viz: For salaries, $22,584 90; temporary clerks, $7,956 80; contingent expenses, $9,467 65; compensation of the chief justice of the District of Columbia, sitting on appeals from the Commissioner of Patents, $100; library, $1,414 09; agricultural statistics, $2,608 17; printing digest of patents, $1,700; compensation for extra services to E. G. Smith, under the act of Congress for his. relief, approved August 5, 1848, $1,000; amounting in the wholeto $46,831 61, as per statement, marked B.

There was also expended during the last year, under the act of March 3, 1837, for the restoration of records and drawings, the sum of $44, as per statement, marked C.

The aggregate of expenditures under the different heads above. enumerated, including money refunded on withdrawals and money returned which had been paid in by mistake, is $58,905 84; leaving a balance to be carried to the credit of the patent fund of $8,670 85.

On the first day of January, 1818, the amount of money in the treasury to the credit of the patent fund was $207,797 98. Thus the amount in the treasury to the credit of the patent fund, including the balance paid in during the year 1848, was, on the first day of January, 1849, $216,468 83.

The large balances over expenditures, which have accrued during the last four years, were caused, in part, by the great increase of applications for patents, which accumulated in such a degree asto far exceed the ability of the examining force of the office to dispose of them; thus occasioning a disproportion between the applications and withdrawals, as compared with former years. That cause has been removed by the recent increase of the force of the office, and it may now be expected that until the office is relieved of its accumulated business, the proportion of withdrawals to the receipts of the office will be greater than in former years, and, consequently, the balance which will accrue to the credit of the patent fund will be less.

By the act of Congress, approved May 27, 1848, two principal and two assistant examiners, and two ordinary clerks, were added to the force of the office, and the salaries of the examiners were raised from $1,500 a year to $2,500, and the assistant examiners from $1,250 to $1,500. The clerks authorized by the act before mentioned were allowed salaries of $1,200 each per annum. Thus, the increase of the number of examiners and clerks, and of salaries provided for by the act of May 27, 1848, will occasion an addition to the annual expenditures of the office of $12,900. This amount will be reduced by fees for recording assignments, authorized to be charged by the same act; but the permanent addition to the expenses of the office will not be less than $10,000 per annum.

Notwithstanding this addition to the permanent expenditures of the office, the constant increase of its business and receipts give ample assurance that its revenues will continue to equal, if not ex

Allowed Mr. Smith for extra work out of office hours on the agricultural report underMr. Ellsworth.

ceed, its expenses. But if its revenues should, for a year or two, fall below its expenditures, the patent fund is sufficient to meet such casual deficiency; and thus the policy of Congress, in making the Patent Office a self-sustaining institution, will be successfully

maintained.

The two principal and two assistant examiners, provided for by the act of May 27, 1848, were appointed as soon as it was believed that suitable persons had been found for those offices, and they entered immediately upon the discharge of their duties. When they had acquired a sufficient knowledge of the duties of their desks, and had become sufficiently acquainted with the routine of business to begin to render efficient aid to the office, which was not before. the first of August, the number. of applications on hand awaiting the action of the office was 998. On the first day of January, 1849, that number was reduced to 539, notwithstanding the difficulties which the examining branch of the force of the office were obliged to encounter, resulting from the inexperience of half their number; thus exhibiting a flattering proof of the progress of business, and promising an early relief from the embarrassments under which the office has long labored in consequence of the great amount of business which had accumulated during the last three years, for want of a force in the scientific desks sufficient to dispose of it. A very few months will probably relieve the office entirely from its present embarrassments.

The rigid examinations now made in the Patent Office, with regard to the originality and patentability of new discoveries and improvements, result in the rejection of a much larger proportion of the applications than formerly, when a less scrutinizing system. of examination was pursued. Before I assumed the duties of Commissioner, more than half the applications were patented. During the last four years, not quite half of those which have been examined have been patented, and now the proportion of applications patented to those rejected is about two to three.

Within a few years the inventive genius of the country, under some stimulant or other not readily perceived, has been more than usually active, and has produced corresponding results. Formerly, invention was pursued mainly from an ardent desire to develop the laws of nature, and to adapt them by mechanism and by processes to the use of man. Now, it is not only pursued from a love of science and from motives of a noble ambition, but by some as a profession. Hence invention, instead of accomplishing at the present time, by its essays and experiments, as many striking results in proportion to the number of its products as in certain periods of history, applies itself more to improvements in details. It now aims to improve what already exists in a form more or less imperfect, and to adapt itself to the practical wants of society. In short, it has become more utilitarian than it has been in earlier periods. Such, at least, is the conclusion to which I have arrived from very considerable opportunity to observe the progress of invention in this and other countries, during the time I have discharged the duties of Commissioner of Patents.

Yet, it would be very unjust to the inventive genius of the present age to affirm, that every year does not produce great and original inventions, which illustrate the progress of science and add much to the elements of civilization and the improvement of society. But my purpose was more particularly to bring to view the fact that, in consequence of the many improvements in details, much is believed to be discovered which has already been known; and hence a greater proportion of applications for patents, in late years, have been rejected than have been patented.

The reports of the four principal examiners, addressed to the undersigned, and giving a review of the most valuable inventions which have passed their desks during the year, are annexed, marked D, E, F, and G. They are referred to as containing brief but interesting views of the progress of invention and improvement in the mechanic arts in this country during the last year; and, also, as proofs of the intricate and difficult duties which that class of officers are required to perform.

In my three former reports I have taken the occasion respectfully to bring to the attention of Congress the propriety and expediency of amending the present statutes relating to patents, with a view to give more efficient remedies to patentees against the infringements and depredations of "pirates," as those individuals are appropriately denominated who make it a business wilfully to invade the rights of the inventor, and appropriate the fruits of his ingenuity and labor to their own use. I have, in my former reports, so minutely pointed out the defects of the present patent system, and so zealously urged their remedy, that it would be but a useless repetition to add more upon that subject than to refer to the views expressed in my reports alluded to.

