In the District Court of the United States for the I N L I Eastern Distrct of Pe Nsyvana

X I N D E .

I Th e d e fen d an ts . I I busin e ss . Description of the III M P ur P . otion ict e atents Company P n r m n I V . relimi ary ag ee e ts for the assignment of the patents Th u u r ’ i Mo V . e man fact re s license agreements entered nto with the tion Picture Patents Company VI Th e x . rental e change agreements

I I L i r . V . icensed exhib to s I I I L u ur r V . icense agreements with man fact e s of exhibiting machines I X G r F . ene al ilm Company X A M o P ur P n G r F . greement between oti n ict e ate ts Company and ene al ilm Company 31—33 XI A r G F P . g eements between the eneral ilm Company and atents Company licensees XI I u . Concl sion XIII u . J risdiction X I V P . rayer

XH I B I T E S .

E 1 r M P u P xhibit . Cha ter of otion ict re atents Company Ex 2 P r o M hibit . relimina y agreement f r assignment of patents between otion P u P E M u ur ict re atents Company and dison an fact ing Company , 18 1908 December , x 3 L ﬁ E hibit . icense agreement under the camera and l m patents between Mo o P u P B o D e ti n ict re atents Company and i graph Company , m r 1 1 ce b e 8 908 . , x 4 m E hibit . For of license agreement between Motion Picture Patents Com pany and the rental exchanges

5 L - Exhibit . icense agreement under the exhibiting machine patents between Motion Picture Patents Company and Arm at Mov ing Picture Company x E 6 . G F m om A hibit Charter of eneral il C pany , pril x 7 A E hibit . greement between Motion Picture Patents Company and General F A 2 1 1910 . ilm Company , pril , 8 A Exhibit . greement between General Film Company and Edison Man ufac u o A 21 191 t ring C mpany , pril , 0 x 9 R E hibit . eissued Letters Patent 12192 55498— 12— 1

In the District Court of the United States for the i n l i Eastern Distrct of Pe nsyvana.

THE ITE TA TE O F MER ICA P ETITI NER UN D S S A , O ,

NO . MOTIO N PICTUR E PA TENTS COMPA NY AND

others , defendants .

N P I N ORIGI AL E TI T O .

To th e h o n o ra bl e jud ges of th e D i str i ct C o ur t of th e U n i ted

S ta tes o r th e E a stern D i stri ct o P en n s l va n ia s i tti n i n f f y , g equity:

o f C . The United States America , by John Swartley , its

- o f attorney for the eastern district Pennsylvania , acting under

r o f t the di ection the At orney General , brings this proceeding

e a t in quity gainst Motion Picture Pa ents Company , General A Film Company, Biograph Company , Thomas . Edison

E ss a n a y Film Manufacturing Company , the Kalem

r C o m Company George Kleine , Lubin Manufactu ing e e pany , Melies Manufacturing Company , Path Fr res , the Selig

P C e olyscope ompany , the Vitagraph Company of Am rica ,

’ ' Arma t v zPi r L ctu e . r . Mo ing Company , Frank Dye , Henry N A Marvin, J . J . Kennedy , William Pelzer, Samuel Long , J . .

Berst i E e . , Siegmund Lubin , Gaston Mel es, Alb rt Smith , G eorge K . S poor, and W . N . Selig .

s - t The defendant above named , engaged in in erstate and f r c m e e i o eign o m rce in motion pictures , ﬁlms , cameras , xh bit i ng ma ch ines a nd other articles and apparatus u sed in th e

O f th e o f motion picture art, are violating the provisions act OR N O N 2 IGI AL PETITI .

2 1890 Congress passed July , , entitled An act to protect trade and commerce against unlawful restraints and m o n O p ” o l ies , and this proceeding is instituted to prevent and

restrain the hereinafter particularly described agreements ,

contracts , combinations , and conspiracies in restraint of, and

e restraints upon , interstate and for ign trade in such articles ,

the attempts to monopolize and the contracts , combinations ,

to and conspiracies monopolize , and the existing monopo l iz a tio n s of part o f trade and commerce among the several

States in such commodities . O n information and belief, your petitioner alleges and shows :

Motion Picture Patents Company is a corporation organ iz ed th o f f under laws New Jersey , with its principal o ﬁces

80 . at Fifth Avenue , New York City General Film Company is a corporation organized under 200 the laws of the State of Maine , with its principal Ofﬁces at

Fifth Avenue , New York City .

Thomas A . Edison (Inc . ) is a New Jersey corporation , the successor to all the rights and privileges of the Edison

co r o ra t p n . Manufacturing Company , also a New Jersey p i

I n c The principal Ofﬁces of Thomas A . Edison ( ) are located

O . . at range , N J Biograph Company is a corporation organized under f the laws of New Jersey , with its principal o ﬁces in New

York City . E ssa n a y Film Manufacturing Company is a corporation organized under the laws of the State Of Illinois , with its principal ofﬁces at Chicago , Ill .

Kalem Company (Inc . ) is a corporation organized under

O f f the laws of the State New York , with its principal O ﬁces at New York . R N I ON O IGI AL PETIT . 3

Lubin Manufacturing Company is a corporation organized

o f o f under the laws the State Pennsylvania , with its prin cipal Ofﬁces at Philadelphia . Melies Manufacturing Company is a corporation organ

O f Ne w iz e d under the laws of the State York , with its i principal ofﬁces at New York C ty . Pathe Freres is a corporation organized under the laws of the State of New Jersey , with its principal ofﬁces at New

York City . Selig Polyscope Company is a corporation organized under the laws Of the State of Illinois , with its principal

Ofﬁces at Chicago .

' Vitagraph C o m pa n y o f America is a corporation organ iz d o f e under the laws the State of New York , with its principal Ofﬁces at Brooklyn , New York . Arm a t Moving Picture Company is a corporation organ iz e d f under the laws of West Virginia , with O ﬁces in the

O f . C . city Washington , D Said defendants will be hereinafter referred to as corpo ” “ ” ration defendants and defendants . The individuals made defendants herein and hereinafter called “ individual defendants ” and “ defendants ” have been and n o w are ofﬁcers and directors o f the corporation defendants as hereinafter stated , and as such ofﬁcers and directors have participated and do now participate in the management and direction of the business of the corporation

defendants , and have been and are now responsible therefor .

Frank L . Dyer has been since its organization president and a director o f Motion Picture Patents Company and a director o f General Film Company since the incorporation o f the latter company . He is president of Thomas A . Edison (I n c ) and was president o r vice president of its prede cessor, Edison Manufacturing Company, during the period hereinafter mentioned . OR I N I IO N 4 IG AL PET T .

Henry N . Marvin has been since its organization and is now v ice president and a director o f Motion Picture Patents

I s V i Company . He ce president of the Biograph Company , and held that ofﬁce during the period hereinafter mentioned .

J . J . Kennedy has been since its organization and is now

o f treasurer and a director Motion Picture Patents Company , and president and a director of the Gener al Film Company s th e o i ls ince incorp rat on of the latter company . He is a o president of the Biograph Company and held th at ofﬁce

r during the period he einafter mentioned .

n o w William Pelzer has been for several years , and is , secretary and a director o f the Motion Picture Patents $ C o m

O f l C n c pany , and secretary the General Fi m ompa y sin e the in n fﬁ corporation o f the latter company . He is a lso a O cer

I n l ﬁ h of Thomas A . Edison ( c ) and he d that of ce d uring t e

r h n pe iod ereinafter me tioned .

$ Sam uel Long i s now and has been since its in corp o rati on H treasurer and a director o f the General Film Company . e is president and a director o f Kalem Company and held that fi of ce during the period hereinafter mentioned .

B r t i i r t . . e s ts J A is now, and has been s nce inco pora ion , a

n f th e director o f th e General Film Company . He is o e o Ofﬁcer s o f and interested in Pathe Freres and h eld that i ofﬁce dur ng the period hereinafter mentioned .

S n o w i ts iegmund Lubin is , and has been since incorpora

i s tion , a director of the General Film Company, and he president and a director of the Lubin Man ufactu r ing C o m r pany and held that Ofﬁce durin g the per iod ih erein after mentioned .

i t r a . S Albert E m h is now, and has been since its incorpo i i . s tion, a director of the General F lm Company He president and a director of Vitagraph Company fo f America

“ ‘ and h eld that o fﬁce d uring the p eriod hereinafte r mentio n ed . I N T I ON . OR GI AL PETI . 5

o George K . Spoor is now, and has been since its incorp ra

. tion, a director of the General Film Company He is president and a director of E ssan ay Film Manufactu ring Company and held that Ofﬁce during the period hereinafter mentioned . o W . N . Selig is now, and has been since its incorporati n , l a director Of the General Fi m Company , and he is president,

O f sc a director, and stockholder the Selig Poly ope Company, and held that Ofﬁce during the period hereinafter mentioned ;

“ George Kleine is an individual residing in Chicago , Ill . , do ing business in his o wn name . He has been vice presi dent and a director of General Film Company since its incorpora tion .

n o w r o Gaston Me lies is , and has been since its incorpo ati n ,

o th e a direct r Of General Film Company, and he is also

O f s president Melie Manufacturing Company , having held that ofﬁce since its in corporation .

The Obj ect o f this suit is to remove the restraints which defendants here in have imposed upon trade and com merce in machines , appliances , and apparatus relating to the motion picture art and upon persons engaged in such trade a nd comme rce . A moving picture o r a picture of an obj ect in motion in reality consists of a long series of consecutive snap shots, or instantaneous pictures, taken one after the other of the

Obj ect the movement of which it is desired to portray .

s 16 These pictures are recorded at such brief interval , per

r second , that in any two consecutive pictu es there is no perceptible change in the position of the obj ect which is in motion . The result is that when the series o f pictures is thrown rapidly upon a screen by means of a proj ecting

. in machine the illusion of movement is produced . The eye ORI N O N 6 GI AL PETITI .

reality looks upon a swift succession o f instantaneous photo graphs but is deceived into believing that it is seeing actual

movement . Persons engaged in trade and commerce in these appliances may be divided into three classes : ( 1) Manufacturers of mov

ing picture cameras , ﬁlms , and proj ecting or exhibiting ma chines ; (2) rental exchanges doing a wholesale or j obbing business in distributing these machines and ﬁlms to the

3 o f o r exhibitors ; ( ) exhibitors pictures theatre owners . With the development O f the motion—picture business in 20 the last years , numerous patents relating to the motion

picture art have been issued by the United States . Some of these patents have related to the mechanism o f moving pic ture cameras or have been patents for improvements in said mechanism ; many patents have been issued relating to pro je ctin g or exhibiting machines and many more for improve

ments in said machines . Some of these patents have been sustained by the courts while some have been held invalid either by reason of their infringing other patents or because

they related to matters not properly patentable .

Many important factors , besides the character of the camera and proj ector, enter into the production of a good motion picture . The quality and composition of the sensi tiz e d , translucent strip of celluloid film used in the camera , known as the negative film ; the perforating of the negative film with mathematical precision before it is placed in the camera and exposed ; the developing of the negative, the developing and printing of the positive film from the negative are all important elements to the perfection of which years o f constant experimenting and unremittin g research have been devoted .

Of all commerce relating to the motion- picture art the commerce in positive motion - picture ﬁlms is by far the most

- considerable . Between two and one half and three million feet o f pictures a re printed every week by the manufacturers and R N O N O IGI AL PETITI . 7 distributed to thousands o f exhibitors all over the United

n States . The patrons of these theaters generally dema d a e daily change of the entire picture program , and ther fore it is essential to every exhibitor that the source of supply o f pictures be at all times open and unrestrained .

Within the last ten years the moving - picture business has reached enormous proportions . It is probably true that a sum greatly in excess o f has been invested in the different branches o f the business . In the year 1908 and prior thereto there were ten manu fa cturers or importers o f moving pictures in the United

to o f States ; that is say , there were that number companies which were producing o r importing reels o f motion pictures and selling an d shipping them to exchanges scattered

e i n throughout the United States , the latt r turn distributing to exhibitors all over the country . There were at that time some 125 to 150 rental exchanges, and o r more ex h i i r ni b to s in the U ted States .

o r In this commerce in positive ﬁlms moving pictures, the manufacturers at that time competed with each other fo r

o f Oo m the business the exchanges , and all the exchanges

f r peted o the business of the exhibitor . There were also a number o f manuf acturers o f cameras and o f proj ecting

n machi es competing with each other . The ten manufacturers o f ﬁlms and their respective places of business from which they sold and shipped as afore said were the following : n B America Mutoscope and iograph Company , New York

n o w n City , a New Jersey corporation , k own as the Biograph

Company . O Edison Manufacturing Company , range, N . J a New

m I n c . o f . Jersey corporation , predecessor Tho as A Edison ( )

E ssa n a m y Film Manufacturing Co pany , Chicago , an Illinois corporation . 55498— 12— 2 8 OR N N IGI AL PETITIO .

Kalem Company , New York City , a New York corpora tion .

l re re George Kleine , Chicago , a arge importer of ﬁlms , p s enting nine foreign companies .

n Pa . Lubin Manufacturi g Company , Philadelphia , , a

Pennsylvania corporation .

George Melies Manufacturing Company , Chicago , Ill . , an

Illinois corporation , an important importer of foreign ﬁlms , f and also a producer o American ﬁlms . e e Path Fr res , New York City (factory Bound Brook ,

N . J a New Jersey corporation , an importer of ﬁlms and an important producer o f domestic ﬁlms .

Selig Polyscope Company, Chicago , an Illinois corpora tion . f o Y . Vitagraph Company America , Brooklyn , N . , a New

York corporation .

All these producers o f positive moving - picture ﬁlms were engaged in shipping and distributing their ﬁlms throughout

o f the United States to the rental exchanges which , as stated 12 1 5 50 . above , there were between and in the country These

to rental exchanges , in turn , distributed the ﬁlms the thou

o f sands exhibitors , and in so doing were engaged in interstate commerce , as practically every rental exchange had many customers located in other States than the State in which the rental exchange was situated .

At the time mentioned , and prior thereto , keen competi tion existed in the motion- picture business and commerce

o r relating thereto . A theater owner exhibitor was able to buy a proj ecting machine from the Biograph Company , the

r A m a t Company or other manufacturers , and exhibit thereon

c the moving pictures of a n v manufacturer . He ould buy for eign ﬁlms imported by said Kleine o r George Melies Com

o r o f pany , American ﬁlms from any one, or from all the manufacturers o f ﬁlms above named . Interstate and foreign N ON ORIGI AL PETITI . 9

s commerce in ﬁlms , moving picture cameras , proj ector and other appliances relating to the art was unrestrained by any combination of manufacturers . At that time ﬁlms were not leased but sold by the manufacturers to the rental

but exchanges . The latter in turn leased did not sell them to the exhibitors .

MOTIO N P ICTUR E PA TENTS C OMPA N Y .

In the year 1908 the defendants determined to destroy competition between them, to monopolize commerce relating

- a rt to to the motion picture , exclude all others , and there after to carry o n said commerce accord ing to the terms of $ the unlawf ul combination which they were to create . Brie y

: stated , the combination was to take the following form Defendants were to organize a company which should d o n o business and hold no property other than certain letters patent which were to be transferred to it by th edefendants w and others . This company was to acquire all patents o ned by defendants and all other patents relating to the motion picture art . Each of the 10 manufacturers was to take from this new Patents Company a license to produce and lease motion pic tures . These license agreements were to be all alike and their

' terms were to be arrived at by agreement o f all defendants before the patents were assigned by them to the new com pany . In the license agreements were to be incorporated conditions and restrictions not authorized by the patent laws and regulating the conduct of the business of the manufacturers in every detail . Under these agreements they were all to do business in exactly the same manner . They were to lease ﬁlms and no longer sell them ; they were to lease at uniform and noncompetitive . prices and only to such rental exchanges as should Obtain a license from the OR N I N 1 0 IGI AL PET TIO . new Patents Company and should agree to handle only de fendants ’ ﬁl ms and to sublease only to exhibitors licensed

by the Patents Company . No exhibitor was to be furnished films who did n o t agree not to display film s of any manu a cturer other than defendants and not to use proj ecting machines not licensed by the Patents Company . Defend ants intended by virtue o f these agreements to acquire the power to determine who should engage in business as a producer of films and who should be excluded from that business , who should continue to Operate a rental exchange

- and whose rental exchange business should be destroyed , who should remain an exhibitor and who should close his

- theater , who should in the future open a new motion pic

ture theater and who should be barred from so doing . The intent Of defendants in forming the new company and

r e in entering into the license agreements was to control , strain , and monopolize all branches of commerce among the States of the United States and with foreign nations relating

- to the motion picture art , and to exclude others therefrom .

Accordingly , with the unlawful purposes j ust mentioned,

n the defe dants , acting together , incorporated under the laws

o f 8 1908 New Jersey , September , , Motion Picture Patents Company (hereinafter called the Pa tents with a capital stock of Th e articles o f incorporation declare the pur poses o f Motion Picture Patents Company as follows :

The Obj ects fo r which this corporation is formed o f are to acquire by purchase , lease , payment royal O r im ties otherwise , letters patent , inventions and

ro v em en ts . in p materials , processes and apparatus relating to the production o f negatives and positives fo r to motion pictures , and also relating the photo e graphing , d veloping , reproducing , proj ecting , and exhibiting o f scenes and obj ects at rest and in motion ; N O N ORIGI AL PETITI . 1 1

o o f t mortgage , sell , lease , dispose by agreement or

otherwise, such letters patent , licenses under letters to patent , and improvements , and to license others use the inventions covered by the said letters patent

and to use such improvements ; to purchase , hold , sell and convey such real and personal property a s shall be lawful and adapted to the requirements o f the business

of the company .

The certiﬁcate of incorporation o f the Motion Picture Pat ents Company, hereinafter called the Patents Company , is attached hereto as a part o f this petition marked Exhibit 1 . O 18 1908 n December , , at a meeting in New York City t a tended by all the individual defendants , and all the corpora tion defendants being represented except the Melies Ma n ufa c

C O . r turing , defendants , with the unlawful pu poses above men tio n ed a , executed ( ) preliminary agreements for the assignment o f b the patents to the Patents Company , and ( ) nine license agreements with the Patents Company , one being concluded by each Of the manufacturers (except Melies C o . ,which signed a similar agreement o n a later day) with the Patents Com pany . The terms of all these agreements had been arranged beforehand at numero us conferences between the manu fa c r r tu e s . O n the same day , according to their prev ious agreement , defendants elected th e following Ofﬁcers and directors o f th e Patents Company : f . o President , Frank L Dyer, also v ice president Edison

Manufacturing Company .

Of Bio Vice president , H . N . Marvin , also vice president

graph Company . f . . O Treasurer , J J Kennedy , also president Biograph

Company .

O f Secretary , George T . Scull an attorney the Edison

Manufacturing Company . OR G N N 1 2 I I AL PETITIO .

These Ofﬁcers ha ve at all times s ince its incorporation constituted th e entire board o f dire ctors o f the Patents

e f O f Company , xcept that William Pelzer, an O ﬁcer Thomas

fo r A . Edison has been some time past and is now f o G . secretary and director in place eorge F Scull .

o f th e o f h e All stock the Patents Company , except t four

qualifying shares held by the four directors , has been owned

t o n e th e ever since its organiza ion , half by Edison Manu f in a ctur . g Company and its successor, Thomas A Edison

and the other half by the Biograph Company , as provided in the preliminary agreements fo r the assignment f o the patents to be next described .

IV .

P R E L IM I N A R Y A G R EEM E N T S F O R THE A S S I G NM E N T O F TH E

P A TE N T S .

o f t There were four hese agreements , all executed as above 18 1908 stated , December , , each agreement being entered into by o n e o f the following companies with th e Patents Company : 1 . Edison Manufacturing Company , 2 . Biograph Company ,

Arm 3 . a t Moving Picture Machine Company , and

4 f . . Vitagraph Company o America

These agre e ments are identical a s to all the essential f m . o features A copy the Edison agree ent , dated December

18 1908 o f , , is attached hereto as a part this petition and 2 marked Exhibit . After reciting that the Edison Company owns Reissues

12 12 19 2 th e Letters Patent No s . 037 and and that Edison Company desires to acquire of the author

i z ed o f i capital stock the Patents Company , in cons deration

th e Of assignment Of the patents last named , and after further reciting that th e Patents Company has acquir ed o r N N ORIGI AL PETITIO . 1 3 will acquire certain patents (naming them) from the Vita

O f graph Company America , Biograph Company , and the

Arm a t t th e t C o m a nv Company , and tha Paten s p contem plates deriving royalties o f three kinds (1) from m a nufa c turers o f proj ecting machines licensed under the patents by 2 the Patents Company (machine royalties) , ( ) from exhib ito rs o f th e , for the use proj ecting machines licensed under

’ th e patents by Patents Company (exhibitors royalties) , and

(3) from manufacturers and importers o f motion - picture ﬁlms licensed under Reissues 12037 and 12 19 2 above named

t : (ﬁlm royal ies) , the Edison preliminary agreement provides ( 1) The Edison Company agrees to assign reissue patents

12037 12 192 fo r and and the right to sue past infringement , and the Patents Company agrees to issue 500 shares of stock aggregating (Paragraphs 9 and

2 o r ( ) The Edison Company agrees not to pledge , sell ,

o f dispose its capital stock in the Patents Company , and to

c deposit its ertiﬁcates with a trust company , to be named by the Patents Company , as trustee , and to instruct the e said truste not to release , transfer , or return the said cer tiﬁca tes so deposited without the consent o f the Biograph

Arm a and t Companies . (Paragraph (3) After deducting from the machine royalties a royalty 1 of $ a machine , to be paid the Vitagraph Company , and after deducting from the gross exhibitors ’ royalties 24 per cent for payment to the licensed manufacturers and importers o f motion pictures other than the Biograph and Edison Com

a n ies p , and after deducting the expenses , the balance is to be divided as follows : (a ) To the Edison Company shall be assigned and paid an

to amount equal the net ﬁlm royalties . (b) The remainder up to an amount equal to the net ﬁlm

to royalties , shall be assigned and paid the Biograph Com

Arm a t pany and the Company, respectively, in the proportion 14 ORIGIN AL PETITIO N of two - thirds to the Biograph Company and o n e - third to the

Ar m a t Company .

c ( ) If any balance remains after the foregoing payments , it shall be divided and paid to the Edison Company , the

Arm a t Biograph Company , and the Company in the propor

- - tion of one half to the Edison Company , one third to the

— to Arm a t . Biograph Company , and one sixth the Company (Paragraph j (4) Provision is made for the continuation of the agreement 19 14 beyond August , , the date of the expiration of the patents which the Edison Company assigns , for it is provided that o n 13 19 15 o n e August , , year after the expiration of the patents , and at the end of each year thereafter, the Patents Company shall pay to the trustee who holds its certiﬁcates of

fo r stock all Of its net proﬁts the preceding year , consisting

’ “ O f net machine royalties , net exhibitors royalties , and the net sum of any royalties which the Patents Company may collect in lieu of the present ﬁlm royalties ” as a dividend

in upon the capital stock of the Patents Company, and will struct the trustee to divide the said dividends and to pay to the Edison Company therefrom an amount equal to o n e - half of such dividend . (Paragraph (5) The agreement may be terminated (a ) Fo r wilful and continued breach o f its terms by either f o the parties . (b) If the Patents Company becomes bankr upt o r ceases doing business . (c) If the Patents Company is dissolved v o l un taril v o r otherwise .

(d ) If its charter is repealed . Upon termination Of the agreement fo r any o f the fore 12037 12 192 going causes , all the right in Patents and shall be reassigned to the Edison Company by the Patents Com pany . (Paragraph

1 OR N O 6 IGI AL PE TITI N .

I t is provided that the agreement shall continue until

the expiration of all the Vitagraph patents . Upon the termination of the agreement for any of the causes named , the Patents Company shall reassign the patents to the

Vitagraph Company .

T HE M A NUFA CTUR E R S ’ L I CEN S E A G R EEM EN T S E N T E R ED I NTO ITH TH E M TI O N I CT UR E P A TE N T C W O P S O M PA N Y .

O 18 1908 n the same day , December , , with the unlawful

o f purposes above mentioned , each the ten manufacturers

o n 7—8 named pages , supra (except the Melies Company , whose president j oined later and formed another company) , hereinafter called Patents Company , licensees , concluded with the Motion Picture Patents Company a license agreement , each license being practically identical with every other license . The terms of these license agree ments had been determined at numerous earlier confer m e ees between defendants . Each agreement regulated in every detail the manner in which the manufacturer should

fo r do business , which was to be the same all the manu

r fa cture s . Each agreement licensed the manufacturer to manufacture and use moving - picture cameras embody “ o f ing the inventions the patents and to manufacture,

embo d v in print , and produce positive motion pictures g the 12 1 2 inventions of said reissued Letters Patent No . 9 and to l ea se the same in the United States These agreements were licenses under the camera and ﬁlm patents and are to be distinguished from the licenses to the manu fa cturers of exhibiting machines to be later described .

