Year book of motion pictures (1951)

FINAL DECREE AS TO MINOR DEFENDANTS The plaintiff, having filed its petition hereon on .Inly 20, ]!);!.S. ami its amended and supplemental complaint on November 14. 1!)40: the defendants hnvinsr filed their answers to such eomplaint. den.vinsr the substantive allesrations thereof, the eourt after trial havinsr entered a deeree herein, dated Deeember .'il. ]!)4(), as modified b.v order entered Fcbruar.v 11. 1!)4T: the plaintiff and the defendants bavins' appealed from such decree: the Supreme Coui't of the United States having in part affirmed and in part reversed such deeree. and havinsr remanded this ease to this eourt for further proceedinffs in conformit.v with its opinion dated May 3. 1048: this court havinsr. on June 25, 1'948, by order made the mandate and decree of the Supreme Court the order and judffment of this court: Now, havinsr considered the proposals of the parties, having dul.v received additional evidence ,-ind heard further ars-uments. and havinsr rendered its opinion on July 2.5. 11)49. and having filed its findinsrs of fa<'t .and conclusions of law in accordance with said otiinioii: IT IS HEREBY ORDEREP. .ADJUDGED, AND DECREED that the deeree heretofore entered by this court on December .Tl, in4fi, as to the defendants Co'umbia Pictures Corporation, Screen Gems, Ine,, Columbia Pictures of Louisiana, Inc.. Universal Coriioration. Univers.al Pictures Company, Inc., Universal Film Exchanpres, Inc.. Big U Film Exchange. Inc.. and United .Artists Corporation, is hereby amended to read as follows: I 1. The findings of fact and conclusions of law heretofore made are sui-)erseded b.v the findings and conclusions now entered in support of this decree. 2. The complaint is dismissed as to the defendants Screen Gems. Inc., and the corporation named as Universal Pictures Company, Inc., merged during the pendency of this case into the defendant Universal Corpor.ation. The complaint is also dismissed as to all claims made against the remaining defendants herein based upon their easts as producers, whether as individuals or in conjunction with others. II The defendants Columbia Pictures Corporation, Cohiiubi.-i Pictures of Louisiana, Inc Universal Cornnration, I'mversal Film Exchanges, Inc, Big U Film Exchange. Inc., and United Artists Corporation, and the successors of each of them, and an,v and all individuals who act in behalf of any thereof with respect to the matters enjoined, and each corporation in which said defendants or any of them own a direct or indirect stock interest of more than fift.v per cent, are hereby enjoined: 1. From granting any license in which minimum prices for admission to a theatre are fixed by the parties, either in writing or through a committee, or through arbitration, or upon the happening of any event or in an.v manner or b.v an.v means. 2. From agreeing with each other or with any exhibitors or distributors to maintain a system of clearances: the term "clearances" as used herein meaning the period of time stipulated in license contracts which luust e'apse between runs of the same feature within a particular area or in specified theatres. .1. From granting any clearance between theatres not in substantial competition. 4. From granting or enforcing an,v clearance against theatres in substantial competition with the theatre receiving the license for exhibition in excess of what is reasonably necessary to protect the licensee in the run granted. Whenever any clearance provision is attacked as not legal under the provisions of this, decree, the burden shall be upon the distributor to sustain the legalit.v thereof. 5. From further performing any existing franchise to which it is a p.art.v and from making an.v franchises in the future, except for the purpose of enabling an independent exhibitor to operate a theatre in coiupelition with a theatre affiliated with a defendant or with theatres in new circuits which may be formed as a result of divorcement. The term "franchise" as used herein means a licensin : .igreement or series of licensing agreements, entered into as a part of the same transaction in effect for more than one motion picture season and covering the exhibition of pictures released by one distributor during the entire period of agreement. 6. From making or further performing any formula deal or master agreement to which it is a party. The term "formula deal" as used herein means a licensing agreement with a circuit of theatres in which the license fee of a given feature is measured for the theatres covered by the agreenicnt by a specified percentage of the feature's national gross. The term "master agreement" means a licensing agreement, also known as a "blanket deal." covering the exhibition of features in a number of theatres usually comprising a circuit. 7. From performing or entering into any license in which the right to exhibit one feature is conditioned upon the licensee's taking one or more other features. To the extent that any of the features have not been trade shown prior to the granting of the license for more than a single feature, the licensee shall be given by the licensor the right to reject twenty per cent of such features not trade shown prior to the granting of the license, such right of rejection to be exercised in the order of release within ten days after there has been an opportunity afforded to the licensee to inspect the feature. 8. From licensing any feature for exhibition upon an.v run in an.v theatre in any other manner than that each license shall be offered and taken theatre by theatre, sole'y upon the merits and without discrimination in favor of affiliated theatres, circuit theatres or others. Ill The defendants named in Section II of this decree and any others who are wiHing to file with the American Arbitration Association their consent to abide b.v the rules of arbitration and to perform the awards of arbitrators, are hereby authorized to set up or participate in an arbitration s.vstem w'ith. an accompanying Appeal Board which will become effective as soon as it may be organized, upon terms to be settled by the court upon notice to the parties to this action. IV The provisions of the consent decree of November 20, 1940, are hereby declared to be of no further force or effect. V 1, For the purpose of securing compliance with this decree, and for no other purpose, duly atithorized representatives of the Department of Justice, shall, on written request of the Attorney General or an Assistant Attorne.v General, and no notice to an.v defendant bound by this decree, reasonable as to time and subject matter, made to such defendant at its principal office, and subject to any legally recognized privilege (al be permitted reasonable access, during the office hours of such defendant, to all books, ledgers, accounts, correspondence, memoranda and other records and documents in the possession or tmder the control of such defendant, relating to any of the matters contained in this decree ,and that during the times that the plaintiff shall desire such access, counsel for such defendant may be present, and (b) sttbject to the reasonable convenience of such defendant, and without restraint or interference from it, be permitted to interview its officers or emplo.Tee5 regarding an.v such matters, at which interviews counsel for the officer or employee interviewed and counsel for such defendant may be present. For the purpose of securing compliance with this decree any defendant upon the written request of the Attorney General, or an Assistant Attorney General, shall 922