The experience of every day, and the prolific crop of litigation which has recently sprung up from the unscrupulous and remorseless invasion of the rights of patentees, by persons who have no claim nor pretension to the name of inventor, nor to the fruits of inventive genius, point with impressive force to the necessity of some reform in the existing laws which shall give greater security to the rights vested in patentees. The facilities of evading punishment or retribution for a wilful infringement of the property of patentees is now so great, that the whole term during which a patent runs is not sufficient, if it be for a very valuable invention, to vindicate and establish the just claims of the inventor. This evil could be remedied by a few simple amendments to the existing law of patents.

If a provision were made for the repeal of a patent, and if it were provided that, until it was avoided by process of repeal, the instrument should be received in all actions of infringement as conclusive evidence of the right of the plaintiff to recover, much of the difficulty, expense, and injustice, which now fall upon the patentee, would be avoided. It is, therefore, hoped that Congress will speedily act upon this matter, and thus provide for the protection of a class of men who contribute so much to the convenience,

comforts, and luxury of the community, and to the progress of society in science, art, and civilization.

And surely, the depredator upon the rights of the patenteerights which are solemnly and sacredly guaranteed to him by law on the condition that he surrenders to the public the secret of his invention is not entitled to the sympathy, nor the protection of the legislator. The wilful infringer of the rights of the inventor is as base and corrupt morally, as that class of the community known as common thieves. His offence is committed from the same depraved and wicked motive. He is impelled by the same corrupt intent, or animus furandi, which actuates the perpetrator of a larceny, and should be hunted from society with the same inexorable perseverance.

Justice, therefore, requires that the wilful infringer of patents should be punished with the same rigid severity with which the common thief is punished. But the laws enacted by Congress for the protection of the inventor fall very far short of securing to him this measure of justice. Nor is it asked by him nor in his behalf. He will be content if the title deed of property, which he receives from the government on condition of the surrender of his secret to the public shall be respected, and shall be conclusive as to his rights, until it has been duly set aside by the tribunals of his country, in a proceeding against the patent itself. If his invention. were not required to undergo a severe and critical examination, in reference particularly to its novelty and originality, at the Patent Office, there would be some propriety in making his patent merely prima facie evidence of title in suits for infringement. But after it has passed such an ordeal, one trial, at least, in a court of justice, had in good faith upon the merits of the invention, should be sufficient to establish its validity, and secure to the patentee an undisturbed enjoyment of his property until the end of the term of his exclusive privilege.

It must be obvious, upon the least reflection, that the best and truest interests of society will be aided and advanced by the adoption of a system of policy with regard to inventors, which will give them adequate security and protection in the enjoyment of their just rights. If they cannot obtain the security and protection to which their genius and labors entitle them, which justice awards to them, and which are promised in the constitution and laws of their country, it requires no sagacity to perceive that discovery in science and improvement in the arts will be greatly checked; for men will not devote their intellects, their toils and their fortunes, to pursuits which promise them injustice, spoliation and poverty, instead of securing for them remuneration, competence and honors.

It has come to the knowledge of the undersigned, since his last report, that one method of evading the rights of patentees in the United States is the setting up of machines in Canada or other neighboring British provinces, where the articles manufactured by such machines are fabricated and thence brought into the United States and sold to the great injury of the American patentee. As the sale of the products of a patented machine has been decided by our

courts not to be an infringement of the patent, the patentee has no remedy in the case now under consideration.

The protection, therefore, of our own citizens holding patents under this government would seem to require some legislation for the suppression of these fraudulent practices carried on within the limits of a foreign Jurisdiction. A provision authorizing the seizure and forfeiture of all fabrics and manufactures which have been produced in a foreign jurisdiction, by machines protected by patents in the United States, and brought into this country for sale, would probably be an adequate remedy against such a violation of the rights of the American patentee.

In my last annual report, I had the honor to refer the attention of Congress to the expediency of placing the citizens and subjects of foreign governments, applying for patents in this country, on the same ground with regard to fees which our own citizens occupy. Deeming the matter of much importance to the interests of this country, I feel it to be my duty again to bring that subject to the consideration of that honorable body."

At present, the subject of a foreign government who applies to this office for a patent is required to pay the sum of $500, if a subject of Great Britain, and $300 if the subject or citizen of any other foreign power, before his application can be received; while the American citizen is required to pay only $30. It is true that the fees and duties required in most foreign countries are very much higher than those which our laws demand, but they are imposed on all alike, whether subjects or foreigners.

But, even if it were just to make a discrimination in favor of American citizens, with regard to fees, for patents, I am of the opinion that the policy is injurious to the interests of this country, and therefore not expedient. There are in foreign countries many valuable inventions and improvements which are used in secret, for the very reason that the inventors are not able to pay the enormous duties required by their governments for the security of a patent, or are fearful that they will not be protected if they were patented. And many of those inventions would find their way to this country, if their proprietors could introduce them without being burdened with a heavy tax at the outset, before they could try the experiment of their success.

In my judgment, if the foreigner were placed upon the same equal footing with the citizen, with regard to the fees charged upon his application, it would result in a large addition to our stock of useful and valuable inventions and improvements, and better enable our citizens and mechanics to compete with their rivals of other countries. This consideration alone should outweigh the value of the insignificant revenue amounting each year to a few thousand dollars, which is now derived from foreign applications.

Nor would it at all interfere with the rights or interests of the American inventor. The competition of invention is not that which arises from the production of the same descriptions of fabrics, but it exists in a proud and honorable rivalry of efforts to