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 (1914)

Record Details:

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Petitioner's Exhibit No. 203. 2505 Bad Films Hurt Business. A show in which such films are used can only do harm to the business. Everyone having the vital interests of the business at heart must know that if the public is to be instructed and amused, it must be by the use of films of high quality, in good condition and of novel and ingenious subjects. Although everyone recognized this fact there seemed to be no remedy, and the conditions went on, pulling the business down to a lower plane from month to month. With the sustaining of the Edison camera patent and the strong probability that the Edison film patent would also be upheld by the courts, the important and responsible manufacturers in the country were wise enough to see that those patents would have to be acknowledged, and consequently applications for licenses were made to us. It was then recognized that by properly limiting the conditions of these licenses the evils that have invaded the business could in a large measure be overcome, and the business be eventually placed on a high and legitimate plane. Licenses Issued to Film Firms. Licenses have therefore been granted to the following concerns, which, with the Edison Manufacturing Company, are alone authorized to manufacture or sell non-infringing films in this country: Essanay Company. Kalem Company. S. Lubin. G. Melies. Pathe Freres. Selig Polyscope Company. Vita graph Company of America. Under the licenses which have so far been granted, involving the payment of royalties for the use of the patents, we have required that certain conditions shall be strictly observed, the most important of which, to the exhibitor, are the following: (1) Licensed motion pictures are sold only to licensed exchanges, who shall agree in writing with the several