Brief for the United States (1914)

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36 PART IV. f endants and others. This company was to acquire a number of patents owned by defendants and was to be controlled by them. Each of the 10 producers was to take from this new Patents Co. a license to produce and lease motion pictures. These license agreements were to be all alike and their terms were to be arrived at by agreement of all defendants before the patents were assigned by them to the new company. In the license agreements were to be incorporated conditions and restrictions not authorized by the patent laws and regulating the conduct of the business of the manufacturers in every detail. Under these agreements they were all to do business in exactly the same manner. They were to lease films and no longer sell them; they were to lease at unifonn and noncom]3etitive prices and only to such rental exchanges as should obtain a license from the new Patents Co., and should agree to handle only defendants' films and to sublease only to exhibitors licensed by the Patents Co. No exhibitor was to be fui'nished films who did not agree not to display films of any manufacturer other than defendants aiid not to use projecting machines not licensed by tlie Patents Co. Defendants intended by virtue of tliese agreeuK^nts to acquire the ])ower to determine wlio should engage in business as a pivxhieer of Minis and who should he excluded Troni that ])usi]iess, who should eonlinue io oi)erate a rental exchange and whos(i rental-exchange business should