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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).
Royalty payment proposals from the Maybach Co. for their 'Easy Change Dog' scheme.

Identifier  ExFiles\Box 128\2\  scan0075
Date  30th March 1931
  
R.{Sir Henry Royce}
Sg.{Arthur F. Sidgreaves - MD}
Wor.{Arthur Wormald - General Works Manager}
Hs.{Lord Ernest Hives - Chair}
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x2200.

RECEIVED 31 MAR 1931

MAYBACH - EASY CHANGE DOG.
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In view of the possibility of us wanting to use the Maybach scheme on one of our new designs, we wrote the Maybach Co. in order to ascertain what their ideas were in regard to the Royalty, as obviously we would have to settle this before we could decide upon a policy, and the amount of royalty might seriously affect the issue.

We have had a reply from the Maybach Co., and their demands are to my mind excessive.

Their proposals are :-

1/- A lump sum payment of £1500.

2/- A royalty of 1/4% on the list price of the car to which the device is fitted. This, in the case of our 40/50 HP. chassis at the present price, would work out at £4. 12. 6d.

I am replying to their letter to the effect that we consider the terms rather out of proportion for the benefit gained, and citing our own experience where we have licenced other people, as for instance in connection with our servo brakes.

BY
  
  


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