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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404 Agreement, Patents & Gaumont Cos. The Licensee further covenants and agrees to permit the Licensor, if it should so desire, to examine its books through any reputable chartered accountants, to be agreed upon by the Licensor and Licensee, to determine the number of running feet of "talking motion pictures'' imported by the Licensee under this agreement. The Licensor further covenants and agrees that at the end of each year beginning with June 20th, 1910, it will, if the Licensee so directs, make up the account of the royalties paid to it by the Licensee during the preceding year and will return to the Licensee any royalties which the Licensee may have overpaid, according to the schedule of royalties provided for in Paragraph 4 hereof, by reason of its total importations of "talking motion pictures" added to its purchases of "Licensed Film" for that year, having exceeded four million (4,000,000) running feet, and in order that the Licensor may ascertain the royalty rate to be charged to the Licensee, the Licensee shall instruct the manufacturer or manufacturers of licensed film to communicate to the Licensor the amount of such "Licensed Film'' on which the Licensee shall have paid royalty during that year. 4. The Licensee covenants and agrees that in the manufacture of "talking motion pictures" both negative and positive in the "territory aforesaid," during the continuance of this agreement, the Licensee will use exclusively sensitized film manufactured and sold in the United States by a manu facturer or manufacturers authorized by the Licensor, such sensitized film herein called "Licensed Film," and that the Licensee will not, in the "territory aforesaid", purchase or otherwise acquire or lease or sell or otherwise dispose of or deal in, motion pictures produced on or by the use of any other film than such "Licensed Film" nor sell or otherwise dispose of any negative motion pictures. The Licensor further covenants and agrees that it will, in an agreement in writing with each manufacturer of "Licensed Film," obligate such manufacturer, so long as the latter has the exclusive right to make and sell such "Licensed Film", not to knowingly furnish or sell, in the "territory aforesaid,'' except "for export," sensitized film for the commercial production of negative and positive motion pictures to any one but the Licensee, and the additional licensees hereinafter provided for, except to the extent of two and one-half (2%) per cent of the total amount of such "Li