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22 OKIGINAL PETITION.
The licensee, i. e., the rental exchange, agrees as follows:
(1) Not to buy, lease, or otherwise obtain any motion pictures other than licensed motion pictures, and to dispose of motion pictures only by subleasing under the conditions set forth in the contract. (Condition 1.)
(2) The ownership of each licensed motion picture is to remain in the licensed manufacturer. (Condition 2.)
(3) The licensee shall not sell or exhibit licensed motion pictures, but shall only sublet the same, and only to exhibitors who shall exclusively exhibit licensed motion pictures. (Condition 3.)
(4) The licensee shall not sell, rent, or otherwise dispose of any licensed motion pictures to any person engaged in selling or renting motion picture films. (Condition 6.)
(5) The licensee shall not sell or dispose of motion pictures to any person in the exhibition business who may have violated any of the conditions imposed by the licensor through any of its licensees and of which violation the licensee may have had notice. (Condition 10.)
(6) The licensee shall not sublet licensed motion pictures to any exhibitor unless a contract with said exhibitor satisfactory in form to the licensor, i. e., the Patents Company, is first executed, and unless each motion picture projecting machine on which the licensed motion pictures are to be used by such exhibitor is regularly licensed by the Motion Picture Patents Company and the license fees therefor have been paid. (Conditions 11 and 12.) The license fee is $2 a week on every projector owned by the exhibitor.
(7) The licensee or rental exchange is required to mail to the Patents Company a list, giving the name of each exhibitor supplied with pictures by the rental exchange. (Condition 12.) The rental exchanges thereafter were not allowed to supply the same exhibitors; the latter were apportioned among the licensed exchanges. This paragraph (No. 12) in effect prevents the rental exchanges from subleasing pictures