Patents for Sale

WANTED: 'WELL-HEELED COMPANY TO BUY IN AS PARTNER OF STANDARD OIL CO. (N.J.) IN THE BUSINESS OF COLLECTING PROFITABLE FEES FROM HUNDREDS OF VALUABLE PATENTS. APPLICANTS WRITE TO OFFICE OF ALIEN PROPERTY, WASHINGTON, D.C.

In effect, Attorney General Herbert Brownell made just such an attractive offer this week to any U.S. businessmen with sufficient cash. He announced the Government will sell its 50% interest--exactly five shares of common stock--in Jasco, Inc., a World War II prize confiscated from Germany's I. G. Farbenindustries. Jasco owns the basic patents on just about every process used in synthetic rubber, from butadiene for tires to butyl for tubes, Oppanol for insulation hose.

Brownell's announcement stirred up echoes of one of World War II's fiercest controversies. Back in 1929, Jersey Standard had paid some $35 million to the I. G. Farben combine for the U.S. rights to its new hydrogenation process of making gasoline from coal. Their deal included the formation of a Joint American Study Commission (Jasco), by which each would share in any future developments. The joint work led to butadiene rubber and later butyl. But when the U.S. had trouble getting a synthetic program going in World War II, Jersey Standard's alleged "Nazi" tie-up got it damned for everything from trading with the enemy to "treason" (by then Senator Truman).

When the Government synthetic program bogged down, Assistant Attorney General Thurman Arnold sued Jersey Standard to force general licensing of the patents. In 1948, by a consent decree, an amicable settlement was finally worked put in which both RFC and Jasco share income from the rubber royalties on a 51%-49% basis.

The Government's half of Jasco, to be sold on the basis of sealed bids received prior to April 30, is valuable since Jasco's sole business is to license patents. Jasco cost only $28,366 to run in 1952, yet netted $482,971 after taxes. It has an earned surplus of $309,370, total assets of more than $1,000,000 including $872,000 in cash. One possible bidder: Standard Oil (N.J.), which already owns the other five shares of common stock.

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