The United States of America, petitioner, v. Motion Picture Patents Company and others, defendants (1912)

Record Details:

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OEIGINAL PETITION. 21 an opportunity to enter into such an agreement, for the defendants, acting through the Patents Company, refused licenses to a large number of the rental exchanges. Most of these were driven out of business. To about one hundred of the rental exchanges the Patents Company granted licenses. Under the terms of these agreements the Patents Company reserves the right to terminate the license at any time without cause on fourteen days notice by it, and to cancel the agreement at once on breach of any of its terms by the rental exchange. After such termination of an agreement the exchange can not obtain films from any of the licensed manufacturers. These agreements destroyed all competition between the rental exchanges f r they prescribed the manner in which the exchange should do business, which was made the same for all exchanges. Thereafter the defendants, acting through the Patents Company, prevented the exchanges from competing with each other for the business of the exhibitors by prohibiting any two exchanges from serving the same exhibitor. A copy of the exchange license agreement between the Patents Company and the rental exchange is attached hereto as a part of this petition, marked ^^ Exhibit 4.^' After enumerating the patents owned by the Patents Company, and reciting that the Patents Company has licensed nine manufacturers, naming them, to manufacture or import motion pictures, and to lease licensed motion pictures for use on projecting machines licensed by the licensor, the Motion Picture Patents Company, licenses the rental exchange under reissued Letters Patent 12192, the film patent, to lease licensed motion pictures from the licensed manufacturers and importers, and to sublet said Ucensed motion pictures for use only on projecting machines licensed by the licensor under letters patent owned by it.