If in the opinion of the Federal Trade Commission the articles made under this license are of unsatisfactory quality (and the licensee shall furnish to the Federal Trade Commission in the manner prescribed by it and when and as often as required, samples and specimens for inspection, analysis, and test); or

Circumstances have arisen which, in the opinion of the Federal Trade Commission, make it just and equitable that this license be canceled in whole or in part;

The Federal Trade Commission may, in its discretion, give notice in writing to the licensee to terminate and cancel this license in whole or in part, and, if canceled and terminated, the same shall be without prejudice to and so as not in any manner to affect any liability hereunder on the part of the licensee which may then be subsisting or have accrued.

Any sums which may at any time be payable by the licensee under the provisions of this license shall be a debt due from the licensee to the people of the United States and shall be recovered in an appropriate action in the name of the people of the United States against the licensee.

If the licensee is not to be the actual manufacturer, the licensee will be held accountable to the Federal Trade Commission for the observance of the terms of his license by the actual manufacturer of the article, and the license will contain the following addendum, naming the actual manufacturer who shall sign:

the manufacturer for_-_.

the licensee__ of the article herein licensed, separately agrees to keep separate books containing full particulars of all articles manufactured, and the cost thereof, sold to-

the licensee, and the price or prices charged therefor, and his books and plant shall be open to inspection in the same manner as provided for the licensee. The licensee and the undersigned, during the continuance of the license, shall furnish or procure to be furnished all such information as the Federal Trade Commission may consider to be material for the purpose of ascertaining the amount of royalty payable by the licensee, the cost of producing or procuring the patented article, the price or prices charged for said article, and shall permit or procure permission to be given to such person or persons as shall be authorized in that behalf by the Federal Trade Commission at any time or times to enter upon and inspect any factory or place of business in which the manufacture of the patented article

shall be carried on by the undersigned for the licensee, and all books, papers, and documents relating to such manufacture and sale. The undersigned, manufacturer, is not authorized to make, use, or vend the invention of the patent except for----

__the licensee, and not further or otherwise, and the undersigned undertakes to observe and perform the terms and conditions of the license to which this is attached.

to____.

Dated,---

Accepted and agreed to.

191__

Manufacturer.

FORM OF LICENSE UNDER COPYRIGHT.

Copyright licenses issued by the Federal Trade Commission under the provisions of the trading-with-the-enemy act will be in substantially the following form:

Copright No.

dated

to

for the (book, etc., as the case may be; see Copyright Act of Mar. 4, 1909, sec. 5, for classification) entitled (insert title of work).

The Federal Trade Commission, under the authority of and in conformity with the trading-with-the-enemy act and of the Executive order of October 12, 1917, hereby licenses to exercise within the United States

No.

--9

dated

all the rights created by the copyright laws of the United States of America, being the act of March 4, 1909, as amended, with respect to the subject matter of copyright to for the (book, etc., as the case may be; see copyright act of Mar. 4, 1909, sec. 5, for classification) entitled (insert title of work), a copy of which is annexed hereto, for the period of unless sooner terminated.

The licensee, during the continuance of this license, shall pay to the Alien Property Custodian, semiannually, within 30 days after the 1st day of January, and the 1st day of July, respectively, of each year, a royalty at the rate of per cent of the gross sums received by the licensee from the sale of the copyright work so herein licensed (or per cent of the value of the use thereof to the licensee as established by the Federal Trade Commission). The licensee shall, during the continuance of this license, keep proper accounts and separate books containing full particulars of— (a) All copies of said copyright work made or caused to be made by the licensee under the said copyright and of the price or prices charged therefor;

(b) All items of cost incurred in the use of said copyright work and in the manufacture and sale of such copyright work, and

(c) All other matters and things which, in the opinion of the Federal Trade Commission, may be material for the purpose of showing the amounts from time to time payable by the licensee concerning such royalty, and what is a fair and reasonable price to the public for such copyright work.

The licensee shall, within 10 days after each of the semiannual days aforesaid, deliver a sworn statement to the Federal Trade Commission in writing showing the aforesaid particulars.

The licensee shall during the continuance of this license give all such information as the Federal Trade Commission may consider to be material for the purpose of ascertaining the amount of royalty payable by the licensee under this license, the cost of producing, and the price or prices charged by the licensee for the said copyright work, and for that purpose shall, if requested by the Federal Trade Commission, permit such person or persons as shall be authorized in that behalf by the Federal Trade Commission at any time or times to enter upon and inspect any factory or place of business of the licensee in which the use or manufacture of the said copyright work shall be carried on, and all books, papers, and documents of such licensee relating to such use, manufacture, and sale.

If any payment under this license shall not be made within one month after the same shall have become due under the provisions herein contained (whether demand therefor shall have been made or not), or if the licensee shall or shall attempt to assign or part with the benefit of or grant any sublicense under this license, or shall make default in the performance or observance of any obligation on his part herein contained, or shall have violated any of the conditions of this license or any of the provisions of the statute under which it is granted, and if after 10 days' notice, in writing, shall have failed to comply with the aforesaid, then the Federal Trade Commission may, by notice in writing, and after a hearing, cancel and terminate this license as from the date of such notice, but without prejudice to and so as not in any manner to affect any liability hereunder on the part of the licensee which may then be subsisting or have accrued.

