Brief for the United States (1914)

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I'AKI IV. Tlic clTcct n\' tlirsc I'd 1 1 ;i I -( 'Xcl i;i I I'^r .'ii^ r<M'mcnts was to |)l.-i(M' all 1 lie rental ('XcliaiiLirs at t lie iinTcy of (Icrcihlants and the Patctits ( 'o. This (•( mi j >aiiy would not all(>w exhibitors to lease t'i(»iii dirt'ereiit cxcliaiiucs, hut reciuircd each cxhihitor to obtain liis entire^ su)>ply (d* tihns t'l-oin one exchange. In tliis ivspect competition between rental exehan^es was eliminated. Each rental exchange paid the same for its tilnis as every other exchange. To-day eaeli of the 10 Patents Co. licensees leases its films at the same prices and on the same terms as the other 9 licensees. 9. EA-liihitors controlled through so-called licenses. * (Pet., p. 24.) Early in January 1909, the defendants commenced to do business in accordance with the tenns of the licensing arrangement which they had formed, and thereafter not one of the thousands of theater owners or exhibitors in the United States could obtain for exhibition pui'poses a motion-picture manufactured by any of the 10 manufacturers, comprising practically all the manufacturers and importers at that time doing business in the United States, unless the Patents Co. recognized him and gave his name as a licensed exhibitor to the licensed exchanges. In order to secure a license the exhibitor had to obligate himself to use upon his machines only pictures manufactured by the licensed manufacturers. The exhibitor had to pay on every