Boxoffice (Jul-Sep 1940)

Provides Arbilration For "Discriminaiion" (Continued from page 14) July 20, 1940, demanded in writing features for the theatre specified in his complaint from the distributor complained against on the same run as or on an earlier run than that enjoyed by the circuit theatre specified in the complaint; or (c) — That the complaining exhibitor operated his said theatre for at least one year prior to the entry of this decree, and subsequent to July 20, 1935 and prior to July 20, 1940, a prior operator of said theatre demanded in writing features from the distributor defendant complained against on the same run as or on an earlier run than that enjoyed by the circuit theatre specified in the complaint. (6) — That the refusal to license the exhibition of said pictures in the complainant’s theatre was in fact because the theatre licensed to exhibit them on the run requested by the complainant was a component part of such circuit of theatres. The arbitrator, in determining whether the exhibitor’s complaint is established by the evidence, shall take into consideration, among other things: the terms offered by the two competing theatres, the seating capacity of each of said theatres; their respective capacities for producing revenue for the distributor, their character, appearance and condition, including their furnishings, equipment and conveniences: their location; the character and extent of the area and population each serves; the competitive conditions in the area in which they are operated: their comparative suit ability* for exhibition of the distributor’s pictures on the run requested; the character and ability of their management and their reputation generally in the industry and in the community for showmanship, honesty and fair dealing; the policy under which the theatres involved have been operated and under which the complaining theatre proposes to operate if it obtains the run requested; the financial responsibility of their owners and operators; and any equities arising out of the distributor’s prior relations with the two theatres involved. Award If in any such arbitration the arbitrator finds for the complaining exhibitor, he may enter an award against the distributor which shall not affect the license to exhibit any feature picture then under contract but shall prohibit it from thereafter leasing its features for exhibition on the run requested in the circuit theatre specified in the complaint otherwise than by a separate contract or agreement which shall not be a part of any contract or agreement for the licensing of features to any other theatre or conditioned upon the licensing of features for exhibition in any other theatre. Proceedings Subsequent to Award After a final award has been made in favor of a complaining exhibitor under this section, such exhibitor may institute a further arbitration proceeding to be held *In considering tliis factor in situations where the exhibitor customarily operates two or more theatres on the same run in the same situation as a unit by contracting for blocks of features on an "or” basis and by exhibiting each feature in a particular theatre which, because of its characteristic-=?, operating policy, or admission prices, is most suitable for exliiliition of the particular feature. all of such theatres may be considered colb-ctively as a unit. Pul Up Bars Against "Bootleg" Theatres before the arbitrator who entered the original award, if available, upon the ground that such award has not in good faith been complied with by a distributor against whom it was entered. If in any such proceeding the arbitrator finds that the distributor has not in good faith complied with the original award, the arbitrator may award damages to the exhibitor for loss resulting from the distributor’s failure to comply with the original award. Any award of damages hereunder shall be purely compensatory, but in the case of first-run exhibition shall not exceed the amount of rentals received by the offending distributor from the circuit for its features licensed for exhibition in violation of the award, and in the case of subsequentrun exhibition shall not exceed twice the amount of such rentals. Proceedings for an award of damages for violation of the original award must be commenced within 60 days after such violation has occurred, by filing with the arbitrator and serving upon the distributor a statement and specification of the facts constituting each violation for which damages are sought and of the exhibitor’s damages resulting from such violation. There shall be no award of damages in any such proceeding for any violation of the original award of which complaint is not so filed and sei’ved within said period, but prior violations may, in any such proceeding, be considered by the arbitrator as evidence bearing upon the question of the distributor’s good faith. 8. Acquisitions of or Changes With Respect to Theatres in Which Defendants Are Interested. (1) — Each of the defendants will notify the department of justice immediately of any legally binding commitment for the acquisition by it* of any additional theatre or theatres. (2) Each defendant will also report to the department of justice on or before the tenth day of each month the changes in its theatre position, if any, that have occurred during the preceding month, which shall include: (a) — Theatres contracted to be built, or building; (b) — Theatres lost or disposed of; (c) — Theatres acquired: (d) — Interests in theatres acquired, stating the nature and extent of such interests ; (e) — A statement of the reasons for such changes. (3) — If upon receipt of such information the department of justice requests further information with respect to any of the above transactions, such defendant will make a reasonable effort to supply such information promptly; provided, however, that no information furnished shall be divulged by any representative of the department of justice to any person other (Continued on next page) *The notification and report shall include such commitments and changes as may have been made by corporations not parties to this decree which are controlled by such defendant. They shall also include such commitments or changes as may have been made by corporations in which such defendant owns a financial interest but does not control if such defendant has received knowledge of such commitments or changes. Each defendant will request such corporations to immediately notify it of any such commitment or change. 16 BOXOFFICE :: August 10, 1940