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18 ORIGINAL PETITIOIT.
the trade custom; previously manufacturers had sold films outright and had not leased them.
7. The licensee agrees not to lease or dispose of motion pictures to anyone dealing in motion pictures which are not the output of one of the licensees. (Sec. 6.)
8. The licensee agrees to mark conspicuousl}^ on labels which shall be placed on all boxes containing positive motion pictures the conditions under which the m_otion pictures are leased, among others that (a) the lessee, i. e., the rental exchange, shall not sell but shall only have the right to sublet such motion picture; (6) the lessee shall permit such motion pictures to be exhibited only on motion picture projecting machines licensed by the Motion Picture Patents Company and on no other machines; (c) the lessee shall not sublet such motion picture at a lower subrental price than that agreed upon (if an}^) in the contract of lease between the lessee and lessor; (d) a violation of any of the conditions shall entitle the lessor, i. e., the manufacturer, to immediate possession of the motion picture. (Sec. 7.)
9. The agreement fixes a scale of minimum prices for the lease of positive pictures by the manufacturers to the rental exchanges, and also provides :
The licensor and licensee further mutuallv covenant and agree that the above scale of minimum prices is to remain in force until a new scale of prices is adopted, each such new scale to be adopted during the continuance of this agreement by a majority vote, to be forthwith commiunicated to the licensor, of the licensee and the several additional licensees hereinafter provided for, or such of them as may at the time be licensees, on the basis of one vote for each 1,000 running feet of new subjects. (Sec. 9.)
10. The licensee agrees not to lease motion pictures either directly or indirectly at lower prices than those fixed and provided for in the agreement. (Sec. 13.)