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

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27 case. In the case at bar the defendants adopted the method of leasing film. In this way they say they reserve title to the film and therefore may determine to the last detail the manner in which the film shall be distributed in commerce. Assuming, arguendo, that the film is a patented article, we maintain that the adoption of the lease system by the defendants was a mere form given by them to the combination for the purpose of bringing about the unlawful result. In their answer they state (Ans. Patents Co., fols. 314-319) the sole reason for expressly framing the license agreements in the form of a lease was to facilitate the peremptory return of the articles by means of a writ of replevin in the event of a violation of the terms of the agreements. (See main brief, pp. 215-219. See also main brief, p. 168, where a Government witness gave uncontradicted testimony that an attorney for the Patents Company stated in his presence that these replevin suits were being brought mostly to scare the people engaged in the business around through the country.) In Dr. Miles Medical Co. v. Park & Sons, 220 U. S., 373, a manufacturer adopted a scheme of agency contracts for the purpose of controlling the distribution in commerce of his products. The articles which he manufactured were not patented articles. He attempted, however, to retain title to those articles and, by means of agency contracts, to fix prices of wholesalers to retailers and prices of retailers to the public. The Su