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Intellectual Property Keyed to Merges
Motion Picture Patents Company v. Universal Film Manufacturing Company et al
Facts
When Motion Picture Patents Company (MPPC) (Plaintiff), the assignee of a patent, granted the right and a license to manufacture and sell machines embodying the invention described in the patent at suit, i.e., a mechanism for feeding film through a motion picture projector, MPPC (Plaintiff) attached a notice to each machine limiting the use of the motion picture machines by the purchaser or by the purchaser’s lessee to terms not stated in the notice but which were to be fixed after sale, by MPPC (Plaintiff) at its discretion. The notice attempted to restrict the use of film supplies and the sale price and was not a restriction on the use of the machine itself. Universal Film Manufacturing Company (Defendant) claimed that the owner’s rights to control the materials to be used in operating the machine could not be used in operating the machine could not be derived from or protected by the patent law and the notice was invalid.
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