The Film Daily (1933)

THE —a DAILY Thursday, Oct. i>, 1^3 Local Grievance Boards Will Decide Complaints before the date when such Outside or Associated Producer shall fulfill its delivery commitment to the Producer or Distributor with whom it has contractual obligations, whichever date is earlier. C. DISTRIBUTORS. 1. No Distributor shall threaten or coerce or intimidate any Exhibitor to enter into any contract for the exhibition of motion pictures, or to pay higher film rentals by the commission of any over act evidencing an intention to build or otherwise acquire a motion picture theater for operation in competition with such Exhibitor, but nothing in this Article shall in any way abridge the right of a Producer or Distributor in good faith to build or otherwise acquire a motion picture theater in any location. 2. No Distributor's employee shall use his position with the Distributor to interfere with the free and competitive buying of pictures by an Exhibitor operating a theater in competition with a theater in which such employee may have a direct or indirect interest, whether financial or otherwise. 3. (a) No Distributor shall substitute for any feature motion picture described in the contract therefor as that of a named star or stars or named director or named wellknown author, book or play one of any other star or stars, director, author, book or play, nor substitute any other feature motion picture for one which in the contract therefor is designated "no substitute." (b) Nothing in this Article contained shall be interpreted to prohibit any Distributor from changing the title of any motion picture contracted for, from making changes, alterations and adaptations of any story, book, or play upon which it is based and from substituting for any such story, book or play another story, book or play, or from changing the director, the cast, or any member thereof of any such motion picture, except as hereinabove specifically prohibited. (c) If for any such author, book or play there is substituted another author, book or play, reasonable notice (i.e., before the release date in the particular exchange territory) of such substitution shall be given by announcement in a trade publication. 4. (a) It shall be an unfair practice for any distributor to license the exhibition of its motion pictures for exhibition by any so-called nontheatrical account, where such exhibition shall be determined by a local Grievance Board provided for in this Code to be unfair to an established motion picture theater at which the exhibition of the same pictures have been licensed. (b) Nothing in this Article shall be interpreted to prohibit the licensing of motion pictures for exhibition at army posts or camps, or on board ships of the United States Navy or ships engaged in carrying passengers to foreign or domestic ports or at educational or religious institutions or at institutions housing "shut-ins," such as prisons, hospitals, orphanages, etc. 5. No Distributor shall require as a condition of entering into a contract for the licensing of the exhibition of feature motion pictures that the Exhibitor contract also for the licensing of the exhibition of a greater number of short subjects, in proportion to the total number of short subjects required by such Exhibitor, than the proportion of the feature pictures for which a contract is negotiated bears to the total number of feature pictures required by the Exhibitor. 6. No Distributor shall divulge or authorize or knowingly permit to be divulged by any employee or checker any information received in the checking of the receipts of its motion pictures, except that such information may be divulged in any arbitration or grievance proceeding or litigation concerning such controversy and for any Government or Code Authority report. 7. No Distributor shall convey or transfer its assets for the purpose of avoiding the delivery to any Exhibitor of any feature motion picture licensed for exhibition by such Exhibitor. 8. No Distributor shall refuse to make a fair adjustment of the license fees for the exhibition rights of a number of pictures licensed in a group for a stated average sum per picture and so stated in the license agreement, if the total number of pictures so licensed by any Exhibitor are not delivered by such Distributor provided such Exhibitor shall have fully and completely performed all the terms and conditions of such license on the part of the Exhibitor to be performed. Any dispute or controversy concerning any such adjustment shall be determined by a Local Grievance Board provided for in this Code. 9. (a) No Distributor shall require any specific day or days of the week for the exhibition of specified pictures or class of pictures the license fee for which is a fixed sum only. (b) Where under an exhibition contract which provides that the rental to be paid by the Exhibitor for any feature motion picture specified therein shall be determined in whole or in part upon a percentage basis and that said picture shall be played by the Exhibitor upon a designated day or days of