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222
PAET IX.
in New York City, by January 20, 1909, and the Patents Co. will refuse to grant a license to any exchange failing to furnish such lists on that date, unless the distance of the exchange from New York City warrants lenience. After February 1, 1909, an exchange, before accepting an order for service, must ascertain whether or not the exhibitor desiring service has a license for his projecting machine, and must refuse to supply licensed film to that exhibitor until he shall have obtained a license. On accepting an order for service from an exhibitor having a licensed machine the exchange must mail to the Patents Co., at its office in New York City, the data in relation to the place of exhibition, etc., including the time the service is to begin, and a blank will be supplied by the Patents Co. for this purpose. In a similar manner each exchange losing a customer must notify the Patents Co. Exchanges will be obliged to cease supplying with film any exhibitor whose fees are not paid. Each exchange should advise all of its exhibitors to apply immediately to the Patents Co. for a license for the machines used by the exhibitors, so that the exhibitor may not be in danger of being cut off from his supply of film on February 1.
In addition to the foregoing change the following are the only material differences between the old and new agreements :
(a) Hereafter licensed motion pictures will not b(^ sold outright, but will be leased by the various licensed manufacturers and importers, so that the latter may at all times retain title and be in a position to recover ])()ssession of such ])ictures should they be found in the hands of exchanges or exhibitors not entitled to use them.