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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550 .Motion Picture Patents Co. and GtEORge Kjleine. (without auv payment therefor except the transportation charges incident to the return of the same) on the first day of every month, beginning with July. 1912, an amount (if positive motion pictures (on film of a greater width than approximately one (1) inch) in running feet (not leased by the Licensee over six months before) and of the make of the Licensee, equal to ninety per cent. (90%) of the amount that was so leased during the seventh month preceding the date of each such return, with the exception, however, that where any such positive motion pictures are destroyed by fire or lost in transportation, and proof satisfactory to the Licensee is furnished as to such destruction or loss, the amount so destroyed or lost shall be deducted from the amount to be returned as aforesaid; and (6) that the violation of any of the foregoing conditions, including the terms and conditions of the agreement referred to in condition 3 above, entitles the lessor to immediate possession of such motion picture without liability for any price which the lessee, or the person in whose possession it is found, may have paid therefor. The Licensee further covenants and agrees that in the "lease territory aforesaid" the Licensee will not discriminate in favor of any lessee, or place upon any motion pictures any restrictions, other than those specified in this paragraph and Paragraph 13, unless authorized by the Licensor. I 24 i The Licensee covenants and agrees that in the "lease territory aforesaid" the Licensee will dispose of the positive motion pictures, on film of a greater width than approximately one (1) inch, imported or printed by the Licensee, only by the sale "for export" and shipment thereof into "said export territory," or by the lease thereof to others for the purpose only of either sub-leasing the same to persons, firms or corporations using such motion pictures for giving exhibitions thereof in exhibiting or projecting machines licensed by the Licensor containing the inventions or some of them, described and claimed in said Letters Patent Nos. 578,185, 580,749, 586,953, 588,910. 073,329, 073,992, 707,934, 722,382, 744,251, 770,937. 771. 2S0, 785,205 and 785,237, or in Letters Patent hereafter acquired or controlled by the Licensor, or of using the same in such machines so licensed; and will not use the same for the purpose of giving exhibitions thereof for profit, directly or indirectly; it being expressly understood and agreed by and between the Licensor and Licensee, however, thai tin1 Licensee shall be at