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)

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Petitioner's Exhibit No. 203. 2507 nature of the grant. Cries of restraint of trade and impairment of the freedom of sales are unavailing, because for the promotion of the useful arts, the Constitution and Statutes authorize this very monopoly." The same high Court in Rubber Tire Wheel Co. vs. Milwaukee Rubber Works Co. (154 Federal Reporter, 358), said: "Under its Constitutional right to legislate for the promotion of the useful arts, Congress passed the patent statutes. * * * * Congress put no limitation, except time, upon the monopoly. Courts can create none without legislating. The monopoly is of the invention, the mental conception as distinguished from the materials that were brought together to give it a body. * * * * Use of the invention cannot be had except on the inventor's terms. Without paying or doing whatever he exacts no one can be exempted from his right to exclude. W7hatever the terms, Courts will enforce them, provided only that the licensee is not thereby required to violate some law outside of the patent law, like the doing of murder or arson." See also: Edison Phonograph Co. et al vs. Kaufman, 105 Federal Reporter, 960. Edison Phonograph Co. et al vs. Pike, 116 Federal Reporter, 863. National Phonograph Co. vs. Schlegel, 128 Federal Reporter, 733. Will Enforce Its Rights. While, therefore, under our legal and constitutional authority as the owner of the Edison patents, conditions and limitations might have been lawfully imposed which would have been harsh and onerous, we have sought only to exercise our rights in the premises to the extent of enforcing such conditions as will inure to the best interests of the business. The conditions which we have imposed will without doubt, be of great advantage to the exhibitors as they will oblige the exchanges to give better service and will prevent them from renting films for more than a limited time. This is bound to mean a wonderful improvement over present conditions. The exchanges of this country (who have recently