FIRST: That the said _William Franklin_ for and in consideration of the payment of $1000 by the said _George Wilson_ will pay to the said _George Wilson_ 5 per cent. of all net receipts accruing in any manner from the sale or working of the said invention and patent during the term of its life.
SECOND: That the said _George Wilson_ shall pay to the said _William Franklin_ the sum of $1000 which shall be applied to the making of a _model_ of the said invention and to securing a letters patent of the United States for the same.
It is understood and agreed that this instrument shall bind the parties hereto, their heirs, executors, administrators, successor or successors or assigns.
IN WITNESS WHEREOF, the parties hereto have hereunto interchangedly set their hands and seals the day and year first above written.
_William Franklin_ [L. S.] _George Wilson_ [L. S.]
~About an Interest in a Patent.--~There is a big difference between assigning an interest in your invention and assigning an interest in your patent.
Many an inventor assigns an interest in his patent either before or after it is granted to some one who will advance the needed money. But this is a thing you should never do for after having made such an _assignment_, however small the part, the person who owns it can make, use or sell the invention which the patent covers, as he chooses, just as though he owned the whole patent and you can neither stop him nor even sue him for damages.
You can, of course, make, use and sell the invention covered by the patent too but usually it is the other fellow who gets the best of the bargain.
~Royalties, Shop Rights, etc.--~After you have built a working model and obtained a patent on it there are many ways of making money out of your invention.
One is to sell your invention and patent outright; another is to sell _shop-right licenses_; another is to have some manufacturer give you a _royalty_ on each machine or device he makes and sells, and yet another way is to sell _territorial rights_, that is the town, county and state rights to manufacture your invention. Forms of agreements for all of these deals will be found in the _Rules of Practice_ of the United States Patent Office.