VK7 Centenary Documents

Argus p18 Settlement effected

Before 1920Document1916Marconi patents dispute

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MARCONI LITIGATION.

SETTLEMENT EFFECTED.

A second conference was held yesterday between the Postmaster General (Mr. Agar
Wynne) and Mr. E.T. Fiske (representing the Marconi Wireless Company) with regard to the
dispute connected with the use of the Balsillie system of wireless telegraphy. Others present
at the conference were the secretary to the Attoruny General's department (Mr. R. R. Garran),
the Commonwealth radiotelegraph engineer (Mt. J.G. Balsillie) the secretary to the Central
Postal Administration (Mr. J. Oxenham) the chairman of the board of Amalgamated Wireless
Limited (Mr,H. R. Denison) and Mr. J. Turnbull (of Messrs. Blake and Biggall, solicitors). An
arrangement satisfactory to the Commonwealth in every respect was arrived at.

Mr Wynne stated after the conference that the main points of the agreement arrived at with
the Marconi Company were that the action aginst the Commonwealth for alleged infringement
of its patent was to be abandoned whilst opposition to the Balsillie wireless system was also to
be withdrawn. The Commonwealth has undertaken to pay L5,000 to the Marconi Company in
consideration of licenses being granted to the Commonwealth to use the Marconi patents in
Australia and for the purpose of communicating with New Zealand. These patent rights
included the Goldschmidt patent, which had been recently secured by the Marconi Company.

Referring to the circumstances leading up to the new agreement, Mr. Wynne stated that the
British wireless expert (Mr, J. Swinburne), who had reported on the Balsillie system, had
advised a settlement of the dispute. If the lawsuit had been persevered with, he said it would
have been necessary to bring expert witnesses from Great Britain, and to some of these fees
of at least L2,000 guineas would have had to be paid. In all the action might have cost
L20,000 in legal expenses, and better terms had, Mr. Wynne thought, in the circumstances,
been secured than had been anticipated even by Mr. Swinburne.

There is to be no payment in cash to the Amalgamated wireless Limited (theAus-tralian            t
company operating the Telefunken and the Marconi patents), but this company had
undertaken not to attack the validity of the Balsillie system.