufacture and sale of an article against the world, may yet notwithstanding have a good title as against a particular defendant: Morison v. Moat, ubi sup. The 10th sect. of the Patent Law Amendment Act, 1852, protects the true inventor against patents acquired by fraud upon him after he has obtained provisional protection.

Grant of letters patent extends to the whole of the United

(e) Previously to the passing of the Patent Law Amendment Act, 1852, letters patent obtained in England prevailed only within England, Wales, and the town of Berwick-upon-Tweed, and also within the Channel Islands and the Isle of Man, and the Colonies, if Kingdom. so expressed separate grants were required for Scotland and Ireland. Now, letters patent under the great seal are valid for the whole of the United Kingdom, the Channel Islands, and the Isle of Man, and in the Colonies also, if named in the grant: see 15 & 16 Vict. c. 83, s. 18. And there is no longer any limitation to the number of persons who may have a legal and beneficial interest in letters patent, see sect. 36.



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