In the District Court of the United States, for the Eastern District of Pennsylvania, the United States of America, petitioner, vs. Motion Picture Patents Company, et al., defendants (1913)

Record Details:

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18 Agreement — Patents Co. and Vitagraph Co. projecting machines under any patents owned by it and covering such machines, unless such licensee shall also accept a license to manufacture and sell exhibiting and projecting machines under the said Vitagraph patents, whether or not such licensee may thereafter make use of any of the inventions covered by said Vitagraph patents. (3) The Patents Company covenants and agrees that on all motion picture exhibiting or projecting machines containing the inventions described in one or more of the said Vitagraph patents, manufactured or imported, and sold under the license of the Patents Company, it will charge royalties as follows: On each such machine capable of exhibiting or projecting by transmitted light, motion pictures, on film of width greater than approximately one inch (1")> a royalty of one dollar (11.00). On each such machine not capable of exhibiting or projecting by transmitted light, motion pictures on film of a width greater than approximately one inch (1"), a royalty of three-fifths (3/5) of one (1) per cent, of the net retail, selling price of such machines. On each such machine capable of exhibiting or projecting by reflected light, motion pictures on film of any width, but not capable of exhibiting or projecting the same by transmitted light, a royalty of three-fifths (3/5) of one (1) per cent, of the net retail selling price of such machines. It is understood and agreed by and between the Licensor and the Licensee that the expression "Motion Picture exhibiting or projecting machine," as used hereinbefore or hereinafter, includes motion picture mechanisms or "heads" for such exhibiting or projecting machines, but not any repair parts or portions of sucb motion picture mechanisms or "heads." The Patents Company further covenants and agrees that it will on June 20th, 1909, and at the end of each and every year thereafter, assign and pay over to the Vitagraph Company, all such royalties collected by the Patents Company under the provisions of this paragraph, during the period between February 1st, 1909, and June 20th, 1909, and during each year thereafter.