Effect of Patent lawsuits

The Wrights brothers were involved in patent infringement cases with other companies
that used their patents without their authority. One of those cases involved the Herring-Curtiss
company who lay claims to patents they did not own (Roach, 2014). The Herring Company was
declared bankrupt and lost the case to the Wright brothers. The Wrights defended their
intellectual property vigorously. The company also pursued legal battles with individual pilots
who exhibited their products. They included Claude Grahame-White (Roach, 2014). The
brothers wanted a speedy expedition of the lawsuits though the courts were quite slow in
executing this mandate. Wilbur Wright held that the tedious court process had affected the value
of their patent and the opportunities lost during that period would be irrecoverable (Roach,
2014).
The operations involving litigations against those who infringed on the patents ultimately
resulted in a decline in the progress of the aerodynamic industry. The Wrights patent blocked
other individuals from producing a similar product for commercial purposes based on their
invention. The patent triggered an adverse impact on commerce and development since it
prevented expansion of the aerodynamic industry and market potentials (Roach, 2014). The
Wrights expressed so much concern in their efforts of patent litigation and were left with little or
no time for licensing and demonstration activities. The brothers also incurred high costs in
litigation costs.
The ability for other individuals to improve the patents by entering the aviation market
was hindered by the Wrights’ vigorous efforts in patent litigation. This, in turn, slowed down the
technological advancement of the airline industry and the airplanes. The litigation processes also
had an effect on the Wrights since it hindered innovations on their inventions. The intentions and

EFFECT OF PATENT LAWSUITS
activities involving the Wrights’ patent litigation adversely affected the aviation industry
commercially and in its technological improvement. In the Wrights brothers’ pursuit of monetary
gain for their invention, they hampered the advancement of the industry brought to existence by
their invention. The Wrights perceived the lawsuits as the most efficient way to salvage their
business. They looked to the courts to prevent continued operations of competitors who had
infringed on their patents.
The patent infringement lawsuits reflected the Wright Company as one which was
determined to jeopardize the progress of the aviation industry. The company demanded royalties
amounting to 20% of the purchase price of an airplane which was deemed outrageous (Roach,
2014). Benoist, an aviator, held that the aviation industry would not prosper if left in the hands of
a monopoly. The infringement lawsuits such as that against Curtiss impeded manufacturers from
expanding their enterprises and declined development levels. Opposed to Orville, other directors
from the Wrights Company had the intention of ensuring that the company remained a monopoly
in the aviation industry.
In addition to the lawsuits on patent infringement, the growth of the airline industry
slowed down due to the limited financial aid given by the government to the industry. According
to McFadden, there was a decline in production and new investors were barred from entering the
industry due to patents that were hoarded privately and this resulted in a failure to meet the
market demand (Roach, 2014). Olszowka believed that the stunted growth of the sector was also
as a result of minimal involvement by the government in the affairs of the aeronautics industry.
The lawsuits did not only hinder the growth of the industry but also affected the profitability
index of the Wright Company over the years and prevented it from being the market leader in the
aerodynamic industry. The litigation processes also prevented the company from improving

EFFECT OF PATENT LAWSUITS
innovations of the products. Additionally, the lawsuits affected the confidence levels of
consumers and individual investors thus scaring them away from venturing into the industry.
However, Crouch held that the patent battles put up by the Wright Company did not have
long-term effects on the development of the aeronautics industry. Based on the profitability
levels of the Curtiss company, he believed that the stunted growth was influenced by other major
issues such as little financing of the industry by the government (Roach, 2014). In comparison
with the European aeronautics industry, he believed that the exponential growth experienced in
the European’s industry was as a result of the value of the funding offered by the government.
Couch agrees that the technological advancement of the sector stalled due to the lawsuits. Orville
Wright also admits that while the trials progressed, they put the innovations of airplanes at bay
(Roach, 2014). The idea was based on the fact that the company did not wish to weaken their
lawyers’ claims by incorporating poor designs. The dismal growth of the industry gave the
government little reason to invest in it. The amount of money spent by the Wrights Company in
the lawsuits was quite much thus reducing the amounts available for investing in innovations.
In conclusion, it is quite evident that the patent battle of the Wright Company set back the
growth and development of the aerodynamic industry. The stunted evolution of the sector can be
attributed to lack of funding, decline in improved innovations and weak investor confidence.

EFFECT OF PATENT LAWSUITS

References

Roach, E. J. (2014). The Wright Company: From Invention to Industry. Ohio University
Press.