If in the opinion of the Federal Trade Commission the licensee has failed to use this license so as to satisfy the reasonable requirement of the public with regard to the copyright work; or

If in the opinion of the Federal Trade Commission the licensee has failed to supply to the public the copyright work at reasonable prices; or

If in the opinion of the Federal Trade Commission the licensee has charged unreasonable or excessive prices for said copyright work; or

Circumstances have arisen which in the opinion of the Federal Trade Commission make it just and equitable that this license be canceled in whole or in part;

The Federal Trade Commission may, in its discretion, give notice in writing to the licensee to terminate this license in whole or in part,

and if canceled and terminated the same shall be without prejudice to and so as not in any manner to affect any liability hereunder on the part of the licensee which may then be subsisting or have accrued. Any sums which may at any time be payable by the licensee under the provisions of this license shall be a debt due from the licensee to the people of the United States and shall be recovered in an appropriate action in the name of the people of the United States against the licensee.

If the licensee is not to be the actual manufacturer or producer of the copyright work, the licensee will be held accountable to the Federal Trade Commission for the observance of the terms of his license by the actual manufacturer or producer of the work, and the license will contain the following addendum, naming the actual manufacturer or producer of the work, who shall sign:

, the manufacturer for

--g

the licensee of the copyright work herein licensed, separately agrees to keep separate books containing full particulars of all such copyright works manufactured and the cost thereof, sold to

the licensee, and the price or prices charged therefor, and his books and plant shall be open to inspection in the same manner as provided for the licensee. The licensee and the undersigned, during the continuance of the license, shall furnish or procure to be furnished all such information as the Federal Trade Commission may consider to be material for the purpose of ascertaining the amount of royalty payable by the licensee, the cost of producing or procuring the copyright work, the price or prices charged therefor, and shall permit or procure permission to be given to such person or persons as shall be authorized in that behalf by the Federal Trade Commission at any time or times to enter upon and inspect any factory or place of business in which the manufacture of the copyright work shall be carried on by the undersigned for the licensee, and all books, papers, and documents relating to such manufacture and sale.

The undersigned, manufacturer, is not authorized to exercise any right conferred by the copyright statutes with respect to the copyright work here involved except for the licensee, and not further or otherwise, and the undersigned undertakes to observe and perform the terms and conditions of the license to which this is attached.

to

A surety company bond may be required of the licensee, if, in the opinion of the Federal Trade Commission, it is necessary to safeguard the public interest.

PATENTS-TRADE-MARKS-TRADE

NAMES" SALVARSAN "606" "ARSENOBEN ZOL"-" ARSAMINOL "-LICENSE TO MANUFACTURE AND VEND UNDER TRADE NAME "ARSPHENAMINE"-"WAR MEASURES"—___ TRADING WITH THE ENEMY.

[Act, sec. 10-Order of Nov. 30, 1917.]

The Federal Trade Commission has authorized the following: The Federal Trade Commission to-day entered orders for licenses to three firms to manufacture and sell the product heretofore known under the trade names of "Salvarsan," " 606," "Arsenobenzol," "Arsaminol," patent rights which have been held by German subjects. The orders for licenses are subject to acceptance and agreements by the licensees to the stipulations made by the commission. Upon such acceptance and agreement licenses Nos. 1, 2, and 3 will be formally granted by Secretary L. L. Bracken, acting for the commission.

Hereafter this important drug will be manufactured and sold under the name of "Arsphenamine."

AUTHORITY FOR ACTION.

The Trade Commission's action was taken under section 10 of the trading-with-the-enemy act, under direction of Commissioner Fort, upon recommendation of C. H. McDonald, Edward S. Rogers, and Francis Phelps, in charge of granting such licenses. The Public Health Service has prepared rules and standards for the manufacture and testing of " Arsphenamine," and will supervise its manufacture, authority having been conferred on the Public Health Service by the Secretary of the Treasury, and the observance of the rules and standards become a condition of the license.

The three firms which will be hereby permitted to manufacture and sell "Arsphenamine" are Dermatological Research Laboratories, of Philadelphia; Takamine Laboratory. (Inc.), of New York; and Farbwerke Hoechst Co. (Herman A. Metz Laboratory), of New York. The original patent for manufacture of what has heretofore been known as "Salvarsan," etc., was issued to Paul Ehrlich and Alfred Bertheim, German subjects, and assigned to Farbwerke Vormals Meister, Lucius and Brüning, of Hoechst on the Main, Germany.

The supply of the drug now licensed to be made in America, up to 1915, was almost exclusively obtained by importation from Germany. It is at present the only known specific for virulent blood poison. From the outbreak of the war importation became more difficult.