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

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38 OKIGINAL PETITION. the latter. The dominion of the patentee does not include control over the product of the patented article unless new in a patentable sense. Therefore, whether or not Reissued Letters Patent 12192 is a valid patent, as to which grave doubt must exist in view of the decision of the Circuit Court of Appeals of the Second Circuit, March 10, 1902, holding invalid the patent of which 12192 is in part a reissue and stating that the owner of the prior patent was not the inventor of the film (114 Fed., 934), in any event, defendants have no lawful right under the patent laws to destroy competition in commerce and restrain commerce in the unpatented positive film. Defendants, by means of the license agreements, have prevented and are preventing the importation of foreign films except to a limited extent by defendant Kleine and corporation defendant, Melies Manufacturing Company, who are allowed to import only a small quantity weekly, and thereby defendants have deprived and are depriving the public of the advantages which would arise from competition with foreign films. Defendants created the General Film Company as a means for monopolizing the commerce of the rental exchanges in the manner hereinabove pointed out, and they are now maintaining and operating it with the same unlawful intent. Between 70 and 80 per cent of the motion-picture film annually manufactured and sold in the United States is the product of the ten Patents Company licensees. This film is shipped by the manufacturers to 45 branches of the General Film Company scattered over the United States and distributed by the latter to approximately 7,000 exhibitors. Independent manufacturers of film may not distribute their product through the General Film Company, which is the sole distributing agency of the Patents Company licensees; exhibitors obtaining supplies of film from the General Film Company are not allowed to display the films of the independent