As Samuel Colt's patent on the revolver was set to expire in 1856, Horace Smith and Daniel B. Wesson were researching a prototype for a metallic cartridge revolver. When they discovered that a former Colt employee named Rollin White held the patent for a "Bored-through" cylinder, a component needed for this new invention, the two partners approached White to manufacture a newly designed revolver-and-cartridge combination.
Rather than make White a partner in their company, Smith and Wesson paid him a royalty of $0.25 on every "Model 1" revolver that they made. It would become White's responsibility to defend his patent in any court cases which eventually led to his financial ruin, but was very advantageous for the new Smith & Wesson Company.
