The film daily year book of motion pictures (1948)

the competitive area. The words "competitive area" shall refer to the territory occupied by more than one theater in which it may fairly and reasonably be said that such theaters compete with each other for the exhibition of features on any run. (d) Each license shall be offered and taken theater by theater and picture by picture. (e) A theater is not a defendant's own theater unless it owns therein a legal or equitable interest of ninety-five per cent or more, either directly or through affiliates or subsidiaries. 9. From arbitrarily refusing the demand of an exhibitor, who operates a theater in competition with another theater not owned or operated by a defendant distributor, or its affiliate or subsidiary, made by registered mail, addressed to the home office of the distributor, to license a feature to him for exhibition on a run selected by the exhibitor, instead of licensing it to another exhibitor for exhibition in his competing theater on such run. Such demand shall be deemed to have been refused either upon the receipt by the exhibitor of a refusal in writing or upon the expiration of ten days after the receipt of the exhibitor's demand. Ill Each of the defendant exhibitors, Paramount Pictures, Inc.; Loew's, Incorporated; Radio Keith -Orpheum Corporation; KeithAlbee-Orpheum Corporation; RKO Proctor Corporation; RKO Midwest Corporation; Warner Bros. Pictures; Warner Bros. Circuit Management Corporation; Twentieth Cen tury-Fox Film Corporation, and National Theaters, Inc. is hereby enjoined and restrained: (1) From performing or enforcing agreements referred to in paragraphs 5 and 6 of the foregoing section II hereof to which it may be a party. (2) From making or continuing to perform pooling agreements whereby given theaters of two or more exhibitors normally in competition are operated as a unit or whereby the business policies of such exhibitors are collectively determined by a joint committee or by one of the erhibitors or whereby profits of the "pooled" theaters are divided among the owners according to pre-arranged percentages. (3) For making or continuing to perform agreements that the parties may not acquire other theaters in a competitive area where a pool operates without first offering them for inclusion in the pool. (4) From making or continuing leases of theaters under which it leases any of its theaters to another defendant or to an independent operating a theater in the same competitive area in return for a share in the profits. (5) From continuing to own or acquire any beneficial interest in any theater, whether in fee or shares of stock or otherwise, in conjunction with another defendant, and from continuing to own or acquire such an interest in conjunction with an independent (meaning any former, present or putative motion picture theater or operator which is not owned or controlled by the defendant holding the interest in question), where such interest shall be greater than five per cent unless such interest shall be ninety-five per cent or more. The existing relationships which violate this provision shall be terminated within two years. The relationship between the defendants and independents which violate this provision shall be terminated by a sale to, or purchase from the co-owner or co-owners, or by a sale to owner or co-owners, or by a sale to a party not one of the other defendants. In dissolving relationships among defendants and between defendants and independents which violate this provision, one defendant may acquire the interest of another defendant or independent if such defendant desiring to acquire such interest shall show to the satisfaction of the court, and the court shall first find, that such acquisition will not unduly restrain competition in the exhibition of feature motion pictures. Each of the defendants shall submit to this Court within six months a statement outlining the extent to which it has complied and the manner in which it proposes to comply with this provision, setting forth in detail, the names, locations and general descriptions of the theaters, corporate securities, and beneficial interests of any kind involved, the sales thereof that it has made, and such interests as it proposes to acquire, with a statement of facts regarding each competitive situation involved in such proposed acquisition sufficient to show the probable effect of such acquisition on that situation. Similar reports shall be made quarterly thereafter until this provision shall have been fully complied with. Reasonable notice of such acquisition plans shall be served upon the Attorney General and the plaintiff shall be given an opportunity to be heard with respect thereto before any such acquisition shall be approved by the Court. (6) From expanding its present theater holdings in any manner whatsoever except as permitted in the preceding paragraph. (7) From operating, booking or buying features for any of its theaters through anv agent who is known by it to be also acting in such a manner for any other exhibitors, independent or affiliate. IV Nothing contained in this Decree shall be construed to limit in, any way whatsoever,