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

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20 ORIGINAL PETITION. As previously stated, the Patents Company entered into substantially the same agreement with each of the nine manufacturers. George Kleine, one of the nine, but an importer and not a manufacturer, was licensed to import positive films, but the amount he was allowed to import was limited to 3,000 running feet of new subjects per week, and he agreed to confine his purchases to two foreign manufacturers, Gaumont and Urban. Prior to this license arrangement Kleine had imported the films of nine or ten foreign manufacturers and amounts largely in excess of 3,000 feet per week. A few months later the Patents Company, by agreement of the nine manufacturers, voting as provided in paragraph 13 supra (section 20 of the license agreement) licensed defendants Gaston and George Melies to import not to exceed 1,000 feet of new subjects per week made in France by George Melies. Said two individual defendants are now doing business in the name of the Melies Manufacturing Co., corporation defendant, which company has the benefit of the license granted Messrs. Mehes. VI. THE RENTAL EXCHANGE AGREEMENTS. As stated above (supra p. 17, par. 6) the manufacturers' license agreement requires the manufacturer to lease film to rental exchanges in accordance with the terms of an exchange license agreement. In other words, the manufacturers, on December 18, 1908, adopted, and thereafter used, a uniform contract in the distribution of films to the rental exchanges. No company would thereafter lease or consign films to any rental exchange which had not signed one of these so-called license agreements with the Patents Company; furthermore, every rental exchange was not afforded