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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586 Gov't Ex. 134, Agt. Edison & Eastman Kodak Cos. 1 demands, both at law and in equity, for infringements of said reissued letters patent, or either of them; and 5. WHEREAS, the Patents Company further represents that in and by the license agreements aforesaid with it, the licensees named therein are entitled to receive from the Patents Company a share of twenty-four (24) per cent, of the annual gross royalties or rents collected by or paid to the Patents Company for the use of all exhibiting or projecting machines containing any of the inventions described and claimed in the letters patent referred to " in Paragraph 4, which twenty-four (24) per cent, of said annual gross royalties or rents shall be paid to the Eastman Company and the shares thereof to which said licensees are entitled shall be apportioned to and paid to such licensees by the Eastman Company as hereinafter provided; and 6. WHEREAS, the Patents Company further represents that in and by the license agreements aforesaid with it the licensees named therein are each obligated to use q exclusively, in the manufacture, in the "territory aforesaid/' of motion pictures made on translucent or transparent sensitized film, film designated in said agreements as "Licensed Film" manufactured and sold by a film manufacturer or manufacturers under an agreement in writing with the Patents Company; each of said license agreements farther providing for the collection from the licensee named therein by such manufacturer or manufacturers of the following royalty or royalties for such "Licensed Film'' of a width approximately one inch and three-eighths of an inch (1% in.) purchased by said licensee during the year 4 preceding June 20th, 1909, and during any year, counting from June 20th, 1909, during the continuance of the license agreement, and up to August 31, 1914, that is to say; — If such shipments of such "Licensed Film" to the licensee, on the orders of such licensee, for any such year, be four million running feet or less, a royalty of one-half (%■) cent per running foot on the total number of running feet for that year; if such shipments, on the orders of such licensee, of such "Licensed Film," for any such year, exceed four million running feet, but do not exceed six million running feet, a royalty of four and one-half {V[>) mills per running