SPCGL-Patent Branch (1) 26 duly 1944 dames P, Hume, Beqe, Wilkinson, Huxley, Byron & Knight First Netional Bank Chicago 3, illinois Bldg,, ? Dear Er, Humes In reviewing Browning Company the royalty and Colt's arrangements Patent between Firearms Js He Manufacturing & Me Ge Company, particularly with reference to the 37 am. automatic eannon,it is noted from page 29 of the memorandum, submitted to St, Louis Ordnance District Price Adjustmert Board, that this cannon exbodies certain of the principles cf the recoil operating mechanism disclosed in patent Ne. 678,937. It list ef patents 6 April 1903, is further noted that under which Colt was licensed under that the 1903 azreement gave Colt not only a it is understecd this patent is ineluded the in the ~— agreement of license under the which might issue patents listed, but alse a license under any patents covering improvements in the inventions disclosed in these patents. this each CRE « A In agreement the royalty rate was 45.00 for with respect to om page 41 : separate the 37 mm, early agreement 35 July dated made was 1931 as follows: schedule having a royalty cannon, $1,000 per gun for the first 100 guns | 950 500 per per gun gun for the for all These royalty rates have been further of the above mentioned memorancun. next 100 uns additional guns as indicated reduced In wiew of the provisions in the 1903 agreement for rights wider future inventions, inquiry is made as to the reasons for entering into | the It would appear that Colt, 1931 agreement. respecting the 37 mm. cannon. agreement for any rights earlier the it 90 chose, could have relied upon which it might desire Your comments For the Chief under Browning respecting the patents foregoing covering are the 37 mm. requested, | of Ordnance: Very Ghas. Lt. truly yours, 2. Herretrom Gol., Assistant Ord. Dept. cannon, if ©