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one part and of the Allied or Associated Powers on the other, or persons who are nationals of such Powers respectively, or by any one deriving title during the war from such persons, by reason of any action which has taken place within the territory of the other party between the date of the declaration of war and that of the coming into force of the present Treaty, which might constitute an infringement of the rights of industrial property or rights of literary and artistic property, either existing at any time during the war or revived under the provisions of Articles 307 and 308.

Equally, no action for infringement of industrial, literary or artistic property rights by such persons shall at any time be permissible in respect of the sale or offering for sale for a period of one year after the signature of the present Treaty in the territories of the Allied or Associated Powers on the one hand or Germany on the other, of products or articles manufactured, or of literary or artistic works published, during the period between the declaration of war and the signature of the present Treaty, or against those who have acquired and continue to use them. It is understood, nevertheless, that this provision shall not apply when the possessor of the rights was domiciled or had an industrial or commercial establishment in the districts occupied by Germany during the war.

This Article shall not apply as between the United States of America on the one hand and Germany on the other.

Note to X, 309

The last paragraph of this article and of article 310 originated with the American representatives on the Subcommission on Industrial Property of the Economic Commission at the Paris Peace Conference. These articles (Nos. V and VI in draft) were first entitled "Reciprocal Amnesty" and "Prewar Licenses" and were intended to reinstate the methods of application of the conventions as they were understood before the German Government and German concerns systematically utilized protective features of the conventions in their preclusive commercial policy. The two articles sought to disinvest rights acquired under those practices. The delegate of the United States on the subcommission (J. Baily Brown) filed a note in which he stated that the United States could not admit the provisions of the two articles. As no other delegates were of that mind, the articles were adopted with exception made of the United States. "Our opinion", said the note, "is that the provisions are in contradiction with the principles of public law and perhaps with the Constitution of the United States, seeing that they deprive our nationals

Note to X, 309—Continued

of property rights without contemplating an evaluation of their value and just compensation therefor."

ARTICLE 310.

Licences in respect of industrial, literary or artistic property concluded before the war between nationals of the Allied or Associated Powers or persons residing in their territory or carrying on business therein, on the one part, and German nationals, on the other part, shall be considered as cancelled as from the date of the declaration of war between Germany and the Allied or Associated Power. But, in any case, the former beneficiary of a contract of this kind shall have the right, within a period of six months after the coming into force of the present Treaty, to demand from the proprietor of the rights the grant of a new licence, the conditions of which, in default of agreement between the parties, shall be fixed by the duly qualified tribunal in the country under whose legislation the rights had been acquired, except in the case of licences held in respect of rights acquired under German law. In such cases the conditions shall be fixed by the Mixed Arbitral Tribunal referred to in Section VI of this Part. The tribunal may, if necessary, fix also the amount which it may deem just should be paid by reason of the use of the rights during the war.

No licence in respect of industrial, literary or artistic property, granted under the special war legislation of any Allied or Associated Power, shall be affected by the continued existence of any licence entered into before the war, but shall remain valid and of full effect, and a licence so granted to the former beneficiary of a licence entered into before the war shall be considered as substituted for such licence.

Where sums have been paid during the war by virtue of a licence or agreement concluded before the war in respect of rights of industrial property or for the reproduction or the representation of literary, dramatic or artistic works, these sums shall be dealt with in the same manner as other debts or credits of German nationals, as provided by the present Treaty.

This Article shall not apply as between the United States of America on the one hand and Germany on the other.

ARTICLE 311.

The inhabitants of territories separated from Germany by virtue of the present Treaty shall, notwithstanding this separation and

the change of nationality consequent thereon, continue to enjoy in Germany all the rights in industrial, literary and artistic property to which they were entitled under German legislation at the time of the separation.

Rights of industrial, literary and artistic property which are in force in the territories separated from Germany under the present Treaty at the moment of the separation of these territories from Germany, or which will be re-established or restored in accordance with the provisions of Article 306 of the present Treaty, shall be recognized by the State to which the said territory is transferred and shall remain in force in that territory for the same period of time given them under the German law.

SECTION VIII.—Social and State Insurance in
Geded Territory.

ARTICLE 312.

Without prejudice to the provisions contained in other Articles of the present Treaty, the German Government undertakes to transfer to any Power to which German territory in Europe is ceded, and to any Power administering former German territory as a mandatory under Article 22 of Part I (League of Nations). such portion of the reserves accumulated by the Government of the German Empire or of German States, or by public or private organisations under their control, as is attributable to the carrying on of Social or State Insurance in such territory.