C 18 1908 A opy of the license agreement dated December , , between the Motion Picture Patents Company and the

American Mutoscope Biograph Company , now named the Biograph Company, is attached hereto as a part of this

substan petition , marked Exhibit This agreement, O R N O N IGI AL PETITI . 1 7

tial l y identical with the eight other license agreements exe

c ted : u the same day , provides, in brief

1 — r . The licensee that is, the manufactu er of the motion picture ﬁl m — is licensed to lease the ﬁlm only on condition that it be used in exhibiting or proj ecting machines licensed

by the licensor . 2 t . The licensee agrees hat he will use exclusively sen sitiz ed ﬁlm manufactured by a manufacturer authorized by ﬁl m a the licensor, and that he will buy all his from that m nu

facturer . (Sec . This refers to the Eastman Kodak

Company .

3 . The licensor agrees that he will obligate such manu

facturer not to sell sensitized ﬁlm to anyone but the licensees ,

except a small per cent , which may be supplied by the manufacturer to persons wh o do not make motion pictures f o the standard size . (Sec . 4 . The licensee agrees to pay certain royalties on the ﬁlm

to the licensor . (Sec . This amounts to approximately

half a cent per foot , subj ect to reductions in proportion to “ ” ﬁh n sales . These royalties are called the royalties . 5 2 . The Patents Company agrees to collect royalties of $

a week from all exhibitors using motion - picture proj ecting machines embodying the inventions described in the letters

patent which were to be assigned to the Patents Company .

(Sec . This provision is to apply regardless o f the fact that those machines had already been sold with no condition

attached and had become the property o f the exhibitor . The

n royalty was to be paid o n all machines already o the market .

’ ” These are called the exhibitors royalties .

- 6 . to The licensee agrees not sell any motion picture ﬁlm , but only to lease o r rent the same to licensed exchanges and in accordance with the terms of the exchange license agree ment hereafter described . This was a radical departure from OR N A N 1 8 IGI L PETITIO . the trade custom ; previously manufacturers had sold ﬁlms outright and had not leased them .

n o t o r f 7 . The licensee agrees to lease dispose o motion pic tur es to anyone dealing in motion pictures which are not

o n e o f the output of the licensees . ( Sec . t 8 . The licensee agrees o mark conspicuously on labels which shall be placed o n all boxes containing positive motion pictur es the conditions under which the motion pictures are

a t . e . t leased , among others hat ( ) the lessee , i , the ren al

n o t to exchange , shall sell but shall only have the right sublet such motion picture ; ( b) the lessee shall permit such motion pictur es to be exhibited only on motion picture proj ecting machines licensed by the Motion Picture Patents Company and o n n o other machines ; ( c) the lessee shall not sublet such motion picture at a lower subr en ta l price than that agreed upon ( if any) in the contract of lease between the lessee and lessor ; ( d ) a violation o f any o f the conditions shall entitle

e . the lessor, i . , the manufacturer, to immediate possession of the motion picture . ( Sec .

o f th e 9 . The agreement ﬁxes a scale minimum prices for lease of positive pictures by the manufacturers to the rental

s : exchanges , and al o provides

The licensor and licensee fur ther mutually covenant and agree that the above scale o f minimum prices is

to remain in force until a new scale of prices is adopted , each such new scale to be adop ted during the contin ua n ce of this agreement by a maj ority vote , to be o f forthwith communicated to the licensor, the licensee and the several additional licensees hereinafter pro v id ed o f for , or such them as may at the time be o n o f o n e fo r licensees , the basis vote each

running feet of new subj ects . (Sec .

10 . The licensee agrees not to lease motion pictures either dir ectly o r indirectly at lower prices than those ﬁxed and provided for in the agreement . (Sec . N O N ORIGI AL PETITI . 1 9

1 1 . It is agreed that the subleasing prices for the sub leasing o f pictures shall be ﬁxed by a maj ority vote o f the licensees . (Sec .

o f 12 . The licensee agrees not to dispose positive motion pictur es except by lease , as above described , or by

f r sale o export only , and also to refrain from supplying motion pictures for use with any exhibiting o r proj ecting

fo r machine, the license which has been terminated by the

licensor, and also to refrain from supplying motion pictures to any lessee who may sublet such motion pictures to persons using the same fo r giving exhibitions thereof o n exhibiting machines not licensed by the licensor o r the license for which has been terminated . (Sec .

13 . The parties agree that no person other than the nine hereinbefore referred to shall O btain a license except by a

o n e maj ority vote of the licensees , on the basis of vote for each thousand running feet of new subj ects . (Sec . 14 . The licensor agrees that it will issue licenses to make and sell exhibiting o r proj ecting machines containing the inventions described in the letters patent assigned , but that it will not license any person except upon the condition that the sale and purchase o f such machine gives only the right to use it solely fo r exhibiting motion pictures leased by a

o f licensee the licensor . (Sec . 1 5 . The licensor agrees to charge a royalty of o n “ every such machine . These are called the machine royal ties . 1 6 . The licensor agrees to license the licensee to make and sell exhibiting machines . (Sec . 1 7 . It is provided that the licensee may renew this agree 20 ment by giving notice to the licensor before April , of 19 19 each year until August , , the date of the expiration of 707934 “ ” the Letters Patent , known as the Latham loop

. h l patent (Sec . T s 1s a patent relating to part of the

o f mechanism the camera and proj ector . OR N N 2 0 IGI AL PETITIO .

As previously stated , the Patents Company entered into substantially the same agreement with each of the nine f . o manufacturers George Kleine , one the nine , but an importer and not a manufacturer , was licensed to import w positive ﬁlms , but the amount he was allo ed to import

o f was limited to running feet new subj ects per week , and he agreed to conﬁne his purchases to tw o foreign manufacturers , Gaumont and Urban . Prior to this license arrangement Kleine had imported the ﬁlms of nine or ten foreign manufacturers and amounts largely in excess of

e feet per we k .

A few months later the Patents Company , by agreement of the nine manufacturers , voting as provided in paragraph 13 supra (section 20 o f the license agreement) licensed defendants Gaston and George Melies to import not to ex o ecd feet o f new subj ects per week made in France by George Melies . Said two individual defendants are now

C o . doing business in the name of the Melies Manufacturing ,

o f corporation defendant , which company has the beneﬁt the license granted Messrs . Melies .

E TA EXCH A N G E A G R EEME NT T H E R N L S .

1 ’ . 7 . 6 As stated above (supra p , par ) the manufacturers license agreement requires the manufacturer to lease ﬁlm to rental exchanges in accordance with the terms of an

m an ufa c exchange license agreement . In other words , the turers o n 18 1908 , December , , adopted , and thereafter used , a uniform contract in the distribution o f ﬁlms to the rental

o r exchanges . No company would thereafter lease consign ﬁlms to any rental exchange which had not signed one of these so - called license agreements with the Patents Com

n o t ff “ pany ; furthermore , every rental exchange was a orded N O N ORIGI AL PETITI . 2 1

an o pportunity to enter into such an agreement , for the

defendants , acting through the Patents Company , refused l icenses to a large number of the rental exchanges . Most

To o n e of these were driven out o f business . about hun dred of the rental exchanges the Patents Company granted

o f licenses . Under the terms these agreements the Patents Company reserves the right to terminate the license at any

o n time without cause fourteen days notice by it , and to cancel the agreement at once o n breach o f any o f its terms by the rental exchange . After such termination of an agreem ent the exchange can n o t obtain ﬁlms from any of the licensed manufacturers . These agreements de stroyed all competition between the rental exchanges f r they prescribed the manner in which the exchange should d o

h f r w t e o . business , hich was made same all exchanges There

e aft r the defendants , acting through the Patents Company , prevented the exchanges from competing with each other for the business o f the exhibitors by prohibiting any two exchanges from serving the same exhibitor . A copy of the exchange license agreement between the Patents Company and the rental exchange is attached hereto “ as a part of this petition , marked Exhibit After enumeratin g the patents owned by the Patents

Company , and reciting that the Patents Company has licensed nine manufacturers , naming them , to manufacture o r import motion pictures , and to lease licensed motion pictures for use o n proj ecting machines licensed by the licensor , the Motion Picture Patents Company , licenses the 12 192 rental exchange under reissued Letters Patent , the

ﬁlm patent , to lease licensed motion pictures from the

to licensed manufacturers and importers , and sublet said licensed motion pictures for use only on proj ecting machines

licensed by the licensor under letters patent owned by it . OR N N 2 2 IGI AL PETITIO .

. e . The licensee , i , the rental exchange , agrees as follows

1 o r ( ) Not to buy , lease , otherwise obtain any motion

to pictures other than licensed motion pictures , and dispose o f motion pictures only by subleasing under the conditions

set forth in the contract . (Condition (2) The ownership o f each licensed motion picture is to

remain in the licensed manufacturer . (Condition (3) The licensee shall not sell or exhibit licensed motion

e xh i pictures , but shall only sublet the same , and only to bi

tors who shall exclusively exhibit licensed motion pictures . (Condition

4 o r o f ( ) The licensee shall not sell , rent , otherwise dispose any licensed motion pictures to any person engaged in selling

o r renting motion pic ture ﬁlms . (Condition (5) The licensee shall not sell o r dispose o f motion pictures to any person in th e exhibition business w h o may have v i o lated any o f the conditions imposed by th e licensor through any o f its licensees and o f which . violation the licensee may have had notice . (Condition (6) The licensee shall n o t sublet licensed motion pictures to any exhibitor unless a contract with said exhibitor satis

in . e . t factory form to the licensor, i , the Pa ents Company , is t ﬁrst executed , and unless each mo ion picture proj ecting machine o n which the licensed motion pictures are to be used by such exhibitor is regularly licensed by the Motion Picture Patents Company and th e license fees therefor have been 1 1 2 paid . (Conditions and The license fee is $ a week o n every proj ector owned by the exhibitor . (7) The licensee o r ren tal exchange is required to mail t o

th e o f the Patents Company a list , giving name each exhibitor supplied with pictures by the rental exchange . (Condition The rental exchanges thereafter were not allowed to supply the same exhibitors ; the latter were apportioned 12 among the licensed exchanges . This paragraph (No . ) in effect prevents the rental exchanges from subleasing pictures

2 4 OR N N IGI AL PETITIO .

VII .

L I CE N S E D E XH IB I T O R S

1 1909 After January , , the defendants commenced to do business in accordance with the terms o f the unlawful com bination which they had formed and in which they are now engaged , and thereafter not one of the thousands of theater owners o r exhibitors in the United States could obtain for exhibition purposes a motion picture manufactured by any

m a nufa ctur of the ten manufacturers , comprising all the ers and importers at that time doing business in the United

States , unless the Patent Company recognized him and gave his name as a licensed exhibitor to the licensed exchanges .

In order to secure a license , the exhibitor has to obligate himself to use upon his machines only pictures manu fa tur c ed by the licensed manufacturers . The exhibitor has to pay on every exhibiting machine owned by him $2 a week

’ to the Patents Company ; this so - called exhibitor s royalty applies to machines sold years before to the exhibitor

NO without any conditions being attached to the sale . two exchanges are permitted to serve the same exhibitor during

the same period . Breach by a rental exchange or by an exhibitor of any of the conditions imposed by the defendants through the Patents Company subj ects such rental exchange

or exhibitor to an immediate cancellation of his license . The power and monopoly of the defendants became absolute . De

fendants , through the Patents Company , were enabled to and did determine whether new motion picture theaters should o r

should not be opened and whether old ones should be closed , although defendants had no proprietary interest in such thea

ters . This power defendants have exercised and continue to exercise arbitrarily and unreasonably through the Patents

Company . Whenever the Patents Company cancels the license of a rental exchange it sends notice thereof to all the R N I O N O IGI AL PETIT . 2 5

customers of such exchange, and likewise when it cancels the l icense of an exhibitor notice is sent to the rental exchanges . Thereafter neither such rental exchange nor exhibitor can obtain anywhere in the United Sta tes the product of any of the ten manufactur ers defendants herein . Al l the oppressive restrictions and unlawful conditions contained in the agreements and pointed o ut in the preced

o f ing paragraphs this petition , and to be noted in the para graphs to follow, defendants have observed and enforced at all times since they engaged in their unlawful combination , and they will continue to enforce said unreasonable and oppressive restraints and conditions unless restrained by this honorable court .

VI II .

L I CEN S E A G R E EM E N T S WITH M A N UF A CTUR E R S O F EXH IB I TIN G

M A CH I N E S .

18 1908 o f Defendants on December , , not only by means the Patents Company and the so - called license agreements bound together all manufacturers o f moving- picture cameras

un and ﬁlms into one combination , but also with the same

a nd ur lawful purpose , as a f ther means to monopolize trade , devised license agreements between the Patents Company and each manufactur er o f proj ecting or exhibiting machines . 18 1908 The license agreements of December , , recite that the parties are intending to conclude other agreements relat ing to proj ecting machines . (Supra , p . The agreements between the Patents Company and proj ecting machine manu fa ctur ers contain many o f the restrictive provisions incor po ra ted in the license agreements under the camera and ﬁlm 1 . . 6 patents referred to above (Supra , pp to Among other things , these agreements provide that every exhibiting machine shall be sold subj ect to the condition that it shall be used solely for exhibiting motion pictures containing the N N 2 6 ORIGI AL PETITIO .

o f 12 19 2 to invention the reissued patent ; that is say , every machine is to be sold subj ect to the condition that it shall be used only with ﬁlms supplied by o n e of the ten licensed

manufactur ers . These agreements also ﬁx the prices at which all pro jectin g machines are to be sold ; these prices are made the

fo r — to same all that is say , all competition in interstate comme rce between the various manufacturers o f proj ecting machines as to the prices and terms o f sale of their respective

machines is destroyed by establishing uniform prices . The agreements provide that the m anufacturer shall pay the

o f 5 Patents Company a royalty $ on every machine, called ” machine royalties .

n r The Patents Compa y , acting under the di ection and

o f domination and in the interest defendants , early in 19 09 concluded license agreemen ts o f the character indicated with all the companies at that time m anufacturing and sell

s n : ing proj ecting machine in the U ited States , to wit 2 . 0 C o . American Mutoscope and Biograph , Apr , 1 9 09 .

American Moving Picture Machine Company , Feb . 1 1 3 909 . , A m 1 r a t C O . . 7 9 09 . Moving Picture , Jan , ff n 1 . E d e ra . C o . . 7 909 g Mfg , Jan , 1 . C o . . 7 909 . Edison Mfg , Jan , 1 . 0 . O . C o . 7 9 9 Enterprise ptical Mfg , Jan , 1 . C o . . 7 9 09 . Lubin Mfg , Jan , 1 7 0 . . 9 9 Nicholas Power, Jan , 1 . 7 9 09 . Eberhard Schneider , Jan ,

C o . . 7 Selig Polyscope , Jan , 1 . 7 . C o . 9 09 Spoor , Jan ,

1 . f . 7 0 C o . o 9 9 Vitagraph America , Jan , f The companies just named , located in di ferent States , were selling and shipping proj ecting and exhibiting machines

in interstate commerce throughout the United States . N N 2 ORIGI AL PETITIO . 7

A c o py - o f the license agreement under the exhibiting machine patents between the Motion Picture Patents C o m pany and the Arm a t Moving Pictur e Company is attached “ hereto as a part o f this petition marked Exhibit This agreement is similar to those issued to the other companies named above .

G E N E R A L FI L M CO M P A N Y .

As has been pointed out above (supra , p . persons engaged in the motion—picture business belong to one of

: 1 o f three classes ( ) Manufacturers cameras , ﬁlms , and other

- d istribu appliances relating to the motion picture art , and tors o f these articles to the rental exchanges ; (2) rental

r exchanges or wholesale distributors , constituting the sou ce of supply o f the exhibitor ; (3) exhibitors of moving pictures . By means o f the Motion Picture Patents Company and the

co m agreements above described , defendants restrained the merce of the manufacturers and dominated and controlled

o f O the business the rental exchanges and exhibitors . n or

19 10 o ut about April, , defendants set to monopolize the business of all the rental exchanges in the United States, their purpose being to drive out o f business all persons so engaged and to absorb to themselves the proﬁts theretofore made therein . This unlawful end they accomplished in the manner to be presently described by means of a corporation organized by them for that purpose , General Film Company ,

corporation defendant . 19 10 In April , , defendants , with an intent to monopolize

n the rental excha ge business , organized the General Film

Company , a Maine corporation, capital stock 19 1 1 reduced March , , to preferred com m o n common stock alone having voting rights OR N N 2 8 IGI AL PETITIO .

o f and all being owned by defendants . Each the incorpora tors was co nnected with and interested in the business o f one of the ten Patents Company , licensees . f The following were at once elected O ficers and directors , each officer and director being an officer of and largely interested in the business of one of th e ten manufacturers : f . . o President , J J Kennedy , president the Biograph Com pany , and treasurer and director of the Motion Picture

Patents Company since its organization .

w o f Vice president , George Kleine , o ning the business

to . George Kleine , hereinabove referred

o f . Treasurer, Samuel Long, president the Kalem Company

Secretary , William Pelzer, also secretary of the Motion

e f o f Picture Pat nts Company , and an o ﬁcer the Edison Manu

in fa ctur g Company . The following were elected directors :

Frank L . Dyer, president of the Motion Picture Patents Company and vice president of the Edison Manufacturing

Company . e e B r f . . . e st o J A , vice president Path Fr res f h . . t o t e J J Kennedy , presiden Biograph Company and f treasurer o the Patents Company .

n o f Siegmund Lubin , preside t the Lubin Manufacturing

Company .

Samuel Long , president of the Kalem Company . t Gas on Melies , of Melies Manufacturing Com ‘ president pany .

o f r o f Albert E . Smith , president Vitag aph Company

America .

E n a Man ufa ctur . ssa George K Spoor, president Of y Film ing Company .

W . N . Selig , president of the Selig Polyscope Company .

o n e . George Kleine , of the ten licensed manufacturers R N O N O IGI AL PETITI . 2 9

n o f en re re Each o e the t Patents Company , licensees , was p sented by o n e director o n the board o f the General Film

o f n Company , and only representatives those compa ies were elected t o that board . The articles o f incorporation O f th e General Film C o m pany recite among its purposes the foll owing :

Fo r o f i ll i o r the purpose buy ng, se ng, otherwise acquiring o r disposing o f letters patent and licenses under letters patent fo r inventions pertaining t o the o f t o r production and use pho ographic other negatives , and photographic o r other positives o f Obj ects at rest t and Objects in mo ion ; manufacturing, buying, using,

o r r o r selling, otherwise acqui ing disposing Of appa

ratus , materials , etc . , equipping theatres , halls , and similar places o f amusement

A copy o f the charter Of General Film Company is “ t o f at ached hereto as a part this petition , marked Ex bibit 6 . Before the organization Of the General Film Company

to f defendants , who were be its o ﬁcers and directors , had determined the amo unt o f money the new co mpany should

to u i o ut expend in order acquire , by p rchase , by driv ng Of — C o m business , by cancellation of licenses by the Patents pany , or by other appropriate methods , all the licensed

to rental exchanges , wit , cash and in preferred stock in the new company . Something less than that amount defendants in fac t expended before January , 19 12 , in bringing to a successful conclusion the unlawful plan

which they had set o ut to accomplish .

o ut As has been pointed previously (supra , defendants ,

s a through the Patent Company , had incorpor ted in the license agreements w ith the rental exchanges a provision authorizing the Pat ents Company to terminate the agree

’ tw o ment at any time upon weeks notice , and immediately 3 0 OR N P N IGI AL ETITIO .

o f o f upon breach any its terms . This provision defendants after the formation of the General Film Company proceeded

. 19 10 1 at once to invoke Between April , , and January , 19 12 t , defendan s , through the General Film Company , acquired the business o r cancelled the license o f every

o n e licensed rental exchange in the United States , except , paying therefor in cash and notes and

in preferred stock . During this period the General Film 57 Company purchased exchanges , paying therefor the

o sum j ust stated . Since its rganization the Patents Com pany has cancelled the licenses o f and driven o u t Of business

42 o f 2 1 exchanges , which were cancelled after the General

Film Company commenced business . The result o f the

o f d conspiracy defendants is that to ay , Of all the exchanges 18 19 08 doing business in the United States December , ,

o n e . only , the Greater New York Film Company , survives

to o ut The latter company refused sell , whereupon the defendants , through the Patents Company , cancelled its license , but under the protection Of a decree issued by the United States District Court in New York against d efen dants it is still able to obtain the ﬁlms Of defendants . The General Film Company was incorporated by defend ants solely as a n unlawful instrumentality to effect the illegal purposes of defendants , and in order that it , in coop c i ration with the Mot on Picture Patents Company , might drive out of business and interstate and foreign commerce in the U nited States all rental exchanges and absorb their businesses and proﬁts and thereby enable the defendants to further monopolize commerce relating to the motion - picture art . The General Film Company became on its incorpora tion and has ever since been a combination in restraint of trade and commerce between the States a n d a monopoliza

tion thereof .

OR N O N 3 2 IGI AL PETITI .

manufactured for it by the Patents Co mpany , licensees , with

n f o ut the consent in writi g o the licensor . (3) The Film Company agrees to pay a royalty to the l i cen so r on all motion pictures purchased by it at the maximum — rate of one half cent per running foot . (Paragraph This royalty is subj ect to reduction if the amount purchased is over

running feet . If it runs as high as

a . feet , the royalty is reduced to nmills per running foot (Paragraph

4 a ree n o t to o r ( ) The Film Company g s lease, sell , other

o f wise dispose motion pictures to anyone purchasing , using ,

. n o t o f dealing in , etc , motion pictures which are the output the General Film Company or o f other licensees of the Patents

Company . (Paragraph (5) The Film Company agrees that no lease o f positive motion pictures manufactured for o r purchased by the licensee shall be made in the United States except upon certain conditions which are practically the same as those which were stated in the rental exchange agreement executed between the Patents Company and the rental exchanges 19 22 (supra , pp . to ) (paragraph to wit

1 n o t . The lessee (that is , the exhibitor) shall dis o f pose the pictures , but shall only have the right to use them in machines licensed by the Patents Company under patents owned or thereafter acquired by the

Patents Company . 2 . The lessee shall not sublet the motion pictures . m n 3 . C O a The licensee , that is , the Film p y , shall o n the ﬁrst day of every month withdraw from the market an amount of positive motion pictures equal to the amount o f such motion pictures leased by it during the seventh month preceding the date o f each

such withdrawal . 4 . The violation of any of these conditions entitles the lessor (General Film Company) to immediate f possession o such motion pictures . R N O N O IGI AL PETITI . 3 3

(6) The Film Company agrees that it will dispose of motion pictures manufactured fo r or purchased by it only by sale fo r export o r by lease to motion—picture exhibitors in the United States for the purpose only of using such motion pictures for giving exhibitions in exhibiting machines licensed by the Patents Company under patents named or thereafter a o quired (paragraph that it will not use the pictures for the purpose of giving exhibitions thereof for proﬁt ; that it will n o t knowingly allow motion pictures manufactur ed for or purchased by it to be used with any exhibiting machines not licensed by the licensor, under patents owned by it or thereafter acquired ; that it will refrain from supplying mo tion pictures for use with any exhibiting machines the license for which has been terminated and the Film Company notiﬁed thereof by the licensor ; that it will refrain from sup plying motion pictures to any lessor who may loan or sub

o r lease such motion pictures , who may use such pictures for giving exhibitions thereof in exhibiting machines n o t licensed by the licensor or the license for which has been terminated (paragraph (7) It is provided that the agreement may be renewed

2 6 o f yearly until August , the date of expiration Patent 4 “ ” 7079 3 . , known as the Latham Loop Patent (Para graph

The agreement last described was consented to by each of

10 a the P tents Company licensees , each of whom afﬁxed its “ I n consent thereto writing, such consent being given with the understanding that said General Film Company is not to have under said limited license in writing any voting rights or royalty - sharing rights such as those referred to in said agree ment of the undersigned with said Motion Picture Patents

Company . OR N I O N 34 IGI AL PETIT .

XI .

A G R EEM EN T S B ETWEEN TH E G E N E R A L FI L M COM P A N Y A N D

P A TEN T S CO M P A N Y L I CE N S EE S .

