In the District Court of the United States, for the Eastern District of Pennsylvania, the United States of America, petitioner, vs. Motion Picture Patents Company, et al., defendants (1913)

Record Details:

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1248 H. N. Marvin, Direct Examination. The Witness: We were very uncertain as to our ability to continue in the production and distribution of motion pictures because of the patent litigation. Q. Was there much litigation in the business at thattime? A. There was a great deal of litigation at that time, and there had been continuous litigation from about 1896. Q. And was the Biograph Company involved in some of this litigation? A. It was involved in this litigation. It was the defendant in suits brought by the Edison Company under patents that were alleged to cover essential elements in the production of motion pictures, notably, the motion picture camera, and the motion picture film. It was also sued by the Armat Company for the use of exhibiting machines under patents that purported to cover essential elements in the exhibiting machine. It had been repeatedly threatened with suits under the Latham patents which purported to cover essential elements in the projecting machines. Q. Were you familiar with conditions in the business at the time of the organization of the Patents Company, and the acceptance of licenses by the various producers of motion pictures? A. I was. Q. What was the effect upon the business of the producers of motion pictures of the organization of the Patents Company, and the acceptance of licenses by the producers of motion pictures, rental exchanges, and exhibitors? A. Well, the producers of motion pictures, after they had obtained licenses from all of the dominant patents in the art, felt that they had no further ground for apprehension on the score of legal prosecutions. They believed that all of the unrest and turmoil incident to the patent litigation was ended, and that they could then devote their entire energies to the production of motion picture dramas, and the distribution of the films containing reproductions of the dramas, and the result was that they immediately began to increase their investments in plants and facilities for the production of these dramas; they increased their employment of artist-talent; they commenced to increase the number of dramas that they issued weekly or monthly, and in every way began to extend that occupation. Did your question refer solely to producers? Q. It also referred to rental exchanges and exhibitors?