MOTION PICTURE PATENTS COMPANY V. UNIVERSAL FILM MANUFACTURING COMPANY ET AL., 243 U.S. 502

Summary

Plaintiff, who had title to a patent, filed an action against defendant corporations alleging patent infringement regarding the use of a motion picture exhibiting machine. At issue was whether plaintiff, or plaintiff's assignees, could license another to manufacture and sell a patented machine and by notice attached to the machine, limit its use by the purchaser to films which were no part of the patented machine, and which were not patented. Another issue was whether plaintiff's assignee, who had licensed another to make and sell the machine covered by the license, by notice attached to the machine, could limit the use of the machine by the purchaser to terms not stated in the notice, but which were to be fixed, after sale, by the assignee, in the assignee's discretion. On certiorari review, the United States Supreme Court affirmed the decision of court of appeals, which decided both issues in the negative. The Court stated the patent laws only granted the patent holder the right to ...