O 2 1 19 10 n April , , with the same unlawful purposes each o f the 10 Patents Company licensees executed an agree ment with the General Film Company to supply the latter with ﬁlm to be leased to exhibitors . These agreements are identical with each other except as to the paragraph stating the number o f running feet of ﬁlm which the General Film

Company agrees to take . Defendants by agreement with each other executed these agreements as another means fo r accomplishing their unlaw ful purpose to monopolize the motion—picture art and all i interstate and fore gn business , trade and commerce relating thereto . Defendants have observed and are now observing said agreements and all the terms thereof , and interstate and foreign trade and commerce in articles necessary in the

- motion picture art are being restrained thereby . A copy of the agreement between the General Film Com

r 2 1 pany and Edison Manufactu ing Company , dated April , 19 10 , is attached hereto as a part hereof, marked Exhibit

Said agreement , substantially identical with nine other agreements concluded the same day with the other . Patents

restri c Company licensees , after reciting the interlocking

: tions contained in the other agreements , provides in brief ( 1) The manufacturer (Edison Company) agrees to supply the General Fil m Company with as many copies o f each licensed motion pictur e released by the manufacturer as the General Film Company may require for the conduct of its business and to supply them at the same leasing prices , terms , etc . , as it leases them to others . (Paragraph (2) The General Film Company agrees that it will lease from the manufacturer motion pictures and wil l use its best efforts to introduce them and extend their use by motion IN E O N ORIG AL P TITI . 3 5

picture exh ibitors using the licensed proj ecting machines . (Paragraph (3) The Film Company agrees to pay the manufactur er a share of its net proﬁts at the end o f each year during the 7 continuance of the agreement , after it has paid per cent dividend on its preferred stock and 12 per cent dividend on the common stock . The manufacturer is to have such a proportion o f the net proﬁts remaining after the deduction o f the dividends as the number of running feet of pictur es leased by the manufacturer to the Film Company bears to the total amount o f running feet leased by the Film Company from a l l the Patents Company licensees d uring that year . (Paragr aph 4 26 19 19 ( ) The agreement shall continue until August , , ” 0 the date of the expiration of the Latham Ioop patent , N . (Paragraph The agreement states the minimum number o f reels which

Fih n the General Company agrees to take , as well as the maximum which it may be obliged to receive .

I I X .

C N CL U N O S IO .

Throughout the period o f time mentioned in this petition and in all their actions described herein , defendants have been actuated by the purpose to monopolize all branches of interstate and foreign commerce relating to the motion picture art and to exclude all others therefrom .

ur As a means to that end , they organized the Motion Pict e T . o Patents Company, a New Jersey corporation it they transferred patents competing with each other and patents n o t competing , patents valuable and patents of little if any worth .

No t satisﬁed with the beneﬁt o f the lawful monopolies and rights belonging to them under the several letters patent which they separately and independently o f each other 3 6 OR IN N IG AL PETITIO .

owned , defendants coveted the unlawful power which would come to them if they combined all patents in o n e ownership ; that is, if they created and thereafter possessed and main ta in ed a monopoly o f all patents relating to the motion picture art . Defendants formed a combination of patents as one of the methods for monopolizing interstate and

- foreign commerce pertaining to the motion picture art . The Motion Picture Patents Company is an unl awful in strum en tal ity Operated and maintained by defendants solely fo r f nl the purpose Of carrying into e fect their u awful intent . The Patents Company has never owned any property except

the patents transferred to it by defendants and which , upon its dissolution , it must reassign , without consideration , to the several defendants who owned and transferred them to the 14 . . O Patents Company (Supra , pp to ther than col l e ctin g royalties from defendants and distributing such roy al ties among them in the manner prescribed by the agree ments , its only business has been and is the bringing of lawsuits under the patents which it acquired from defend ants . Acting under the direction of the other defendants , in order to compel observance by rental exchanges , exhibit o rs o f , and all other persons the unlawful restraints embodied in the agreements , and in order to harass and oppress all persons engaged in the motion - pictur e business who have

o f not obeyed its mandates , it has brought hundreds suits in

o f the courts law against rental exchanges , exhibitors , and others . Defendants have used their power , great by virtue o f their combination , unreasonably and oppressively in order to fur ther extend their monopoly and exclude others from — the motion picture art .

Defendants devised the interlocking restrictions , described

o f a l i above , applying to the use their several machines, pp

o an es , and apparatus as a method to perpetuate their mo l n o po y . Not one of these restrictions is a legal and reason N O N ORIGI AL PETITI . 3 7 able condition attached to the use of a patented machine by the owner of the patent acting singly and in good faith o in order to protect his lawful monopoly , but each c ndition is one and a part of a combination o f conditions and r es tr ic

ac tions devised by ombination of all the defendants , all the co nditions applying collectively to and interlocking the use o f all the machines . These restrictions and unlawful restraints dovetail into each other in such a manner that the manufacturer, the rental exchange, and the exhibitor must use all o r none of the machines covered by the different patents . He can use no others . With the O bj ect of concealing their true purposes and the

o f the real character the combination , defendants devised ,

so - adopted , and enforced the called license agreements, attempting to give to their actions a lawful appearance and to the combination a legal form . In the agreements they embodied unlawful restraints upon commerce, styled by

o f defendants qualiﬁcations upon the use patented machines ,

n but in fact u reasonable , undue , and oppressive restraints arbitrarily imposed by them upon commerce in articles not patented .

o ut t As previously pointed , by far the largest and mos important part o f the com merce relating to th e motion

a rt th e t m o f mil picture is commerce in posi ive ﬁl s , which lions O f running feet are distributed each week thr oughout the Uni ted States and subse q uen tl v displayed by thousands o f h f exhibitors throughout t e country . The combination o defendants was devised to restrain that commerce . Such

n n positive ﬁlms are o t patented . Reissued Letters Pate t 12 19 2 t t t d “ (a tached here o as a par hereof, marke Exhibit made by defendants the basic patent o f their combina

t o h t t e t . t tion, rela es only nega ive ﬁlm The posi ive ﬁlm,

(which is sometimes copyrighted by the producer) , is the

o f th e t t product nega ive , being developed and prin ed from OR N L N 3 8 IGI A PETITIO .

ni f the latter . The domi on o the patentee does not include control over th e product O f the patented article unl ess new

t . in a paten able sense Therefore , whether or not Reissued

t 12 192 t t to Letters Pa ent is a valid pa en , as which grave doubt must exist in view Of th e decision Of the Circuit Court t 10 1902 Of Appeals Of the Second Circui , March , , holding invalid the patent o f which 12 192 is in part a reissue and stating that the owner o f the prior patent was not the 1 4 o f th e 1 . inventor ﬁlm ( Fed , in any event , defend ants have no lawful right under the patent laws to destroy competition in commerce and restrain commerce in the unpatented positive ﬁlm .

o f Defendants , by means the license agreements , have pre vented and are preventing the importation o f foreign ﬁlms except to a limited extent by defendant Kleine and corpora tion defendant , Melies Manufacturing Company , who are

to allowed import only a small quantity weekly , and thereby defendants have deprived and are depriving the public o f the advantages which would arise from competition with foreign ﬁlms . Defendants created the General Film Company as a means fo r monopolizing the commerce o f the rental exchanges in the

o ut manner hereinabove pointed , and they are now maintain ing and operating it with the same unlawful intent .

Between 70 and 80 per cent o f the motion - pictur e film annually manufactured and sold in the United States is the film product o f the ten Patents Company licensees . This is shipped by th e manufacturers to 45 branches of the Gen eral Film Company scattered over the United States and distributed by the latter to approximately exhibitors . Independent manufacturers o f film may not distribute their product through the General Film Company, which is the sole distributing agency of the Patents Company licensees ; exhib ito rs Obtaining supplies o f film from the General Film Com pany are not allowed to display the films of the independent

4 0 OR N O N IGI AL PETITI . protect trade and commerce against unlawful restrain ts and ” monopolies .

2 . That the court adjudge the Motion Picture Patents

Company and the General Film Company , severally and respectively , to be a combination in restraint of interstate and foreign trade and commerce in motion- picture ﬁlms and

- other articles relating to the motion picture art, a restraint, and an attempt to monopolize and a monopolization thereof, and that the court direct a dissolution of each of said com i i b n a t o n s .

3 . That the court adj udge the Motion Picture Patents l Company and the Genera Film Company , severally and respectively , to be an unlawful instrumentality Operated and maintained by defendants solely fo r the purpose o f carrying

f l o f into e fect the illega purposes said contracts , combina

i o f tions , and conspiracies in restra nt interstate trade

an d and commerce of said attempts to monopolize, and monopolies .

4 - . That the court adjudge that the various so called

be license agreements described in the petition , entered into tween the Motion Picture Patents Company and the 10 Patents

so - Company licensees , and the called license agreements between the Motion Picture Patents Company and the General

Film Company , and the agreements between the General Film 10 Company and the Patents Company licensees , and all other

license agreements referred to and described in the petition , were devised , planned , entered into , and are now being observed and enforced solely for the pur pose o f en abl in g th e defendants to carry into effect the obj ects and purposes o f said unlawful combination and conspiracy in restraint o f said interstate and foreign trade and commerce ; that each of said agreements be declared illegal, and be canceled , and that the defend fﬁ ants, and all and each of them , and their o cers, agents, servants, and employees, be enj oined and prohibited from N 4 1 ORIGIN AL PETITIO . doing anything in pursuance or in fur therance of said agree

ments, and from enforcing in any manner said agreements, or any of the terms thereof, in interstate and foreign commerce .

5 . That the court by way of an injunction restrain the movement o f the products o f the 10 Patents Company licensees and of the General Film Company in the channels of interstate commerce until the decree o f the court respecting

C o m the Motion Picture Patents Company , the General Film

so — pany , and the said called license agreements has been carried into effect by defendants and said Patents Company and General Film Company dissolved and said agreements canceled . 6 . That the court adj udge that the patents named in the so - called license agreements referred to and described in the petition , now claimed to be held and owned by defendant

Motion Picture Patents Company , were acquired , and are now held by said defendant by virtue of such combination and conspiracy in restraint of trade and commerce among

the several States and with foreign nations , and solely to f e fectuate the unlawful Obj ects and purposes of the same ,

r o fﬁ and that the said Motion Pictu e Patents Company , its

cers , directors, and agents , be enj oined from exercising or

attempting to exercise any control , direction , supervision , or in$ uence whatever over the interstate o r foreign commerce of the other defendants by virtue of said company holding

said patents or otherwise .

7 . That the defendants and all and each of them be enj oined and prohibited from entering into o r continuing

any similar combination or conspiracy , and from agreeing ,

ni combi ng, conspiring, and acting together to prevent each and any of them from carrying o n interstate and foreign trade and comm erce in motion pictur e ﬁlms and other arti cles relating to the motion pictur e art in competition with the

others . O R NAL 4 2 IGI PETITIO N .

8 . That the United States may have such other and fur ther relief as the nature of the case may require and the court may deem proper in the premises .

To the end , therefore , that the United States of America may obtain the relief to which it is j ustly entitled in the premises , may it please your honors to grant unto it writs o f subp o ena directed to the said defendants : Motion Picture

Patents Company , General Film Company , the Biograph

E n m . ssa a Company , Thomas A Edison y Fil Manu fa cturin C g ompany , the Kalem Company George

Kleine , Lubin Manufacturing Company , Melies Manufacturing e e Company, Path Fr res , Selig Polyscope Company , Vitagraph

Arm a t Company of America , Moving Picture Company ,

Frank L . Dyer, Henry N . Marvin , J . J . Kennedy , William

B r . . e s t Pelzer, Samuel Long , J A , Siegmund Lubin , Gaston

Melies , Albert E . Smith , George K . Spoor, W . N . Selig , and

o f each and every one them , commanding them and each o f them to appear herein and answer, but not under oath

(answer under oath being hereby expressly waived) , the allegations contained in the foregoing petition and abide by and perform such orders and decree as the court may make in the premises .

W AR L HN . T EY JO C S ,

U n i ted S ta tes A tto rn ey.

I GKE R S HAM GEO R G E W . W

A tto rn ey Gen era l .

A ME . L ER J S A FO W ,

A ssi sta n t to th e Atto rn ey Gen era l .

IN . R S V EN R EDW P G O O , nera S peci a l A ssi sta n t to th e Atto rn ey Ge l . X HIB IT 1 E .

CHA TE TI N PI CT RE PATENTS C PAN R R OF MO O U OM Y .

to This is certify that we , the undersigned , do hereby associate ourselves into a corporation under and by virtue of the provisions of an act o f the legislature of the State of “ New Jersey entitled An act concerning corporations (re vision o f and the supplements thereto and acts amendatory thereof, for the purposes hereinafter mentioned , hereby claiming for ourselves all the rights and privileges now or hereafter granted by the laws o f the State of New o ur Jersey to corporations , and to that end we do by this certiﬁcate set forth : n n First . The ame which we have assumed to desig ate such corporation and to be used in its business and dealings “ is Motion Picture Patents Company . o f o f o Second . The location the principal ofﬁce the corp ra 1 . 5 tion in this State is at No Exchange Place , Jersey City , f in the county o Hudson . The name of the agent therein and in charge thereof upon whom process against the cor r i n m o a a . p t o y be served is Charles L Carrick . ir f r m Th d . The obj ects o which this corporation is for ed a o f are to acquire by purch se , lease , payment royalties , or otherwise , l etters patent , inventions and improvements in m e at rials , processes . and apparatus relating to the produc o f tion negatives and positives for motion pictures , and also relating to the photographing , developing , reproducing , projectin g; and exhibiting o f scenes and obj ects at rest and to in motion ; mortgage , sell, lease , dispose of by agreement o r r otherwise , such letters patent , licenses under lette s e to patent , and improv ments , and to license others use the inventions covered by the said le tters patent and to use such to l improvements ; purchase , hold , sell , and convey such rea and personal property as S hall be lawful and adapted to the requirements of the business o f the company . 44 OR N O N B 1 IGI AL PETITI , EXHI IT .

This corporation shall also have power to conduct its busi ness in all its branches and to have o n e o r more ofﬁces and to o r hold , lease , convey real or personal property outside o f the State of New Jersey and in all other States and in all foreign countries to which the business of the company may be here

o r after extended , and to do any acts things designed to pro

e o r o f o f te t , improve, enhance the value any such patents o f and other property of the corporation . Fourth — The amount O f capital stock of the company is one hundred thousand dollars divided into one thousand shares of the par v alue of one hundred dol lars each . The amount o f capital stock with whi ch the company shall commence business is two thousand dol lars — Fifth The names and post - o fﬁce addresses of the incor po ra to rs and the number of shares subscribed for by each are as follows :

a t- fﬁ a N mes . P o s o ce d d resses .

Hu H H B H v Y N. gh . arrison , rook a en , G Mu 2 P u Ar r L I e o . 3 v v . J . rray , ark a en e , e ne , a 4 B u ﬁ l L W st e d N . W m H . v e illi ane , o le ard , , J

— o n Sixth . The existence of this corporation shall begin the day of the filing of these articles o f incorporation in the office of the secretary of state of New Jersey and shall con tin ue for a period o f fifty (50) years from that date . In witness whereof we have hereunto set our hands and

8th . seals this day of September, nineteen hundred and eight

U H A R R I N . L . S . H G H . H SO [ ]

U AY L . S . R R . GE O . J . M [ ]

I I M E L s . L A A N . . W L H . L [ ]

tt . f . ewe In presence o Guernsey R J as to Hugh H Harrison ,

Geo . J . Murray, and William H . Lane . . “ 1 9 908 . Filed and recorded September , N N . IC I S . D D K SO , o ta te S ecreta ry f S . 2 EX H IB IT .

PRE LI MINARY AGREEMENT FOR ASS I GNMENT OF PATENTS BETW EEN MOT I ON PI CTURE PATENTS C OMPANY AND 1 ED I SON MANUFACTURING COMPANY , DECEMBER 18 , 9 0 8 .

18 th o f 1908 Agreement made this day December , , by

and between the Motion Picture Patents Company , a cor po ra tio n organized and existing under the laws of the State f fﬁ o New Jersey , and having an o ce at Jersey City in said State (hereinafter referred to as the “ Patents

party of the ﬁrst part , and the Edison Manufacturing Com

pany , a corporation organized and existing under the laws f O of the State of New Jersey , and having an o ﬁce at range in said State (hereinafter referred to as the Edison C o m party o f the second part : ( 1) Whereas the Edison Company represents that it is

the owner of all the right, title, and interest in and to reissued 12 NO . 037 United States Letters Patent , dated September 0 1 02 3 9 No . , , and reissued United States Letters Patent 12 192 12 1904 , dated January , , and that there are no out standing licenses under the said letters patent other than

those hereinafter referred to , and (2) Whereas the Edison Company represents that it has heretofore granted licenses in writing to manufacture and use the inventions described and claimed in said reissued 12 NO . 037 Letters Patent , and to manufacture and sell the invention described and claimed in the said reissued Letters 12 1 . 92 Patent No , to the Vitagraph Company of America , o f New York ; Siegmund Lubin , of Philadelphia ; the Selig Polyscope Company of Chicago ; the E ssa n ay Company of Chicago ; the Kalem Company of New York ; and the 1 George Melies Company of Chicago , all dated January 3 , 1908 e e 20 1 8 , and to Path Fr res of New York, dated May , 90 , ff 20 190 to go into e ect June , 8 (the licensees under said license agreements being hereinafter referred to as Edison and the Edison Company further represents 45 4 OR N N I B 2 6 O . IGI AL PETITI , EXH IT that the said Edison Licensees are willing to suspend the operation o f the said licenses ; and 3 ( ) Whereas , the Edison Company represents that it tw o has heretofore entered into agreements in writing , 20 1908 dated May , , with the Eastman Kodak Company , a corporation o f New York (hereinafter referred to as the “ Eastman granting the right to the said East “ man Company to supply licensed ﬁlm to the Edison

Licensees , and that the Eastman Company is willing to terminate the said agreements ; and 4 ( ) Whereas , the Patents Company represents that it has an authorized capitalization of one hundred thousand dollars of which twenty (20) shares of a par “ value of are outstanding , and whereas , the Edison Company desires to acquire ﬁfty thousand dollars of the capital stock of the Patents Company , and is willing to assign to the Patents Company all of its right, title , and interest in and to the said reissued Unite d States letters patent and is willing to suspend the operation o f the said n licenses gra ted thereunder , and to terminate the said agreements with the Eastman Company , in consideration of the payment to the Edison Company of forty - nine thousand dollars o f the capital stock of the Patents C o m o n pany , and e thousand dollars in cash , provided that for the said one thousand dollars in cash , the Patents Company shall have assigned to the Edison Company ten ( 10) shares o f the said capital stock at a par value o f o n e thousand dol lars and o f (5) Whereas , the board directors of the Patents Com pany has ascertained , adj udged , and declared that the said right , title , and interest in the said reissued letters patent free from the operation of the said licenses and agreements , are of the fair value of ﬁfty thousand dollars and that the acquisition thereof is necessary for the business of the Patents Company and to carry out its contemplated obj ects ; and 6 ( ) Whereas , the Patents Company represents that it has acquired or will acquire from the Vitagraph Company of o f America , New York, all the right , title, and interest in and

4 O R N ON I B 2 8 IGI AL PETITI , EXH IT .

Company and its successors in business , the entire right , title , and interest in and to the said reissued United States 12 12 1 2 . 037 9 Letters Patent , Nos and , and the inventions a described and cl imed therein, and the right to sue for and recover damages and proﬁts fo r past infringement o f the said e o f reissued letters patent and of ach them , and to enter into agreements in writing with the said Edison Licensees sus pending the Operation o f the licenses granted by the Edison Company under the said reissued United States Letters

Patent to the said Edison Licensees , so long as the said reissued letters patent are owned by the Patents Company , and to enter into agreements in writing with the Eastman Company terminating the agreements in writing referred to 3 in paragraph hereof, so long as the said reissued letters patent are owned by the Patents Company . 10 s ( ) The Patents Company hereby covenants and agree , in consideration o f the said agreement o f the Edison C o m pany , and upon the assignment of the said reissued letters patent to the Patents Company , and upon the making of the said agreements in writing by and between the Edison Com pany and the Edison Licensees and the Eastman Company , to issue to the Edison Company certiﬁcates of stock o f the Patents Company to th e aggregate amount o f four hundred

490 o f - and ninety ( ) shares , of a par value forty nine thousand dollars and to pay to the Edison Com pany one thousand dollars in cash , and the Patents Company further covenants and agrees that at the same time there shall be assigned to the Edison Company for the said in cash ten ( 10) shares o f the capital stock of the Patents Company at a par value of o n e thousand dollars ( 11) The Edison Company covenants and agrees that it has canceled or will cancel any licenses , shop rights , or other rights which may have been heretofore granted under ' either or both o f the said reissued United States letters patent to any person , ﬁrm, or corporation other than the

Edison Licensees , and the Edison Company further covenants and agrees that it will save h armless in all respects the

Patents Company from any claim under any agreement , con o r o r its tract , other obligation which the Edison Company R N O N B 2 . O IGI AL PETITI , EXHI IT 4 9 predecessors in title may have entered into or assumed with o r any person , firm, or corporation concerning involving any o r o f licenses , shop right , other right under any or all the said reissued letters patent . ( 12) The Patents Company further covenants and agrees that it will keep in separate accounts the incomes from film ’ royalties , from machine royalties , and from exhibitors royal ties , and that the general and contingent expense of the Patents Company (which shall not include any expense in curred in any litigation) shall not exceed fifty thousand dollars in any one year . The Patents Company 20 1909 further covenants and agrees that on June , , and at the end of each and every year thereafter until the expira tion of the said reissued United States Letters Patent Nos . 12037 12 192 14 19 14 , , , , and . and on August the date of ex ira tio n a p of the said reissued letters patent , it will m ke up the accounts of and distribute the said royalties fo r o r the preceding year portion thereof, as the case may be , in the following manner :

First . From the machine royalties sh all be deducted the Vitagra ph royalties for payment to the Vitagraph Company ’ o f America , and from the exhibitors royalties shall be de ducted 24 per cent thereof fo r payment to the manu fa cturers and importers of licensed motion pictures .

Second . From the ﬁlm royalties and the remainders Of the ’ m achine royalties and o f the exhibitors royalties shall be de ducted the general and contin gent expense for the preceding o r year portion thereof, as the case may be , together with any expense for litigation which may have been incurred by the

Patents Company , in shares proportioned according to the ratio which each of said sums bears to the gross income o f o r the Patents Company for that year portion thereof, the remainders of such sums after the said ded uctions are made “ ” “ as being hereinafter referred to net ﬁlm royalties , net ” “ ’ re machine royalties , and net exhibitors royalties , s e cti l p v e y .

. ﬁl m r o a l tie s Third The net y , the net machine royalties , and the net exhibitors ’ royalties shall be paid to the trustee provided for in para graph 14 of this agreement as a dividend 50 O R N O N B 2 IGI AL PETITI , EXHI IT .

upon the capital stock of the Patents Company , and the said trustee shall be instructed to divide and pay the said divi dend in the following manner : (a ) To the Edison Company shall be assigned and paid an amount equal to the net ﬁlm royalties . b o f ( ) The remainder the dividend , up to an amount i equal to the net ﬁlm royalt es , shall be assigned and paid to Ar m a t res e c the Biograph Company and the Company , p tiv el o f — y, in the proportion two thirds to the Biograph

- Ar m a m Company and one third to the t Co pany . c l ( ) If any ba ance remains after the foregoing payments , it shall be divided and paid to the Edison Company , the h Arm a t Biograp Company , and the Company , in the pro — o f o n e - portion one half (5) to the Edison Company , third — to the Biograph Company , and one sixth (é) to the rm a A t Company . ( 13) The Patents Company further covenants and agrees o n 3 1 19 15 o f that , August , (one year after the date the 12 expiration of reissued Letters Patent Nos . 037 and and at the end of each and every year thereafter, it will pay to the trustee provided for in paragraph 14 o f this agreement fo r all of its net proﬁts the preceding year , which consists ’ o f the net machine royalties , the net exhibitors royalties and the net sum o f any royalties which the Patents Company may collect in lieu of the present ﬁlm royalties (such net amounts being determined as provided for in paragraph 12 hereof) as a dividend upon the capital stock o f the Patents

Company , and will instruct the trustee to divide the said dividend and pay to the Edison Company therefrom an

- amount equal to one half (5) of such dividend . ( 14) The Edison Company further covenants and agrees o f not to pledge , sell or otherwise dispose its capital stock in the Patents Company , except the minimum number of shares sufﬁcient to qualify o n e - half Of the total number of directors which the Patents Company may have , without the consent

O f Arm a t the Biograph Company and the Company , and the Edison Company fur ther agrees to deposit its certiﬁcates o f stock in the Patents Company, except such as represent fo r the said qualifying shares directors , with a responsible OR N O N B 2 . IGI AL PETITI , EXHI IT 5 1

trust company named by the Patents Company , as trustee , o r and to instruct the said trustee not to release, transfer, return the said certiﬁcates so deposited , without the consent Arm o f the Biograph Company and the a t Company . ( 15) It is further mutuall y covenanted and agreed by and between the Patents Company and the Edison Company f o n that this agreement shall take e fect the date hereof , and that if during the life O f this agreement either party should knowingly o r through gross neglect o r carelessness be guilty o f o f a breach , violation , or nonperformance its covenants , conditions , and stipulations , resulting in substantial injury to fo r o f the other party , and should the period thirty days o r after notice thereof from the other party , persist therein to o r fail correct , repair , remedy the same , then and in such case the party aggrieved may terminate this agreement by ’ giving thirty days notice in writing to the guilty party Of to d o its intention so , and it is further mutually covenanted and agreed that this agreement may also be term inated by either O f the parties hereto in case that the Pat-ents Company m n u o r should beco e ba krupt , cease doing b siness , should be v n o r w o r dissolved olu tarily other ise , its charter should be repealed . I t is also further mutually covenanted and agreed O f fo r O f that , upon the termination this agreement any the i o r O f forego ng causes , any other cause , all the right , title , and interest in and to the said reissued United States Letters 12 12 1 2 Patent No s . 037 and 9 shall be reassigned by the Pate nts Company to the Edison Company fo r and in con sideration o f the sum of o n e doll ar th e i In witness whereof , part es hereto have caused this agreement to be executed by their Ofﬁcers duly authorized

to . perform these acts , the day and year ﬁrst above written P [ S EA L ] MOTIO N PICTUR E PA TENTS CO M A NY . A I P i d e t. . . R R S N res n By H H H O , Attest : E tar . G O . . URR A Y S ecre J M , y S EA L IS N A N UFA TUR IN G MPANY [ ] ED O M C CO , t P resi d en . R AN . YER Vi ce By F K L D , rh ttest : V E T I E c tar . . V S S e re A , y XH I IT E B 3 .

