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)

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26 Harry N. Marvin, Direct Examination. Q. This paper which you have read dated January 9, 1909, states, "In addition to the licensed manufacturers whose films licensed exchanges have heretofore been permitted to handle, the Motion Picture Patents Company has licensed the American Mutoscope & Biograph Company of New York City, which has a present output of two reels a week; and Mr. George Kleine of Chicago, who will have a weekly output of two reels of Gaumont film and one reel of Urban Eclipse Film." Prior to this agreement George Kleine had represented a number of foreign manufacturers had he not? A. Yes. Q. Seven or eight? A. I don't know how many. Q. Quite a number? A. Several, I think. Q. Now, under this agreement he was barred from importing any foreign film except those stated here, namely, two reels of Gaumont film and one reel of Urban Eclipse film? A. Yes, that is different subjects, he could import an unlimited quantity of goods of those subjects, of course. Q. Yes, but I mean he was barred from importing any goods of other manufacture? A. Yes. Q. Excepting those two named? A. Yes. Q. Prior to this agreement he had been importing all others besides those two named? A. Yes, I think he had. Q. I read further: "The new agreement will be found not to materially alter the present system of handling licensed film, the principal change being that no licensed motion pictures will be permitted to be used on any projecting machine which is not licensed by the Patents Company under its patents. All projecting machines now in use will be licensed by February 1, 1909, upon the payment of a nominal fee." Now, that applies to the so-called exhibitors' royalty, that sentence, does it not? A. Yes, the payment of that small fee there is the license fee for the use of the projecting machines. Q. What was that fee? A. Well, it has been fixed and has continued at approximately two dollars per week. Q. Every exhibitor? A. From each person licensed to use a projecting machine covered by our patents. Q. At that time there were a large number of projecting machines owned by the different exhibitors in the United States? A. Yes, they owned them so far as they could under infringing machines.