United States of America v. Motion Picture Patents Company and others (1914)

Record Details:

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whole. In the absence of the complete arrangement not one of the restrictions would have existed. The formation of the Patents Company, the transfer to it of the various patents on December 18, 1908, the ten license agreements entered into by the Patents Company with the ten manufacturers, the rental exchange agreements entered into by the Patents Company with the exchanges, the projecting machine license agreement entered into by the Patents Company with the projecting machine manufacturers, the so-called licenses issued by the Patents Company to the exhibitors, the socalled royalties imposed on exhibitors, the conditions in all the agreements, were all parts of the plan, each part being inseparably connected with every other part. The court cannot consider the question of the legality of a single restriction contained in one of the agreements above enumerated without considering all the restrictions incorporated in that agreement. Furthermore, the court must consider not only the license agreement containing the restriction under consideration, but it must have in mind all the other license agreements, containing other restrictions, and also the character of those restrictions. But defendants' counsel throughout their arguments and briefs treat each restriction as if it were a legal and reasonable condition attached to the use of a patented article by the owner of the patent in the normal and usual development of