The United States of America, petitioner, v. Motion Picture Patents Company and others, defendants (1912)

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10 OKIGINAL PETITION. new Patents Company and should agree to handle only defendants' films and to sublease only to exhibitors licensed by the Patents Company. No exhibitor was to be furnished films who did not agree not to display films of any manuacturer other than defendants and not to use projecting machines not licensed by the Patents Company. Defendants intended by virtue of these agreements to acquire the power to determine who should engage in business as a producer of films and who should be excluded from that business, who should continue to operate a rental exchange and whose rental-exchange business should be destroyed, who should remain an exhibitor and who should close his theater, who should in the future open a new motion-picture theater and who should be barred from so doing. The intent of defendants in forming the new company and in entering into the license agreements was to control, restrain, and monopolize all branches of commerce among the States of the United States and with foreign nations relating to the motion-picture art, and to exclude others therefrom. Accordingly, with the unlawful purposes just mentioned, the defendants, acting together, incorporated under the laws of New Jersey, September 8, 1908, Motion Picture Patents Company (hereinafter called the ^^ Patents Company"), with a capital stock of $100,000. The articles of incorporation declare the purposes of Motion Picture Patents Company as follows : The objects for which this corporation is formed are to acquire by purchase, lease, payment of royalties or otherwise, letters patent, inventions and improvements . in materials, processes and apparatus relating to the production of negatives and positives for motion pictures, and also relating to the photographing, developing, reproducing, projecting, and exhibiting of scenes and objects at rest and in motion;