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

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17 Before Mr. Smith entered the motion-picture fieldhe was engaged in the entertainment business. He was a sleight of hand performer, ventriloquist, shadowgraphist, and impersonator of various characters. (Ill, 1740, fol. 3.) And on page 213 of their brief they make this statement : The General Film Company was, to the majority of the producers, a questionable experiment and one upon which they entered with much misgiving. And on page 218 of their brief they say : The acquisition of the property of the exchanges was a development of the experiment which followed the initiative of the owners of rental exchanges who desired to sell. (Dyer, III, 16760 * * * After many of the exchanges had been offered to the General Film Company everybody knew that it would be larger than they had thought at the beginning. IV. Manufacturers who had never owned any of the patents share in the so-called "royalties." In February, 1909, when the license agreement went into effect, there were several thousand exhibitors in the United States. Each of these owned and was using a projecting machine which he had bought outright before that time. That is to say, upon the sale of the projecting machine to him no condition had been attached to the use of