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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).
Letter from Overdrive Gears Ltd. discussing royalty terms and licensing for different chassis models.

Identifier  ExFiles\Box 136\2\  scan0098
Date  2nd June 1939
  
1153.

PLEASE REPLY DIRECT TO "ORMIDALE" THE AVENUE, HATCH END, MIDDX. 'PHONE: HATCH END 1221

DIRECTORS
A.C.WICKMAN.
WALTER JENKS.
C.D.GAY.
E.J. de NORMANVILLE.

Overdrive Gears Ltd.,
76, VICTORIA STREET,
LONDON, S. W. 1.

TELEPHONE AND
TELEGRAMS
VICTORIA 6291

2nd June, 1939

Dear Mr.Robotham,

I regret having to worry you on sordid commercial matters - but am getting "kicked in the pants" myself, because we have other directions where people are waiting for definite licence terms; and the special arrangements we have agreed to with your good selves will have to go in as an alternative scheme everywhere else.

So far we are agreed as to the sum of 15/- for the smallest models. If now you would give me a sufficiently close approximation to the chassis price of such smaller models to warrant its adoption by both of us (either retail or trade price) we might then be able to make the said chassis price, or under, be rated as 15/- per chassis. If, for example, the said chassis price was likely to be something between £475 and £525 (trade or retail) could we then agree to call it £500 - as we would prefer some such round figure if it could be arrived at?

To meet your larger models, the scheme I would like your Company to consider would be an increase of X/shillings per (say), each additional £50 of chassis price or part of £50 per chassis price; say to the nearest 3d.

For example if we started off with a datum line of trade price chassis at £500 or under, to be 15/- and were able to agree to a further 1/- for each additional £50 - then a chassis selling at a trade price of a £1,000 would involve a royalty of 25/-.

Your Company may agree with our view point that something/

W.A.Robotham,Esq.,
Messrs Rolls-Royce,Ltd.
Derby.
  
  


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