Brief for the United States (1914)

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70 PAET IV. and has also been licensed to have positive motionpictures embodying the inventions of the film patent manufactured for it by said manufacturers from negatives made in foreign countries and to lease such positives. (Pet., pp. 116-117.) It then provides in brief : (1) The manufacturer (Edison Co.) agrees to supply the General Film Co. with as many copies of each licensed motion-picture released by the manufacturer as the General Film Co. may require for the conduct of its business and to supply them at the same leasing prices, terms, etc., as it leases them to others. (Par. 6.) (2) The General Film Co. agrees that it will lease from the manufacturer motion-pictures and will use its best efforts to introduce them and extend their use by motion-picture exhibitors using the licensed projecting machines. (Par. 7.) (3) The Film Co. agrees to pay the manufacturer a share of its net profits at the end of each jesiY during the continuance of the agreement, after it has paid 7 per cent dividend on its preferred stock and 12 per cent dividend on the common stock. The manufacturer is to have such a proportion of the net profits remaining after the deduction of the dividends as the number of running feet of pictures leased ])y tlie manufacturer to the Film Co. bears to the total amount of running feet leased by the Film Co. from all the Patents Co. li('eus(»es duriu^; that year. (Par. 8.)