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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1204 II. N. Marvin, Direct Examination. and since it was desirable to extend the investments in theatres devoted to motion picture dramas as much as possible, it was considered wise to restrict the producers so that they should not themselves give public exhibitions for hire. Q. At the risk of some possible repetition, I want to ask you this question : What purpose was in view when it was stipulated in the license agreement between the Motion Picture Patents Company and the licensed producers of motion pictures, that a producing licensee should not knowingly allow motion pictures of standard width made by it, to be shown in unlicensed projecting machines? A. Well, the user of an unlicensed projecting machine would be an infringer of the patents of the licensor, and anyone who supplied motion pictures knowingly for use in such a machine, would be a contributory infringer, and it was thought proper to obligate the licensees not to be contributory infringers with others who might be infringing the patents of the licensor. Q. Was there an agreement on the part of the Patents Company to institute suits against infringers upon request of a majority of the licensed producers of motion pictures? A. There was. Q. Was there any special fund for that purpose? A. No. There was no fund for that purpose. It was not anticipated that there would be any material litigation of that character. Q. Was it ever intended to raise a gigantic fund for litigation, as stated by the witness Lodge? A. Why, no. There was never any thought of any such thing. It was expected that the organization of the Motion Picture Patents Company would practically put an end to the litigations under the patents. It was never anticipated that any considerable infringement of these patents would thereafter be attempted. Q. Was such a fund ever raised or maintained? A. It never was. Q. Were the licensed producers of motion pictures treated equally and alike with respect to the terms of the several agreements? A. Yes. The agreements were substantially identical. There were some slight modifications that were incident to the conditions, but they were practically immaterial.