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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Motion Picture Patents Co. and Gaumont Co. of N. V. 321 from any and all claims, demands and liabilities for profits and damages, because of any Lnfringemenl by the Licensee of any or all of the aforesaid United Stales Letters Patent Xos. 578,185, 580,749, 586,953, 588,916, 629,063, 673,329, <;73,00l>. 707,934, 722,382, 744,251, 770,037, 771,280, 785,205 and 785,237, and reissued Letters Patent Xos. 12,037 and 12,192, or use by the Licensee of the inventions, oi any of them, covered by said Letters Patent or either of them prior to the date hereof. 3. The Licensee hereby recognizes and admits the validity of said reissued Letters PatentNo. 12,037, so far as the first three claims thereof are concerned and the validity of said reissued Letters Patent No. L2,192, and Letters Patent Xos. 578,185, 580,740, 586,953, 588,916, 629,063, 673,329, 673,992, 707,031, 722,382, 744,251, 770,037. 771,280, 785,205, and 785,237, and the Licensee agrees not to contest or question the same during the continuance of this agreement. (3a) The Licensee covenants and agrees that it will, during tin1 continuance of this agreement, pay to the licensor, royalties on all positive and negative "talking motion pictures" imported by it at the same rates provided for in Paragraph 4 hereof for royalties on "Incensed Film." The Licensee further covenants and agrees that it will give to the Licensor, between the first and fifteenth days of each month, a statement in writing, sworn to by an officer of the Licensee, if tin1 Licensor should so elect, showing the total number of running feet of "talking motion pictures" so imported by it during the preceding month, beginning with March, 1000, and at the same time pay royalties thereon at the rate of one-half (%) cent per running foot on all "talking motion pictures" so imported by it during that month. The Licensee further covenants and agrees to permit the Licensor, if it should so desire, to examine its books through any reputable chartered accountants, to be agreed upon by the Licensor and Licensee, to determine the number of running feet of "talking motion pictures" imported by the Licensee under this agreement. The Licensor further covenants and agrees that at the end of each year beginning with June 20th, 1010. it will, if the Licensee or directs, make up the account of the royalties paid to it by the Licensee during the preceding year and will return to the Licensee any royalties which the T/icensee may have overpaid, according to the schedule of royalties provided for in Paragraph 4 hereof, by reason of ils total Importations of "talking motion pic