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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nado the 3an.e by ascret processas e^r.d puch filai contained secret fora.ulao. It had a l«#ful rlgit to .nake an oxclusive agreemerit t( soil its 'Sritire output td t/e i^atants Conpai.y '• licensees if it fiaw fit. There waa othur r ivr fxl.a on the fsiarket nuitaola for T.aklng negative and positive motion pictaroe. The making of thi.^ iigreer^eiit , therefore, connot poaali^iy td conaidorad as in any v^ny io:»hin^ tovard giving the iatente Jonipany n iiionopcly. Thij agreei!)out viia afterwards ci.aiigou on Tebruary 14, i'^'ll, whore Ly t (.e East :^n vorapany »■ aa freo to aali. i ta raw film Lo any on*. . "ho EaBti/.trii uOiiipfjiy uoctj acL ;iiurg6 .i fi.i{,ii(jr price to purcwasera r^thtr ti;Hn th'. liccn«QG8 To r :..t^ rp.v. filn. The price it chstrgos to t ho lii^enbeea ia o-l/i, cents a r.iniiing foot for the kind of film they got, ',%hich includes the royalty of one-half a cent a foot (subject to a alight rebate in quantities above a certain anounl y puyublo to tlie f*Qtei;t.«: Company, and vhic}, it turns ever to tJio I atents Company, The prices at which persons other titan the licensee:; get this raw film, outside of certain pbrsona tht.t aro excepted in the agreement with the Patents Company, i -j 3-1/2 cents a foot, th.ia practically makirg the price to those persona who do not pay a royalty to the Patenta Conipaj y the aame aa those who do. The Kaattnan Com -29