How the autombile was patented, and royalties were collected from anyone who made them

Inspired by the mammoth internal combustion engine invented by George Brayton displayed at the Centennial Exposition in Philadelphia in 1876, George Selden began working on a smaller lighter version, succeeding by 1878, some eight years before the public introduction of the Benz Patent Motorwagen in Europe.

He filed for a patent on May 8, 1879. His application included not only the engine but its use in a 4 wheeled car. He then filed a series of amendments to his application which stretched out the legal process resulting in a delay of 16 years before the patent US patent 549160 was granted on November 5, 1895.

Shortly thereafter the fledgling American auto industry began its first efforts and George Selden, despite never having gone into production with a working model of an automobile, had a credible claim to have patented an automobile in 1895.

In 1899 he sold his patent rights to William C. Whitney, Whitney and Selden then worked together to collect royalties from other budding automobile manufacturers. He was initially successful, negotiating a 0.75% royalty on all cars sold by the Association of Licensed Automobile Manufacturers, the ALAM. He began his own car company in Rochester under the name, Selden Motor Vehicle Company.

However, Henry Ford, owner of the Ford Motor Company, founded in Detroit, Michigan in 1903, and four other car makers resolved to contest the patent infringement suit filed by Selden. The legal fight lasted eight years, generating a case record of 14,000 pages.

The case was heavily publicized in the newspapers of the day, and ended in a victory for Selden. In his decision, the judge wrote that the patent covered any automobile propelled by an engine powered by gasoline vapor. Posting a bond of $350,000, Ford appealed, and on January 10, 1911 won his case based on an argument that the engine used in automobiles was not based on George Brayton's engine, the Brayton engine which Selden had improved, but on the Otto engine.

This stunning defeat, with only 1 year left to run on the patent, destroyed Selden's income stream. He focused production of his car company on trucks, renaming his company the Selden Truck Sales Corporation. It survived in that form until 1930 when it was purchased by the Bethlehem Truck Company. Selden suffered a stroke in late 1921 and died at 75 on January 17, 1922. He was buried in Mount Hope Cemetery in Rochester. It is estimated he received several hundred thousand dollars in royalties.