LI CENSE AGR EEMENT UNDE R THE CAME RA AND FI L M PAT ENTS BET W EEN MOT I ON PI CTURE PATENTS C OM PA D B RA C PAN DECE ER 18 1 NY AN I OG PI I OM Y , MB , 9 08 .

a 18th o f ( ) This agreement , made this day December, 1908 t , by and be ween Motion Picture Patents Company , a corporation organized and existing under the laws o f the o f f State New Jersey , and having an O ﬁce at Jersey City , t th e in said S ate , party Of ﬁrst part (hereinafter referred to t as the Licensor) , and American Mu oscope and Biograph

Company , a corporation organized and existing under the o f o f f laws the State New Jersey , and having an o ﬁce at o f New York City , party the second part (hereinafter referred to t : as the Licensee) , witnesse h b ( ) Whereas , the Licensor represents that it is organized o w n t to , deal in , and grant licenses under letters pa ent

t o - t pertaining the motion picture art , and tha it is the owner t t t Of all the right , ti le , and interest in and to Uni ed Sta es Letters Patent 1 2 1 f No . 578 85 e 89 7 o r , dat d March , , Vitascope , granted to Thomas Arm a t 4 1 1 f NO . 5807 9 3 89 7 o r , dated April , , Vitascope , granted to Thomas Arm a t 2 1 NO . 586953 t 0 89 7 t , da ed July , , for Phan oscope , A m granted to Charles F . Jenkins and Thomas r a t ;

1 24 1 f r NO . 5889 6 89 7 o , dated August , , Kinetoscope , f granted to Charles M . Campbell as the assignee o

Willard G . Steward and Ellis F . Frost ; 2 1 1 f r No . 6 9 063 8 899 o t , dated July , , Kine oscopic t o t Camera , granted American Mu oscope Company as the assignee o f Herman C a sl e t 2 1 1 f No . 6733 9 30 90 o r , dated April , , Kinetoscope , granted t o the American Vitagraph Company as the f assignee o Albert E . Smith ; B 5 N ON 3 . 3 ORIGI AL PETITI , EXHI IT

67399 2 14 190 1 fo r NO . , dated May , , Vitascope , granted to Thomas Arm a t 079 34 26 19 02 NO . 7 , dated August , , for Projecting

C O . Kinetoscope , granted E . H . T . Anthony as assignees of Woodvil le Latham ; 22 82 10 19 03 fo r . 3 No 7 , dated March , , Animated Pic to A (it ture Apparatus , granted merican Mutoscope

Biograph Company as the assignee o f John A . Pross ; 4425 1 17 19 03 fo r NO . 7 , dated November , , Kinetoscope ,

granted Albert E . Smith ; 9 7 27 1904 fo r No . 770 3 dated September , , Kinetoscope , granted the Vitagraph Company O f America as the

assignee Of Albert E . Smith ; 12 O 4 1904 — No . 77 80 , dated ctober , , for Winding Reel

granted Albert E . Smith ;

5205 2 1 1905 fo r - N 0 . 78 , dated March , , Flame Shield for

Kinetoscopes , granted the Vitagraph Company of Am erica as the assignee of William Ellwood ; and

2 7 2 1 1905 fo r - fo r . 785 3 No , dated March , , Film Holder o f Kinetoscopes , granted the Vitagraph Company

Am erica as the assignee o f Albert E . Smith ; all of which said letters patent relate to improvements in the motion picture art , and that there are no outstanding sh O licenses , p rights , or other rights under said letters patent , o r either of them , except a license for Parlor Kinetoscopes K rm f a a ta o . C . granted the Company , Washington , D , 1 4 No s . 578 85 5807 9 5869 53 under Letters Patent , , , and 2 67399 . . , and certain alleged licenses under U S Letters i NO . 5869 53 Patent , which are in dispute , cla med to be . owned by the Edison Company and the American Grapho

. C . . phone Company , of Washington , D , and S Lubin , of

Philadelphia , Pennsylvania ; and excepting a license granted by the American Mutoscope Biograph Company to the ﬁrm of Marvin and Casler to manufacture and sell cameras and exhibiting or proj ecting machines under letters patent owned by it (some of which are hereinbefore referred to) fo r use in foreign countries only , and excepting certain licenses granted by the Arm a t Motion Picture Company to the American Mutoscope Biograph Company under 54 O R N A O N I B 3 IGI L PETITI , EXH IT .

. 578 185 580749 5869 53 5889 16 Letters Patent Nos , , , , and 673992 , and by the latter company to the former company

No s . 7079 34 722382 under Patents and , which licenses are , however , by agreement between said parties , suspended and are n o t to be acted upon until the Licensor becomes bank o r rupt , ceases doing business, shall be dissolved voluntarily o r o r l otherwise , its charter sha l be repealed ; and c o f ( ) Whereas , the Licensor is the owner all the right , to title , and interest in and reissued Letters Patent o f the 12037 30 19 02 United States Numbered , dated September , , 12 192 12 19 04 th e and , dated January , , original Letters Pat 589 168 3 1 189 7 ent whereof are Numbered and dated August , , n o t and that there are ou standing licenses , shop rights , or

o r other rights under said reissued letters patent , either of them, except license agreements thereunder between the o f Edison Company and Pathe Freres New York , dated May 20 19 08 o f 20 , ( to g into ef ect June , and between the o f Edison Company and the Kalem Company , New York ; the E ssa n a o f o f y Company , Chicago ; Siegmund Lubin , Phila o f delphia ; George Melies Company , Chicago , Illinois ; the

Selig Polyscope Company , of said Chicago , and the Vitagraph o f 3 1 Company of America , New York , all dated January , 19 08 ; and d ( ) Whereas , the Edison Company , the Licensee and the other licensees before mentioned under the said reissued 12037 12 192 Letters Patent , Numbered and , have suspended the operation o f the said license agreements ; and

e ( ) Whereas , the Licensee is engaged in the manufacture o f and sale motion pictures , including the printing of positive motion pictures from negative motion pictures o f the ’ Licensee s own production, and , relying upon the aforesaid o f representations the Licensor, and induced thereby , desires to Obtain from the Licensor a license under said tw o reissued 120 12 192 Letters Patent Numbered 37 and , and Letters 2 063 7079 34 to Patent No s . 6 9 and , and lease positive motion pictures fo r use in exhibiting o r proj ecting machines contain th e o r a n o f t ing inventions , y hem , described and claimed in 78 185 580749 586953 5889 16 No . 5 said Letters Patent s , , , , 29 6 3992 7079 34 722382 74425 1 770937 77 1280 6733 , 7 , , , , , ,

5 6 O R N O N B 3 IGI AL PETITI , EXHI IT .

12 by said reissued Letters Patent No . 037 and Letters 2 NO . 6 9063 7079 34 Patent and ; and , in the event Of the permanent discontinuance o r retirement from busin ess o f o f the Licensee for a period six consecutive months , the mm license hereby granted shall be i ediately terminated . 2 . The Licensor, for itself , its successors , assigns and legal representatives , hereby releases , acquits , and discharges the

Licensee from any and all claims , demands , and liability for o f proﬁts and damages , because any infringement by the Licensee Of any o r all o f the aforesaid United Letters Patent 1 4 1 2 o s . 578 85 5807 9 5869 53 5889 6 6 9063 673329 N , , , , , , 6739 92 7079 34 722382 7442 5 1 7709 37 77 1280 785205 , , , , , , , 7 2 7 o 12 85 3 N s . 37 and , and reissued Letters Patent 0 and 12 19 2 o r o f o r o f , use by the Licensee the inventions , any o f them , covered by said letters patent or either them prior

to the date hereof .

3 . The Licensee hereby recognizes and admits the validity 12 NO . 037 Of said reissued Letters Patent , so far as the ﬁrst o f three claims thereof are concerned , and the validity said 12 1 2 reissued Letters Patent No . 9 and Letters Patent No s . 578 185 580749 5869 53 5889 16 629063 673329 673992 , , , , , , , 7079 34 722382 74425 1 770937 77 1280 785205 , , , , , , and 785237 n o t to , and the Licensee agrees contest or question o f the same during the continuance this agreement . 4 . The Licensee covenants and agrees that in the manu

facture Of motion pictures , both negative and positive in the “ ” o f territory aforesaid , during the continuance this agree l ment , the Licensee wil use exclusively sensitized ﬁlm manu fa c tur ed and sold in the United States by a manufacturer

o r manufacturers authorized by the Licensor , such sensi “ ” ti z ed film hereinafter called licensed film , and that the “ ” n o t o r Licensee will , in the territory aforesaid , purchase otherwise acquir e o r lease or sell o r otherwise dispose Of o r o r deal in , motion pictures produced on by the use Of any “ ” o r other film than such licensed film , nor sell otherwise

dispose o f any negative motion pic tures .

The Licensor further covenants and agrees that it will , in an agreement in writing with each manufactur er of “ ” r licensed film, obligate such manufactu er , so long as N O N B 3 . ORIGI AL PETITI , EXHI IT 5 7 the latter has the exclusive right to make and sell such “ i fih n n o t l censed , to knowingly furnish or sell , in the “ fo r territory aforesaid , except export , sensitized film for the commercial production o f negative and positive motion pictur es to anyone but the Licensee , and the addi

i n l fo r to t o a licensees hereinafter provided , except the extent of per cent of the total amount of such licensed ” film supplied by such manufacturer to the parties to the license agreements referred to in paragraph (c) during the 20 1909 to year preceding June , , and the Licensee and the a fo r ur addition l licensees hereinafter provided , d ing any o n e year thereafter during the continuance o f such agree ment , which amount such manufacturer shall have the right “ ” r y to fu nish or sell , in the territor aforesaid , to persons n o t engaged in the business of manufacturing , leasing , sell o r w o f o r ing , loaning , renting out , other ise disposing dealing “ ” in motion pictures in the territory aforesaid ; and with the fur ther exception that such manufacturer may also reserve the right to manufacture and sell sensitized film suitable fo r the commercial production o f negative and o f to a ro xi positive motion pictures , a width not exceed pp ” o n e 1 mately ( ) inch in the territory aforesaid , to persons , o f m a n ufa c firms , and corporations engaged in the business r e o ut tu ing , l asing , selling , loaning , renting , or otherwise “ disposing o f o r dealing in motion pictur es in the territory ” aforesaid , but upon the condition that in case any of them produces thereon any pictur e greater in size than a ppr o xi mately three - quarters (2) o f an inch o n a line either parallel o r n o f to at right a gles to the edge such film , and such r manufactu er has knowledge thereof , such manufacturer co r will cease supplying such film to any person , firm , or po ra tio n so do ing ; and with the further exception that such manufacturer may a lso reserve the right to manufacture and sell in the “ territory aforesaid ” such sensitized film suitable fo r the commercial production of negative and posi o f tive motion pictures any width , to persons , firms , and corporations now having an established business of manu fa ctur in g motion pictur es in any country foreign to the n o w United States , who manufacture negative and positive 58 OR N O N I B 3 IGI AL PETITI , EXH IT .

o r motion pictures in the United States , who may after the date o f this agreement commence the manufacture o f nega o r i tive positive mot on pictures in the United States . The Licensor further covenants and agrees that the royalties which it will charge to and receive from the Licensee for “ licensed film ” (and which are to be included by the manufacturer or manufactur ers in the prices charged for “ licensed film ” to the Licensee and paid over to the Licensor) ” n o t fo r o f shall , licensed film a width approximately

- I — one inch and three eighths of an inch ( s in . ) o r thirty ﬁv e 35 ( ) millimeters , purchased by the Licensee during the year 20 19 09 preceding June , , and during any year thereafter r du ing the continuance of this agreement , as hereafter : provided , exceeding the following rates ; that is to say “ o f If the shipments such licensed ﬁlm to the Licensee, ’ u or the Licensee s orders , for any such year be fo r million

- running feet or less , a royalty of one half (5) cent per run ning foot o n the total number of running feet for that year ; ’ o n o f if such shipments , the Licensee s orders , such licensed film ” for any such year exceed four million running feet but do not exceed six million running feet, a royalty of four and one - half (45) mills per running foot o n the total number fo r of running feet that year ; if such shipments, on the ’ “ ” o f fo r Licensee s orders , such licensed film any such year exceed six million running feet but do not exceed eight 4 million running feet , a royalty of four ( ) mills per running foot on the total number of running feet for that year ; if ’ o n o f such shipments , the Licensee s orders , such licensed film ” for any such year exceed eight million running feet n o t o f but do exceed ten million running feet , a royalty three and three - quarters mills per running foot o n the total t number of running feet for tha year ; and if such shipments , ’ “ ” n o the Licensee s orders , of such licensed film for any o f such year exceed ten million running feet, a royalty three and one - quarter (3k) mills per running foot o n the total number o f running feet for that year . And for licensed ” film narrower or wider than approximately o n e and three

- fi 35 l I . v e eighths ( s in ) inch or thirty ( ) mil imeters , the above - mentioned royalty rates shall be reduced or increased I T I N H I BI T 3 OR N I O . GI AL PE T , EX 59 in proportion to the reduction o r increase in width of such “ ” narrower o r wider licensed film below or above the “ width of such licensed film of approximately o n e and — - fi three eighths (1g in . ) inch or thirty v e (35) millimeters . The Licensor and Licensee further mutually covenant “ ” and agree that the manufacturer o f such licensed film t — shall in the first ins ance that is to say , when such film is billed and shipped by it— charge the Licensee with its price t per running foo plus the maximum royalty aforesaid , and o n o f 20th the expiration each year, counting from June , 1909 th e to , shall adjust the royalty account of Licensee as ” licensed film so billed and shipped t o and paid fo r by to the Licensee , according the royalty schedule aforesaid , returning to the Licensee any amount the Licensee shall th e h ave overpaid , according to said schedule , and paying balance to the Licensor ; and that the royalties which may “ hereafter be paid to the manufacturer O f such licensed ” t 20 1909 film af er the date hereof and up to June , , under this agreement , shall be adjusted and the excess returned , to fo r in the same manner, the royalty rate be charged such period being the rate that would have been charged if the “ ” shipments o f licensed film to th e Licensee had been continued fo r a year at th e same rate at which shipments fo r were made such period . The Licensor further agrees that the dealings between the Licensee and the authorized manufacturer o r manu “ fa cturers from whom the Licensee purchases such licensed ” so f film shall, in far as the number of running eet ordered by o r shipped to the Licensee o r anything that would indi o r o f cate disclose the number such feet is concerned , be a matter of confidence between the Licensee and such manu o r t w h o facturer manufac urers , shall not be at liberty to n o disclose , and moreover shall be bound in writing t to o r to o r o f disclose , d irectly indirectly , the Licensor any a fo r the dditional licensees hereinafter provided , the num “ ” ber o f such feet O f licensed film so ordered by o r shipped to the Licensee ; the Licensor further agreeing to so arrange o r provide for the reports and royalty payments to be made to it by such manufacturer o r manufacturers that the 0 OR IN I IO N H B 3 6 . IG AL PET T , EX I IT latter shall make such reports and royalty payments in gross as to all of the licensees to whom shipments of such “ ” ‘ t i licensed film are made , and wi hout spec fying the number Of running feet of “ licensed film ” so shipped to any o f th e e o f them , either by a statement in writing of numb r such feet o r the amount o f royalties paid o r to be paid by such manufacturer o r manufacturers fo r o r o n account

thereof . The Licensor and Licensee further mutually covenant and agree that no royalty other than or in addition to that provided for in this paragraph shall be charged to or col l e cted 20 from the Licensee by the Licensor up to June , 19 10 a , or during any renew l of this agreement up to August 3 1 19 14 a , , the date of the expiration of s id reissued Letters 12 12 1 2 . 037 9 Patent Nos and , and no royalty whatever shall be charged to or coll ected from the Licensee by the

Licensor after either the ﬁrst , second , and third claims of 12 said reissued Lett ers Patent No . 037 and either of the 1 . 12 92 a n claims of said reissued Letters Patent No , in y e r fo r h suit as hereinaft provided for infringement t ereof, are held invalid by a court that last hears and decides o r a 3 1 19 14 u such suit , fter August , d ring any renewal of this agreement ; and that the Licensor shall cha rge royalties o r rents for the use of all exhibiting or proj ectn machines capable of exhibiting or proj ecting motion pictur es on ﬁlm o n e 1 of a width greater than approximately ( ) inch , con n o r a n taining the i ventions , y of them , described and claimed 5 1 5 4 . 78 8 5807 9 586953 in the aforesaid Letters Patent Nos , , , 5889 16 673329 6739 92 707934 722 382 74425 1 7 70937 , , , , , , , 7 1280 785205 785237 7 , , and , licensed by the Licensor and that all such royalties or rents shall be collected by the

Licensor , directly or indirectly from the exhibitors using such

machines , and shall be ﬁxed by the Licensor and charged and collected from such exhibitors by the Licensor at such a rate as to average as nearly as possible a royalty o r rental of two dollars per week for each such licensed machine

in use .

5 . The Licensee further covenants and agrees not to sell “ o r f otherwise dispose of or o fer for sale , in the territory OR N T O N B 3 IGI AL PE ITI , EXHI IT . 6 1

aforesaid , unexposed positive or negative licensed film during the continuance Of this agreement ; but this provision shall not prevent the Licensee from selling as refuse , in the “ ” - territory aforesaid , second hand positive or negative motion pictures or motion pictures which have been used or become shopworn or in any way damaged , to a manufacturer “ ” o r manufacturers of licensed film or to a manufacturer to manufacture other articles than film therefrom , but only after they have been rendered by the Licensee unsuitable for use as motion pictures by cutting or otherwise defacing them ; or from selling exposed positive or negative film “ ” (either waste o r in rolls) known as blank film for use by o r dealers , renters , or exhibitors for leaders or for spacing for similar purposes , but which shall not and can not be otherwise employed for the exhibition of motion pictures . t 6 . n o The Licensee further covenants and agrees to lease , f loan rent out , sell or O fer for sale , or otherwise dispose of in ” the territory aforesaid , motion pictures to anyone pur o r chasing otherwise obtaining, leasing, using, loaning, f renting out , selling , o fering for sale , or otherwise disposing of o r dealing in motion pictures containing the invention of 12 1 2 . 9 said reissued Letters Patent No , not the output of the Licensee or o f the additional licensees hereinafter provided for .

7 . The Licensee further covenants and agrees to mark each and every camera which the Licensee mav make or use under this agreement embodying the inventions of

12 o s . 0 . 037 N reissued Letters Patents N , Letters Patent 629063 707934 and , or either of them , with the word Pat en ted follo wed by the dates o f grant of all of the said letters patent , the inventions claimed in which are embodied in the said camera or apparatus , and to photographically ’ print the Licensee s trade - mark in each picture o f at least one scene of each subject of positive motion pictures on ﬁlm of a greater width than approximately one (1) inch manufactured by the Licensee and leased in the lease o n territory aforesaid , and to mark conspicuously the labels which shall be placed on boxes or packages containing positive motion pictures on ﬁlm of a greater width than 6 2 O R N O N B 3 IGI AL PETITI , EXHI IT .

approximately o n e ( 1) inch manufactured by the Licensee “ ” in the territory aforesaid , with the following words and ﬁgures :

L I C EN E M TI P I TU E S D O O N C R . Manufactured and leased by and property of

3 1 1897 (Patented in the United States August , ; reissued 12 January , The enclosed motion picture is leased only and upon the following terms and conditions :

1 . That the lessee shall not sell or otherwise dispose of

the same outright, but shall have only the right to sublet r o use such motion picture . 2 th e . That lessee shall permit such motion pictures to be exhibited only o n motion picture proj ecting machines licensed by the Motion Picture Patents Company o f New t Jersey under its paten s covering such proj ecting machines . h e n o 3 . That t lessee shall t sublet such motion picture o r

‘ any ot her motion picture containing the invention o f the

above reissued patent fo r use in a n y motion - picture exh ibi subr en ta l o r tions at a lower price , directly indirectly , than that agreed upon ( if any) in the contract o f lease between the

lessee and the lessor o f this picture .

4 t o r t n r . Tha the lessee user hereof shall o t make o permit a n others to make y reproduction , commonly known as a “ o r t dupe , of such motion picture any other motion pic ure o f containing the inventions the above reissued patent .

n 5 . That the lessee or user thereof shall o t remove th e — r trade mark or trade name o title therefrom . h e f 6 . That t violation of any o the foregoing conditions entitles the lessor to immediate possession o f this motion picture without liability fo r any price which the lessee o r th e person in whose possession it is found may have paid

therefor . The Licensor further covenants and agreed to use all possible diligence in licensing exhibiting o r proj ecting ” mach es n o w in th e in use in lease territory aforesaid ,

4 OR N O N B 3 6 IGI AL PETITI , EXHI IT . they further covenant and agree that any changes which may hereafter be so made and communicated to the Li censor O f L in said scale prices , and of which the icensee shall be notiﬁed in writing by the Licensor , shall be accepted and adopted by the Licensee in the place and stead o f the scale of prices above given or o f any substitute or substitutes

s n . w therefor adopted prior to uch cha ge It is , ho ever , expressly mutually covenan ted and agreed that in no case shall o r such new scale of prices , either list standing order, be less than nine (9) cents per running foot for any motion picture leased within fo ur months of the da te o f release o f the said moti o n picture . “ By the expression running feet o f new subj ects above u e referred to , and hereafter s d , the parties hereto mean the aggregate amount ascertai ned by adding together the individual number O f runn ing feet of o n e print of each and every new motion picture o n ﬁlm o f a greater width than o n e 1 n c o f approximately ( ) i h , regularly listed and fered for “ lease in the lease territ o ry aforesaid . The Licensor and Licen see further mutually covenant and o f a r agree that in case , during the continuance this g eement ,

“ r a there should be for any e son only three such licensees , then , and in such case , the Licensor may adopt a minimum so ale o f prices in the place and stead o f the minimum scale o f prices above given or of any substitute or substitutes there fo r adopted in the manner above provided , which , however, shall in no case be above the minimum scale of prices that may be in force at the time the Licensor adopts the said new o f minimum scale of prices , which said new minimum scale prices shall be binding upon the Licensee, but only after r receiving notice thereof in w iting from the Licensor .

10 . The Licensor and Licensee further mutually covenant r “ ” and ag ee that an order in the lease territory aforesaid , fo r one o r more positive motion pictures o f each and every new subj ect made by the Licensee (except chrono - photo graphic subj ects a n d other special subj ects that are a n n o un ce d and a dvertised a s special by the Licensee and of which no copy o r print is leased by the Licensee for le ss than list price within two (2) months after release date) when OR N O N B 3 IGI AL PETITI , EXHI IT . 6 5

f o f O fered for lease in the regular order business , shall con ” s titute a standing order within the meaning of the scale of

prices aforesaid or any substitute therefor hereafter adopted , said standing order to remain in force for not less than four teen ( 14) consecutive days ; and the parties hereto further mutually covenant and agree that the minimum price at r s which any additional positive motion pictu e shall be leased , “ ” i n the lease territory aforesaid , subsequent to the ﬁlling o f r a standing order , shall be the same per unning foot as the e o n s pictur s furnished such standing order , unle s otherwise provided for in the scale of pr ices afor esaid o r any subs titute m therefor hereafter adopted . All positive otion pictures which may be hereafter leased in the “ lease territory afore

said , to persons not having a standing order , as above

deﬁned , shall in every case be leased at not less than the list price mentioned in said scale o f prices or any substitute d d therefor hereafter adopted , except it be otherwise provi e by a maj ority vote of the Licensee and the several additional o r o f licensees hereinafter provided for , such them as may o n e at the time be licensees , on the basis of vote for each o f thousand running feet of new subj ects , on ﬁlm a greater 1 O fo r width than approximately one ( ) inch , ffered lease or sale in the territory aforesaid by each licensee during the r o year preceding the taking of such vote , and except as p i “ v d e d for in paragraph 12 as to special motion pictures .

n 11 . The Licensor and Licensee further mutually cove ant and agree that positive motion pictures made by o r for the . s h Licen ee and unsold prior to the date hereof , s all be sub je ct to the scale of prices aforesaid and shall be leased in th e “ lease territory aforesaid ” at not less than the prices ﬁxed in said scale for po sitive motion pictur es as provided for in 9 paragraphs and 10 . 2 1 . The Licensor and Licensee further mutually covenant “ and agree that in the case o f so - called special motion pl c ” tur es (where it is agre ed by the Licensee that the negative sha ll h e th e exclusive property of the person ordering th e e o f sam , although remaining in the care and custody the

Licensee , and wh ere positive prints therefrom shall be made o o n h e from time t time t ord er of such person) , the price to 66 O R N O N E H B 3 IGI AL PETITI , X I IT .

be paid for the making o f such negative in the territory ” aforesaid shall not be less than o n e dollar per running

foot, and that the price at which positive prints therefrom “ ” n o t shall be leased in the territory aforesaid , shall be less 15 than ﬁfteen ( ) cents per running foot .

