Brief for the United States (1914)

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224 PART IX. selves to the workings of the new conditions of license. Such a schedule will be dra\ra after consultation with representative exchanges and will be as fair as possible to all. ***** The Patents Co. reserves the right to revoke the license on 14 days' notice, and also to revoke it at once on proof of violation of any of the conditions. If the license is revoked, because of violation on the part of the exchange, all licensed motion pictures in the possession of the exchange will be returned to the manufacturers or importers from whom they were obtained at the end of 20 days, and the exchange agrees that the Patents Co. may direct the various manufacturers and importers to cease supplying the exchange with motion pictures. It will be noted from the foregoing changes that the only departure from the spirit of the old agreement lies in the fact that hereafter licemed motion pictures ayid licensed projecting machines only can he tised together, [Italics ours.] This will insure that licensed exchanges will be absolutely protected from unfair and infringing competition, since all projecting machines now in use are covered by the patents of the Patents Co., and all exhibitors, therefore, would be compelled to use only licensed film. Established exhibitors will be protected as much as X)()ssible by the Patents Co., which will carefully scrutinize each aj)plication for a license from any new exhi})itor. No license trill he granted for a new theater in ang district already well provided for. [Italics ours.] All exchanges and exhibitors will be protected by the Patents Co. und(^r its patents, and infringers