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

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58 ORIGINAL PETITION^ EXHIBIT 3. motion pictures in the United States, or who may after the date of this agreement commence the manufacture of negative or positive motion pictures in the United States. The Licensor further covenants and agrees that the royalties which it will charge to and receive from the Licensee for ''hcensed film'' (and which are to be included by the manufacturer or manufacturers in the prices charged for " licensed film" to the Licensee and paid over to the Licensor) shall not, for ''licensed film" of a width approximately one inch and three-eighths of an inch (1§ in.) or thirty-five (35) millimeters, purchased by the Licensee during the year preceding June 20, 1909, and during any year thereafter during the continuance of this agreement, as hereafter provided, exceeding the following rates; that is to say: If the shipments of such ''licensed film" to the Licensee, or the Licensee's orders, for any such year be four million running feet or less, a royalty of one-half (J) cent per running foot on the total number of running feet for that year; if such shipments, on the Licensee's orders, of such " licensed film" for any such year exceed four million running feet but do not exceed six million running feet, a royalty of four and one-half (4i) mills per running foot on the total number of running feet for that year; if such shipments, on the Licensee's orders, of such "licensed film" for any such year exceed six million running feet but do not exceed eight million running feet, a royalty of four (4) mills per running foot on the total number of running feet for that year; if such shipments, on the Licensee's orders, of such " licensed film" for any such year exceed eight million running feet but do not exceed ten million running feet, a royalty of three and three-quarters (3f ) mills per running foot on the total number of running feet for that year; and if such shipments, on the Licensee's orders, of such "Hcensed film" for any such year exceed ten million running feet, a royalty of three and one-quarter (3J) mills per running foot on the total number of running feet for that year. And for "licensed film" narrower or wider than approximately one and threeeighths (1§ in.) inch or thirty-five (35) millimeters, the above-mentioned royalty rates shall be reduced or increased