13 . The Licensee fur ther covenants and agrees not to lease “ ” l e a n motion pictures in the ease t rritory aforesaid , under y o r circumstances , either directly indirectly , during the con tin ua n ce of this agreement at lower prices than those ﬁxed 9 10 1 1 and established as provided for in paragraphs , , , 12 and . 14 . It is further and mutually covenanted and agreed by the Licensor and Licensee that the Licensee shall have the ” o r right to sell motion pictures in for said export territory , 9 10 1 1 and that the prices above referred to in paragraphs , , , 12 u s fo r and , or any s b titute or substitutes the same hereafter to o r o f adopted , shall not apply sales shipments motion bo n a d e fo r pictures made ﬁ export , when the goods , addressed o r to to the purchaser , agent , consignee , are delivered the vessel or to a transportation company for transportation to “ ”

o . said export territory , and not therwise The Licensor and Licensee further mutually covenant and agree that in no case shall sales “ for export of motion pic tures be knowingly made by the Licensee to persons , ﬁrms , o r corporations whom such Licensee has reason to believe ” will reimport them into the lease territory aforesaid fo r sale or use . 1 5 . The Licensor and the Licensee further mutually c covenant and agree that , ex ept as provided for in para 5 f graph , the Licensee will not sell or lease , or o fer for sale “ ” o r lease in the territory aforesaid at reduced prices , second - hand motion pictures or motion pictures which have been used or which have become shopworn or in any way damaged . 1 6 . The Licensor and the Licensee further mutually in covenant and agree that the lease territory aforesaid . all leases of positive motion pictures shall be at the prices fo r hereinbefore provided , without the allowance of any dis

' counts o r rebates or other reduction (except such a s m ay be OR N O N I B 3 . IGI AL PETITI , EXH IT 6 7 adopted by the unanimous votes of all the licensees) by which a lessee might acquire positive motion pictures at lower 9 10 1 1 12 prices than those set forth in Paragraphs , , , and , o r any substitutes therefor hereafter adopted , and that the Licensee will no t dispose o f such positive motion pictures as ffl o r premiums , or by lottery , or ra e , any game of chance , or in any way whereby they may be acquired directly or a 9 indirectly for less than the prices set forth in p ragraphs ,

10 1 1 12 . , , and , or substitutes therefor n a n d a The Licensee further cove ants grees that , in the ” f lease territory aforesaid , the Licensee will not sell or O fer for sale other goods or merchandise at less than current

n prices in order to induce the lease of positive motio pictures , na o r o r nor present or do te other goods merchandise prizes ,

u e f a n or make s of credit cards or trading stamps , or o fer y premiums o f any kind whatsoever to induce the lease of such positive motion pictures . 17 It is further mutually covenanted and agreed by and between th e Licensor and Licensee that no lease of positive motion pictures o n ﬁlm of a greater width than a ppr o xi mately one 1) inch shall be made in the lease territory ” aforesaid by the Licensee , except upon and subj ect to the an d following terms conditions , the substance of which (with the exception of the condition as to the return of positive motion pictures hereinafter referred to ) shall be expressed fo r in a printed notice on the labels , as provided in para 7 n : graph , accompanying each positive motion picture , amely

( 1) Th at the lessee o f such positive motion picture shall not. o r sell otherwise dispose of the same outright , but shall only have the right to use such positive motion picture in giving motion - picture exhibitions in machines licensed by the 1 0 49 . 578 85 58 7 Licensor under the said letters patent Nos , , 586953 5889 1 673329 67399 2 7079 34 722382 74425 1 , 6 , , , , , , 770937 77 1280 785205 785237 o n e , , , and , or or more of them , or under any other letters patent that it may hereafter i to acqu re or control , or sublease such motion picture for 2 a use in such machines , and that ( ) the lessee sh ll not make o r p ermit others to make any reproduction commonly known “ as a dupe o f such positive motion picture or any other 6 8 O R N O N B 3 H . IGI AL PETITI , EX I IT

positive motion picture containing th e invention o f said 12 1 2 r 0 . 9 o 3 reissued Letters Patent N , ( ) sublease the same o r any other positive motion picture o n film of a greater width than approximately one ( 1) inch containing the in v en 12 1 2 d . 9 o r tion of said reissue Letters Patent No , f use in g l v mg motion - picture exhibitions a t a lower lease price directly or ind irectly than that prescribed by the Licensee n d 4 at the time of the lease of such motion picture , a ( ) that the lessee of such positive motion picture shall not remove a d 5 the trade mark or trade name or title therefrom , n ( ) that the lessee shall return to the Licensee fromwh om such posi tive motion picture h a s been leased (without any pay ment therefor except the transportation charges incident to the e o f o n o f r turn the same) the first day every month , begin 1 19 09 ning with February , , an amount of positive motion pictures (on film of a greater width than approximately o n e ( 1) inch) in running feet (not leased by the License e over s x o f o f i months before) and the make the licensee , to whom r i it is retu ned , equal to the amount that was so leased dur ng the sixth month preceding the date of each such return ; a n s v with the exception , however that where y such po iti e fire o r motion pictures are destroyed by lost in transportation , and proof satisfactory to the Licensee is furnished as to such destruction or loss , the amount so destroyed or lost shall be deducted from the amount to be returned , as aforesaid . It is further mutually covenanted and agreed by and be

' tw een th e Licensor and Licensee that the subleasing price o f e o n fi m aforesaid for subleasing positive motion pictur s, l o 1 b f a greater width than approximately one ( ) inch , shall e fixed (and which may be changed in the same manner during o f t e co n the continuance this agreement , as may also h fifth dition befo re recited in this paragraph) by a maj ority vo te of th e Licensee and the several ad ditional licensees hereinafter fo r o f provid ed , or such them as may at the time be licensees, o n the basis of one vote fo r each thousand running feet of n ew o n fil o f n e subj ects , m a greater width than approximately o “ ” 1 f o r ( ) inch , o fered for lease sale in the territory aforesaid by each licensee during the year preceding the taking o f

such vote . H I 3 NA P O N B . ORIGI L ETITI , EX IT 69

The Licensee furthe r covenants and agrees that in the lease territory aforesaid ” the Licensee will not discriminate in favor of any lessee , or place upon any motion pictures any restrictions other than those speciﬁed in this paragraph a nd r o f pa agraph 7 hereof, unless authorized by a maj ority vote the Licensee and the several additional licensees hereinafter

r o f . p ovided for, or such them as may at the time be licensees “

18 . The Licensee covenants and agrees that in the lease ” territo ry aforesaid the Licensee will dispo se o f the positive o n r e a ro xi motion pictures , ﬁlm Of a g eat r width than pp m o n e 1 a o r ately ( ) inch , m nufactured , produced , printed by “ th e Licensee only by the sale for e xport and S hipment

” ‘ thereof into said e xport territory o r by the lease thereof to others f o r the purpose only O f either subleasing the same s o r n sfo r to per ons , ﬁrms, corporations using such motio picture giving exhibitio ns thereof in exhibiting o r proj ecting machines th e o r licensed by Licensor containing the inventions , some Of

m n d a d a e e o s . the , escribed claimed in said Lett rs P t nt N 578 185 580749 586953 5889 16 673329 673992 7079 34 , , , , , , , 722382 74425 1 770937 77 1280 785205 785237 o r , , , , , and , in e o r L c letters patent her after acquired controlled by the i ensor, O r Of using the same in S uch machines so licensed ; and will n o t use the same fo r the purpose o f giving e xhibitions there of fo r

‘ o e o r i r o pr ﬁt, dir ctly ndirectly ; it being exp essly understo d h o w and agreed by and between the Licensor and Licensee , eve h a t r, that the Licensee s all be liberty to give exhibitions Of u ur t o r s ch positive motion pict es without proﬁt , direc ly n re o r s o r ur i di ctly , and to possible prospective les ees p chasers thereof ; and the Licensee furthe r co venants a nd a r e n o t n r On g e s to k owingly allow positive motion pictu es ,

' ﬁl m O f a e r x ma o ne 1 n great r width than app o i tely ( ) i ch , manufactured by the Licensee under this agreement, to be leased for use with an y exhibiting o r proj ecting machine not licensed by the Licensor under the letters patent mentioned h t o r in t is paragraph , and hat it may hereafter acquire control , o r o n e o r o f e more th m , except by and with the consent of the Licensor ; and also to refrain from supplying such motion n r o r o r e pictures ma ufactu ed imp rted under this ag e ment , for use with any exhibiting o r proj ecting machine the 0 OR N O N B 3 . 7 IGI AL PETITI , EXHI IT

fo r o r o n e license which , under the aforesaid letters patent, o r more Of them , has been terminated , and the Licensee has been notiﬁed thereof by the Licensor ; and also to refrain from supplying such motion pictures manufactured and im ported under this agreement to any lessee who may sublet r such motion pictures to persons , ﬁ ms , or corporations using the same for giving exhibitions thereof in exhibiting o r proj ecting machines not licen sed by the Licensor a s afore

O r said , the license for which has been terminated and the Licensee has b e en notiﬁed by the Licensor that any such

lessee - continues to so sublet such motion pictures after being notiﬁed by the Licensor n o t to d o so ; and the Licensor covenants and agrees to promptly notify any such lessee w h o may so sublet such motion pictures , after it has knowl O f to i n edge any such subletting , and not fy the Lice see and fo r o r the additional licensees hereafter provided , such Of o f o f them as may at the time be licensees , the termination any license fo r the use Of any exhibitin g o r proj ecting ma o r o f chines under the aforesaid letters patent , any them , and o f any such lessee who may so sublet such motion pictures , to so to after being notiﬁed by it not do , and compel all such additional licensees to refrain from supplyin g motion pic tures for use with any such exhibitin g o r proj ecting machine

n f r so o r the lice se o which has been terminated , to any such lessee . n 19 . The Licensor and Licensee further mutually covena t and agree that the Licensor shall and will , during the con

in n c t ua e of this agreement , promptly institute suits against o f o r any and all infringers the letters patent , any of them , m o n o f o f mentioned in this agree ent , the request a maj ority the licensees , including the Licensee and the several additional o f licensees hereinafter provided for , or such them as may at the time be licensees , and will thereafter diligently prose cute any such suit o r suits to ﬁnal hearing and decision ; all expense connected with the institution and prosecution o f such suit or suits to be borne by the Licensor, who shall also be entitled to receive and apply to its o w n use all recoveries had therein fo r damages and proﬁts .

2 O R N O N B 3 . 7 IGI AL PETITI , EXHI IT expenses in excess o f said twenty thousand dollars during any such year to be borne and paid by the Licensor unless the Licensor and the Licensee and the several addi tio n a l licensees hereinafter provided fo r should hereafter mutually agree otherwise . 2 0 . It is mutually covenanted and agreed by and between the Licensor and Licensee that the Licensor may grant other 12 licenses under said re iss ued Letters Patent No s . 037 and 2 12 192 . 6 9063 7079 34 S O and said Letters Patent Nos and , far as the use Of the inventions thereof in cameras is con cerned . said licenses to be in writing and not to exceed nine in number, seven to be to the persons and corporations men tio n ed in paragraph c as having license agreements with the

Edison Company , one to the Edison Company , and one to

George Kleine , of Chicago , Illinois (except by a maj ority vote o f c the Licensee and the nine other li ensees , or such of them o n e as may at the time be licensees , on the basis of vote for

o f o n o f each thousand running feet new subj ects , ﬁlm a 1 f greater width than approximately one ( ) inch , o fered for lease or sale in the “ territory aforesaid by such licensees n o t during the year preceding the taking of such vote) , and r to be g anted or continued upon terms , conditions , or stipula tions which are in any respect more favorable to the licensees named therein than those set forth in this agreement (except to the Edison Company , and it shall only be more favorable to it in the matter of the payment of royalties to the Licensor) , and in the case of the license to George Kleine it shall be so restricted as to prohibit said Kleine from manufacturing neg “ ” ative motion pictures in the territory aforesaid , and from manufacturing from imported negative motion pictures posi tive motion pictures , and importing positive motion pictures in all more than three thousand “ running feet of new sub e cts : P ro vid ed h o wever j per week , , That if any of such addi tio n a l nine licenses should be terminated during th e contin ua n ce O f this agreement , then and in each such case the Licensor may grant a license in writing to some other motion o n sti u picture manufacturer, but not terms , conditions , or p l a tio n s which are more favorable as to such new licensee th an i those set forth n this agreement . OR N O N B 3 IGI AL PETITI , EXHI IT . 7 3

I t is further mutually covenanted and agreed by and between the Licensor and the Licensee that the Licensor o f will , during the continuance this agreement , license such o r a number of persons , firms , corporations under said 1 . 578 85 580749 586953 5889 16 673329 Letters Patent Nos , , , , , 6739 92 707934 772382 74425 1 770937 77 1280 785205 , , , , , , , 785237 and , to make and sell exhibiting or proj ecting ma chines containing the inventions described and cl aimed in o r u the same , capable of exhibiting proj ecting motion pict res 1 on film of a width greater than approximately one ( ) inch , and also such machines n o t capable of exhibiting or proj ect ing motion pictures on film of a greater width than approx im a tel o n e 1 y ( ) inch , as will be able to supply the demand S for the same ; and that it hall not , and it hereby covenants and agrees that it will not , during the continuance of this agreement , license any person , firm , or corporation under said letters patent or any of them to make o r sell any such exhibiting or proj ecting machine containing any o f the inventions described and claimed in said letters patent , and capable of exhibiting o r proj ecting motion pictures o n film 1 of a width greater than approximately one ( ) inch , except upon the conditions and restrictions that the sale and pur chase o i such machine gives only the right to use it solely for exhibiting or proj ecting motion pictures containing the 12 192 inventions of said reissued Letters Patent No . leased o f o r by a licensee the Licensor , while it owns controls the letters patent under which such machine is licensed and upon other terms to be fixed by the Licensor while in use , and while the letters patent under which it is licensed are owned or controlled by the Licensor (which other terms shall only be the payment o f a royalty or rental to the Licensor while in use , as hereinbefore provided for) , and that there shall be attached to each such machine , in a conspicuous place , a plate , which is not to be removed therefrom , showing plainly not only the dates of the letters patent under which it is licensed , but also the aforesaid conditions or restrictions . The Licensor further covenants and agrees that it will not charge any such person , firm , or corporation manu fa ctur in g and selling any such machine capable of exhibit 74 O R N O N B 3 IGI AL PETITI , EXHI IT . ing or proj ecting motion pictures on a film of a width greater 1 than approximately one ( ) inch , more than five dollars as a license fee for the sale o f each such exhibiting or proj ecting machine sold by any such person , firm , or corporation . The Licensor further covenants and agrees that it will not o r license any person , firm , corporation to make or sell any exhibiting o r proj ecting machine containing any of the inventions described and claimed in the aforesaid letters patent which is not capable o f e xhibiting or proj ecting motion pictures o n film of a width greater than a ppr o xi 1 restr ic mately one ( ) inch , except upon the conditions and tions that such machine be used solely fo r e xhibiting o r proj ecting motion pictures o n film n o t wider than a ppr o xi 1 mately one ( ) inch , in places where no admission fee is to charged , and that there shall be attached each such be machine in a conspicuous place , a plate , which is not to

n o t removed therefrom , showing plainly , only the dates of the letters patent under which it is licensed , but also the o r aforesaid conditions restrictions , and that the Licensor will not charge to any person , ﬁrm , or corporation making o r selling any su ch m a ch in e a license fee of more than 5 per cent of the net retail selling price of each such machine . The Licensor further covenants and agrees that it will grant to to a license the Licensee , upon its request , manufacture and sell exhibiting or proj ecting machines under the letters to o f patent , and upon the condition as the payment the license fees o r royalties and the other conditions and r e stric fo r tions , as provided in this paragraph , and will also grant similar licenses upon the same conditions as to the payment o f the license fees o r royalties and the other conditions and to o f n restrictions , such the additio al licensees hereinbefore fo r provided who may request the same , except that the said American Mutoscope Biograph Company is n o t to pay any such license fees o r royalties ; and will also grant a license to the Licensee and any such additional licen sees who may request the same , to make and sell exhibiting or proj ecting machines under any other letters patent and containing the inventions described and claimed therein that the Licensor may here OR N O N I B 3 . IGI AL PETITI , EXH IT 7 5

o r o f after acquire control , upon the payment additional o r license fees royalties to be ﬁxed by the Licensor, and sub je ct to similar conditions and restrictions and the placing upon the machines O f plates containing such conditions and restrictions as are provided fo r in this paragraph respecting exhibiting o r proj ecting machines made and sold under the letters patent n o w owned by the Licensor mentioned in this o r paragraph , the royalty license fee , and all other conditions and restrictions O f such last - named licenses to be the same fo r the Licensee and such other licensees .

It is mutually covenanted and agreed , however, by and between the Licensor and Licensee that the Licensor shall t to have the right to grant , and hat it will grant , licenses persons , firms , and corporations upon their request (includ ing the Licensee) to manufacture and sell exhibiting o r pro je ctin g machines containing the inventions described and claimed in the aforesaid letters patent now owned by the t o r f Licensor, capable Of exhibi ing projecting, by re lected o n o f but light , animated pictures film any width , not capable o f exhibiting o r projecting th e same by transmitted o f o r n o t to light , upon the payment a royalty license fee exceed 5 per cent of the net retail selling price of each such t machine , and upon the condition tha they be used only in n o places where admission fee is charged , which condition shall appear o n a plate to be attached to each such machine ; to and also that it will grant licenses such persons , firms , and corporations t o manufacture and sell such exhibiting or pro je ctin g machines containing the inventions described and claimed in any letters patent that th e Licensor may here o w n o r t o r restric after con rol , subject to similar conditions tions and upon the payment o f additional license fees o r royalties to be fixed by the Licensor ; the royalty o r license fee , and all the conditions and restrictions of all such licenses , h m to be t e sa e fo r the Licensee and such other licensees . 2 a 0 . It is further mutually covenanted and agreed by and between the Licensor and Licensee that in case the Licensor should be notified by the Licensee or it should otherwise come to its knowledge that any such additional N 7 6 O R O N B 3 . IGI AL PETITI , EXHI IT

Licensee has knowingly or through gross neglect or careless o r ness broken , violated , failed to perform any of the terms , conditions, or stipulations of the license granted by the to Licensor, resulting in substantial injury the Licensor , or Li cen the Licensee or the additional Licensees aforesaid , the sor will promptly notify such Licensee in writing of such o r s breach , violation, nonperformance , and if such Licen ee a 40 should , for period of forty ( ) days after such notice , o r to persist in fail correct , repair, or remedy the same , the Licensor shall at once terminate the license to such Licensee ; and that in case any such Licensee should be guilty of a second grossly neglectful , careless , or knowing breach ,

. o r violation or nonperformance of such terms , conditions, stipulations , resulting in substantial inj ury to the Licensor o r or the Licensee the additional Licensees aforesaid , then , th e and in such case , Licensor shall terminate the license to such Licensee by giving the latter thirty (30) days notice w in riting of its intention so to do . 2 b 0 . The Licensor and Licensee further mutually covenant “ ” and agree that by the expression motion pictures , as used in the foregoing agreement , is meant transparent or translucent tape—like ﬁlm having photographs thereon of obj ects in motion . 2 1 u . It is f rther mutually covenanted and agreed by and between the Licensor and Licensee that unless sooner o r terminated , as hereinbefore hereinafter provided , this agreement and the license granted thereby shall take effect 1 1909 20 19 10 January , , and shall continue until June , , but that the Licensee may renew this agreement and license thereafter from year to year upon the same terms , condi tions , and stipulations as herein provided , by giving notice o n o r 20 to the Licensor before April of each year, beginning ’ 19 10 o f with the year , the Licensee s election to so renew o f this agreement and license , and upon the giving each such notice this agreement and the license thereby granted shall be considered and treated by th e Licensor and Licensee fo r o f 20 as renewed a period one year, beginning June of t t the year following such notice , except tha the las renewal OR N O N B 3 . IGI AL PETITI , EXHI IT 7 7

fr o m un e 20 19 14 period shall be for the period J , , to August 1 1 O f o f 26 9 9 . , , the date expiration the Letters Patent No 4 7079 3 . It is fur ther mutually covenanted and agreed by and between the Licensor and Licensee that if , during said original o r term during any such renewal period , either party should , o r o r knowingly through gross neglect carelessness , be guilty o f o r o f a breach , violation , nonperformance its covenants , conditions , and stipulations , resulting in substantial injury fo r 40 to the other party , and should , the period of forty ( ) days after notice thereof from the other party , persist therein o r r m fail to correct , repai , or remedy the sa e , then and in such case the party a ggrieved may terminate this agreement by giving notice in writing to the guilty party of its intention so to do . It is , however , mutually covenanted and agreed by and between the Licensor and Licensee , that if the guilty party should correct , repair , or remedy such breach , violation, or nonperformance of its covenants , conditions , and stipula tions within the said period o f forty (40) days after such o r notice , and should thereafter knowingly through gross

’ o f neglect or carelessness be guilty a second breach , violation , o r nonperformance of its covenants , conditions , and stipula u tions , resulting in substantial inj ry to the other party , then s and in such case , the party aggrieved may terminate thi ’ agreement by giving thirty (30) days notice in writing to the o f f guilty party its intention so to d o . Such termination o

the agreement . however , shall not prej udice either party hereto in the recovery of damages because of any such breach , violation, or nonperformance by the other party hereto . 22 . All notices provided fo r in this agreement shall be in writing and shall be given by delivering the same to the ffi o f Licensor or Licensee , as the case may be , or to an o cer o r o r the Licensor Licensee , as the case may be , by depositing o f such notice , postage prepaid , in any post ofﬁce the United o r States , in a sealed envelope directed to the Licensor the

- O ffice Licensee , as the case may be , at its last known post l address , to be forwarded by registered mai . 2 3 . It is mutually covenanted and agreed by and between the Licensor and Licensee that after notice of the termination O R N O N B 3 7 8 IGI AL PETITI , EXHI IT . o f this agreement and the license granted thereby by either fo r 19 2 1 party , as provided in paragraphs and of this agree ment , and after the same have been terminated , no matter o r what the cause manner of termination may be , neither this license agreement , nor the fact that the Licensee has entered into or acted under it , shall be used in any manner , o r o r directly indirectly , by for the Licensor , its successors , o r assigns , or legal representatives , or by for others with its o r o r o r their consent permission , against the Licensee , the ’ Licensee s successors or legal representatives , in any litiga o r tion , controversy , proceeding involving the Licensee or them or any other persons , firms , or corporations , or in any other way , it beng understood and agreed that upon such termination the positions and rights of the Licensor and Licensee shall be the same as if this agreement had not been ro vid ed h o wever made ; p , , that the rights of neither party shall be prej udiced by such termination in the recovery of damages fo r any breach or other violation o f this agreement by the other occurring prior to such termination . In witness whereof the parties hereto have caused this agreement to be executed by their officers duly authorized to perform these acts , the day and year first above written . EA L TI N I TUR E A TENT MPA N Y [S . ] MO O P C P CO , Y P r A . E R N R esid en t. By F K L D , fi ttest :

E R G E . UL L S ecreta r . G O F S C , y

EA L M ER I A UT C P E A D I A P H MPA Y . N N G R N [S ] A C M OS O B O CO , Y P r id en t. . . EN N E es By J J K D , fi ttest : B E E cre a r S e t . . . R U NN R W H , y

0 O R N O N B 4 . 8 IGI AL PETITI , EXHI IT

No w , therefore , the parties hereto , in consideration of w : the covenants herein , have agreed as follo s ( 1) The Licen so r hereby grants to the Licensee for the term and subj ect to the conditions expressed in the “ Con d itio n s a of license herein fter set forth , the license , under 12 1 2 t NO . 9 the said reissued Letters Pa ent , to lease licensed motion pictures from th e Licens ed Manufacturers and Importers a n d to sublea se said license motion pictures for use only o n proj ecting machines licensed by the Licensor under letters patent owne d by it . (2) The Licensee cove n ants a n d ag rees to conform with “ and strictly adher e to a n d be bound by all o f the Condi

o f tions license , hereinafter set forth , and to and by any and al l n a t n e e t future cha ges in or ddi io s th r o , and further agrees not to do or suffer a n y of the a cts or things thereby pro h ibite d n m a a , and that the Lice sor y pl ce and publish the ’ Licensee s name in its rem oval or S uspended list in the event O f r a n a e n s the te min tio of this greement by the Lic or, or in o f er m a y case any violation th eof, and direct the Licensed Manufacturers and Im porters not to lea se licensed motion

e e y e pictures to the License , the Lic nsee hereb xpressly agreeing that such Licen sed Manufactur ers and Importers shall have the righ t to cease such lea sing when so directed by the Licensor ; and the Licen see further agrees that the signing of this agreement constitutes a cancellation of any or all agreements fo r the sale of licensed motion pictures made prior to this a greem ent by and between the Licensee and o r o r any all licensed manufacturers importers , except as to any clause in said agreemen ts relating to the return of motion- picture ﬁlm to the several licensed manufacturers or importers . I t is further understood and agreed by the Licensee that the license hereby granted is a personal one o r and not transferable assignable , and the Licensee hereby recognizes and acknowledges the validity of the said reissued 12 1 2 0 . 9 Letters Patent N . OR N O N B 4 IGI AL PETITI , EXHI IT . 8 1

ITI N S F L ICE E C O ND O O N S .

f 1 . From the date o this agreement the Licensee shall not buy , lease , rent , or otherwise obtain any motion pictures other than licensed motion pictures and shall dispose o f a n y motion pictures only by the subleasin g thereof u n der the conditions hereinafter set forth . 2 f n . The ownership o each lice sed motion picture leased under this agreement shall remain in the Licen sed Manu

n facturer or Importer from whom it may have bee leased , O f s the Licensee , by the payment the lea ing price acquiring only the license to sublet such motion picture subj ect to the

f n conditions of this agreement . Such licen se o r a y mo tion picture shall terminate upon the breach of this agreement

n e in regard thereto , and the Licensed Ma ufactur r or Importer from whom it may have been leased shall have the right to immediate possession of such motion picture , without liability for any leasing price or other sum which the Licensee or the person in whose possession said motion picture is found may have paid therefor .

