Tredick v. Walters

Citations

• 81 Kan. 828
• 106 P. 1067

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Patent Right — -Sale—Registration. Where a party owning or claiming to have a patent for the manufacture of a certain article contracts to sell to another party and to convey to such other party the exclusive right to sell in a certain territory, for a definite length of time, a mold or molds designed expressly and only to be used in the manufacture of the patented article, he undertakes by necessary implication to convey to such party the exclusive right to manufacture, sell and use the article patented, or claimed to be patented, within such territory during such time, and such contract is illegal and in violation of the laws of this state, unless the steps required by section 4356 of the General Statutes of 1901 have been complied with. Such contract, when executed, constitutes the sale of a patent right or of a right claimed to be patented.</p> <p>2. Promissory Notes ■ — • Consideration — “Given for a Patent Right.” The taking of a promissory note in consideration of such contract is illegal unless the words “given for a patent right” (Gen. Stat. 1901, § 4357) be legibly inserted in the body of the note, above the signature of the maker or makers.</p> <p>3. --- Notice'of Fraud or Illegality■ — Presumptions and Burden of Proof. In the trial of an action brought by a transferee of a promissory note against the maker, the execution of the note being admitted, if the maker prove that the note was tainted in its inception with illegality or fraud the presumptions in favor of the holder’s title are overcome, and the burden of proof shifts upon him to show that he or some prior holder took the paper in good faith, for value, without notice, before maturity, and in the usual course of business.</p> <p>4. - Same. In this case the execution of the contracts, copies of which are attached to the answer of the maker, being admitted by the holder, such contracts are sufficient evidence to cast upon the holder such burden of proof.</p>