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

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OKIGINAL PETITION. 19 11. It is agreed that the subleasing prices for the subleasing of pictures shall be fixed by a majority vote of the licensees. (Sec. 17.) 12. The licensee agrees not to dispose of positive motion pictures except by lease, as above described, or by sale for export only, and also to refrain from supplying motion pictures for use with any exhibiting or projecting machine, the license for which has been terminated by the licensor, and also to refrain from supplying motion pictures to any lessee who may sublet such motion pictures to persons using the same for giving exhibitions thereof on exhibiting machines not licensed by the licensor or the license for which has been terminated. (Sec. 18.) 13. The parties agree that no person other than the nine hereinbefore referred to shall obtain a license except by a majority vote of the licensees, on the basis of one vote for each thousand running feet of new subjects. (Sec. 20.) 14. The licensor agrees that it will issue licenses to make and sell exhibiting or projecting machines containing the inventions described in the letters patent assigned, but that it will not license any person except upon the condition that the sale and purchase of such machine gives only the right to use it solely for exhibiting motion pictures leased by a licensee of the licensor. (Sec. 20.) 15. The licensor agrees to charge a royalty of $5.00 on every such machine. These are called the ^'machine royalties.'' 16. The licensor agrees to license the licensee to make and sell exhibiting machines. (Sec. 20.) 17. It is provided that the licensee may renew this agreement by giving notice to the licensor before April 20, of each year until August, 1919, the date of the expiration of the Letters Patent 707934, known as the Latham ''loop'' patent. (Sec. 21.) This is a patent relating to part of the mechanism of the camera and projector.