Selden sells internal-combustion patent rights to Electric Vehicle Company

Background. George Baldwin Selden was an American patent lawyer and inventor from New York. He was granted a U.S. patent for an automobile in 1895. Selden moved to Rochester, New York, where he briefly attended the University of Rochester. He was a prominent Republican attorney and represented photography pioneer George Eastman in patent matters.

Patent Sale. In 1899, Selden sold his patent rights to William C. Whitney. Whitney proposed manufacturing electric-powered taxicabs as the Electric Vehicle Company. The agreement included a royalty of US$15 per car with a minimum annual payment of US$5,000. The Electric Vehicle Company was founded in 1897 as a holding company for battery-powered electric vehicle manufacturers.

Royalty Claims. The Electric Vehicle Company's chief asset became the holding of the Selden Patent. This patent established a right to royalties from all manufacturers of internal combustion engine vehicles. The patent remained valid until 1913, though its value declined when courts later limited its application to vehicles with Brayton engines.