Memorandum for the the Motion Picture Patents Company and the General Film Company concerning the investigation of their business by the Department of Justice / submitted by M.B. Philip and Francis T. Homer. (1913)

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foro granted t-i thoae who made »nd iianorted the ro, whlcf. 't cloariy hrd the right to do, the right to furnioh the aarno for use in tl;Q projOQtIng laachinos mode nnd operated under ite putenta. It lo to be borne in mind thit the article (motion Ifioturea) which they were givon the right to furnish, are unlike, in iiaportant p»irtic ilara , articles of common una. The production of motion pictures in on exponaivc Luolnooo, vhich requiree peculiar judgment, if not talont, in fuminhing thoae thut vfiil be attractive to the goneral public wlon eoon. If each of the manufacture rn and importera should make preciooly the 3ai.ie motion picture and 3)io\7 it, tho demand therefor ?.'ould be extremely li-.nitod. It le^a neceeaary th:t there aJiould be active competition between tho different aanuf ncturers nr.t^ importera in order to produce different aubjecta, witl: all e fforts directed toward each subject attracting popular interoot. To inc reaao tho corr.petition between the licer.sees In the product 'on -f the raoot attrtictlvc juljocta, the lutenta Company was willing to divide up aoine of ito roynltiea arong the&i, each lioonaee gettiz^g such proportion of its royalties ■tt aaide aw ita production of motion picturea bore to tho production of ail tic l^.conaees. The mora motion pictures pro-21