Securities negotiable on the stock exchange. in case the same should be more onerous than profitable, has also been noticed (o). Shares have been held to be things in action, so as to be excluded from the operation of the reputed ownership clauses of the bankruptcy law (p). In connection with stocks and shares may be mentioned securities negotiable on the Stock Exchange, and debentures. According to English law, a negotiable instrument (q) cannot, as a general rule, be created by a contract under seal (r). But there are various securities which by established mercantile usage (s) are transferable by delivery like money, and are recognized as negotiable instruments by law; so that any person may acquire a good title thereto who takes them for valuable consideration in good faith, notwithstanding any defect in the title of the person from whom he took them. Such are the securities of foreign governments expressed to be payable to bearer and generally known as bonds (t); the scrip of loans to foreign governments entitling the bearer thereof to a bond for the amount mentioned therein when issued by the government (u); and scrip certificates issued by railway, mining, banking, gas, water, and other companies in contemplation of the allotment of shares, and entitling the bearer on payment of the sum mentioned therein to the number (t) Gorgier v. Mieville, 3 B. & C. 45 (Prussian bonds); Att.-Gen. v. Bouwens, 4 M. & W. 171, 180, 190 (Russian, Danish and Dutch bonds); see Picker v. London and County Bank, 18 Q. B. D. 515 (Prussian Consolidated Bonds not negotiable in England, if without the coupons for the payment of interest belonging thereto). (u) Goodwin v. Robarts, 1 AppCas. 476; see also Easton v. London Joint Stock Bank, 34 Ch. D. 95; reversed 13 App. Cas. 333, explained 1892, A. Č. 201. of shares specified therein (x). Debentures is the name Debentures. generally given to instruments made under the seal of a joint stock company, whereby the company charge themselves or their property, or both, in favour of specified persons or of bearer with the repayment of money borrowed by them under statutory powers to increase their capital by borrowing money (y). The question whether debentures give a charge on the property of the company depends upon the expressions used and intention declared therein (). Debentures frequently Floating create what is called a floating security, giving the de- security. benture holders a charge on the assets of the company for the time being, but permitting of the free disposal of the company's property by the directors in the ordinary way of business (a). Debenture stock is a kind Debenture of funded debt of a company secured upon the company's assets (b). stock. The prerogative of the Crown, which, as we have Patents. seen, was formerly exercised in the grant of letters patent for the incorporation of companies, is also used for conferring on private individuals certain exclusive rights and privileges. These rights, called patents from the letters-patent which confer them, will be considered in the next chapter. (x) Rumball v. Metropolitan Bank, 2 Q. B. D. 194, 196. (y) See British Steam Navigation Company v. Commissioners of Inland Revenue, 7 Q. B. D. 165, 168, 172; Edmonds v. Blaina Furnaces Co., 36 Ch. D. 215; Levy v. Abercorris Slate & Slab Co., 37 Ch. D. 260. (2) See Gardner v. London, Chatham and Dover Ry. Co., L. R. 2 Ch. 201; Re Panama, &c., Royal Mail Co., L. R. 5 Ch. 318; Re Florence Land and Public Works Co., 10 Ch. D. 530. (a) See Re Florence Land and Public Works Co., 10 Ch. D. 530, 547; Re Colonial Trusts Corporation, 15 Ch. D. 465, 472; Wheatly v. Silkstone, &c., Coal Co., 29 Ch. D. 715; Re Horne and Hellard, ib. 736; Re Opera, Limited, 1891, 3 Ch. 260; Brunton v. Electrical Engineering Corporation, 1892, 1 Ch. 434; English, dc., Investment Co. v. Brunton, 1892, 2 Q. B. 1, 700; Driver v. Broad, 1893, 1 Q. B. 539, 744. (b) Re Bodman, 1891, 3 Ch. 135. A patent. Statute of Proviso. CHAPTER VII. OF PATENTS AND COPYRIGHTS. A PATENT is the name usually given to a grant from the Crown, by letters-patent, of the exclusive privilege of making, using, exercising and vending some new invention. The granting of such letters-patent is an ancient prerogative of the Crown, a prerogative which remains unaffected by the Patent Acts of 1852 (a) and 1883 (b). In the reign of Queen Elizabeth this prerogative was stretched far beyond its due limits, and the monopolies thus created formed one of the grievances which King