the week and the Exhibitor seeks, to be relieved from the obligation to exhibit such motion picture upon such designated day or days for the reason only that the subject and character of the motion picture so designated, is unsuitable for exhibition at the Exhibitor's theater on such day or days, the claim of the Exhibitor shall be determined by a Local Board provided for by this Code, and the Distributor, if a Local Grievance Board so determines, shall relieve the Exhibitor from the obligation to play the motion picture upon the day or days designated by the Distributor; provided that the Exhib'tor makes such claim within three days after receipts of the notice of availability of such feature picture. In such cases the said Local Board shall proceed to determine the matter upon forty-eight hours' notice if the Distributor so desires. (c) If the said Local Board shall sustain the claim of the Exhibitor: (1) the Distributor shall have the right to designate another picture for the same day or dates upon the same terms as the motion picture in question; and to designate the same picture for a later date or dates but upon another day or other days of the week; and (2) the award of the said Local Board shall not be deemed to apply to any other theater in the same or any other location. (d) Where because of a proceeding before a Local Board, or because of an award of said Local Grievance Board it shall be impractical to serve subsequent run Exhibitors in compliance with any notice of availability or confirmed play dates given any such sub sequent run Exhibitors, the Distributor shall nave the right to change such play dates. 10. No Distributor shall refuse to deliver to any Exhibitor any feature motion picture licensed under an exhibition contract there tor because of such Exhibitor's default in the performance of any exhibition contract licensing the exhibition of short subjects oi juch Distributor, or vice versa, provided juch Exhibitor and Distributor have agreed co arbitrate all claims and controversies arising under the Optional Standard License Agreement provided for in this Code. 11. (a) No Distributor which has not generally released the total number of feature productions originally announced by it for release during any given season shall fail to offer any additional feature productions to the Exhibitor having under contract at least fifty per cent (50%) of the other feature productions of the Distributor, provided such additional feature production it generally released during the season covered .n the first instance by such contract between the Distributor and Exhibitor, and provided further that any such Exhibitor has duly performed all the terms and conditions of his contract or contracts with the Distributor upon which performance may then be due, and is not in default thereunder. (b) In any case where the feature product of any Distributor is split between competing Exhibitors in any zone, the Exhibitor who in point of time was first to make a contract with the Distributor shall have the first opportunity to bid for such additional teature production, except that should the Distributor generally release more than one feature production in any such situation where the product is split, the Exhibitor who in point of time was second to execute a contract with the Distributor shall have the first opportunity to bid for the second additional feature production. 12. With respect to any product announced for release during any given season by any Distributor, and not designated as a picture of a named star or stars, or named director or named well-known author, book or play, the exhibition contract therefor shall contain a brief description giving an idea of the general style, or character or class of the story upon which the said motion picture is to be based. D. EXHIBITORS. 1. Any Exhibitor entering into a contract for the exhibition of motion pictures which permits the Exhibitor to select from the total number of pictures announced for release in any given season less than eightyfive per cent (85%) of the total number, and to reject the remainder shall by written notice to the Distributor reject each of such motion pictures not to exceed the number which may be rejected, within twenty-one days after its date of availability in the exchange territory wherein is located the Exhibitor's theater, and upon the Exhibitor's failing to give such notice of rejection, each of such pictures shall be deemed to have been selected. 2. No Exhibitor shall contract for a license to exhibit more motion pictures than such Exhibitor reasonably shall require for exhibition in any theater or theaters operated by such Exhibitor, with the intent and effect of depriving a competing Exhibitor from contracting to exhibit such excess number of motion pictures, provided however, that nothing herein contained shall be deemed to prohibit any Exhibitor from contracting for a reasonable number of motion pictures in excess of the number which are actually to be exhibited in the theater or theaters of such Exhibitor in order to reasonably protect such Exhibitor against non-delivery of motion pictures. 