The Selden Patent
See also: Association of Licensed Automobile ManufacturersInspired by the mammoth internal combustion engine invented by George Brayton displayed at the Centennial Exposition in Philadelphia in 1876, Selden began working on a smaller lighter version, succeeding by 1878, some eight years before the public introduction of the Benz Patent Motorwagen in Europe, in producing a one-cylinder, 400-pound version which featured an enclosed crankshaft with the help of Rochester machinist Frank H. Clement and his assistant William Gomm. He filed for a patent on May 8, 1879 (in a historical cross of people, the witness Selden chose was a local bank-teller, George Eastman, later to become famous for the Kodak camera). His application included not only the engine but its use in a 4 wheeled car. He then filed a series of amendments to his application which stretched out the legal process resulting in a delay of 16 years before the patent was granted on November 5, 1895.
Shortly thereafter the fledgling American auto industry began its first efforts and George Selden, despite never having gone into production with a working model of an automobile, had a credible claim to have patented an automobile in 1895. In 1899 he sold his patent rights to William C. Whitney, who proposed manufacturing electric-powered taxicabs as the Electric Vehicle Company, EVC, for a royalty of US$15 per car with a minimum annual payment of US$5,000. Whitney and Selden then worked together to collect royalties from other budding automobile manufacturers. He was initially successful, negotiating a 0.75% royalty on all cars sold by the Association of Licensed Automobile Manufacturers. He began his own car company in Rochester under the name Selden Motor Vehicle Company.
However, Henry Ford, owner of the Ford Motor Company, founded in Detroit, Michigan in 1903, and four other car makers resolved to contest the patent infringement suit filed by Selden and EVC. The legal fight lasted eight years, generating a case record of 14,000 pages. The case was heavily publicized in the newspapers of the day, and ended in a victory for Selden. In his decision, the judge wrote that the patent covered any automobile propelled by an engine powered by gasoline vapor. Posting a bond of US$350,000, Ford appealed, and on January 10, 1911 won his case based on an argument that the engine used in automobiles was not based on George Brayton's engine, the Brayton engine which Selden had improved, but on the Otto engine.
This stunning defeat, with only one year left to run on the patent, destroyed Selden's income stream. He focused production of his car company on trucks, renaming his company the Selden Truck Sales Corporation. It survived in that form until 1930 when it was purchased by the Bethlehem Truck Company. Selden suffered a stroke in late 1921 and died aged 75 on January 17, 1922. He was buried in Mount Hope Cemetery in Rochester. It is estimated he received several hundred thousand dollars in royalties.
Read more about this topic: George B. Selden
Famous quotes containing the word patent:
“This is the patent age of new inventions
For killing bodies, and for saving souls,
All propagated with the best intentions.”
—George Gordon Noel Byron (17881824)