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Statute of Monopolies
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Statute of Monopolies
The Statute of Monopolies (21 Jas. 1. c. 3) was an act of the Parliament of England notable as the first statutory expression of English patent law. Patents evolved from letters patent, issued by the monarch to grant monopolies over particular industries to skilled individuals with new techniques. Originally intended to strengthen England's economy by making it self-sufficient and promoting new industries, the system gradually became seen as a way to raise money (through charging patent-holders) without having to incur the public unpopularity of a tax. Elizabeth I particularly used the system extensively, issuing patents for common commodities such as starch and salt. Unrest eventually persuaded her to turn the administration of patents over to the common law courts, but her successor, James I, used it even more. Despite a committee established to investigate grievances and excesses, Parliament made several efforts to further curtail the monarch's power. The result was the Statute of Monopolies, passed on 29 May 1624.
The statute repealed some past and future patents and monopolies but preserved exceptions: one of these was for patents for novel inventions. Seen as a key moment in the evolution of patent law, the statute has also been described as "one of the landmarks in the transition of [England's] economy from the feudal to the capitalist". Even with the statute in force, it took over a century for a comprehensive legal doctrine around patents to come into existence, and James I's successor Charles I regularly abused the patents system by ensuring that all cases relating to his actions were heard in conciliar courts, which he controlled. The English Civil War and the resulting Stuart Restoration finally curtailed this system. The statute is still the basis for Australian law, and until the United Kingdom began following the European Patent Convention in 1977, was also a strong pillar of the United Kingdom's intellectual property law.
Historically, English patent law was based on custom and the common law, not on statute. It began as the Crown granted patents as a form of economic protection to ensure high industrial production. As gifts from the Crown, there was no judicial review, oversight or consideration, and no actual law developed around patents. This practice came from the guilds, groups who were controlled by the Crown and held monopolies over particular industries. By the 14th century the economy of England was lagging behind that of other European nations, with the guilds too small to control industrial production successfully. To remedy this, Edward II began encouraging foreign workmen and inventors to settle in England, offering "letters of protection" that protected them from guild policy on the condition that they train English apprentices and pass on their knowledge. The first recorded letter of protection was given in 1331. The letters did not grant a full monopoly; rather they acted as an extended passport, allowing foreign workers to travel to England and practice their trade. An exceptional example (considered the first full patent in England) was issued to John of Utynam on 3 April 1449, granting him a monopoly. Overseas, the practice of granting full industrial patents and monopolies became common in Italian states by the 1420s.
Over the next century, the granting of full industrial patents became a more common practice in England; the next record is a letter from 1537 to Thomas Cromwell, Henry VIII's private secretary, from Antonio Guidotti, a Venetian silk-merchant. Guidotti had persuaded a group of Venetian silk-makers to practice in England, and wanted the king to grant him letters patent protecting their monopoly to grow silk for 15 or 20 years. This was granted, and Henry's son Edward VI followed up with a grant of letters patent to Henry Smyth, who hoped to introduce foreign glassworking techniques into England. This process continued after Elizabeth I came to the throne, with formal procedures set out in 1561 to issue letters patent to any new industry, allowing monopolies. The granting of these patents was highly popular with the monarch, both before and after the Statute of Monopolies, because of the potential for raising revenue. A patentee was expected to pay heavily for the patent, and unlike a tax raise (another method of raising Crown money) any public unrest as a result of the patent was normally directed at the patentee, not the monarch.
Over time, this became more and more problematic; instead of temporary monopolies on specific, imported industries, long-term monopolies came about over more common commodities, including salt and starch. These "odious monopolies" led to a showdown between the Crown and Parliament, in which it was agreed in 1601 to turn the power to administer patents over to the common law courts; at the same time, Elizabeth revoked a number of the more restrictive and damaging monopolies. Even given a string of judicial decisions criticising and overruling such monopolies, James I, Elizabeth I's successor, continued using patents to create monopolies. Despite the Committee of Grievances, a body chaired by Sir Edward Coke that abolished a large number of monopolies, a wave of protest occurred at the expansion of the system. On 27 March 1621, James suggested the House of Commons draw up a list of the three most objectionable patents, and he would "give Life to it, without alteration", but by this time a statute was already being prepared by Coke. After passing on 12 May 1621 it was thrown out by the House of Lords, but a Statute of Monopolies was finally passed by Parliament on 29 May 1624.
Section 1 of the statute provided that:
Crucially, this rendered all past, present and future patents and monopolies null and void. Patents were normally divided into three categories; patents for a particular invention, patents exempting a patent-holder from legislation, and patents for a particular trade or industry. Section 1, however, for the first time discussed a new category of patents; those "of Power, Liberty or Faculty". These patents were normally used in relation to penal laws, to "farm out" the business of administering to criminals and dispensing justice to private companies and individuals. The statute, in a break from previous law, emphasised that this power lay only within Parliament.
Section 2 of the statute provided that all future patents granted should be determined by the common law, and not otherwise, while section 3 of the statute emphasised that companies and individuals now or in the future in possession of patents should not be allowed to exercise them.
