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

Record Details:

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6 In the Shoe Machinery decision the Supreme Court did not have before it for consideration the lawfulness of the numerous interlocking restrictions contained in the licenses issued by the United Shoe Machinery Company. We know of no decision in which interlocking restrictions of the character here present and adopted in the manner disclosed by the evidence have been held lawful by the courts. This significant statement (which however was omitted from the elaborate quotation and discussion of the case in defendants' brief, p. 340) was made by Mr. Justice Holmes in the Shoe Machinery case, 227 U. S., 216 (see our main brief, p. 280) : It is to be observed that the conditions now inserted in the leases are not alleged to have been contemporaneous with tlie combination or to have been contemplated when it was made. * * * The validity of the leases or of a combination contemplating them can not be passed upon in this case. As we have pointed out in our brief, the combination here under consideration contemplated from its very inception the numerous tying and interlocking restrictions which were adopted. These restrictions were the very essence of the combination. During the argument defendants' counsel conceded that the license agreements were the result of conferences, saying that all important business transactions are the result of conferences. The fact that the license agreements and all the restric