3 . The Licensee shall not sell nor exhibit licen sed motion pictures obtained from any Licensed Manufacturer or n Importer, either in the U ited States or elsewhere , but shall only sublet such licensed motion pictures a n d o n ly for use in the United States and its Territories a n d only to exhibitors

n n who shall exclusively exhibit lice sed motio pictures , but in no case shall the exhibitor be permitted to sell o r sublet or otherwise dispose of said licensed motion pictures . 4 . The leasing price to be paid by the Licensee to the o r o f Licensed Manufacturers or Importers , the terms pay

o r e ment for shipment of licens d motion pictures , shall in no case be less or more favorable to the Licensee than that

l e deﬁned in the easing schedule embodied in this agr ement ,

m a y or any other substitute leasing schedule , which be o f l regularly adopted by the Licensor , and which notice sha l to be given the Licensee hereafter .

5 . To permit the Licensee to take advantage of a uv

standing order leasing price mentioned in such schedule , such s tanding order with any Licensed Manufacturer o r 2 OR N ON B 4 8 IGI AL PETITI , EXHI IT .

Importer shall be for o n e o r more prints o f each and every f fo r subj ect regularly produced , and O fered lease by such manufacturer or importer as a standing order subj ect and not advertised as special by such Licensed Manufacturer o r Importer ; and shall remain in force for not less than fourteen 14 An v a ( ) consecutive days . standing order m y be canceled ’ o r 14 reduced by the Licensee on fourteen ( ) days notice . Extra prints in addition to a standing order shall be furnished to the Licensee at the standing order leasing price .

6 . o r The Licensee shall not sell , rent , otherwise dispose of , h eit er directly or indirectly , any licensed motion pictures th e (however same shall have been Obtained) to any persons , o r ﬁrms or corporations agents thereof, who may be engaged either directly or indirectly in selling or renting motion picture ﬁlms .

7 . The Licensee shall not make or cause to be made , or “ ” so — permit others to make , reproductions or called dupes o f any licensed motion pictures , nor sell , rent , loan , or other “ ” wise dispose O f o r deal in any reproductions or dupes of any motion pictures . n o t 8 . The Licensee shall deliberately remove the trade mark o r trade name or title from any licensed motion a uv picture , nor permit others to do so , but in case title is ’ made by the Licensee , the manufacturer s name is to be in placed thereon , provided that making any title by the Licensee the manufacturer ’s trade—mark shall not be repro

d uced .

9 . The Licensee shall return to each licensed manufacturer o r importer (without receiving any payment therefor, except that the said Licensed Manufacturer or Importer shall pay the transportation charges incident to the return of the same) on the first day of every month commencing seven months from the first day o f the month on which this agreement is exe o - uted , an equivalent amount of positive motion picture film in running feet (not purchased o r leased over twelve months before) and of the make of the said Licensed Manufacturer o f or Importer, equal to the amount licensed motion pictures that was so leased during the seventh month preceding the day o f n e each such retur , with the exception, however, that wher ORI IN O N B 4 G AL PETITI , EXHI IT . 8 3 any such motion pictures are destroyed or lost in trans

o rta tio n p or otherwise , and satisfactory proof is furnished t 14 within four een ( ) days after such destruction or loss , to the Licensed Manufacturer or Importer from whom such motion picture was leased , the Licensed Manufacturer or Importer shall deduct the amount so destroyed o r lost from the amount to be returned . 1 l 0 . The Licensee shall not se l , rent , sublet , loan , or other wise dispose o f any licensed motion pictures (however the same may have been obtained) to any person , ﬁrm , or cor po ra tio n in the exhibition business who may have violated any of the terms o r conditions imposed by the Licensor through any of its licensees and of which violation the present

Licensee may have had notice . 1 1 . The Licensee shall not sublease licensed motion pic tures to any exhibitor unless a contract with said exhibitor th e (satisfactory in form to Licensor) is ﬁrst exacted , under which the exhibitor agrees to conform to all the conditions and stipulations of the present agreement applicable to the exhibitor ; and in the case of an exhibitor who may operate more than a single place of exhibition , a similar contract shall be exacted in connection with each place so operated , and supplied with licensed motion pictures by the Licensee . 12 1 1 . 909 After February , , the Licensee shall not sub lease any licensed motion pictures to any exhibitor unl ess each motion picture proj ecting machine o n which the licensed motion pictures are to be used by such exhibitor is l regularly icensed by the Motion Picture Patents Company , and the license fees therefor have been paid ; and the

Licensee shall , before supplying such exhibitor with licensed u C o m motion pictures , mail to the Motion Pict re Patents pany , at its ofﬁce in New York City , a notice , giving the o f o f name the exhibitor, the name and location the place of exhibition (and , if requested to do so by the Licensor, its o f seating capacity , hours exhibition , and price of admission , and the number and make o f the licensed proj ecting machine o f or machines) , together with the date of the commencement the subleasing , all in a form approved by the Licensor . The

Licensee , when properly notiﬁed by the Licensor that the 84 O R N O N B 4 IGI AL PETITI , EXHI IT . license fees o f any exhibitor for any proj ecting machine have

fo r not been paid , and that the license such proj ecting machine is terminated , shall immediately cease to supply o s such exhibit r with licen ed motion pictures .

18 . The Licensee agrees to order during each month

while this agreement is in force , for shipment directly to the place of business of the Licensee in the city fo r which

’ a re em e n t is e this g sign d , licensed motion pictures , the net leasing price fo r which shall amount to at least

14 . co n The Licensee shall , on each Monday during the tin ua n ce of this agreement make or mail payment to each Licensed Manufacturer a n d Importer for all invoices for licensed motion pictures which have been received by the

Licensee during the preceding week . 1 f 5 . This agreeme nt shall extend only to the pla ce o busi ness for the subleasing of motion pictures maintained by

the Licensee in the city for which this agreement is signed , and the Licensee agrees not to establish or maintain a place fo r a o f o of business the suble sing m tion pictures , or from

which motion pictures are delivered to exhibitors , in any

other city , unless an agreement for such other city , similar

to the present agreement , is ﬁrst entered into by and between

the Licensee and the Licensor . 1 6 . The Licensor agrees that before licensing any person ,

ﬁrm, or corporation in the United States (not including its insular territorial possessions and Alaska) to lease licensed motion pictures from Licensed a nd Impor ters and to sublease such motion pictures it will exact from each such Licensee an agreement simila r in terms to the e e present agreement , in order that all Lic ns es who may do business with the Licensed Manufacturers and Importers

will be placed in a position of exact equality .

19 . It is understood and speciﬁcally covenanted by the Licensee that the Licensor may terminate this agreement ’ on fourteen ( 14) days w r itten no tice to the Licensee of its so intention to do , and that if the Licensee shall fail to faithfully keep and per form the foregoing term s and condi e o r tions of leas , or any of them , shall fail to pay the leasing N B 4 OR N O . IGI AL PETITI , EXHI IT 8 5 price for any motion pictures supplied by any Licensed

r o r Manufactu er Importer when due and payable , according

r n to the terms of this ag eement , the Lice sor shall have the ’ right to place the Licensee s name o n an appropriate sus so r m a s s pended list , which the Licen y publi h and di tribute to its other licensees and to exhibito r s and to the Licensed Manufacturers and Impor ters and to direct the Licensed Manufacturers and Importers n o t to lease licensed motion

to o f o r pictures the Licensee , and the exercise either both of these rights by the Licensor sha ll n o t be construed as a

o f termination this license , and the Licensor shall also have

r r the right in such case , upon app op iate notice to the

c Li ensee , to immediately terminate the present license , if the ’ r Licensor shall so elect , without p ejudice to the Licensor s right to sue fo r and recover any damages which may have been suffered by such breach or nonc o mpliance with the s o r terms and conditions hereof by the Licen ee , such breach noncompliance constituting an infr ingement o f said reissued letters patent . I t is further agreed by the Licensee that if this agreement is terminated by the Licen sor for any breach of any condition hereof , the right to possession of all licensed r r o f motion pictures shall reve t , twenty days afte notice such termination , to the respective Licensed Manufacturers and Importers from whom they were obtained and shall be returned to s uch Licensed Manufacturers or Importers at once after the expiration of that period . 2 0 . It is understood that the terms and condition s o f this license may be changed at the o ptio n o f the Licen sor upon ’ e 14 n to th e n o fourt en ( ) days written otice Licensee , but such change shall be effective and binding un less duly ratiﬁed f o f by an o ﬁcer the Licensor .

L E A S I N G P R I C E S O F L I C E N S E D P O S I TI E M T V O I O N P I C T U R E S .

List

S tanding order . Films leased betwee n two an d four months after rele ase date Films leased between four an d si x mon ths after release date Films leased o v er six months after release date 8 O R N O N B 4 6 . IGI AL PETITI , EXHI IT

A rebate of 10 per cent will be allowed o n all leases o f

7 - 5— licensed motion pictures , except at the cent and cent

rices , which are net ; said rebates to be due and payable between the 1st and 15th days o f each o f the months o f

March , May , July , September , November, and January on all ﬁlms leased during the two months preceding each said period , provided all the terms and conditions of this license agreement have been faithfully observed .

TER M S .

’ f ’ All shipments are made f . o . b . lessor s o fice at lessee s risk . ’ All motion- picture films are to be shipped to lessee s office only . The lengths at which motion - picture films are listed a nd leased are only approximate . MOTIO N PICTUR E PA TENTS COMP A N Y P r d en t esi .

’ Licensee s signature , Place of business for which this license is granted :

Street and N 0 . City

OR N O N I B 5 . 8 8 IGI AL PETITI , EXH IT

223 2 10 1903 0 . 7 8 N , dated March , , for animated pic

ture apparatus , granted to American Mutoscope f Biograph Company as the assignee o John A . Pross ; 74425 1 17 1903 fo r k in e to No . , dated November , ,

scope , granted to Albert E . Smith ; 770 7 2 7 19 04 k in e to NO . 93 , dated September , , for

scope , granted the Vitagraph Company of America

as the assignee of Albert E . Smith ; 12 4 1 04 . 77 80 O 9 No , dated ctober , , for winding reel ,

granted Albert E . Smith ;

2 2 1 1 f r - . 785 05 905 o No , dated March , , flame shield for

kinetoscopes , granted the Vitagraph Company of America as the assignee of William Ellwood ; and

7 2 7 2 1 1 ﬁl m - No . 85 3 905 , dated March , , for holder for

kinetoscopes , granted the Vitagraph Company of f America as the assignee o Albert E . Smith ; all of which said letters patent relate to improvements on

- the motion picture art , and that there are no outstanding

licenses , shop rights , or other rights under said letters k in e to patent , or either of them , except a license for parlor Ka rm a ta o f scopes , granted the Company , Washington , 1 4 . C . No s . 578 85 5807 9 586953 D , under Letters Patent , , , 2 67399 . . and , and certain alleged licenses under U S Letters

. 586953 Patent No , which are in dispute , claimed to be owned by the Edison Company and the American Grapho f o f . C . . o phone Company , Washington , D , and S Lubin ,

Philadelphia , Pennsylvania ; and excepting a license granted by the American Mutoscope Biograph Company to the ﬁrm of Marvin and Casler to manufacture and sell cameras and exhibiting or proj ecting machines under letters patent owned by it (some of which are hereinbefore referred to) for use in foreign countries only and excepting certain licenses granted by the Licensee to the American Mutoscope Bio

. 578 185 580749 graph Company under Letters Patent Nos , ,

5869 53 5889 16 673992 Am erica n v Muto , , and , and by the scope Biograph Company to the Licensee under patents 4 22 2 . 70793 7 38 Nos and , which licenses are , however, by t agreement between said parties, suspended and are not o R N I ON B 5 . O IGI AL PET TI , EXHI IT 8 9

be acted upon until the Licensor becomes bankrupt , ceases doing business or shall be dissolved voluntarily or other

o r wise , its charter shall be repealed ; and ( 0 ) Whereas the Licensor represents fur ther that it is the f t to owner o the entire right , title , and in erest in and reissued t t o f 12 19 2 Let ers Pa ent the United States Numbered , dated 12 19 04 o f e January , , the original letters patent which wer 589 168 3 1 189 7 numbered , and dated August , , and that it has granted licenses under the said reissued letters patent to — m o r : only the following named persons , ﬁr s , corporations American Mutoscope Biograph Company o f New York City ;

o f O . Edison Manufacturing Company range , N J E ssa n a i y Company of Chicago , Ill nois ; Kalem Company o f New York City ' o f George Kleine Chicago , Illinois ; P o f a . Lubin Manufacturing Company Philadelphia , ; Pathe Freres o f New York City ;

Selig Polyscope Company of Chicag o , Illinois ; The Vitagraph Company o f America o f New York City ; o r t and that all of the said persons , firms , corpora ions have covenanted and agreed to lease only a n d n o t sell in the d e Unite Stat s , its Territories and possessions except its insular possessions and Alaska ( hereinafter referred to as the lease territory motion pictur e films manu fa ctur ed e t o f or import d by hem , a width greater than approximately o n e inch and under the condition and restriction that the said films shall be used o nl y o n e xh ibi tion o r proj ecting machines licensed by the Licensor under United States letters patent owned by the Licensor ; and (d ) Whereas the Licensee is engaged in the manufacture and sale o f motion picture exhibiting and proj ecting ma O f chines , and relying upon the representation the Licensor and induced thereby , desires to obtain from the Licensor a license under the said United States Letters Patent ; 6 NOW co n ( ) , therefore , the parties hereto , for and in sideration of the sum o f o n e dollar to each in hand paid by OR N ION I B 5 . 9 0 IGI AL PETIT , EXH IT

fo r the other, and other good and valuable considerations , o f from each to the other moving, receipt all of which is : hereby acknowledged , have agreed as follows ( 1) The Licensor hereby grants to the Licensee for the term and subj ect to the covenants , conditions , and stipula tions hereinafter expressed , the right and license for the

United States , its territories and possessions , to manufacture

o r and sell , motion picture exhibiting proj ecting machines embodying o n e o r more of the inventions described and 1 No s . 578 85 claimed in the said United States Letters Patent , 580749 5869 53 5889 16 673329 673992 707934 722382 , , , , , , , 12 2 2 744251 770937 77 80 785 05 785 37 . , , , , and The license hereby granted is personal to the Licensee , and in the event o f the permanent discontinuance or retirement from business o f the Licensee for a period of six consecutive months , the license hereby granted shall be immediately terminated . 2 fo r ( ) The Licensor, itself, its successors , assigns, and legal representatives , hereby releases, acquits, and dis charges the Licensee from any and all claims , demands , and liability fo r proﬁts and damages because o f any infringement by the Licensee o f o n e o r more o f the said United States 1 4 9 5 1 67 329 No s . 578 85 5807 9 586 3 5889 6 3 Letters Patent , , , , , 6739 92 7079 34 722382 74425 1 7709 37 77 1280 785205 , , , , , , and 785237 o r o f , use by the Licensee the inventions covered thereby . (3) The Licensee hereby recognizes and admits the validity o f of each and all the said United States Letters Patent No s . 578 185 580749 5869 53 5889 16 673329 673992 7079 34 , , , , , , , 722 382 74425 1 7709 37 77 1280 785205 785237 , , , , , and , and the Licensee agrees not to contest o r question the same o f during the continuance this agreement . (4 ) The Licensee covenants and agrees that o n all motion picture exhibiting o r proj ecting machines containing o n e o r more Of the inventions described and claimed in the said 2 o s . 6733 9 744251 770937 United States Letters Patent N , , , 77 1280 785205 785237 , , and , made in the United States , its

Territories and possessions , by the Licensee , and sold after the license hereby granted shall take effect and during the OR N O N B 5. IGI AL PETITI , EXHI IT 9 1

o f continuance this agreement , the Licensee will pay royalties as follows : On each such machine capable o f exhibiting o r proj ecting i o n o f by transm tted light, motion pictures ﬁlm a width greater than approximately o n e inch a royalty o f o n e dollar On each such machine not capable of exhibiting o r pro ec tin o n o f j g by transmitted light , motion pictures ﬁlm a width greater than approximately o n e inch a royalty

o f three - ﬁfth s (3 - 5) o f o n e ( 1) per cent o f the net retail

selling price o f such machines . On each such machine capable o f exhibiting o r proj ecting $ t t o n o f t by re ected light mo ion pic ures ﬁlm any wid h , but but n o t capable of exhibiting o r proj ecting the same by

t o f t - ﬁfth s o f o n e 1 transmitted light , a royal y hree (g) ( ) per

cent o f the net retail selling price o f such machine . It is understood and agreed by and between the Licensor and the Licensee that the expression motion picture exhib o r iting projecting machine , as used hereinbefore or here “ in a fter - o r fo r , includes motion picture mechanisms heads t o r t r such exhibi ing projec ing machines , but not any repai parts o r portions o f such motion—picture mechanisms o r ” heads . The Licensee further covenants and agrees that the 15 th e o f Licensee will , within fifteen ( ) days after last days th e t o f mon hs November, February , May , and August in each year, after this agreement takes effect and during its t th e continuance , submit a statement in wri ing signed by O o f bv proper fficer the Licensee , and sworn to if requested o f o r the Licensor, showing the number exhibiting projecting machines o f each o f the classes provided fo r in this para o n e Or t graph , embodying more of the inven ions described and claimed in the said United States Letters Patent No s . 673329 74425 1 770937 77 1280 785205 785237 , , , , , and , sold by th e Licensee during th e three months ending with th e o f th e t at t th e last days said mon hs , and the same ime pay o r yalties due thereon . The first such statement and pay t ment , however, shall be only for the period be ween February 1 19 09 2 1 r 8 909 . , , and February , The Licensee fu ther agrees 9 2 OR G N P T ON E I BIT 5 I I AL E ITI , XH .

to keep accurate books o f account and t o permit th e Licensor t o t . t determine hrough Messrs Price , Wa erhouse Com o r t t pany , any o her repu able chartered accountants to be

e th e o f agre d upon by the parties hereto , number such exhibiting o r projecting machines sold by the Licensee wh i le f this agreement is in e fect , if the Licensor should so desire . (5) The Licensee further covenants and agrees that each and every motion picture exhibiting o r proj ecting m achine o f bv capable exhibiting or proj ecting transmitted light , motion pictures o n a ﬁlm o f a width greater than a ppr o xi mately o n e inch and embodying o n e or more of the inventions described and claimed in the said United States 578 1 5 5 4 5 . 8 807 9 86953 5889 16 673329 Letters Patent Nos , , , , , 673992 707934 722382 74425 1 770937 77 1280 785205 , , , , , , , 785237 t o r and made in the United S ates , its territories pos

be e sessions by the Licensee , shall sold by the Licens e , except when sold for export , under the restriction and

condition that such exhibiting or proj ecting machines , shall be used solely for exhibiting o r proj ecting motion pictures containing the invention of reissued Letters Patent 12 1 2 NO . 9 , leased by a Licensee of the Licensor while it t owns said paten s , and upon other terms to be ﬁxed by the Licensor and complied with by the user while the said ' machine is in use and while the Licensor owns said patents (which other terms shall only be the payment of a royalty o r rental to the Licensor while in use) . The Licensor further co v enants and agrees that the Licensee will attach in a conspicuous place to each and every such exhibiting or ’ proj ecting machine of the Licensee s manufacture , sold by the Licensee , except for export , after the date hereof, a plate showing plainly not only the dates of the letters e patent und r which the said machine is licensed , but also the following words and ﬁgures :

Serial No : $

Patented . No .

The sale and purchase O f this machine gives only the right to use it solely with moving pictures containing the 12 1 2 . 9 invention of reis sued patent No , leased by a licensee OR N O N B 5 . 9 3 IGI AL PETITI , EXHI IT

of the Motion Picture Patents Company , the owner of the above patents and reissued patent , while it owns said pat ents , and upon other terms to be ﬁxed by the Motion Pic ture Patents Company and complied with by the user while it is in use and while the Motion Picture Patents

Company owns said patents . The removal or defacement of this pl ate terminates the right to use this machine . (6) The Licensee further covenants and agrees that each and every motion picture exhibiting or proj ecting machine not capable of exhibiting or proj ecting by transmitted light , motion pictures on a ﬁlm of a width greater than a ppro xi mately one inch or capable o f exhibiting or proj ecting f motion pictures on ﬁlm of any width , but only with re lected light , and embodying one or more of the inventions described 1 . 578 85 580749 and claimed in the said Letters Patent Nos , , 586953 5889 16 67332 9 6739 92 707934 722382 74425 1 , , , , , , , 770937 77 1280 785205 785237 , , , and ; and made in the United

States , its Territories and possessions by the Licensee , shall be sold by the Licensee , except when sold for export , under the restrictions and condition that the said exhibiting or proj ect ing machine shall be used in exhibiting or proj ecting motion pictures only in places to which no admission fee is charged . The Licensee further covenants and agrees that the Licensee wil l a tta ch in a conspicuous place to each and every such ’ exhibiting or proj ecting machine of the Licensee s m an ufa c ture , sold by the Licensee , except for export , after the date hereof, a plate showing plainly not only the dates of the Let ters Patent under which the said machine is licensed , but also the following words and ﬁgures :

Patented No . The sale and purchase o f this machine gives only the right to use it so long as this plate is not removed o r defaced and in places to which no admission fee is charged . (7) The Licensee further covenants and agrees that to each and every motion - picture exhibiting or proj ecting in v en machine of any kind , embodying one or more of the T tions described and cl a im e d in the said United States Letters 4 OR N ON X B 5 . 9 IGI AL PETITI , E HI IT

1 4 9 53 5889 16 67332 . 57 85 5807 9 586 9 Patent Nos 8 , , , , , 9 2 7079 34 722382 74425 1 7709 37 77 12 80 785205 673 9 , , , , , , , 785237 and , and made in the United States , its Territories e ﬁd e and possessions by the License , when sold bona for

export, there shall be attached a plate showing plainly not only the dates of the letters patent under which th e said

machine is licensed , but also the following words and ﬁgures

Patented No .

