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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Agreement, Patents & Gaumont Cos. 407 said, and on the expiration of each year, counting from June 20th, 1909, shall adjust the royalty account of the Licensee as to "Licensed Film'' so billed, and shipped to and paid for by the Licensee, according to the royalty schedule aforesaid, return to the Licensee any amount the Licensee shall have overpaid, according to said schedule, and paying the balance to the Licensor; and that the royalties which may hereafter be paid to the manufacturer of such "Licensed Film" after the date hereof and up to June 20, 1909, under this agreement, shall be adjusted and the excess returned, in the same manner, the royalty rate to be charged for such period being the rate that would have been charged if the shipments of "Licensed Film" to the Licensee had been continued for a year at the same rate at which shipments were made for such period. The Licensor further agrees that the dealings between the Licensee and the authorized manufacturer or manufacturers from whom the Licensee purchases such "Licensed Film" shall, insofar as the number of running feet ordered by or shipped to the Licensee or anything that would indicate or disclose the number of such feet is concerned, be a matter of confidence between the Licensee and manufacturer or manufacturers, who shall not be at liberty to disclose, and moreover shall be bound in writing not to disclose, directly or indirectly, to the Licensor or any of the additional licensees of the Licensor, the number of such feet of "Licensed Film" so ordered by or shipped to the Licensee; the Licensor further agreeing to so arrange or provide for the reports and royalty payments to be made to it by such manufacturer or manufacturers that the latter shall make such reports and royalty payments in gross, as to all of the licensees to whom shipments of such "Licensed Film" are made, and without specifying the number of running feet of "Licensed Film" so shipped to any of them, either by a statement in writing of the number of such feet or the amount of royalties paid or to be paid by such manufacturer or manufacturers for or on account thereof. The Licensor and Licensee further mutually covenant and agree that no royalty (except as hereinbefore or hereinafter provided for), other than or in addition to that provided for in this paragraph shall be charged to or col