Boxoffice-March.04.1950

. . The
"PdjUc ^mt^ Wider Use of Technicolor
Treasury Dept. Is Receptive
To Tax Hardship Complaints
Secretary Snyder takes notice of suggestions
by Abram F. Myers that exhibitors
should empliasize financial situation in contracts
with their congressmen: American Federation
of Labor aslis repeal of all excises.
*
N. Y. State Urges Congress
To Delay Tax Revisions
Chamber of Commerce unanimously adopts
a resolution calling on Congress to defer
changes in the federal tax structure until the
1951 session in the fear that politics would
dominate changes made now.
Jack L. Warner Brands
Reports 'Ridiculous'
-X
Says slashing departmental personnel at the
studio by as much as 50 per cent not true,
but curtailment will amount to about 5 per
cent, "proportionate to the amount of actual
production."
Paramount Lays Off 15
As an Economy Move
studio drops employes from its production
and art departments due to unexpected delays,
explaining the cutbacks will be of short
duration and not widespread.
Justice Dept. Asks Repeal
Of the Webb-Pomerene Act
TeUs Congress alternative action on measure
under which Motion Picture Export Ass'n
operates may be drastic revision; State department
and Federal Trade Commission previously
had sought no major changes.
*
British Exchequer Remits
Third B Pool Payment
Sir Stafford Cripps, chancellor, authorizes
transfer to U.S. of $164,000 on earnings up
to March 31, 1949, making total to date $1,-
064,000; equals earnings of British films.
16mm Group Proposes Plan
For Rural Town Theatres
Pictorial Films, Inc.. working with seven
film libraries, to submit plan to bring films
Into theatreless towns to National Ass'n of
Rural Electric Cooperatives in Chicago this
week, to urge community investments.
X
Phonevision Test Delay
Announced by Zenith
Zenith Corp. to postpone experiment for
two or three months because additional technical
arrangements must be made; company
says it has promise of "recent films" but
won't name them.
¥
Selznick Temporary Stay
Against Korda Is Denied
Federal Judge Irving Kaufman refuses producer's
motion to restrain Korda from releasing
"Gone to Earth" in eastern hemisphere.
Seen as Decree Result
NEW YORK—A speedup in
Technicolor
print deliveries and more general use is
predicted as a result of the consent decree
agreement reached between Technicolor,
Inc., and the Department of Justice in
settlement of an antitrust suit which has
been hanging fire for some time.
It has been known for several weeks that
laboratories on both coasts have been installing
color film equipment. The first
impression was that this was for the purpose
of using the Ansco and other processes,
but now, it is believed. Technicolor prints
will be included. The impression is that
insiders had information on the probable
outlines of the consent decree, but nobody
will comment on this.
KALMUS EXPLAINS CONTRACTS
After the weekend announcement that an
agreement had been reached Dr. Herbert T.
Kalmus, president of Technicolor, issued an
explanatory statement saying that the decree
would not terminate any contracts between
Technicolor and its customers on
features which have been completed, or on
those on which work has been started. Customers
desiring to do so can cancel existing
contracts, but Dr. Kalmus said he did not
expect any of them to do so.
"The decree," said Dr. Kalmus, "purports
to terminate certain contracts between Technicolor
and Eastman Kodak Co. Actually,
we have not operated under any of these
contracts for several years.
"Under the decree. Technicolor will grant
licenses under its patents. The decree sets
forth a list of patents under which Technicolor
will grant to each applicant a nonexclusive
license without royalty and without
know-how. And it sets forth another list
of patents under which it will grant a nonexclusive
license on a reasonable royalty
with know-how. The applicant must apply
for the license in good faith and must accept
the ruling of the court as to the amount
of royalty in the event that Technicolor and
the applicant cannot agree as to what is a
reasonable royalty.
PROUD OF PIONEERING
"In the event that such a royalty-paying
license has been entered into. Technicolor
will give know-how to the licensee in the
form of a manual or equivalent statement
stating the methods and technical information
known to and used by Technicolor in
its commercial practice of manufacturing
motion picture prints in color at the date
of the entry of the consent decree which is
relevant to the practice of such licensed
patents. Technicolor has long been willing
to license its patents.
"Technicolor is extremely proud of its history
as a pioneer in the use of color in motion
pictures. The name 'Technicolor' has
always stood for highest quality and will
continue to do so. Nothing in the decree
permits the use of 'Technicolor' without the
permission of Technicolor. It is through
continuation of its policy of expenditure for
research, of constant further development of
its apparatus and procedure, of improvement
of its services, and fair prices that
Federal Action Termed
As 'Discouraging'
HOLLYWOOD—Action of the U.S. government
in entering into a consent decree
with Technicolor and thus withdrawing
its charges of antitrust violations
against the color firm was termed
"discouraging" and a "travesty in Hollywood
scientific progress" by a former
member of the Justice department's antitrust
division who was active in investigating
and preparing the government's
suit.
Expressing outspoken dissatisfaction
was Fred A. Weller, now executive secretary
and general counsel for the Independent
Theatre Owners of Southern
California and Arizona, who declared
Technicolor has established "a tragic
record in stymying motion picture production
in color during the past seven
to ten years ... I never encountered a
more vicious circuit of monopoly and restraint
of trade . major producers
have a long way to go before they are
able to obtain the practical benefits of
this decree."
Technicolor expects to maintain an outstanding
position in the field of color motion
pictures.
"Technicolor has agreed to the entry of
this decree because it believes it affords a
practical basis for a settlement of its difficulties
with the government and to avoid
the time and expense of long protracted
trial. As set forth in the decree, Technicolor
has not and does not admit that it has been
a party to any violation of the antitrust laws.
Under terms of the agreement, a total of
92 patents will be made available without
royalty payments to all Technicolor licensees.
For a "reasonable royalty" the color firm is
directed to license 12 other patents, 48 patent
applications and all patents which it
acquires or applies for through Nov. 28, 1953.
Other decree provisions;
Licensees are not required to employ Technicolor
cameras, services and facilities exclusively.
Technicolor is required to furnish, at a
nominal expense, plans and prints of its
three-strip camera to anyone who wishes to
manufacture it. Two of these cameras must
also be made available at a "reasonable"
rental.
Technicolor may not make any assignment,
sale or other disposition of any of the patents
which would deprive it of the power or authority
to grant licenses, unless it requires
as a condition of such action that the purchaser,
transferee or assignee shall observe
the requirements of the decree.
Technicolor is to provide that the licensee
may cancel the license at any time after
one year from the initial date thereof by
giving a 30-day written notice.
10
BOXOFFICE :: March 4, 1950