CO885-8 — Page 117

APPENDIX XXI.

Exclusion of Canada from Most-favoured Nation Treatment in

Germany.

MUTUAL

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APPENDIX XXII.

PROTECTION OF PATENTS.

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لسائلين

Reference :-

C.O. 885

After the denunciation of the Treaty with Germany in 1897, negotiations were commenced for a new one. Little progress had been made in the negotiations before the expiry of the year's notice given, and just before that date Germany passed a law continuing for one year to Great Britain and all her Colonies and dependencies except Canada most-favoured nation treatment.

Her Majesty's Ambassador at Berlin was instructed to bring the matter before the German Government, pointing out that Canada did continue to Germany most- favoured nation treatment and only gave preferential treatment to Great Britain and other parts of the Empire of which Canada was a part, and that though France enjoyed preferential treatment in her Colonies, these Colonies continued to enjoy most- favoureil nation treatment in Germany.

The German-Government replied that most-favoured nation treatment in Germany was only extended to countries entitled to it by Treaty. An exception to this principle was made with respect to the British Empire, power being granted by law to the Federal Council of the German Empire to extend most favoured nation treatment to Great Britain and to all her Colonies and possessions, or to certain of them for a limited period. When the Treaty expired, in order to maintain the existing state of things as far as possible, advantage was taken of the power to continue to Great Britain and such of her Colonies as had made no change in their treatment of German produce, most-favoured nation treatment. Canada had made an alteration in the state of things existing under the Treaty by giving a preference to British goods, and as the result of that the Federal Council did not extend to it most-favoured nation treatment. Canada had deprived Germany of a valuable right which she had enjoyed for more than 30 years, and it could not be expected that Germany upon a change being made by one party in the previously existing state of affairs should accept the change without more ado. Germany only treated her Colonies on the most-favoured nation basis, and only received that treatment from them, and it was in the interests of the world's commerce and the mutual relations between Germany and Great Britain that British Colonies should treat German trade on the same footing as that of Great Britain.

From this position Germany refuses to stir.

So far as can be judged from the Canadian Trade Returns the action of Germany has not had any serious consequences to Canada.

The average exports of Canadian produce to Germany for the two years prior to its exclusion from most-favoured nation treatment and for the two years following, and for the first 10 months of the present statistical year were as follows:--

Avirago, 1907–98.

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$1,001,842

Average, 1899–1900.

$1,200,268

Ten Months ending April 1909.

$1,102,424

These figures show an increase of 10·8 per cent, in the two years following exclusion over the two years prior to it, while the returns for the first 10 months of the statistical year ending 300 instant already exceed the average of the two years ending 30th June 1898, with two of the best months for importation yet to run.

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MEMORANDUM BY BOARD OF TRADE.

In the matter of patents, the United Kingdom and its Colonies have eacli

of them independent laws and administration, one result of which is that in every case the protection granted to the patentee by the patent is limited either to the United Kingdom or to the particular Colony in which the patent is granted, as the case may be. In most of the Colonies the Patent Laws have been modelled more or less on the general lines of the Acts which have been in force in the United Kingdom at the dates when the Colonial laws have been passed.

The changes which have taken place from time to time in the Patent Laws in force in the United Kingdom have thus been accidentally a contributory cause of many divergencies, some trivial, some important, in the Patent Laws of various Colonies. Other divergencies have their origin in the local circumstances of particular Colonies, or the deliberate policy of the Colonial Governments. Thus, in Canada, several of the details of the Patent Law are assimilated to those of the United States, from which the great bulk of the inventions patented in Canada come : and the propinquity of the States, and the fear that obstructive patents may be taken out in Canada by inventors in the States for the purpose of preventing the manufacture of patented articles in Canada, have led to the passing of stringent enactments for the forfeiture of patents in the event of the importation into Canada of the patented goods, or if the patented inventions are not worked in Canada within a limited period.

Where there are good and sufficient reasons for the existing divergencies, it would manifestly he a mistaken policy to endeavour to remove them merely for the purpose of bringing about any cast-iron uniformity. But where any divergency is the result of accident rather than design, and no good object is gained by retaining it, it would be well to bear in mind, in any future revision of the law, that unnecessary discrepancies between the Patent Laws of the Colonies and the United Kingdom cannot but add to the trouble and expense which confront inventors in the United Kingdom who are desirous of patenting their inventions abroad, and Colonial inventors who desire to patent their inventions in the United Kingdom or in Colonies in which they do not themselves reside. It will be generally admitted that some approach to uniformity is desirable, so far as it is not purchased too dearly by disregard of local circum- stances and requirements. It. will, therefore, probably be useful to furnish the Colonial Premiers with a somewhat detailed eummary, such as is included in the present memorandum, of soune of the points in which the legislation relating to patents in force in the self-governing Colonies differs from or resembles that in force in the United Kingdom at the present time. To along

It should be borne in mind in connection with this memorandum, that important changes in the British Patent law are proposed by the Patents Bill now before Parliament, and that, if that Bill becomes law during the next few months, its provisions in such form as they may ultimately pass may have an Examination for important bearing on any future Colonial legislation on

Novelty,"

""Forfeiture of Patents," and "Compulsory Licences."

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The memorandum is confined to the self-governing Colonies, and is prafaced by a statement of the number of patents granted in the United Kingdom And in the Colonies to which it relates, and ends with some account of the International Convention for the Protection of Industrial Property, and the

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