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PART IV.
manufacturer is to do business. The license is printed as Exhibit 3 to the petition, pages 52-78. See also I, 22, fol. 4.
1. The licensee — that is, the manufacturer of the motion-picture film — is licensed to lease the him only on condition that it be used in exhibiting or projecting machines licensed by the licensor.
2. The licensee agrees that he will use exclusively sensitized film manufactured by a manufacturer authorized by the licensor, and that will buy all its him from that manufacturer. (Sec. 4.) This refers to the Eastman Kodak Co., the only manufacturer of motion-picture film.
3. The licensor agrees that it ^vill obligate such manufacturer (that is, the Eastman Co.) to sell sensitized film only to the licensees, except a small per cent, which may be supplied by the manufacturer to persons who do not make motion-pictures of the standard size. (Sec. 4.)
4. The licensee agrees to pay certain royalties on the film to the licensor. (Sec. 4.) This amounts to approximately half a cent per foot, subject to reductions in proportion to sales. These royalties are called the fihn royalties."
5. The Patents Co. agrees to collect royalties of $2 a week from all exhibitors using motion-picture projecting machines embodying the inventions described in the letters patent which were to be assigned to the Patents ('o. (Sec. 4.) This provision is to oj)pl// rcf/ardless of the fact that many machines had already been sold with no con