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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320S Jeremiah J. Kennedy, Cross Examination. Q. Mr. Smith, Mr. Spoor and others of the defendants have testified that in 1909 and 1910, there were meetings from time to time of the licensed producers, at which meetings those present considered the question of recommending to the Patents Company the cancellation of the licenses of some of the rental exchanges. Is your recollection as to the transactions occurring in 1909 and 1910, opposed to theirs? A. Part of their relations as licensee and licensor gave them the assenting or dissenting voice in certain transactions. Q. Then your recollection is in accord with that of Mr. Smith and Mr. Spoor, in this matter? A. Substantially. Q. It is true, is it not, that under the agreements entered into in 1908, the Patents Company was prohibited from issuing any license to any other producer except with the consent of the producers licensed in December, 1908, said consent being obtained by vote of the licensed producers, taken in the manner provided in the agreement? A. If the agreement provides for it, it is there, of course. Q. I say, is it not the fact, that the agreements entered into in 1908, when the Patents Company started business, provided that the Patents Company should issue no additional licenses except when the licensed producers consented to the issuing of such an additional license? A. You are referring to the manufacturing licenses now? Q. I am referring to the licenses under the camera and film patents, so-called. A. That is true with respect to licenses in the case of a given number, but it is my impression that the Patents Company had a perfect right to grant licenses under certain conditions, without referring to anyone. Q. Is it not the fact that the given number to which you refer, was the number eight or nine, which embraced the total number of manufacturers who were licensed? A. I think it included ten. Q. And ten was the number of original licensees? A. I think so. Q. Now, isn't it the fact that the license agreements and papers and contracts executed in December, 1908, provided, that the Patents Company should issue no additional licenses, that is, no license beyond the number ten, except with the consent of the manufacturers who were licensed in