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EXHIBITOR — IN GENERAL
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an implied warranty of “clarity of outline and fitness for exhibition.” As. has been already noted, the film is a very delicate substance, easily injured through use, and the clarity of outline, and the fitness generally for exhibition decrease in proportion to the number of times the film has been exhibited. There has gradually developed in the trade the implied warranty that a film released for exhibition shall be reasonably fit to be shown. If the film furnished to the exhibitor violates this warranty, he may upon discovering the same, either rescind the contract and sue for the return of the money paid by him as license fees, or he may stand upon the contract and sue for his damages.
A license to exhibit a motion picture film is purely personal, and may not be assigned by the licensee without the consent of the licensor. So that where an exhibitor has an agreement with the distributor or releasor for a certain number of releases for a specified period, and the exhibitor sells his business to another, he may not assign his contract with the producer, to the purchaser, nor is such a contract an asset or good will of the business. It does not, in the event of the exhibitor’s bankruptcy, pass to his trustee.13
Where an exhibitor, who has been given an exclusive license to exploit a film, finds that his licensor is attempting to violate such sole grant, he may enjoin his licensor as well as the one with whom his licensor has contracted.14
13 In re Kay-Tee Film Ex 14 General Film Co. v. Kalem change (1911), 193 Fed. (D. C.) Co. (1913), United States Dis140. See cases cited in Section trict Court, South Dist. of N. Y., 14. April 16; Jesse L. Lasky Co.