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1931
The MOTION PICTURE ALMANAC
319
tributed by the distributor, and that it be of no effect unless specifically agreed to in writing by the exhibitor:
**The distributor's right to approve or reject this application or any other application signed by the exhibitor at the same time, or any other time, is not dependent upon the approval or rejection by the distributor of such other application or this application. Dated July 1, 1930.
STANDARD SHORT FORM LICENSE AGREEMENT Agreement of license under copyright made in one
or more counter-parts between
a corporation (hereinafter referred to as the dis* tributor, party of the first part) and the exhibitor (hereinafter named and referred to as the exhibitor operating the theatre hereinafter designated at the end hereof, party of the second part).
WITNESSETH:
The parties hereto agree:
FIRST: Subject to the terms and conditions hereinafter stated and those specified in the Standard License Agreement negotiated and agreed to on July 1, 1930, by Motion Picture Producers and Dis* tributors of America, Inc., the Motion Picture Theatre Owners of America, and the Allied States Association of Motion Picture Exhibitors and which by this ref' er*nce thereto shall be deemed incorporated in and made a part hereof as if herein fully set forth in one complete and single instrument, the distributor hereby grants to the exhibitor and the exhibitor accepts a limited license under the respective copyrights of the motion pictures designated and described in the Schedule hereof.
Payment
SECOND: The exhibitor agrees to pay to the distributor for such license as to each such motion picture the fixed sums specified in the Schedule hereof at least four (4) days in advance of the date of delivery of a print thereof at the distributor's exchange or of the date of shipment thereof to the exhibitor by another exhibitor, unless after the acceptance cf this application by the distributor such payment is otherwise agreed to by the distributor in writing signed by an office of or any person duly authorized by the distributor at its main office in New York City. If the license fee or any part thereof of any of the said motion pictures shall be computed upon the exhibitor's receipts or any part thereof, the exhibitor agrees to pay such license fee to the distributor upon demand therefor at the end of each day's exhibition of each of such feature motion pictures and in the absence of such demand to pay to the distributor such license fee immediately after the last exhibition upon the last date of such exhibition thereof; or if the license period of any of such motion pictures is longer than one week then as to each such motion picture, to pay the license fee thereof to the distributor immediately after the last exhibition of each of such motion pictures at the end of each week.
RUN:
PROTECTION:
THIRD: (strike out (a) or (b) as the case may be).
(a) This license is not for sound pictures.
(b) This license is for sound pictures and the exhibitor represents that the sound reproducing equipment in said theatre will reproduce prints
sound recorded on and (unless equipment will reproduce sound on discs prints and on discs strike out the words '"and discs" or the words "prints and" as the case may be).
Representations as to First Runs
FOURTH: All agreements or representations that the feature motion pictures specified in the Schedule will be exhibited and/or licensed for exhibition prior to their exhibition hereunder at one or more theatres shall be set forth in writing in the Schedule.
FIFTH: The releasing period for general distribution in the United States of the motion pictures
specified herein begins _
and ends _
Acceptance of Application
SIXTH: This instrument shall be deemed an application for a license under copyright only and shall not become binding until accepted in writing without alteration or change by an office of or any person duly authorized by the distributor and notice of acceptance sent to the exhibitor as provided in the Standard License Agreement. The deposit by the distributor of any check or other consideration given by the exhibitor at the time of application as payment on account of any sums payable hereunder or the delivery of a print of any of the motion pictures or the sale of any advertising accessories shall not be deemed an acceptance hereof by the distributor. One Application
SEVENTH: This application and any application for other motion pictures of the distributor executed by the exhibitor at the same time shall be deemed, but only for the purpose of Article Sixth of the Standard License Agreement, one application unless an agreement to the contrary contained herein is specifically signed by the exhibitor.
Arbitration
// the exhibitor or the distributor shall not elect to arbitrate as provided in Article Eighth opposite hereto, said article shall be stricken from this License Agreement and here initialled be/ore execution by the Exhibitor or by the Distributor be/ore acceptance, as the case may be.
_ (Initial Here)
EIGHTH: The exhibitor and the distributor respectively, freely and voluntarily agree that as a condition precedent to the commencement of any action or proceedings in any court by either of them to determine, enforce or protect the legal rights of either hereunder, each shall submit all claims and controversies arising hereunder for determination by arbitration (hereby expressly waiving the oath of the arbitrators) pursuant to Rules of Arbitration, copies of which have been deposited with the American Arbitration Association, 521 Fifth Avenue, NewYork City, bearing date, July I, 1930, and identified by the signatures of the respective duly authorized officers of the Motion Picture Theatre Owners of America, the Allied States Association of Motion Picture Exhibitors and the Motion Picture Producers and Distributors of America, Inc., and by this reference made a part hereof as if herein fully set forth, a copy of which shall be furnished to the exhibitor and the distributor upon request therefor.
The hearing of any such controversy shall be had before the Arbitration Board in the city wherein is situated the exchange of the distributor from which the exhibitor is served, or if there be no such Arbitration Board in such city, then before the Arbitration Board in the city nearest thereto, unless the parties agree in writing that such hearing be had in some other place. If either party fails or refuses to submit to arbitration any such claim or controversy, the other party may apply to a United States District Court, or to any other court, including a court of a state in which such hearing would otherwise not be had, for an order to proceed to arbitrate in which case such hearing shall be had in such place as the court to which such application is made may lawfully direct; and if an order is made by any such court directing that such hearing be had in a place where there is no such Arbitration Board, the arbitrators appointed in accordance with the said Rules of Arbitration shall convene at the place ordered by such court. Upon the failure or refusal of such arbitrators to convene at the time and place directed by order of such court, and to hear and determine such claim or controversy, other arbitrators shall be appointed by such court in the manner provided bylaw.