The Powers to which these funds are transferred must apply them to the performance of the obligations arising from such in

surances.

The conditions of the transfer will be determined by special conventions to be concluded between the German Government and the Governments concerned.

In case these special conventions are not concluded in accordance with the above paragraph within three months after the coming into force of the present Treaty, the conditions of transfer shall in each case be referred to a Commission of five members, one of whom shall be appointed by the German Government, one by the other interested Government and three by the Governing Body of the International Labour Office from the nationals of other States. This Commission shall by majority vote within three months after appointment adopt recommendations for submission to the Council of the League of Nations, and the decisions of the

Council shall forthwith be accepted as final by Germany and the other Government concerned.

Note to X, 312

The transfer of social insurance funds created difficulties which = called for final reference to the Council of the League of Nations, according to the procedure of the last paragraph of this article, on three occasions.

The resolution of the Council of July 17, 1921 (League of Nations Official Journal, 1922, pp. 789, 831) disposed of the question of the transfer of funds by Germany in respect to territory ceded to Poland.

The two other cases coming before the Council were dealt with in a resolution of June 21, 1921 (ibid., Minutes of the 13th Session of the Council, pp. 22, 176) relating to transfers under article 77 of funds relating to Alsace-Lorraine and resolutions of December 9, 1924 and June 9, 1925 (League of Nations, Official Journal, 1925, pp. 127, 200-2, 576, 478, 862, 946-8) relating to the transfers in respect to Upper Silesia. Both of these questions were submitted to the Arbitral Tribunal of Interpretation by an agreement of August 28, 1925 between the Reparation Commission and the German Government.

The tribunal by its award of March 24, 1926 included the transfer of social insurance funds relating to Alsace-Lorraine to be made by Germany to France in the annuities prescribed by the Experts' (Dawes) Plan.

The Upper Silesia fund was transferred to the extent of 30,000,000 German marks by article 207 of the German-Polish convention of May 15, 1922. The League Council's recommendation of December 9, 1924 was for a further payment of 26,000,000 gold marks in six annual instalments, of which 6,000,000 was payable February 1, 1925. This payment was not effected because Germany had not been authorized to make it by the Agent-General for Reparation Payments. The Council of the League on June 9, 1925 approved a report in which it recommended that the Reparation Commission and the German Government submit the question to the Arbitral Tribunal of Interpretation. Its award of March 24, 1926 was to the effect that, as between the Reparation Commission and Germany and as between the German and Polish Governments, "the annuities prescribed by the Experts' Plan comprise

"2. The transfers to be made by Germany to Poland in pursuance of Article 312 of the Treaty of Versailles in respect of social in

Note to X, 312-Continued

surance funds relating to Upper Silesia, the amounts of which transfers (others than that of the miners' superannuation fund which still remains to be settled) were determined by a decision of the Council of the League of Nations dated the 9th December, 1924.”

As Poland was not one of the recipients under the Experts' Plan, the amount was not paid. Subsequently in the Chorzów case before the Permanent Court of International Justice, Poland attempted unsuccessfully to offset the amount against the indemnity which it was to pay for the nitrate works.

For agreement of April 10, 1922 between Germany and Denmark carrying out this article as respects North Slesvig, see 10 League of Nations Treaty Series, p. 281 (English).

The application of this article was determined for the Free City of Danzig and Poland by their agreement with Germany signed at Berlin, January 24, 1927 (70 League of Nations Treaty Series, p. 453).

PART XI.

AERIAL NAVIGATION.

Notes to Part XI, Articles 313 to 320

The treaty restoring friendly relations between the United States and Germany signed at Berlin, August 25, 1921 and in force on November 11, 1921 with retroactive effect to July 2, 1921, stipulates that "Germany undertakes to accord to the United States and the United States shall have and enjoy . . . all the rights and advantages" stipulated for its benefit by this part of this treaty, "notwithstanding the fact that such treaty has not been ratified by the United States". The rights and advantages of nationals of the United States specified in the joint resolution of Congress, approved July 2, 1921 (p. 18) were specifically mentioned in an understanding included in the Senate's resolution of advice and consent to ratification of October 18, 1921. The Senate in that resolution made a further condition "that the United States shall not be

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