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H. N. Marvin, Direct Examination. 1291
of the present commercial type, adapted to use very wide film, two and three-quarter-inch film, which it used in giving exhibitions in theatres at that time. Those machines were never sold.
Q. Had the Biograph or Armat companies, prior to 1908, licensed any manufacturers under their patents to make projecting machines? A. The Armat Company, prior to 1908, licensed the Edison Company for a limited time to make projecting machines under the patents of the Armat Company, which machines were not to be sold, but were to be leased only. But that license was of very brief duration. It expired or was cancelled after a short time. The Edison Company then continued to make and sell projecting machines in defiance of the patents.
Q. Do you know whether the Edison and Armat companies had a lawsuit thereafter? A. Oh, yes; the Armat Company brought suit against the Edison Company and secured a preliminary injunction against the Edison Company, which, for a time, prevented their manufacturing and selling machines embodying the Armat invention. But that preliminary injunction was subsequently dissolved, when the Edison Company obtained some sort of an alleged license under that patent through some one who claimed to have some rights under the patent. And then the lawsuit was progressed, I understand, as diligently as the funds of the Armat Company would permit. The Armat Company also licensed the Biograph Company, under its patents to manufacture and use, but not to sell, projecting machines for its own use.
Q. What companies among the licensees are represented in the directorate of the Motion Picture Patents Company? A. The Edison Company and the Biograph Company only.
Q. When exchange licenses were granted after the formation of the Motion Picture Patents Company, what investigation did you make regarding them, and what was your policy with respect to granting these licenses? A. Well, some or all of the licensees of the Motion Picture Patents Company, prior to the organization of that company, had been in the habit of dealing with some or all of the rental exchanges then existing in the country, and the standing and desirability of those various rental exchanges was discussed with such manufacturers as had knowledge there