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. 1265 Q. Then one was not favored over another in regard to material phases of the agreement? A. No, there was no material favoritism. The only provision of that nature that I can recall was the provision that the Edison Company, the original owners of the film patent, should not pay royalty under the film patent. Q. With respect to the leasing provision embodied in the license to producers of motion pictures, how did it differ from a similar clause in the Edison license agreement? A. Well, it differed practically in form only. Under the Edison license agreement, while the term "sale" was used, I believe, in connection with the disposition of motion pictures, yet there was a provision that motion pictures should be returned after six months to the manufacturer, which provision operated to characterize the socalled sale as a virtual lease, since after a period, the purchaser of the motion picture must return it to the Edison Company, and, obviously, in the meantime, he could not re-sell it. Q. Were you familiar with the license agreement between the Motion Picture Patents Company and the rental exchanges, entered into in 1909? A. Yes. Q. Do you recall whether in the rental exchange license, there was any reference to the provision in the Edison license agreement relative to the return of motion picture films to the several licensed producers and importers? A. Yes. The rental agreement entered into by the Motion Picture Patents Company with the rental exchanges provided that the existing agreements between the rental exchanges and the Edison Company should be abrogated, with the exception of the provisions in those former agreements relative to the return of film to the manufacturers. It provided that that provision of the earlier agreements should not be abrogated by the license agreements then being made, but should be retained in force. Q. In other words, the Edison license agreement was abrogated, except as to any clause in said agreement relating to the return of motion picture film to the several licensed manufacturers or importers? A. That is right. Q. I think you have already testified that the license given to rental exchanges was a personal license. A. Well, it was, whether I testified or not.