 The Statute of Monopolies of 1623 was an early step in an English movement to convert letters patent from a method of rewarding royal favourites at other than royal expense, to a method of encouraging inventors.The Dutch East India Company, British East India Company and similar national trading companies were granted exclusive trade rights by their respective national governments.Private interlopers were subject to criminal penalties, and the companies fought wars in the 17th century to delineate and defend their monopoly territories.