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270 ^> <^ <^ The Motion Picture Industry
against any exhibitor until the distributor should have complied with such decision,14 and there should be added to the amount of the award 10% thereof for each 30 days after the time for compliance therewith.15
In view of the controversy which arose over the operation of the arbitration system, it may be well to preface an evaluation of its success by a consideration of the reasons that arbitration is desirable in this industry. A little thought will doubtless make clear that there are several reasons for avoiding resort to the courts in the motion picture field if it be at all possible.
Each of 11,000,000 deliveries made annually is the delivery of a picture under a contract for exhibition which was entered into between the distributor and the exhibitor before the production of the picture or before its release date. With respect to each picture it is necessary to come to an agreement on the play date subsequent to the execution of the contract. .... To each of these subsequent agreements all of the other provisions of the Standard Exhibition Contract apply, including, among others, the provisions relating to time and place of exhibition, payment of rental, "protection" and "run", delivery and return of prints, loss and damage to prints, description and titles of photoplays, exhibition and advertising, warranty as to advertising, delay in or prevention of performance, taxes, minimum admission charge, racial or religious matter, arbitration and waiver
Moreover, as each contract usually licenses the exhibition of from 20 to 60 pictures, to be released and exhibited at approximately regular intervals, an unsettled controversy relating to the delivery of one picture upsets the application of the contract to the other pictures specified in the contract. The mutual obligations of the parties in respect to the other pictures are usually dependent upon the decision of the controversy. What those obligations are cannot be determined until the liability in respect to the matter in controversy is fixed.
Delay in the determination of the dispute is costly to distributor and exhibitor alike. Even if the distributor loses the controversy a prompt decision may enable him to relicense the film at a theater in another place, but if the adverse decision is delayed the distributor loses that possibility because the rental value of a stale picture is negligible. On the other hand, a tardy decision against the exhibitor
14 Taken from Article 18.
15 Taken from Rules of Arbitration.