Not licensed for use in the United States , its Territories and possessions (except its insular possessions and Alaska) It is understood by and between the parties hereto that by export sales ” is meant all sales for delivery outside of

“ “ ” the lease territory aforesaid , when the machine , ad

dressed to the purchaser , agent , or consignee , is delivered to the vessel or to a transportation company for transporta “ ” tion outside of the said lease territory aforesaid , and not

otherwise . ( 8 ) The Licensee further covenants and agrees that the n o f Licensee will not , during the continua ce this agreement , make o r sell repair parts fo r motion - picture exhibiting o r proj ecting machines which have been manufactured o r

imported and sold by any other person , ﬁrm , or corporation , w h o o r which is licensed by the Licensor t o manufacture o r — import and sell motion picture exhibiting o r proj ecting machines under any o r all o f the said United States Letters 1 580749 5869 53 5889 16 673329 6739 92 o s . 578 85 Patent N , , , , , , 7079 34 722382 74425 1 7709 37 77 1280 785205 785237 , , , , , , and , when such repair parts constitute any part o f any invention described and claimed in the said United States letters

patent . ( 9 ) The Licensee further covenants and agrees that the Licensee will n o t sell any exhibiting o r proj ecting machine which the Licensee is hereby licensed to manufacture at less ’ fo r e to than the Licensee s list price such machine , exc pt to fo r j obbers , and other persons , ﬁrms , and corporations the t purpose of resale , and hat the Licensee will require such

j obbers and other persons , ﬁrms , and corporations to sell

O R N . O N E B 9 6 IGI AL PETITI , XHI IT

O : Manufacturing Company; of range , New Jersey , and the o f o f ﬁrm Marvin and Casler , Canastota , New York , neither

‘ i $ O f which is to pay any royalties on any exh ibiting. or pro je cting machines embodying any or all of th e inventions

' ' described and claimed in the aforesaid Letters Patent Nos . 578 185 580749 586953 5889 16 673 992 707934 : , ; , ; , ; and

' $ r r tin tm a h n es . 72 2382 w h en su ch . o ro e c c i o , exhibiting p j g are s ld

‘ ‘ ‘ ' f ' r ﬁd e fo r t co n d iti o n s in . bona export , the covenan s and the

‘ - licenses to ea ch ; a n d all of the said ﬁrm s o r corporations to $ be ' o th er wise like ; those set for th in this agreement)

: I t. is . mutually covenanted and agr eed by an d be

L “ ‘ tw n th e I icen so r‘ t ee and Licensee tha , unless sooner ter min a te d ; 3 8 5 hereinbefore and ' h er ein a fterr provided; this

l icen se ' ra n te d r ta k e e ffe c tn ag reement , and the g the eby , shall

‘ -

: 1 19 09 . a n d sh al l J 20 19 10 on February , , continue until une , , but that the Licensee may renew this agreement and license ;

z t e fro m ea r. to ear u o n ; th e rm her after y y p same te s , conditions , a n d v sti ul a tio n s ' r bv tO s th e ~ p as herein p ovided , giving notice

' r ' r o e 20th d a o f a ear . be Licenso on or bef r the y M rch in each y , ’ ' r 1 o f - ginning with th e yea 19 0 ; . the Licensee s election to so

' ’ . r t a n d . : O f renew this ag eemen and license, upon the giving each such : notice : this agreement and : the license thereby: granted shall be considered and treated : by the Licensor and

' ' Li censee as . renewed fo r th e perio d of o n e ye ar ; beginning

i me 20th O f ‘ y ear such z n o tice J the following , and such notice

: ' and renewal may. be giv e n a n d made by th e Li cen see during

' ' the life o n l iv es o f each o r . all of : th e pa te n ts under which th e

Licen see is h ere by licensed .

' ‘ : e th a tn th e Licen so r sh o ul d In case; howev r, become bank

' - ' ce a se d o in z busin ess o r sh o ul d b e rupt , g , dissolved , voluntarily

o r. o r its o n . otherwise , charter should be repealed; . then; the

‘ - : happening t o f: either o f such eve nts, this - agreement an d the

' agre em en ts m ad e wi th : th e ' ad d i tio n al ‘ Licensee hereinbefore

$ $ fo r , ar e r r provided , that then in fo ce shall fo thwith ter

' minate and h e a t an end .

$ (13) It is : furtherr mutually covenanted : and agre ed by

i ‘ ' ‘ an d b e tw e en i th e I i Oen so r . and Licensee; that if, d uring said i i na tC I 'I I h o r r : an n or g l du ing y such re ewal period , either 5 . OR N PE T O N H I B . IGI AL ITI , EX IT

k “ t o r c party should , nowingly or hrough gross neglect are

: ﬁ i r n . av o l a tio n o lessness , be guilty Of a breach , , onperformance

o f : o s c a n d z resul tin i n its c venant , onditions , stipulations g

“ . r: t o o s fo r t h e substantial inju y the ther p arty , and hould ,

‘ period o f forty (40) d ays after z n o tice z th ere o f fro m th e to th er

t ersist sth ere in o r fa il t to are a ir o r r em ed ( th e par y p correct , p , y t t m a t te r same , hen and in such case the p ar y aggrieved y minate t th is agreement b y giving notice rin writing to t h e

i I t : I S h e t o f ts s o t o d o . g uilty par y intention , ow ver , mutually cov enanted and agreed by r a n d b e tw e en z th e L icens o r

L s L ar t sh o ul d c o rr ect r and icensee that if the guilty p y , epair ,

o r b a o o r n o n erfo rm a n ce s o f r remedy such reach , viol ti n , p its o t h e s c venants , conditions , and stipulations within aid

o f 40 t s sn o tice a n d S h o ul d period forty ( ) days af er uch , there

' ' after know ingly o r through gross neglect . O I carelessness b e

‘ r z : . o f . a s o r n o n erfo rm an ce o f guilty econd breach , violation , p

c c t s i r esul tin - in its ovenants , ondi ions , and tipulations , g substa n tial gin ur f to ath e r o th er e j y party , th n and in such case ,

the party aggriev ed 'm ay t erm in a te t h is ag reement by giving ’ thirty (30) days n otice 3111 aw ritin g t o sthe guilty party o f its

t rm in a ti n . Of so to d o . S e o intention uch I the agreement ,

ll n o t : in t h e however, sha prejudice either party hereto

b e cause go f a n s -b v o r recovery Of damage y uch reach , iolation ,

nonperformance by the other party hereto . 14 s I ' t a s ( ) All notices provided in his greement , hall be in writing and shall be given by delivering the same to the

Licensor or Licensee , as the case may be , or by depositing ﬁ o f such notices , postage prepaid , in any post Of ce the

United States , in a sealed envelope directed to the Licensor

- o fﬁce or Licensee , as the case may be , at its last known post

address , to be forwarded by registered mail . ( 15) It is mutually covenanted and agreed by and between the Licensor and Licensee that after notice of the termination o f this agreement and the license granted thereby by either io v id e d 13 o f party , as p for in paragraph this agreement ,

and after the same have been terminated , no matter what the o r cause manner of termination may be , neither this license

agreement, nor the fact that the Licensee has entered into OR N ON I B 5 9 8 IGI AL PETITI , EXH IT . o r a n acted under it , shall be u sed in y manner , directly or o r indirectly, by for the Licensor, its successors , assigns or legal representatives o r by o r for others with its or their ’ o r o r consent permission , against the Licensee, the Licensee s a n successors or legal representatives , in y litigation , con tro v ers y or proceeding involving the Licensee , or them or o r any other persons , ﬁrms or corporations , in any other way , it being understood and agreed that upon such termination the positions and rights o f the Licensor and Licensee shall be ro vid ed the same as if this agreement had not been made ; p , h o wever , that the rights of neither party shall be prejudiced by such termination in the recovery of damages for any breach o r other violation of this agreement by the other occuring prior to such termination .

In witness whereof , the parties hereto have caused this agreement to be executed by their ofﬁcers duly authorized

w . to perform those acts , the day and year ﬁrst above ritten

TI N I TUR E A TENT MPA NY MO O P C P S CO ,

P r id en t. R A N . YER es By F K L D , AR M AT V IN G I TUR E MPA NY MO P C CO ,

AR M AT P resid en t. TH o s . By , Attest :

L r ta r . E R G E . UL S ec e G O F SC , y fi ttest :

ta r . UI . TA B L ER S ecre LO S H S , y

10 0 O R N O N B 6 IGI AL PETITI , EXHI IT .

ur places of amusement , entertainment, and instructions ; p chasing and holding such re al and personal property necessary

fo r o r o f o r o f incidental to the purposes this company , any o f them ; mortgaging , leasing , selling, or disposing by agree o r o f o r ment otherwise , and conveying , any and all the real personal property o f the corporation ; buying o r otherwise o r o f acquiring and holding , selling , otherwise disposing , o f the stocks , bonds , notes , and other evidences indebtedness o f a n o r y domestic foreign corporation , and issuing and

delivering its stock, bonds , or other obligations in payment fo r s o f or exchange tock , bonds , and other o bligati ns o other corporations organized for purposes similar to the pur poses o f this corporation o r conducting a business similar to that

herein provided for o r - capable o f being conveniently carried f o n ' in connection with the business a b o v e d escr ibed r conduct

- * ' ma n b s h a Vin o n e o r , m o re ing its business its ranche , and g o f l o r f ices ; holding , easing , conveying real or personal prop

- ‘ perty ~ in al l States and in al l foreign countries to wh ich th e a n d business of the company may be extended , borrowing money an d doing any acts to protect a n d improve th e fbusin ess

' h n f ‘ r o f the corporation a n d en a ce t h e value o its p o per ty .

$ To issue any a nd all b onds necessary t o the busi ness of t h e th e s am e b i m o r t a e corporation , and to secure y g g , deed o f * s as trust , or any other form of conveyance ; to i sue pre ferred stock such part ‘ O f its capital stock as shall b e “ ﬁ xed and determined in the b y-l aws ; ‘ to acquire and u ndertake

‘ O f rth e b usin ess s et the whole or any part , property , a s s , and

‘ o r liabilities of any p erson , ﬁrm , corporation engaged in b t ‘ e 3fo r a usiness similar to hat herein provid d , or capable o f b eing conveniently carried on in connection with t h e

business above described ; to do all o r - any pa r t t o f t h e above

r c t o r r things as p incipals , agents , contra tors , othe wise , and

“ o r ‘ th r o u h o r r o th er wis e a n d by g agents , , either alone or in

conj unction with others ; and to r do a n y and all things inci

‘ ' : e dental to the prosecution of the purposes her in contained ,

“ ’ ‘ n o t w l a ws » o f or any of them , and inconsistent ith the the

- f S tate O Maine . OR N . O N . B I O]; IGI AL PETITI , EXHI IT

$ The amount: of capital . stock is tw o million dollars .

The amount of preferred stock . is one million ﬁve h un d red l

thousand d ollars .

' The amount o f: common stock is ﬁve hundred thousand

dollars . Th e amount o f capital stock already paid in is eleven

: thousand four hundred dollars . The par value O f the shares is one hundred dollars each . The names and $ residences of the owners o f said shares are as follows :

R Pr Names . esidences . eferred . Common .

F L M N rank . Dyer ontclair , . J

A B erst N w Y r J . . e o k City

Gaston Melies Ne w York City M S o I l l William . elig Chicag , S u L H N am el ong oboken , . J

S u Lu P i Pa iegm nd bin h ladelphia , N J . J . Kennedy ew York City T ’ R N w Y William . ock e ork City G r o I l l eo ge Kleine Chicag ,

o K S o : l l G . I e rge po r Chicago ,

B o o a Ho . N i graph C mp ny boken , . J

fo r h o f leaving in the treasury , unsubscribed s ares , which are preferred and are common . is te d o f Said corporation loca at Portland , in the county Cumberland .

n o f - r The umber d i ectors is ten and their names are Frank L .

‘

B r a . i . . t il l i m M l e s I V a . S e Dyer , J A , G ston Melies , g , Siegmund

' ’ m a . T . o Lubin , S muel Long ; J J Kennedy , Willia R ck, e r K : George Klein , and Geo ge . S poor

‘ - I f h - i o t e L . The name cle rk S . L Hight and his residence is t a Por l nd, Maine . 2 OR N O N B 6 1 0 . IGI AL PETITI , EXHI IT

The undersigned , J . J . Kennedy , is president ; the under B . . erst i . . signed , J A , is treasurer , and the unders gned , J J B r . . e st Kennedy , J A , George Kleine , Samuel Long , Sieg mund Lubin , W . M . Selig , Gaston Melies , and William T .

Rock are a maj ority of the dir ectors of said corporation .

f . 1 y 1 . d a o . 9 0 Witness our hands this eighteenth April , A D

. . ENN E Y J J K D ,

P resid en t.

BE R T . . S J A ,

Tr a s ur e er .

NN Y . . E E J J K D ,

. . EB T J A B S , GEO R G E KL EIN E A M UE L N G S LO , IE G MUN UB IN S D L , E L I G W . M . S , A S T N E L IE G O M S ,

WM . . C T RO K , D r c r i e to s . TA TE O F A INE S M ,

um r n C be l a d ss . ,

R TL A N A IN E A ri l 15 19 10 . PO D M p , T B r . . e st hen personally appeared J . J . Kennedy , J A ,

George Kleine , Samuel Long , Siegmund Lubin , Wm . M .

r Selig , Gaston Melies , and William T . Rock , and severally made oath to the foregoing certiﬁcate , that the same is true . Before me A Y EET ER R R . H P S W S ,

Ju sti ce of th e P ea ce .

TA TE O F A IN E S M , ’ TT R N E Y ENER A L OFFICE A O G S ,

A ri l 2 0 19 10 . p , 0 I hereby certify that I have examined the foregoing cer tiﬁ cate , and the same is properly drawn and signed , and is con formable to the constitution and laws of the State . HA L E E R . AR N C S P B S ,

A s Atto rn e Gen era l . st. y

X H IB IT E 7 .

AGREEMENT BET WEEN MOT I ON PI CTURE PAT ENT S C O M PA AND GENERAL I L C PAN APRI L NY F M OM Y , 2 1 , 19 10 .

f 1 1 . 2 1st o 9 10 This agreement , made this day April , , by m co r and between the Motion Picture Patents Co pany , a po ra tio n organized and existing under the laws of the State f of New Jersey , and having an o fice in the city , county , and o f State New York , party of the first part (hereinafter referred to as the Licensor) , and the General Film Company , a corporation organized and existing under the laws o f the o f o f State Maine , and having an Office in said city New o f York, party the second part (hereinafter referred to as : the Licensee) , witnesseth that 2 . Whereas the Licensor represents that it is organized o w n to , deal in , and grant licenses under letters patent per

- o f taining to the motion picture art , and that it is the owner U all the right, title , and interest in and to the following nited States Letters Patent relating to that art 1 r 0 . 578 85 2 189 7 fo V N , dated March , , itascope , granted to Ar m Thomas a t . 4 to 0 . 5807 9 13 189 7 V N , dated April , , for itascope , granted Arm Thomas a t .

NO . 586953 20 189 7 fo r , dated July , , phantoscope , granted t Arm . o Charles F . Jenkins and Thomas a t

0 . 5889 16 24 189 7 N , dated August , , for kinetoscope, granted to Charles M . Campbell , as the assignee of Willard

G . Steward and Ellis F . Frost .

0 . 629063 18 1899 N , dated July , , for kinetoscopic camera , granted to American Mutoscope Company as the assignee of

Herman Casler . 2 1 1 0 . 6733 9 30 9 0 N , dated April , , for kinetoscope , granted to The American Vitagraph Company as the assignee of

Albert E . Smith . 104 O R N O N B 7 . 1 IGI AL PETITI , EXHI IT 0 5

2 14 1 1 0 . 67399 90 V N , dated May , , for itascope , granted to

Arm Thomas a t . 4 2 1 02 k in e to 0 . 7079 3 6 9 N , dated August , , for proj ecting

. . . C O . scope , granted E H T Anthony , as assignees of

Woodville Latham . 2 2 1 1 f r — t NO . 7 38 0 903 o 2 , dated March , , animated pic ure t B apparatus , granted to American Mu oscope and iograph f s Company as the assignee o John A . Pro s ; 442 1 1 1 f r No . 7 5 7 903 o , dated November , , kinetoscope , granted Albert E . Smith ;

2 1 4 f r No . 770937 7 90 o , dated September , , kinetoscope , granted the Vitagraph Comp any o f America as th e assig nee f o Albert E . Smith ; 12 O 4 1 4 f r No . 77 80 90 o , dated ctober , , winding reel , granted Albert E . Smith ; 2 M 2 1 1 ﬁ m h i d fo r NO . 785 05 9 05 a ee s el , dated arch “ , , for th e o f A kinetoscopes , granted Vitagraph Company merica as the assignee O f William Ellwood ; and

2 2 1 1 f r ﬁl m - f r . 785 37 t 905 o o No , da ed March , , holder o o f i kinet scopes , granted the Vitagraph Company Amer ca f as the assignee o Albert E . Smith ; and f 3 . o Whereas , the Licensor is the owner all the right , r t title , and interest in and to eissued let ers patent of the 12th 19 United States numbered dated January , 04, the original letters patent whereof are numbered 589 168 a n d t 3 1 1897 t dated Augus , under which reissued le ters p atent licenses have been granted to the Edison Manufacturing o f O P t o f Ne Company range , New Jersey ; a he Freres , w f . O ew York , New York ; the Kalem Company N E ssa n a o m York , New York ; the y Film Manufacturing C o f C o m pany Chicago , Illinois ; the Lubin Manufacturing o f o f pany Philadelphia , Pennsylvania ; Gaston Melies , New fo r fo r York , New York ( himself and as attorney in fact e o f th e l C o George Meli s Paris , France) ; Selig Po yscope m o f pany said Chicago ; the Vitagraph Company of America , o f o f New York , New York ; George Kleine said C hicago , and C m c the Biograph o pany , Of New York , New York (whi h t e licensees are , wi h th ir successors as such , hereinafter referred to as Patents Company Licensees ” ) and 1 0 6 O R N O N B 7 . IGI AL PETITI , EXHI IT

4 . t o Whereas , the Licensee desires Obtain from the 12 19 2 Licensor a license under said reissued Letters Patent ,

t o t fo r and lease positive motion pictures in cer ain territory , use in exhibiting o r proj ecting m achines containing the t o r inven ions , any of them , described and claimed in said 1 4 1 2 t No s . 578 85 5807 9 5869 53 5889 6 6733 9 Let ers Patent , , , , ,

785237 t o c , and sell positive motion pictures in ertain other territory ;

w r n i 5 . o fo co s d N , therefore , the parties hereto , and in era tio n o f o n e to Of the sum dollar each paid by the other, and fo r other good and valuable considerations from each to o f a ck n o wl the other moving , receipt all of which is hereby : edged , have agreed as follows

6 . r n The Licensor he eby grants to the Lice see, for the to term and subj ect the covenants , conditions , and stipula tions hereinafter expressed , the right and license for the

United States , its territories , dependencies , and possessions “ ” ( hereinafter called the territory aforesaid ) to have posi tive motion pictures manufactured fo r it by Patents Com ” pany Licensees , and which motion pictures it shall own , o n o f o n e ﬁlm a greater width than approximately inch , embodying the inventions o f said reissued Letters Patent 12 1 2 0 . 9 N , from negative motion pictures made in foreign countries and which are procured by it from others than “ ” to Patents Company Licensees , and purchase positive motion pictures manufactured in foreign countries , and to u fo r lease said positive motion pictures , so man factured and purchased by it , in the United States , its territories , depend e n cies o f , and possessions ( with the exceptions its insular to possessions and Alaska) , hereinafter referred as the

lease territory aforesaid , to motion picture exhibitors upon condition that they be used solely in exhibiting o r pr o je ctin g machines containing the inventions o r some o f them 1 4 889 16 o f o s . 578 85 5807 9 586953 5 said Letters Patent N , , , , 6 73329 673992 7079 34 722382 74425 1 7709 37 77 1280 , , , , , , , 785205 785237 , and , and licensed by the Licensor and to sell said positive motion pictures so manufactured fo r and

1 OR N O N B 7 . 0 8 IGI AL PETITI , EXHI IT motion pictures purchased by it as aforesaid during the

o n e - preceding month , at the maximum rate of half (5) cent per running foot hereinafter provided fo r ; that it will keep accurate books o f account and submit statements at the time of making such payments (sworn to , if required by the Licensor) giving the total number o f running feet of such motion pictures, classiﬁed according to subj ects , which the Licensee has so procured and purchased dur ing the preceding month ; that the Licensor shall have the right to inspect its a c books of account , through any reputable chartered co un tan ts , to determine the amount of such motion pictures which it shall have so procured and purchased after the license hereby granted takes effect ; and that any failure to pay o r the said royalties when due and payable , any making of a false return by the Licensee of the amount o f s uch motion th e pictures so procured and purchased by it , shall make license hereby granted terminable by the Licensor . 1 0 . The Licensor further covenants and agrees that the royalties which it will charge to the Licensee for negativ e motion pictures procured and p o sitive motion pictures pur d chase by the Licensee as aforesaid shall not , during the e 20 19 10 a n d year p rec ding June , , during any year thereafter o f during the continuance this agreement , as hereinafter pro — : vided , exceed the following rates that is to say If the amount of such motion pictures for any such year

s o f o n e - be four million running feet or les , a royalty half (5) cent per runn ing foot o n the total number of running feet

fo r for that year ; if the amount thereof any such year .ex ce ed four million running feet but do n o t exceed six million

o f - 4 running feet , a royalty four and one half ( é) mills per running foot o n the total number of running feet for that year ; if the amo unt thereo f fo r any such year exceed six million running feet but do not exceed eight million running o f 4 o n feet , a royalty four ( ) mills per running foot the total number of running feet fo r that year ; if the amount the r eof for any such year exceed eight millio n running feet but do not exceed ten million running feet , a royalty of three and three - quarters mills per running foot o n the total num O R G N O N B 7 . 1 I I AL PETITI , EXHI IT 0 9 ber of running feet for that year ; and if the amount thereof for any such year exceed ten million running feet , a royalty 1 - of three and one quarter (3 21) mills per running foot on the total number o f running feet for that year .

o r e n The Licens r fu th r covena ts and agrees that it will , 30 20 o f within thirty ( ) days after June each year, repay to the Lic ensee any excess o f royalties which may have been paid by the Licensee during the year by reason o f the differ ence between the rate o f o n e—half (5) cent per running foot o n which the Licensee shall have paid and the rate , based the total amount of such motion pictures procured and purchased a c by it for the year , which the Licensee should have paid cording to the foregoing schedule , the royalty rate to be

fo r 20 charged the period between the date hereof and June , 19 10 ro , to be that which would have been charged if the p curing and purchasing o f such motion pictures by the Licensee had been continued for a year at the same rate at which they were so procured and purchased for such period . The Licensor and Licensee further mutually covenant and agree that no royalty other than o r in addition to that pro v id e d fo r in this paragraph shall be charged to or collected 2 0 19 1 1 o r from the Licensee by the Licensor up to June , , to 3 1 19 14 during any renewal of this agreement up August , , the date o f the expiration of said reissued Letters Patent 12 1 2 r t . 9 o No , and no royalty whateve shall be charged or collected from the Licensee by the Licensor after either of f 12 1 2 the claims o said reissued Letters Patent No . 9 and 12 0 . 037 either of the claims of reissued Letters Patent N , 30 1902 dated September , (owned by the Licensor and under ex ce which all of the Patents Company Licensees , with the p o f tion George Kleine , have been licensed) , in any suit for

’ in fr in em e n t th ere o f g , is held invalid by a court that last o r 3 1 19 14 hears and decides such suit , after August , , during any renewal of this agreement . 1 1 . The Licensee further covenants and agrees n o t to sell “ o r f fo r or otherwise dispose of o fer sale , in the territory ” o r aforesaid , unexposed positive negative motion picture ﬁlms during the continuance o f this agreement ; but this 1 1 0 OR N O N B 7 . IGI AL PETITI , EXHI IT

a provision shall not prevent the Licensee from selling , s

- o r refuse , in the territory aforesaid , second hand positive negative motion pictures which have been used or become o r shopworn in any way damaged , to a manufacturer or manufacturers licensed by th e Licensor to manufacture sensitized motion picture film for “ Patents Company o r Licensees , to a manufacturer to manufacture other articles than film therefrom , but only after they have been rendered by the Licensee unsuitable for use as motion pictures by cutting or otherwise defacing them ; nor from selling exposed positive o r negative film (either waste or in “ ” rolls) known as blank film for use by exhibitors fo r o r leaders for spacing or for similar purposes , but which shall n o t and can not be otherwise employed fo r the exh ibi tion of motion pictures . 12 . n o t The Licensee further covenants and agrees to lease ,

' o ut o r f fo r o r o f loan , rent , sell , o fer sale , otherwise dispose in “ ” to the territory aforesaid , motion pictures anyone purchas o r u ing otherwise Obtaining , leasing , sing , loaning , renting o ut f fo r o r o f o r , selling , o fering sale , otherwise disposing dealing in motion pictures containing the invention o f said 12 1 2 f No . 9 o reissued Letters Patent , not the output the Licensee o r o f other licensees o f the Licensor under said

Letters Patent . 1 3 . I t is further mutually covenanted and agreed by the Licensor and Licensee that the Licensee shall have the right to fo r o r i t sell motion pictures , manufactured purchased by ” o r fo r as aforesaid , in said export territory , when the goods , o r addressed to the purchaser , agent , consignee, are delivered to the vessel o r to a transportation company fo r transporta “ ” to n o t n o tion said export territory , and otherwise ; but in “ ” case shall sales fo r export o f motio n pictures be knowingly o r made by the Licensee to persons , ﬁrms , corporations whom such Licensee has reason to believe will reimport them into ” f r r the lease territory aforesaid o sale o use .

