SUBDIVISION 6. PATENT RIGHT NOTES. 3178g (5094) [Note Given for Patent Right; How to be Written, et cetera.] A promissory note, or other negotiable instrument, the consideration for which consists in whole or in part, of the right to make, use, or vend a patented invention, or an invention claimed to be patented, shall have written or printed prominently and legibly, across the face thereof, and above the signature thereto, the words "Given for a patent right;" such instrument in the hands of any purchaser or holder, shall be subject to the same defenses as it would be in the hands of the original owner or holder; and any person who purchases or becomes the holder of a promissory note, or other negotiable instrument, knowing it to have been given for the consideration aforesaid, shall hold the same subject to such defenses, although the words "given for a patent right" are not written or printed upon its face. [Rev. Stat. 1880, Sec. 3178; 66 v. 93, Sec. 1 (S. & S. 510.] The act of May 4, 1869 (66 O. L. 93), "to regulate the execution and transfer of notes given for patent rights," is not in conflict with Sec. 8 of Art. 1 of the constitution of the United States, nor of the act of Congress enacted in pursuance thereof, relating to the granting of letters patent. Tod v. Wick Bros. 36 Ohio St. 370. (1881.) Where a negotiable promissory note, given for an interest in a patented invention or discovery, not having the words "given for a patent right" written or printed thereon, is negotiated to one having knowledge of its consideration, he takes it subject to such defenses and such only, as would have existed against it, if such words had been legibly written or printed thereon. Ib. When A contracts to sell and assign to B the exclusive right to manufacture fruit cans in several methods, differing in detail, B is not bound to accept the assignment of a patent covering one only of such methods of manufacture, though the other specified methods are unpatented and may lawfully be used by B. Serviss v. Stockstill, 30 Ohio St. 418. (1876.) The act of May 4, 1869 (66 O. L. 93), making it a penal offense to take a "promissory note or other negotiable instrument," not containing the words "given for a patent right," knowing the consideration thereof to be a patented invention, does not include in such offense the taking of notes or instruments not negotiable. State v. Brower, 30 Ohio St. 101. (1876.) The act of May 4, 1869, regulating the execution and transfer of notes "given for patent rights," relates only to the instruments named in the act, when given for an interest in the invention, secured to a patentee by letters patent, and does not include in its provisions negotiable paper, given for machines built under letters patent, nor negotiable paper, given to secure the agency to sell machines so built, in certain specified territory. State v. Peck, 25 Ohio St. 26. (1874.) The purchaser of a promissory note without endorsement or other guaranty of payment, but with notice that it was given for a patent right, is not thereby, as a matter of law, charged with notice that it was obtained by fraud or without consideration. Sackett et al. v. Kellar, 22 Ohio St. 554. (1872.) The holder of negotiable promissory notes, purchased before maturity, and for value, but with notice that they had been obtained from the maker by fraud and without consideration, cannot, by way of estoppel, prevent the maker from setting up such defenses as against him, by showing that the maker, before the purchase, had informed him that the notes were all right, and would be paid at maturity, if it appear that, at the time such declarations were made, the maker was ignorant of such fraud and want of consideration, and that the holder at the time believed him ignorant thereof, unless he also show that he informed the maker of the facts which had previously come to his knowledge affecting the validity of the notes. Ib. Relief will be afforded, in a court of equity, against the payment of notes given for a void patent right. Darst v. Brockway, 11 Ohio 462. (1842.) An injunction will be allowed against the collection of such notes as may be outstanding and in the hands of the vendors of the patent right. Ib. The defenses which may be made, by virtue of the provisions of Sec. 3178, Rev. Stat., to a negotiable instrument, having written across its face "given for a patent right," are limited to such matters of defense as grow out of the transaction in which the instrument originated. Allen v. Johnson, 11 Circ. Dec. 42 (20 R. 8). (1900.) Does not destroy the negotiability of the note or render it illegal if the words "given for a patent right" are not written across the face of the note. Ib. The abuses that it was sought by this section to remedy was that of obtaining a negotiable instrument for a patent right and then precluding defenses by a sale of the same before maturity to a bona fide holder. Ib. Section 6993, requiring the words "given for a patent right" written or printed across the face of a note given for a patent right, is in contravention of the laws of the United States relating to patent rights and is invalid. Lake, In re, 6 O. F. D. 58; as it impairs the value of patent right property created by the constitution and laws of congress. Woolen v. Banker, 6 O. F. D. 56; Ib. 4 O. F. D. 440. (1877.) Section 2. That original sections 3171, 3172, 3173, and 3174, and original sections 3175, 3176, and 3177, as amended March 12, 1896 (92 Ohio Laws, 61-62), and original section 3178 of the Revised Statutes of Ohio, be and the same are hereby repealed. Section 3. This act shall take effect and be in force on and after the first day of January, nineteen hundred and three (1903). duty of holder where bill dishonored by non-acceptance.. 165 when bill dishonored by non-acceptance... 165 .... what bills must be protested for non-acceptance. 166 172 of bills in set.... ACCEPTANCE FOR HONOR, when bill may be accepted for honor. how made for part of sum. .168, 169 169 168, 169 for different parties.. ..168, 169 when acceptance does not state for whose honor made. .. 169 agreement of acceptor for honor... 169 liability of acceptor for honor.... 169 maturity of bill payable after sight accepted for honor. how presentment for payment made to acceptor for honor... dishonor of bill accepted for honor.... when delay in making presentment excused. 169 ... 169 170 170 PAGE ACCEPTOR, by accepting, admits existence of drawer.. 95 95 95 admits authority to draw... 95 liability of acceptor... 95 demand of payment not necessary in order to charge... 106 when acceptor insolvent, bill may be protested for better se- ACCOMMODATION PARTIES, liability of.. rights of on payment of instrument.... ACTION, meaning of.... restrictive indorsement confers right to bring... 130 53 147 179 58 31 31 31 35, 106 119, 120 121 154 154 .155, 156 155, 156 155, 156 155, 156 155, 156 155, 156 155, 156 155, 156 155, 156 155, 156 24 43 20 160 176 176 28 |