S.M.B. Go. | | | sold | by the Licensee under the terms of this agreement and embodying the inventions of the aforerecited Letters Patent of the United States, or any of them, or any claims thereof, the following royalties." "Ninth **** covenanted jt being hereby and agreed that mutually this understood license agreement and all of the terms, covenants, conditions and agreements hereof shall inure to_ the benefit of and be binding upon the respective parties hereto jC i [O+} ita jk *iO | Cis pRaict| OQ jet) iD iw io j(Q jor] (9 |D iM 1© successors Bsc assigns so ] ors and assigns hotguns embodying phy respective ix their lim lo © iD jctiO © 10 |r-i® and several Letters It has been our understanding, which is now confirmed by the opinion of our counsel, that the above articles when read in conjunction with article First and other parts of the contract mean that the license agreement is to be binding, etc. so long as we continue, within the life of _ the patents, to manufacture the autoloading guns There is nothing to inure to our benefit after the expiration of the Anyone is patents. them at liberty to use the construction which was covered by such patents, in manufacturing and selling autoloading guns, without paying royalties to you; and it would be a great disadvantage to us if we were obliged to continue paying royalties indefinitely. In fact, such an obligation would make it practically impossible for us to manufacture these guns in competition with other Gompanies not similarly restricted. Even before the patent expired, an autoloading gun, which we understand is a close imitation of model 11, was and other brought parts can afford to It licensee out in Germany of the world and sell guns manufactured at is now a price being much by sold below in this that at country which we us. is certainly unusual for a license agreement to bind to pay royalties after the expiration of the patents; the and if that had been the intention of the parties, it would have been clearly expressed in appropriate lamuage. The whole question is one of the proper construction of the contract. It roMalties and 28 and, not our suggest Pde payment of 13 of this royalties to a desire therefore, sete fbds itements and three as is to withhold are you this accept year for any returning which you:sent that of we this back of our the money check due #9636 to us with your check in full payment royalties on Models 24, you for of April for letter for 8 and $12648.52 the 17, first and as royalties due on the Model 11 up to and including February year, with the understanding that the payment of further on this model will whether you are entitled be deferred to until royalties the after question the is expiration settled of the