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)

Record Details:

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322 Motion Picture Patents Co. and Gaumont Co. of N. Y. tures" added to its purchases of ''Licensed Film" for that year, having exceeded four million (4,000,000) running feet, and in order that the Licensor may ascertain the royalty rate to be charged to the Licensee, the Licensee shall instruct the manufacturer or manufacturers of licensed film to communicate to the Licensor the amount of such "Licensed Film" on which the Licensee shall have paid royalty during that year. 4. The Licensee covenants and agrees that in the manufacture of "talking motion pictures" both negative and positive in the "territory aforesaid," during the continuance of this agreement, the Licensee will use exclusively sensitized film manufactured a^nd sold in the United States by a manufacturer or manufacturers authorized by the Licensor, such sensitized film herein called "Licensed Film," and that the Licensee will not, in the "territory aforesaid," purchase or otherwise acquire or lease or sell or otherwise dispose of or deal in, motion pictures produced on or by 'the use of any other film than such "Licensed Film" nor sell or otherwise dispose of any negative motion pictures. The Licensor further covenants and agrees that it will, in an agreement in writing with each manufacturer of "Licensed Film," obligate such manufacturer, so long as the latter has the exclusive right to make and sell such "Licensed Film." not to knowingly furnish or sell, in the "territory aforesaid," except "for export," sensitized film for the commercial production of negative and positive motion pictures to any one but the Licensee, and the additional licensees hereinafter provided for, except to the extent of two antl one-half (21 f2) per cent, of the total amount of such "Licensed Film," of a width approximately one and three-eighths (1% inch) inch or thirty-five (35) millimeters, or wider or narrower, supplied by such manufacturer to the parties to the license agreements referred to in Paragraph c during the year preceding June 20, 1909, and to the Licensee and the additional licensees of the Licensor, during any one year thereafter during the continuance of such agreements, which amount such manufacturer shall have the right to furnish or sell, in the "territory aforesaid," to persons not engaged in the business of manufacturing, leasing, selling, loaning, renting out, or otherwise disposing of or dealing in motion pictures in the "territory aforesaid"; and with the further exception that such manufacturer may also reserve 11k1 right to manufacture and sell sensitized film suitable for the commercial production of negative and positive