Brief for the United States (1914)

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I'AIM IV. 61 The license .'lurccinciils nf 1 IS, H)()S, recite lliat the |)ar1ies .'ire inteiidini;" to coiicliide other agreements relatin<; to |)roJectin^ machines. (Kx, 3, IVt., ]). 7)5.) Hie aureements hetweeii the Patents Co. and j)roJecting-inachine manut'act nrers contain many (d' the restrict i\'e prox isiotis incorjx)rated in the license agreements nnder the (camera and fihn patents snmmarized above. Among otluT t]uni>'s, these agreements i)rovide that every exhibiting machine shall be sold subject to the condition that it shall be used solely for exhibiting motion pictures containing the invention of the reissued Patent No. 12192; that is to say every machine is to be sold subject to the condition that it shall be used only with tilms supplied by one of the 10 licensed manufacturers. These agreements also fix the prices at which all projecting machines are to be sold; these prices are made the same for all — that is to sa}^, all competition in interstate commerce between the various manufacturers of projecting machines as to the prices and terms of sale of their respective machines is destroyed by establishing unifonn prices. The agreements provide that the manufacturer shall pay the Patents Co. a royalty of $5 on every machine, called machine royalties." The Patents Co,, acting under the direction and domination and in the interest of defendants, early in 1909 concluded license agreements of the charac