In 1908, the Wrights warned
Glenn Curtiss not to infringe their patent by profiting from flying or selling aircraft that used
ailerons. Curtiss refused to pay license fees to the Wrights and sold an airplane to the Aeronautic Society of New York in 1909.
The Wrights filed a lawsuit, beginning a years-long legal conflict. They also sued foreign aviators who flew at U.S. exhibitions, including the leading French aviator
Louis Paulhan.
The Curtiss people derisively suggested that if someone jumped in the air and waved his arms, the Wrights would sue.
The brothers' licensed European companies, which owned foreign patents the Wrights had received, sued manufacturers in their countries.
The European lawsuits were only partly successful. Despite a pro-Wright ruling in France, legal maneuvering dragged on until the patent expired in 1917.
A German court ruled the patent not valid due to prior disclosure in speeches by Wilbur Wright in 1901 and
Octave Chanute in 1903. In the U.S. the Wrights made an agreement with the
Aero Club of America to license airshows which the Club approved, freeing participating pilots from a legal threat.
Promoters of approved shows paid fees to the Wrights.
[8] The Wright brothers won their initial case against Curtiss in February 1913, but the decision was appealed.
The brothers wrote to
Samuel F Cody in the UK, making a claim that he had infringed their patents but Cody stated that he had used wing-warping on his man-carrying kites before their flights.
[9]
The Wrights' preoccupation with the legal issue hindered their development of new aircraft designs, and by 1910 Wright aircraft were inferior to those made by other firms in Europe.[10] Indeed, aviation development in the U.S. was suppressed to such an extent that when the country entered World War I no acceptable American-designed aircraft were available, and U.S. forces were compelled to use French machines.
In January 1914, a U.S.
Circuit Court of Appeals upheld the verdict in favor of the Wrights against the Curtiss company, which continued to avoid penalties through legal tactics.
The patent pool solution
In 1917, the two major patent holders, the
Wright Company and the Curtiss Company, had effectively blocked the building of new airplanes, which were desperately needed as the United States was entering
World War I.
The U.S. government, as a result of a recommendation of a committee formed by
Franklin D. Roosevelt, then
Assistant Secretary of the Navy, pressured the industry to form a cross-licensing organization (in other terms a
Patent pool), the
Manufacturer's Aircraft Association.
[11][12][13]
All aircraft manufacturers were required to join the association, and each member was required to pay a comparatively small blanket fee (for the use of aviation patents) for each airplane manufactured;
[11] of that the major part would go to the
Wright-Martin and
Curtiss companies, until their respective patents expire.
[7][14]
This arrangement was designed to last only for the duration of the war, but in 1918, the litigation was never renewed. By this time, Wilbur had died (in May 1912) and Orville had sold his interest in the Wright Company to a group of New York financiers (in October 1915) and retired from the business. The "patent war" had come to an end.