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OEIGINAL PETITION. 9
commerce in films, moving picture cameras, projectors and other appliances relating to the art was unrestrained by any combination of manufacturers. At that time films were not leased but sold by the manufacturers to the rental exchanges. The latter in turn leased but did not sell them to the exhibitors.
III.
MOTION PICTURE PATENTS COMPANY.
In the year 1908 the defendants determined to destroy competition between them, to monopolize commerce relating to the motion-picture art, to exclude all others, and thereafter to carry on said commerce according to the terms of the unlawful combination which they were to create. Briefly stated, the combination was to take the following form: Defendants were to organize a company which should do no business and hold no property other than certain letters patent which were to be transferred to it by the defendants and others. This company was to acquire all patents owned by defendants and all other patents relating to the motionpicture art.
Each of the 10 manufacturers was to take from this new Patents Company a license to produce and lease motion pictures. These license agreements were to be all alike and their terms were to be arrived at by agreement of all defendants before the patents were assigned by them to the new company. In the license agreements were to be incorporated conditions and restrictions not authorized by the patent laws and regulating the conduct of the business of the manufacturers in every detail. Under these agreements they were all to do business in exactly the same manner. They were to lease films and no longer sell them; they were to lease at uniform and noncompetitive, prices and only to such rental exchanges as should obtain a license from the