From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Letter from a consulting engineer regarding royalty terms for a Synchro Mesh Transmission patent.
| Identifier | ExFiles\Box 6\2\ 02-page187 | |
| Date | 7th July 1931 | |
| W.W.CONSTANTINE. Consulting Engineer. 111, Grosvenor Road, London S.W.1. Tel: Victoria 3537-3538. 7th, July 1931. Messrs. Rolls-Royce Ltd., Derby. (For the attention of R.W. Harvey-Bailey Esq.,) Dear Sirs, Re: Synchro Mesh Transmission. Further to my letter of the 4th ultimo, I would advise you that rather a peculiar situation has arisen in connection with the terms outlined in my letter. Mr. McEvoy who is head of our Patent Section in Detroit is over here on a vacation, and I mentioned to him the subject of our correspondence. I might state that he was not aware of the proposed terms set in the cable which I received from Detroit. Mr. McEvoy is of the opinion that the royalty of $5.00 per car, which I put before you, is too high, and he has authorized me to write you to the effect that if you wish to have a license we will accept a royalty of $3.00 per car. We feel that if you wish to use our synchro-mesh device, the difference between $3.00 and $5.00 would not concern you greatly, but taking into consideration the fact that you have kindly helped us in the past in connection with one or two patent investigations we felt that we should do our best to reciprocate by offering you the best possible terms. In conclusion, I would like to mentioned that the figure of $5.00 was calculated by means of a formula which takes into account selling price of the automobile, and annual production. For that reason, our people in Detroit considered it a fair figure to propose, but as mentioned above, I am pleased to advise that Mr. McEvoy instructed me to reduce it. Cont'd.{John DeLooze - Company Secretary} | ||