3. Section 1. No Exhibitor shall (a) lower the admission prices publicly announced or advertised for his theater by giving rebates in the form of lotteries, reduced script books, coupons, throw-away tickets or by two-for-one admissions, or by other methods or devices of similar nature (which directly or indirectly lower or tend to lower such announced admission prices and) which are unfair to competing Exhibitors, and which deceive the public, or (b) fail at all times to maintain the minimum price of admission specified in any contract licensing the exhibition of any motion picture during the exhibition thereof. Ths section shall not be deemed to prohibit Exhibitors from reducing or increasing their admission scales as they see fit, except as may be prohibited by the_ exhibition contracts. Section 2. The giving of rebates in the form of premiums, gifts or other things of value shall be deemed to be included within the provisions of Section 1 of this article in those respective clearance zones where the Exhibitors operating not less than seventyfive per cent of the number of the then actively _ and continuously operated theaters not affiliated with Distributors or Producers and the Exhibitors operating not less than seventy-five per cent of the number of the then actively and continuously operated theaters affiliated with Distributors or Producers have both declared in writing that the giving of rebates in such form shall not be permitted. For the purpose of such declaration each. Exhibitor shall be entitled to one vote for each theater then actively and continuously operated by such Exhibitor. Section 3. In case any exhibitor is found by a Local Grievance Board provided for in this Code, to have violated any provision of this Section and it such Local Board shall on account thereof declare that such Exhibitor shall not be permitted to license the exhibition of any motion picture unless the Exhibitor ceases and desists from such violation, Distributors of motion pictures shall refuse to enter into license contracts for the exhibition of their respective motion pictures by such Exhibitor if the Exhibitor fails or refuses to so cease and desist. Section 4. Notwithstanding any action which may be taken by the Exhibitors in any respective clearance zones ruling out the giving or rebates as defined in Section 1 hereof, any Exhibitor who has outstanding and valid contracts for the purchase of premiums, gifts, or things of value to be used by him in connection with the operation of his theater, shall have the right to continue such policy for a period of 90 days after such action on the part of such Exhibitors as aforesaid for the purpose of liquidating any such contractual commitments. 4. No Exhibitor shall transfer the ownership or possession of a theater or theaters operated by any such Exhibitor for the purpose of avoiding uncompleted contracts for the exhibition of motion pictures at such theater or theaters. Any disputes or controversies with respect to same shall be submitted to and passed upon by a Local Grievance Board. 5. (a) No Exhibitor licensed to exhibit a motion picture subsequent to its exhibition by another Exhibitor having the right to a prior run thereof shall advertise such motion picture by any means of advertising prior to or during_ its exhibition by such other Ex hibitor. (b) Notwithstanding anything herein contained, in the event any Exhibitor shall make complaint that the restrictions embraced in this Article work an unfair hardship on him. the Local Clearance and Zoning Board shall have the right to hear such complaint and after determination of the facts presented shall fix and specify the time limit within which such Exhibitor may advertise such motion picture ; provided, however, that should the subsequent run Exhibitor be .granted permission to advertise before the completion of said prior run, he shall not advertise prior to the commencement of said prior run, nor shall he have the right to advertise in any way, shape, manner or form, or issue any statement that the prices of admission are or will be less than the admission prices charged by the Exhibitor having the first or prior run of such motion picture. (c) Nothing herein contained shall be deemed to prohibit any Exhibitor from advertising generally all of the feature motion pictures licensed for exhibition by such Exhibitor as a group, but such general advertising shall not refer to any one of such motion pictures at any time prior to its exhibition by any other Exhibitor having the first or immediately prior run thereof excepting as hereinabove provided. 6. To prevent disturbance of the continued possession of a theater by an exhibitor, it shall be an unfair trade practice knowingly and intentionally, directly or indirectly to interfere with pending negotiations between such exhibitor and any other party pertaining to or affecting the possession, operation or occupancy of any such theater then actually operated by such exhibitor, or in respect of '