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llicir liliti imdcr our patents, payiiiL; lis roviilt ics in recognition ol' tlicni. WC intend tli.it the lie('nse(l film shall he distrihnted only hy licensed exeiuni^es and exhihitcd oidy hy licensed theaters. 'IMie ohject oL' this is to j)Ut us in a position where we can regulate our husiuess in the intei-est of all (d' our licensees and rid'use licenses in any i;i\'en locality wliei'e there is no ])uhlic demand for additional disti'ibutors ol* licensed Hlni or new theaters to show our tilni. Lt is for the protection of our patents and the exclusive use of the licensed service, which will be of the very highest class, that we require a nominal wcH'kly royalty which tlie licensed theater is to pay.
(Feb. 2, 11)01), I, 101, fols. 3, 4.)
As to your machines particularly, we wish to make it clear that a licensed theater may use any machine or machines which were purchased before February 1, 1909, if they are used in exhibiting our licensed pictures, ^lachines which are purchased from the manufacturers after February 1, 1909, if they are to be used in a licensed theater, must bear the license plate of the Patents Co.
(Feb. 15, 1909, I, 105, fols. 1, 2.) LICENSED THEATERS.
We beg to call your attention to the following provisions of your license :
(1) Onlv licensed exhibitors niav show licensed film.
(2) Licensed exhibitors must not show unlicensed film.
Should you find your business sul)jected to imfair competition l)y uidicensed exhibitors sliowing li