The parties hereto further agree to abide by and forthwith comply with any decision or award of the arbitrators and consent that any such decision or award shall be enforceable in or by any Court of competent jurisdiction pursuant to the law of such jurisdiction now or hereafter in force.
If the exhibitor shall fail or refuse to submit arbitration any such claim or controversy or to abide by and comply with the award of the arbitrators in respect thereto, the distributor may at its option suspend the deliveries of the motion pictures provided for in this and in each other existing license agreement between the parties hereto and/or terminate this and such other license agreement; and upon such termination the aggregate of the license fees of all motion pictures specified in this and any other such license agreement then not exhibited forthwith shall become due and payable by the exhibitor.
If the distributor shall fail or refuse to submit to arbitration any such claim or controversy or to abide by and comply with the decision of the award of an Arbitration Board in respect thereto within the number of days specified in Article Sixth of the Standard License Agreement of which this Short Form License Agreement is a part following the name of the citv in which such Arbitration Board is located, the exhibitor may at the option of the exhibitor terminate this and any other existing license agreement between the parties hereto by mailing a notice to such elTcct to the distributor within seven (7) days after such failure or refusal.
Any such termination bv either party shall be without prejudice to any other right or remedy which the party so terminating may have by reason of any breach by the other party of this or any other existing agreement between the parties.
Each of the parties hereto, without notice to the other, may apply to any Court having jurisdiction to mak-: this agreement to arbitrate a rule or order of such Court.
Schedule End of Schedule
In witness whereof
the exhibitor, operating the
Theatre, located at
in the _ has
(City and State)
on — -.executed this
(Date)
application, which upon written acceptance thereof by the distributor shall be deemed to be the license of the said exhibitor for the exhibition of the motion pictures specified in the Schedule, but only at the said Theatre in accordance with the terms and conditions hereof and all the provisions of the Standard License Agreement referred to and described in Article First of this Short Form, the receipt of a copy of which the exhibitor hereby acknowledges, which by this reference thereto are deemed incorporated herein and made a part hereof as if herein fully set forth.
t Exhibitor)
Accepted _
Date _
(Distributor)
By —
THE CODE OF ADVERTISING ETHICS
{Code of Advertising Ethics — Subscribed to by representatives of 19 motion picture companies and theatre circuits.}
1. We subscribe to the Code of Business Ethics of the International Advertising Association, based on "truth, honesty and integrity."
2. Good taste shall be the guiding rule of motion picture advertising.
5. Illustrations and text in advertising shall faithfully represent the pictures themselves.
4. No false or misleading statement shall be used directly or implied by type arrangements or by distorted quotations.
5. No text or illustration shall ridicule or tend to ridicule any religion or religious faith; no illustration of a character in clerical garb shall be shown in any but a respectable manner.
6. The history, institutions and nationalities of all countries shall be represented with fairness.
7. Profanity and vulgarity shall be avoided.
8. Pictorial and copy treatment of officers of the law shall not be of such a nature as to undermine authority.
9. Specific details of crime, inciting imitation, shall not be used.
10. Motion picture advertisers sha'l bear in mind the provision of the Production Code that the use of liquor in American life shall be restricted to the necessities of characterizations and plot.
11. Nudity with meretricious purpose, and salacious postures, shall not be used.
12. Court actions relating to censoring of pictures, or other censorship disputes, are not to be capitalized in advertising.
Those who signed the Advertising Code: Glendon Allvine, Fox; J. R. Bray, Bray Productions, Inc.; Hyatt Daab, Radio Pictures: Oscar Doob, Loew's Theatres: Howard Dietz, MGM, Hal Roach Studios; S. Charles Einfe'd. First National: Pat* Dowlmg, Christie; Bruce Gallup, United Artists; Paul Gulick, Universal: Emil Jensen, Inspiration; Henry Linet, Columbia; Mark A. Luescher, RKO; Charles E. McCarthy, Paramount Publix: G. R. O'Neill, Pathe; Al Selig, Tiffany; Michael Simmons, SonoArt Productions; P. L. Thomson, Erpi; A. P. Waxman, Warner Bros.: Gordon S. White, Educational.
CHECKING THEATRE RECEIPTS
Indicative of the most recent developments in the field of the checking of theatre receipts in connection with the establishing of returns to the distributor and the exhibitor in percentage playing of motion pictures is Ross Federal Service, Inc., of which Harry A. Ross is president and Claud Saunders general manager. Headquarters are in the Palmolive Building, Chicago, and branches have been established in key cities throughout the United States.
Ross Federal Service. Inc., was chartered under the laws of the State of Illinois and authorized to transact its business in most of the states of the Union. It was organized and established to meet the requirements of parties to percentage playing of pictures and in its operation systematically and authentically to cover ticket sales and admissions to places of entertainment for its clients.
Twenty-one branches have been established to date (May 26. 1931) and the company has in its emplov 3.000 field representatives. All personnel is bonded.
Heretofore film distributors in general had maintained in their branch offices a corps of checking representatives whose operations were limited chiefly to local situations, with the cost of covering remote locations a factor. Ross Federal Service has field representatives available in cities and towns far distant from exchange centers.