James, her successor, was at last obliged to remedy. Accordingly by the first section of a statute passed in the twenty-first year of his reign, and commonly called the Statute of Monopolies (c), it was declared and enacted that all such monopolies were altogether contrary to the laws of this realm and so were and should be utterly void and of none effect, and in nowise put in use or execution. In this statute, however, there are certain exceptions, and particularly one on which the modern law with respect to patents may be said to be founded. This exception is contained in the 6th section, which runs as follows:: "Provided also and be it declared and enacted, that any declaration before mentioned shall not extend to any letterspatent and grants of privilege for the term of fourteen years or under, hereafter to be made, of the sole working or making of (a) Stat. 15 & 16 Vict. c. 83; see sect. 16. (b) Stat. 46 & 47 Vict. c. 57; see s. 116. (c) Stat. 21 Jac. I. c. 3. Sects. 1 and 6 of this Act are still in force. any manner of new manufactures within this realm, to the true and first inventor and inventors of such manufactures, which others at the time of making such letters-patent and grants shall not use, so also they be not contrary to the law or mischievous to the state, by raising prices of commodities at home, or hurt of trade, or generally inconvenient; the said fourteen years to be accounted from the date of the first letters-patent or grant of such privilege hereafter to be made; but that the same shall be of such force as they should be if this Act had never been made, and of none other." It will be seen that the granting of letters-patent is not expressly warranted by this statute; but that it merely reserves to such letters-patent as fall within the terms of the exception, such force as they should have had if the Act had never been made, and none other force. As, however, all grants of exclusive privilege by letters-patent, which do not fall within this exception, and some others of little importance, are now rendered void by the statute, the construction of this exception has become a matter of great practical importance. And it is declared in the Patents, Designs and Trade Marks Act, 1883 (d), by which the law relating to the grant of letters for an invention is now regulated, that, in and for the purposes of that Act, "invention " means Invention. any manner of new manufacture the subject of letterspatent and grant of privilege within section 6 of the Statute of Monopolies (e). teen years. And, first, the term must be fourteen years from the Term of date of the letters-patent, or under; and the full term patent fourof fourteen years has been usually granted. By the Patents Act of 1883 (f), the term limited in every patent for the duration thereof shall be fourteen years from its date; but every patent shall, notwithstanding anything (d) Stat. 46 & 47 Vict. c. 57, s. 46. This Act was amended by stats. 48 & 49 Vict. c. 63; 49 & 50 Viet. c. 37; and 51 & 52 Vict. c. 50. Procedure under the Act is now governed by the Patents Rules, 1890; Statutory Rules & (e) Stat. 21 Jac. I. c. 3. therein or in this Act, cease if the patentee fails to make the prescribed payments within the prescribed times (g). If, however, the patentee fail so to make any such payment through accident, mistake, or inadvertence, he may obtain an enlargement of the time for making that payment under the conditions specified in the Act (). The fees now payable in respect of letters-patent, are prescribed by the Patents Rules, 1892, second set (i), and the principal payments thereExtension of by required to be made are stated in the note (k). By the Patents Act of 1883 (1), the person for the time being entitled to the benefit of a patent (m), is enabled to apply for an extension of the term of his patent by petition to her Majesty in Council, to be presented at least six months before the time limited for the expiration of the patent; and to be referred at her Majesty's pleasure to the Judicial Committee of the Privy Council (n). And if the Judicial Committee report that the patentee has been inadequately re term of patent. Or, On filing complete specification with first application 400 The patentee may pay the whole or any portion of the aggregate of these annual fees in advance. (7) Stat. 46 & 47 Vict. c. 57, s. 25, sub-s. 1; see sect. 45. (m) See sect. 46. (n) Sect. 25, sub-s. 3; see Re Newton's Patents, 9 App. Cas. 592; Re Yates & Kellett's Patent, 12 App. Cas. 147. |