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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406 Agreement, Patents & Gaumont Cos. charged for "Licensed Film'' to the Licensee and paid over to the Licensor) shall not, for "Licensed Film" of a width approximately one inch and three-eighths of an inch (1% inch or thirty-five (35) millimeters, purchased by the Licensee during the year preceding June 20, 1909, and during any year thereafter during the continuance of this agreement, as hereinafter provided, exceed the following rates, that is to say: — If the shipments of such "Licensed Film'' to the Licensee, on its orders, for any such year, be four million running feet or less, a royalty of one-half (%) cent per riming foot on the total number of feet for that year; if such shipments, on its orders, of such "Licensed Film,'1 for any such year, exceed four million running feet but do not exceed six million running feet, a royalty of four and one-half (4%) mills per running foot on the total number of running feet for that year; if such shipments, on its orders, of such "Licensed Film," for any such year, exceed six million running feet but do not exceed eight million running feet, a royalty of four (4) mills per running foot on the total number of running feet for that year; if such shipments, on its orders, of such "Licensed Film," for any such year, exceed eight million running feet but do not exceed ten million running feet, a royalty of three and three-quarters (3%) mills per running foot on the total number of running feet for that year; and if such shipments, on its orders, of such "Licensed Film," for any such year, exceed ten million running feet, a royalty of three and one-quarter (3%) mills per running foot on the total number of running feet for that year. And for "Licensed Film" narrower or wider than approximately one and three-eighths (1%) inch, or thirty-five (35) millimeters, the above mentioned royalties shall be reduced or increased in proportion to the reduction or increase in width of such narrower or wider "Licensed Film" below or above the width of such "Licensed Film" of approximately one and three-eighths (1%) inch or thirty-five (35) millimeters. The Licensor and Licensee further mutually covenant and agree that the manufacturer of such "Licensed Film" shall in the first instance, that is to say, when such film is billed and shipped by it, charge the Licensee with its price per running foot plus the maximum royalty afore