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Statute of Monopolies
The Statute of Monopolies (21 Jas. 1. c. 3) was an act of the Parliament of England notable as the first statutory expression of English patent law. Patents evolved from letters patent, issued by the monarch to grant monopolies over particular industries to skilled individuals with new techniques. Originally intended to strengthen England's economy by making it self-sufficient and promoting new industries, the system gradually became seen as a way to raise money (through charging patent-holders) without having to incur the public unpopularity of a tax. Elizabeth I particularly used the system extensively, issuing patents for common commodities such as starch and salt. Unrest eventually persuaded her to turn the administration of patents over to the common law courts, but her successor, James I, used it even more. Despite a committee established to investigate grievances and excesses, Parliament made several efforts to further curtail the monarch's power. The result was the Statute of Monopolies, passed on 29 May 1624.
The statute repealed some past and future patents and monopolies but preserved exceptions: one of these was for patents for novel inventions. Seen as a key moment in the evolution of patent law, the statute has also been described as "one of the landmarks in the transition of [England's] economy from the feudal to the capitalist". Even with the statute in force, it took over a century for a comprehensive legal doctrine around patents to come into existence, and James I's successor Charles I regularly abused the patents system by ensuring that all cases relating to his actions were heard in conciliar courts, which he controlled. The English Civil War and the resulting Stuart Restoration finally curtailed this system. The statute is still the basis for Australian law, and until the United Kingdom began following the European Patent Convention in 1977, was also a strong pillar of the United Kingdom's intellectual property law.
Historically, English patent law was based on custom and the common law, not on statute. It began as the Crown granted patents as a form of economic protection to ensure high industrial production. As gifts from the Crown, there was no judicial review, oversight or consideration, and no actual law developed around patents. This practice came from the guilds, groups who were controlled by the Crown and held monopolies over particular industries. By the 14th century the economy of England was lagging behind that of other European nations, with the guilds too small to control industrial production successfully. To remedy this, Edward II began encouraging foreign workmen and inventors to settle in England, offering "letters of protection" that protected them from guild policy on the condition that they train English apprentices and pass on their knowledge. The first recorded letter of protection was given in 1331. The letters did not grant a full monopoly; rather they acted as an extended passport, allowing foreign workers to travel to England and practice their trade. An exceptional example (considered the first full patent in England) was issued to John of Utynam on 3 April 1449, granting him a monopoly. Overseas, the practice of granting full industrial patents and monopolies became common in Italian states by the 1420s.
Over the next century, the granting of full industrial patents became a more common practice in England; the next record is a letter from 1537 to Thomas Cromwell, Henry VIII's private secretary, from Antonio Guidotti, a Venetian silk-merchant. Guidotti had persuaded a group of Venetian silk-makers to practice in England, and wanted the king to grant him letters patent protecting their monopoly to grow silk for 15 or 20 years. This was granted, and Henry's son Edward VI followed up with a grant of letters patent to Henry Smyth, who hoped to introduce foreign glassworking techniques into England. This process continued after Elizabeth I came to the throne, with formal procedures set out in 1561 to issue letters patent to any new industry, allowing monopolies. The granting of these patents was highly popular with the monarch, both before and after the Statute of Monopolies, because of the potential for raising revenue. A patentee was expected to pay heavily for the patent, and unlike a tax raise (another method of raising Crown money) any public unrest as a result of the patent was normally directed at the patentee, not the monarch.
Over time, this became more and more problematic; instead of temporary monopolies on specific, imported industries, long-term monopolies came about over more common commodities, including salt and starch. These "odious monopolies" led to a showdown between the Crown and Parliament, in which it was agreed in 1601 to turn the power to administer patents over to the common law courts; at the same time, Elizabeth revoked a number of the more restrictive and damaging monopolies. Even given a string of judicial decisions criticising and overruling such monopolies, James I, Elizabeth I's successor, continued using patents to create monopolies. Despite the Committee of Grievances, a body chaired by Sir Edward Coke that abolished a large number of monopolies, a wave of protest occurred at the expansion of the system. On 27 March 1621, James suggested the House of Commons draw up a list of the three most objectionable patents, and he would "give Life to it, without alteration", but by this time a statute was already being prepared by Coke. After passing on 12 May 1621 it was thrown out by the House of Lords, but a Statute of Monopolies was finally passed by Parliament on 29 May 1624.
Section 1 of the statute provided that:
Crucially, this rendered all past, present and future patents and monopolies null and void. Patents were normally divided into three categories; patents for a particular invention, patents exempting a patent-holder from legislation, and patents for a particular trade or industry. Section 1, however, for the first time discussed a new category of patents; those "of Power, Liberty or Faculty". These patents were normally used in relation to penal laws, to "farm out" the business of administering to criminals and dispensing justice to private companies and individuals. The statute, in a break from previous law, emphasised that this power lay only within Parliament.
Section 2 of the statute provided that all future patents granted should be determined by the common law, and not otherwise, while section 3 of the statute emphasised that companies and individuals now or in the future in possession of patents should not be allowed to exercise them.
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