14 . It is further mutually covenanted and agreed by and between the Licensor and Licensee that no lease of positive motion pictures manufactured for or purchased by the

1 2 O R N O N B 7 1 . IGI AL PETITI , EXHI IT motion pictures for giving exhibitions thereof in exhibiting o r proj ecting machines licensed by the Licensor containing o r the inventions , some of them , described and claimed in 1 . 578 85 580749 586953 5889 16 said Letters Patent Nos , , , , “ 673329 6739 92 7079 34 722382 74425 1 770937 77 1280 , , , , , , , 785205 785237 o r , and , in Letters Patent hereafter acquired or controlled by the Licensor ; and will not use the same for fo r the purpose of giving exhibitions thereof profit , directly o r indirectly ; it being expressly understood and agreed by and between the Licensor and Licensee , however , that the Licensee shall be at liberty to give exhibitions o f such posi o r tive motion pictures without profit , directly indirectly , and to possible or prospective lessees o r purchasers thereof ; and the Licensee further covenants and agrees n o t to know in gl y allow positive motion pictures manufactured fo r or purchased by it under this agreement to be used with any exhibiting or proj ecting machine not licensed by the Licensor under the Letters Patent mentioned in this paragraph , and that it may hereafter acquire or control ; or o n e or more Of o f them , except by and with the consent the Licensor ; and also to refrain from supplying such motion pictures fo r manufactured or purchased by it under this agreement , for use with any exhibiting or proj ecting machine , the fo r license which , under the aforesaid Letters Patent , or one or more of them , has been terminated , and the Licensee has been notified thereof by the Licensor ; and also to refrain from supplying such motion pictures manufactured fo r and purchased by it under this agreement to any lessee who may loan o r sublease such motion pictures and the Licensee e o r use has been notifi d thereof by the Licensor , who may such motion pictures for giving exhibitions thereof in ex h ibitin g or proj ecting machines not licensed by the Licensor as aforesaid , or the license for which has been terminated and the Licensee has been notified thereof by the Licensor ; and the Licensor covenants and agrees to promptly notify the Licensee and all other persons , firms , and corporations 12 1 2 f licensed under said reissued Letters Patent N 0 . 9 o th e termination o f any license for the use of any exhibiting O R N O N BI 7 . IGI AL PETITI , EXHI T 1 1 3 o r proj ecting machines under the aforesaid Letters Patent, r o any of them . 1 6 . The Licensor and Licensee further mutually covenant and agree that if in any suit brought upon said reissued 12 1 2 o f o f Letters Patent No . 9 either the claims said reis 12 1 2 sued Letters Patent N 0 . 9 is held invalid by a court o r that last hears and decides such suit , should be held by such court not to be infringed , then , and in any such case , the Licensee may at once terminate this agreement and the license thereby granted , by giving notice of its election so to do to the Licensor . 17 The Licensor and Licensee further mutually covenant and agree that by the expression “ motion pictures ” as used in the foregoing agreement is meant transparent or tra n sl u cent tapelike film having photographs thereon of obj ects in motion . 1 b 8 . It is further mutually covenanted and agreed y and between the Licensor and Licensee that , unless sooner terminated , as hereinbefore or hereinafter provided , this agreement and the license granted thereby shall take effect 20 19 1 1 at the date hereof, and shall continue until June , , but that the Licensee may renew this agreement and license t to thereaf er from year year upon the same terms, conditions , and stipulations as herein provided by giving notice to o n 20 the Licensor or before April of each year, beginning ’ 19 11 o f th e so with the year , Licensee s election to renew o f this agreement and license , and upon the giving each such notice this a rg e em e n t and the license thereby granted shall be considered and treated by the Licensor and Licensee fo r o f o n e 20th o f as renewed a period year, beginning June the year following such notice , except that the last renewal fo r 20 19 14 period shall be the period from June , , to August 26 19 19 o f o f , , the date expiration the Letters Patent 4 0 . 0 N 7 793 . It is further mutually covenanted and agreed by and

n between the Licensor and Licensee that if, duri g said a n original term or during y such renewal period , either party should knowingly or through gross neglect or care 1 O R N N I B 7 1 4 O . IGI AL PETITI , EXH IT

o r lessness be guilty of a breach , violation, nonperformance o f its covenants , conditions , and stipulations , resulting in

substantial inj ury to the other party , and should for the period of forty (40) days after notice thereof from the other

party persist therein or fail to correct , repair, or remedy

the same , then and in such case the party aggrieved may terminate this agreement by giving notice in writing to the

guilty party of its intention so to do . It is , however, mutually covenanted and agreed by and between the Licensor and Licensee that if the guilty party should cor o r o r rect , repair, remedy such breach , violation , non O f n performance its covenants , conditio s and stipulations 40 i within the said period of forty ( ) days after such not ce , and should thereafter knowingly or through gross neglect o r l y l n o n carelessness be gui t of a second breach , vio ation , or o f performance its covenants , conditions , and stipulations ,

resulting in substantial inj ury to the other party , then and in such case the party aggrieved may terminate this agree ’ men t by giving thirty (30) davs n otice in writing to the

- guilty party of its intention so to do . Such termination of y the agreement , however, shall not prej udice either part hereto in the recovery of damages because o f any such

’ v io l a tio n o r breach , , nonperformance by the other party

hereto . 1 9 . All notices provided for in this agreement shall be in writing and shall be given by delivering the same to the o r f Licensor or Licensee , as the case may be , to an o ﬁcer of

the Licensor or Licensee , as the case mav be , or by depositing f such notice , postage prepaid , in any post o ﬁce of the United

States , in a sealed envelope directed to the Licensor or the

- O fﬁce Licensee , as the case may be , at its last known post

address , to be forwarded by registered mail .

20 . It is mutually covenanted and agreed by and between the Licensor and Licensee that after notice o f the termination of this agreement and the license granted thereby by either 16 18 o f party , as provided for in paragraphs and this agree

ment , and after the same have been terminated , no matter o r what the cause manner of termination may be , neither

X H IB IT E 8 .

AGREEME NT BET W EEN GE NE RAL FI L M C OMPANY AND ED I S N AN ACT RI NG C PAN APRIL 2 1 1 1 O M UF U OM Y , , 9 0 .

1 . Articles of agreement , made and entered into this

y turing Compan , a corporation organized and existing under a o f the l ws the State of New Jersey , and having an office in o f O the city range in said State , party of the first part , and G the eneral Film Company , a corporation organized and o f existing under the laws the State of Maine , and having an O f o f fice in the city , county , and State New York , party of the second part ; witnesseth that :

2 . Whereas the party of the ﬁrst part has been licensed by o f t o the Motion Picture Pa tents Company , New York City , manufacture motion pictures by the use o f cameras under 12 1 2 O . 037 30 9 0 reissued Letters Patent N , dated September , , 2 1 NO . 6 9063 8 189 9 Letters Patent , dated July , , and Letters 9 4 2 1 2 0 . 707 3 6 9 0 Patent N , dated August , , and containing 12 1 2 . 9 the inventions of reissued Letters Patent No , dated 12 1904 January , , and to lease positive motion pictures so manufactured by it (hereinafter referred “ ” to as Licensed Motion Pictures ) fo r use o n proj ecting machines licensed by said Motion Picture Patents Company (hereinafter referred to as “ Licensed Proj ecting Machines ” )

- 57 1 4 5 5 9 16 . 8 85 5807 9 5869 3 88 under Letters Patent Nos , , , , 637329 6739 92 707934 722382 74425 1 770937 7 7 1280 , , , , , , , 785205 785237 u ts , and , owned by said Motion Pict re Paten

Company , covering motion picture proj ecting machines ; and f 3 . o Whereas , the party the second part has been licensed by said Motion Picture Patents Company to lease such ” o n o f Licensed Motion Pictures , but only ﬁlm a greater 1 width than approximately one ( ) inch , from persons , ﬁrms and corporations licensed by said Motion Picture Patents Company to manufacture or manufacture and import such 116 OR N O N B 8 . 1 1 IGI AL PETITI , EXHI IT 7

to Licensed Motion Pictures , and sublet the said Licensed ” Motion Pictures in certain territory (which , however, may fo r hereafter be extended) , to motion picture exhibitors use “ ” o n Licensed Proj ecting Machines ; and has also been licensed by said Motion Picture Patents Company to have positive motion pictures (hereinafter included in the term Licensed Motion Pictures manufactured for it by certain

of said licensees , including the party of the ﬁrst part (and “ hereinafter referred to as the Patents Company Licensees ” o f aforesaid ) on ﬁlm the width aforesaid , embodying the

' 12 1 2 inventions o f said r eisS e d Letters Patent No . 9 from negative motion pictures made in foreign countries and which are procured by it from others than the “ Patents ” Company Licensees aforesaid , and which positive motion o w n pictures it shall , and also to purchase positive motion pictures (hereinafter included in the term “ Licensed Motion

Pictures manufactured in foreign countries , and to lease all said positive motion pictures to motion picture exhibit “ o rs for use by such exhibitors o n Licensed Proj ecting ” Machines ; and 4 f f . o o Whereas , the party the second part is desirous “ ” o f leasing Licensed Motion Pictures , on ﬁlm the width o f aforesaid , from the party the ﬁrst part for the purpose of

subleasing the same to motion picture exhibitors , under its license aforesaid from the Motion Picture Patents C o m pa n <

5 . o w o f N , therefore , the parties hereto the ﬁrst and sec ond parts do hereby covenant and agree as follows :

6 . The party o f the first part covenants and agrees that o f it will , during the continuance this agreement , supply the party of the second part with as many C opies of each “ ” o f Licensed Motion Picture , released by the party the o n first part , film of the width aforesaid , as the party of

the second part requires for the conduct of its business , and will so supply them at the same leasing prices and

otherwise upon the same terms and conditions as it , at “ ” corresponding times , leases such Licensed Motion Pictures o r to other persons , ﬁrms , corporations , and that it will not , during the continuance of this agreement , discriminate o f against the party of the second part , in favor other per 1 O R N O N I B 8 1 . 8 IGI AL PETITI , EXH IT

o r sons , ﬁrms , corporations to whom it leases such Licensed Motion Pictures in ﬁlling orders for such Licensed

Motion Pictures , in terms of payment therefor or in any

other way which might give , or tend to give , such other $ ’ o r persons , ﬁrms , corporations any advantage over the party

of the second part .

7 . The party of the second part covenants and agrees i that it will , dur ng the continuance of this agreement , lease “ ” from the party of the first part Licensed Motion Pictures , o n film of the width aforesaid , at the prices and upon the terms and conditions provided for in the last preceding paragraph , and that it will , on each Monday , make or mail payment to the party of the first part for all such Licensed ” Motion Pictures , shipped by the party of the first part o f o f to the party the second part , on the order the latter, and for which the party of the second part has received

invoices from the party of the first part, during the preced ing week ; and that it will use its best efforts to intro duce the same to and extend the use thereof by motion “ ” picture exhibitors using the Licensed Proj ecting Machines, aforesaid ; that for each sixtv - two customers or the maj or fraction thereof that it serves during any two consecutive weeks during the continuance o f this agreement from any place o f business Operated by it for the purpose o f leasing and subleasing motion pictures among motion - picture a exhibitors , it will lease from the party of the first p rt , during i each such two consecutive weeks , and will d stribute from o f o n e each such place business , reel, of a subj ect or subj ects released by the party of the first part not more than one o n e month previously , of approximately thousand ” a n d running feet of such Licensed Motion Pictures , that it will so lease such a reel for each such place of business during any such two consecutive weeks , even if its cus to m ers ur , which it serves from such place of business d ing sixtv — such two consecutive weeks , do not aggregate two customers o r the maj or fraction thereof ; it being expressly

covenanted and agreed , however , by and between the parties hereto that the party of the second part shall not be required to lease from the party of the ﬁrst part more than eighty (80)

1 2 O R N I O N B 8 . 0 IGI AL PETIT , EXHI IT ance of net proﬁt provided for in paragraph hereof numbered 8 may , at the option of the party of the second part , be made wholly or partly by promissory notes o f the party o f the sec ond part bearing interest at the rate o f six (6) per cent per annum and each payable at a date not later than three years from the date on which the payment for which it is issued is

a due ; provided , however , ( ) that if , in any year it should make payments in this manner to the party of the first part , it shall for that year make payments in like manner to all o f the “ Patents Company Licensees aforesaid ” from whom it may have leased “ Licensed Motion Pictures ” during that year and w h o may be entitled to share in the balance o f net profit of that year provided for in paragraph hereof num bered 8 ; (b) that if in any year it should make such payments partly in cash and partly in promissory notes the cash shall be apportioned among the several “ Patents Company ” Licensees aforesaid according to the number o f running feet “ o f Licensed Motion Pictures leased by each during that o f year to the party the second part , relatively to the total amount o f running feet leased by all to the party of the a o r second part during that year , and the notes shall be pp tio n ed in like manner ; and (c) that all notes issued by it in each year to the several “ Patents Company Licensees afore ” said in full o r partial payme nt as aforesaid shall be alike as to form , date , rate of interest, duration and place of payment ; shall be paid by it without preference to one payee over another ; shall be fully paid by it before any cash payments are made by it in subsequent years to “ Patents ” Company Licensees aforesaid o n account of their share as aforesaid o f the balance o f net profit for such years ; shall be paid before any pa yment is made o n the notes issued in “ such subsequent years to Patents Company Licensees ” aforesa id o n account of such share o f the balance o f net r o r profit ; and shall share p rata , according to thei respective fo r face values , in any money to be used by it making par tial payments o n such notes . 1 1 . It is further mutually covenanted and agreed by and between the parties hereto that, unless previously terminated l as hereinafter provided , this agreement shall continue unti OR N P T O N E I B 8 . IGI AL E ITI , XH IT 1 21

2 6 19 19 o f o f August , , the date expiration the letters patent

4 . aforesaid N0 . 70793 12 . I t is further mutually covenanted and agreed that if the license to the party o f th e ﬁrst part re ferred to in para 2 t to 26 graph hereof numbered be erminated prior August , 1 1 f 9 4 9 9 o t e No . 707 3 , the date expiration of said le t rs patent , o r if th e license aforesaid to the party o f th e second part to “ lease Licensed Motion Picture s fro m the party o f the ﬁrst “ part and other Patents Company Licensees aforesaid be na t o t 26 19 19 e o f th e i termi ted prior Augus , , the dat exp ra f 4 f o . 7079 3 t o tion said letters patent No , hen and in either

such cases this agreement sha ll a t once terminate . 1 3 . It is further mutually covenanted and agreed by and between the parties hereto that if either party should know in gl y o r thro ugh gross neglect o r carelessness be guilty o f a o r m ce o f c co n breach , violation , nonperfor an its ovenants , d iti o n s o s u r to , and stipulati ns resulting in bstantial inju y the fo r e o 40 other party , and should , the p ri d of forty ( ) days t t th e o r af er notice hereof from other party , persist therein to o r d t fail correct , repair , reme y the same , hen and in such case the party aggrieved ma y terminate this agreement by giving notice in writing to the guilty party O f its intention d o t a d r so to ; it being, however, mu u lly covenante and ag eed by and between th e parties here to that if the guilty party o r should correct , repair , remedy such breach , violation , or o f n nonperformance its covenants , conditions , and stipulatio s th e o f 40 ce within said period forty ( ) days after such noti , a nd o r l c o r should thereafter knowingly , through gross neg e t e O f e o o r no n carelessn ss be guilty a s c nd breach , violation , o f performance its covenants , conditions , and stipulations , t o e resulting in substantial injury the other party , th n and in such c a se the party agg rieved may terminate this a gree ’ ment by giving thirty (30) days notic e in writing to th e guilty f f party o its intention so to d o . Such termination o the e t t agreement , however, sh all not prej udic ei her party here o o f in the recovery damages because of any such breach , m h o r t e t t . violation , nonperfor ance by other par y here o 14 . It is further mutually covenanted and agreed that in case o f the termination o f this agreement as provided 1 22 OR N A O N B 8 . IGI L PETITI , EXHI IT

12 13 for in paragraphs hereof numbered and , or in case the

party of the first part should become bankrupt , then at the end o f the year in which either of these events occur s the party o f the fir st part shall be entitled to such a propor o f tion of the balance net profit for that year , as herein “ o f before defined , as the number running feet of Licensed Motion Pictures ” leased by the party of the second part from it during that year bears to the total amount of run ” ning feet o f Licensed Motion Pictures leased by the “ party o f the second part from all Patents Company ” “ Licensees aforesaid dur ing that year ( Licensed Motion ” Pictur es manufactured for o r purchased by the party o f

the second part , as aforesaid , as well as motion pictures leased to it by “ Patents Company Licensees aforesaid ”

to . produced from negatives made on its order , be excluded) 1 f r 5 . All notices provided o in this agreement shall h be in writing , and s all be given by delivering the same to o f o r o f the party the first part the party the second part , f as the case may b e , or to an O ficer of the party of the first o f part or the party the second part , as the case may be , or by depositing such notice , postage prepaid , in any post f o f o fice the United States , in a sealed envelope directed o r to the party of the first part the party of the second part ,

- Ofﬁce as the case may be , at its last known post address , to be forwarded by registered mail .

16 . It is further mutually covenanted and agreed by and between the parties hereto that any rights hereby granted by one party to the other are personal to and nonassignable by the latter without the consent in writing of the former .

In witness whereof, the parties hereto have caused this agreement to be executed by their Ofﬁcers duly authorized to perform these acts , the day and year ﬁrst above written .

I N A N UFA CTUR IN G M P A N Y ED SO M CO , t A YE i ce P resid en . R N . R V By F K L D ,

In the presence o f

. . ENNE Y J J K D , L $ WM . PE ER .

1 24 OR N O N B 9 IGI AL PETITI , EXHI IT .

the film as to cause the successive images to be received t — thereon separa ely and in single line sequence . The move o f —fil m ments the tape are intermittent , and it is preferable that th e periods o f rest of the film should be longer than the

periods of movement . By taking the photographs at a rate sufﬁciently high as to result in persiste nce of vision the developed photographs

‘ will , when brought successively into view by an exhibiting

apparatus , reproduce the movements faithfully and. naturally . I have been able to take with a single camera and a tape

ﬁl m - h av as many as forty six photographs per second , each

ing a size measured lengthwise of the tape of one inch , and I

have also been able to hold the tape at rest for nine - tenths of the time ; but I do n o t wish to limit the scope of my invention to this high rate o f speed nor to this great dis proportion between the periods o f rest and the periods o f

motion , since with some subj ects a speed as low as thirty f pictures per second or even lower is su ﬁcient , and while it is desirable to make the periods o f rest as much longer than the periods o f motion as possible any excess of the pe riods o f rest over the perio ds of motion is advantageous .

In the accompanying drawings , forming a part hereof, 1 Figure is a plan view , with the top of the casing removed , of a form of apparatus which I have found hig hly useful for 2 the taking of the photographs . Fig . is a vertical longi 4 i l 1 . r tud n a section o n line as x in Fig . . Figs 3 and a e enlarged views o f the stop mechanism Of the photographing o f apparatus . Fig . 5 is a plan view the shutter for the i t F . 6 photographing apparatus , and g is a perspec ive view

- ﬁl of a section o f the tape m with the photographs there on . d 3 c Referring to the rawings , indi ates the transparent or

- ﬁl m translucent tape , which before the apparatus is put in

operation is all c oiled o n a reel in the sheet - metal bo x or a 1 e ee c se , the fr e end being connected to an empty r l in the 3 o f case 2 . The film is preferably sufficient width to admit the taking of pic tures o n e inch in diameter between th e rows 4 2 t . 6 of holes , Figs and , arranged at regular in ervals along a n d the two edges of the film, into which holes the teeth of N B 9 2 R N O . 1 O IGI AL PETITI , EXHI IT 5

1 2 o f 5 . the wheels , Figs and , enter for the purpose posi

i l n . t v e y advanci g the ﬁlm When the ﬁlm is narrow, it is not essential to use two rows of perforations and two feed

- o n e b . wheels , feed wheel eing sufﬁcient Said wheels are o n 6 7— mounted a shaft , which carries a loose pulley that is , a pulley frictionally connected to its shaft and forming a yielding mechanical connection . This pulley is driven by a

o r 8 9 10 cord belt from a pulley on the shaft , which shaft is driven by means of the beveled gears 1 1 12 . The wheel 12 13 is preferably driven by an electric motor , which when the apparatus is in use is regulated to run at the desired uniform speed , being controlled by the centrifugal governor

- 1 - O 14 and the circuit controller 5 in a well known manner . n 10 16 the shaft is another pulley , which is connected by a

- 17 18 cross belt to a pulley , also frictionally connected to its shaft , and which carries the reel to which the tape is con n 2 1 e cte d in casing . The ﬁlm passes from the casing through 19 20 a slit formed by the edge and the sliding door , which is

r 2 2 fﬁ 1 . su normally thrown forward by the sp ing , Fig , with

v m n cient force to clamp the ﬁlm and hold it from o e e t . When the door 20 is retracted by pulling on th e r o d or string 22 t to , which is connec ed the arm the ﬁlm is liberated

- 2 and allowed to advance . Film case is provided with a similar door , but the device for moving the door is not illustrated . This arrangement of the sliding door n o t only n holds the ﬁlm , but it tightly closes the casi g , thus excluding

r light and protecting the sensitive ﬁlm . The casings o 1 2 S O boxes are removable , that they , with the inclosed ﬁlm ,

. 6 may be taken bodily from the apparatus The shaft , here o r — 23 tofore referred to , is provided with a detent stop wheel , 4 the form of which is most clearly shown in Figs . 3 and . The wheel 23 is provided with a number of proj ecting teeth 24 , six being shown , which teeth are adapted to strike suc ce ssiv e l y against the face o f the cooperating detent or stop 2 5 2 6 — o f wheel on the shaft , which is the armature shaft the

r motor or a shaft which is constantly driven by the otor . The wheel 25 has a corresponding number o f notches 2 7 at regular intervals around its periphery . These notches are 1 2 OR N O N I B 9 . 6 IGI AL PETITI , EXH IT

of such size and shape that the teeth 24 can pass through

23 25 ir them , and when the wheels and are rotated in the d c c tion indicated by the arrows each tooth in succession will 25 a strike the face of wheel , thereby bringing the ﬁlm bso l utel y to rest at the s ame moment that an opening in the

shutter exposes the ﬁlm , and will then pass through a notch , allowing the tape - ﬁl m to be moved forward another step

while it is covered by the shutter . To avoid the danger o f the wheel 25 moving so quickly that a tooth cannot enter — th e 29 r o proper notch , a laterally proj ecting tooth is p 2 v id ed adj acent to each notch . When a tooth 9 strikes a o 24 2 9 to th , the latter tooth will be guided by the tooth into 2 the adj acent notch 7 . 30 is a detent spring o r pawl to prevent backward move f 2 ment o the wheel 3 . I prefer to so proportion the parts above described that

the wheel 23 is at rest fo r nine - tenths o f the time in order to give to the sensitized ﬁlm as long an exposure as practicable

- o f a n d and is moving forward one tenth the time , said forward movement is made to take place thirty or more times

- per second , preferably at least as high as forty six times per o f o r o f second , although the rapidity movement number times per second may be regulated as desired to give satis f f r factory results . The longer interval o rest o the film insu es a good impression o f the Obj ect proj ected thereon and results in a picture having clean and sharp lines , since the film has sufficient time to become steady and overcome the vibration caused by the sudden and rapid motions o f the 2 o r o n feed mechanism . On the shaft 6 any suitable shaft 3 1 driven by the motor is a revolving disk , serving as a shutter for alternately exposing and covering the sensitive

film . This disk , which is continuously revolving , is provided with six or any other suitable number of apertures 32 at regular intervals around it near the edge , they being so arranged that one of the apertures passes directly between the camera - lens 33 and the film each time the film is brought ’ - 33 to rest , the light rays passing through the opening and falling on the film half- way between the reels o n which the

ﬁlm is wound .

1 2 O R N O N I B 9 . 8 IGI AL PETITI , EXH IT

What I claim is

- 1 . An unbroken transparent or translucent tape like photographic ﬁlm having thereon uniform sharply- d e ﬁn ed equidistant photographs o f successive positions o f an Obj ect in motion as observed from a single point o f view at rapidly c re urring intervals of time , such photographs being arranged

- in a continuous straight line sequence , unlimited in number o f f save by the length the ﬁlm , and su ﬁcient in number to represent the movements o f the obj ect throughout an extended period of time , substantially as described .

r - 2 . An unbroken transparent o translucent tape like photographic ﬁlm provided with perforated edges and having thereon uniform sharply - d eﬁn ed equidistant photographs of successive positions o f an obj ect in motion as Observed from

o f - o f a single point view at rapidly recurring intervals time , such photographs being arranged in a continuous straight o f line sequence , unlimited in number save by the length the to o f film , and sufficient in number represent the movements substa n the obj ect throughout an extended period of time , tia l l y as described . This specification signed and witnessed this 15th day o f

1903 . December ,

TH OMA S A . EDISO N . Witnesses : A YE R N . R F K L D ,

A AL R . H RR Y G . W TE S