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 (1912-1913)

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122 Motion Picture Patents Co. and Am. Mut. & Bio. Co. a court that last hears and decides such suit, or should be held by such court not to be infringed, then, and in any such case, the Licensee may at once terminate this agreement and the license thereby granted, by giving notice of its election so to do to the Licensor. The Licensor and Licensee1 further mutually covenant and agree thai the Licensor may, at its own expense (except as hereinafter provided >, during the continuance of this agreement, institute and prosecute suits against any of the several additional licensees hereinafter provided for, for any breach or violation on the part of any such licensee of the covenants respecting prices at which positive motion pictures shall be leased in the "lease territory aforesaid," and also for violation of any of the other terms, conditions, or stipulations entered into by such licensee; that the Licensor shall at the end of each year, counting from the day and year first above written, render to the Licensee and the other licensees hereinafter provided for, or such of them as may at the time be licensees, a statement in writing showing in detail all legal expenses incurred by it during such year, in the prosecution of such suit or suits; and that up to, but not exceeding, the sum of twenty thousand dollars ($20,000) for any such year, all such legal expenses, in so far as they may be reasonable and proper, shall be borne and paid by the Licensee and the several additional licensees hereinafter provided for, pro rata according to the number of thousand running feet of new subjects, offered for lease by each relatively to the total number of thousand running feet of new subjects, on film of a greater width than approximately one (1) inch, offered for lease or sale by all in the "territory aforesaid/' during the year preceding the rendition of such statement, any legal expenses in excess of said twenty-thousand dollars ($20,000) during any such year to be borne and paid by the Licensor unless the Licensor and the Licensee and the several additional licensees hereinafter provided for should hereafter mutually agree otherwise. 20. It is mutually covenanted and agreed by and between the Licensor and Licensee thai the Licensor may grant other licenses under said reissued Letters Patent Nos. 12037 and 12102 and said Letters Patent Nos. 020003 and 707034, so far as the use of the inventions thereof in cameras is concerned, said licenses to be in writing and not to exceed nine in number, seven to be to the persons and corporations mentioned in paragraph c as having license agreements with the Edison Company, one to the Edison Company, and one to