M-151 engine licensing/patents

From: jim gilmore (jgilmore@oeonline.com)
Date: Fri Mar 17 2000 - 14:30:14 PST


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  Jack wrote:
>You'll find the lineage for the M151 engine in the 134 cu inch ford ag
>tractor engine of the early 50's. The two were designed side by side,
>totally by Ford Motor Company engineers.

    Actually the jeep motor came first.

> There were subsequent and varied distribution schemes to get the engines
> made and sent to contract holders, but the design was all ford. I wonder
> how licensing was handled, because I know that the engine design shows up
> in non-ford commercial products other than the M151. Anyone know?

     OK, Remember, you asked........The question of reproduction rights
figured in the design right from the start. There were two kinds of patent
rights Ford had to deal with in the development contract. "Foreground
Patents" (patents conceived in the performance of the development contract)
and "Background Patents" (patents already owned or controlled by a
contractor or subcontractor in items being designed or purchased). Under
the terms of the 2.5 million dollar Government development contract, Ford
had agreed that all subcontractors and contractors must;
             "...Grant by way of an appropriate provision in each
subcontract, without additional consideration, of an irrevocable,
royalty-free license, in favor of the Government, to reproduce, or have
reproduced, for Governmental purposes, all of the parts, components, and/or
assemblies, furnished by each subcontractor."
       This became a sticking point with several possible
subcontractors. Borg-Warner, for example, would not agree to these terms
so Ford had to seek other sources for CV joint, radiator and several other
components. Here is just one paragraph of the clause that had to be
agreed with to deal with the Government;

          "Seller hereby grants to buyer and to the Government a
non-exclusive, irrevocable, royalty-free, non-transferable license to make,
have made, use and sell devices or methods of their manufacture embodying
any invention, discovery or improvement conceived or first reduced to
practice in the performance of this purchase order.".

      (Data from: Ordnance Vehicle Project, Progress Report No. 4, Nov. 10,
1952, Ford Motor Co. Industrial Archives)

        Now you can see why so many companies will not seek Government
contracts. YOU invent it and develop it, the Government owns it, then gives
it to your competitor to produce! It doesn't take a genius to see this is
a good way to go broke!

     Just look at Bantam................

            Jim Gilmore MVPA # 5843

Member Ist Michigan AOD Chapter MVPA
                Great Lakes Chapter MVPA
                Ohio Motor Pool Chapter MVPA
                Red Ball Chapter MVPA
                Ontario Military Vehicle Association
                Midwest Military Vehicle Assocation
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