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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H. N. Marvin, Direct Examination. 12(>1 for the manufacturer to print up all of the copies from the negative that he was going to dispose of, at one time, than it was to print copies at separate times, and there was a certain advantage to the manufacturer in being able to rely upon his market, and to know in advance approximately how many copies of a certain subject he would lease. That facilitated the operation of his factory where the prints were made. Q. What is a standing order? A. A standing order is an order for one or more copies of each subject or drama produced and issued by a producer. Q. Why was a provision incorporated in the license agreement against re-importation? A. Well, that was necessary because film was permitted to be sold abroad, and if that film should be re-imported into this country there would be no way of preventing its being used in violation of the terms and conditions under which the films were leased for use in this country. Q. Why was a provision inserted in the license agreement against disposing of motion pictures as premiums or prizes? A. Well, such a use of motion pictures might be unfairly made by a licensee, to induce the lease of his film for some reason other than on account of the merit of the production itself, and it was desired to foster as great competition on the basis of merit alone as was possible. Q. What explanation do you wish to make regarding the provision in the license agreement that the licensee must lease subject to the condition that the title must remain in him, and the pictures shall not be shown in any but licensed projecting machines? A. Well, that was really a necessary condition, particularly the condition that the motion pictures should be only exhibited in licensed projecting machines. That was a condition the necessity for which arose out of the fact that these several patents were in the hands of a single owner. Once you place these supplementary patents in the hands of a single owner, it becomes impossible for that owner to grant a license under one of these patents, without restricting that license with reference to its use under the other patents, unless the owner is prepared to abandon one of the patents, and to abandon any revenue that he might otherwise derive from that patent. Because if in this present case the licensor should grant a license under this patent on film the one who took that license on the film, un