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

ORIGINAL PETITION. 17 tially identical with the eight other Ucense agreements executed the same day, provides, in brief: 1. The Ucensee — that is, the manufacturer of the motionpicture film — is licensed to lease the film only on condition that it be used in exhibiting or projecting machines licensed by the licensor. 2. The licensee agrees that he will use exclusively sensitized film manufactured by a manufacturer authorized by the licensor, and that he will buy all his film from that manufacturer. (Sec. 4.) This refers to the Eastman Kodak Company. 3. The licensor agrees that he will obligate such manufacturer not to sell sensitized film to anyone but the licensees, except a small per cent, which may be supplied by the manufacturer to persons who do not make motion pictures of the standard size. (Sec. 4.) 4. The Ucensee agrees to pay certain royalties on the film to the licensor. (Sec. 4.) This amounts to approximately half a cent per foot, subject to reductions in proportion to sales. These royalties are called the ^^fihn royalties. ^^ 5. The Patents Company agrees to collect royalties of $2 a week from all exhibitors using motion-picture projecting machines embodying the inventions described in the letters patent which were to be assigned to the Patents Company. (Sec. 4.) This provision is to apply regardless of the fact that those machines had already been sold with no condition attached and had become the property of the exhibitor. The royalty was to be paid on all machines already on the market. These are called the ^^exhibitors' royalties. '^ 6. The licensee agrees not to sell any motion-picture film, but only to lease or rent the same to licensed exchanges and in accordance with the terms of the exchange license agreement hereafter described. This was a radical departure from