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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Bulletins to Exhibitors. 107 begin as soon as the license fee has been forwarded with the application of the exhibitor to the Patents Company. The service shall be accepted, however, by the Exchange subject to the condition that the theatre be eventually licensed by the Patents Company, and with the understanding that if the license is refused, the Exchange shall discontinue the service to the exhibitor immediately upon receiving notice to this effect from the Patents Company. If a license on such an application is issued, the license fee will be retained by the Patents Company, and in addition thereto the royalties of the exhibitors will be fixed, dating from the time the service began; if the license is refused, the entire license fee of f 10 will be returned to the applicant. (2) APPLICATIONS FROM NEW THEATRES. Where a new theatre is projected in any locality, or where an established theatre which has not been exhibiting motion pictures since February 1, 1909, desires to exhibit licensed motion pictures, the exhibitor may make application for a license to the Patents Company, either direct or through any licensed Exchange, upon the form of application which will be furnished. A license fee of $10 must accompany all such applications. In all cases in this class the exhibitor may not receive any licensed motion pictures until such time as the application has been investigated by the Patents Company and the license has actually been issued to the exhibitor applying. If the license is issued, the license fee of $10 will be applied upon the royalties fixed; in case the application is refused, the entire license fee of $10 will be returned to the applicant.