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 (1914)

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2526 PETITIONER'S Exhibit No. 255. "The Edison company had already demonstrated the strength of their patents in the Court of Appeals which sustained the camera patent, and we were afraid to contest the validity of their film patent, for if it was sustained it would have barred us from America, as the Edison company would no doubt have exacted such heavy royalties that we could not afford to fijrht them. l&j Loop Patent Not Important. "A third reason was the claim of the Biograph company on the loop. We never thought much of this patent because it is dated 1896, and before that time we were making machines, and selling and using them, and all had the loop. Furthermore, during the past two years we have been using machines equipped with a little device which obviates the loop, and permits of any length film being run. It would cost about a dollar to apply the device to all projecting machines used in this country and if the Biograph patent on the Latham loop were sustained it would not trouble us longer than the time it would take to supply every exhibitor with this special device. We have used it for two years, and it works just as good as a sprocket with a loop. "The next reason was that, after looking carefully into the matter, we found arrayed on the side of Edison all the manufacturers in this country furnishing films on which the renter and exhibitor could rely — the Essanay Co., Vitagraph Co., Kalem Co., George Melies, S. Lubin, and the Selig Polyscope Co., who were practically the only ones furnishing films in this country. On the other side there was practically none known outside of Gaumont and Urban, and even among them were French concerns of whom we had never heard, notwithstanding the fact that I have been in the business for seven years. They probably are new concerns, and if ycu will look back you will find that the big concerns are the very oldest. The new companies do not amount to much. In Touch With Customers. "Furthermore, we were in constant touch with our customers, who informed us that they did not want English