Brief for the United States (1914)

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60 PART IV. exhibiting machine o\Mied by him $2 a week to the Patents Co. ; this so-called exJiihitor's royalty applied to machines sold to the exhibitor long before the foryyiation of the Patents Co, ivithout any conditions being attached to the sale. No two exchanges were permitted to serve the same exhibitor. Breach by a rental exchange or by an exhibitor of any of the conditions imposed by the defendants through the Patents Co. subjected such rental exchange or exhibitor to an immediate cancellation of his license. The power and monopoly of the defendants became absolute. Defendants, through the Patents Co., were enabled to and did determine whether nc^w motion-picture theaters should or should not be opened and whether old ones should be closed, although defendants had no proprietary interest in such theaters. 30. License agreements with mamifactiirers of projecting machines, (Pet, p. 25.) Defendants, on December 18, 1908, by means of the Patents Co. and the so-called license agreements bound together all manufacturers of movingy)icture cameras and films into one comil)nation. With the same unlawful ])urpose, and as a fui-ther meaTis to monopolize trade in positive films, they devised license agreements ])etween the l^itents Co. and each manufactui-er of projecting machines.