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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218 Harry N. Marvin, Direct Examination. Q. The Edison Company? A. Yes. Q. And the Biograph Company? A. Yes. Q. And the four directors of the Patents Company; are two of them connected with the Edison Company? A Yes. Q. And two of them with the Biograph Company. That is correct, isn't it? A. That is correct. Q. Now, isn't it also correct that under the agreements with the Patents Company's licensees, no manufacturer can get a license from the Patents Company without being voted upon b}* all the Patents Company's licensees, each having a vote on a basis of the amount of new reels issued, that is, one vote for each 1,000 feet? A. Yes, that is true as to a license for manufacturing motion picture films. Q. That is, no manufacturer can get a license from the Patents Company and be able to join this arrangement unless it has the vote of a majority of the Patents Company's licensees? A. What arrangement do you refer to? Q. Well, I mean become a manufacturer under the Patents Company patents, and then have its products distributed to the licensed theatres. Now, it cannot get those lights unless it has the affirmative vote of the majority of the Patents Company licensees? A. It cannot get a license to manufacture licensed film, but it can get a license to manufacture projecting machines, or a license to use exhibiting machines. Q. The commerce in the films is the considerable part of the commerce, isn't it? A. Yes. Q. Can anybody get a license from the Patents Com pany to engage in that business of commerce in films without receiving the affirmative vote of a majority of the Pa tents Company licensees? A. They can get a license to sublease films and to use them, but not to manufacture them. Q. Can anybody today get a license to manufacture and distribute films under the Patents Company licenses without receiving the affirmative vote of a majority of the Patents Company licensees? A. No. Q. Each of the Patents Company licensees has a representative as a Director upon the Board of the General Film Company? A. No. Q. Which does not? A. The Biograph Company.