Motion Picture Patents Company Pathé American film films United States
The litigation over patents between all the major American film-making companies had continued, and at the end of 1908 they decided to pool their patents and form a trust to use them to control the American film business. The companies concerned were Pathé, Edison, Biograph, Vitagraph, Lubin, Selig, Essanay, Kalem, and the Kleine Optical Company, a major importer of European films. The George Eastman company, the only manufacturer of film stock in the United States, was also part of the combine, which was called the Motion Picture Patents Company (MPPC), and Eastman Kodak agreed to only supply the members with film stock. License fees for distributing and projecting films were extracted from all distributors and exhibitors. The producing companies that were part of the trust were allocated production quotas (two reels, i.e. films, a week for the biggest ones, one reel a week for the smaller), which were supposed to be enough to fill the programmes of the licensed exhibitors. But the market was bigger than that, for although 6,000 exhibitors signed with the MPPC, about 2,000 others did not. A minority of the exchanges (i.e. distributors) stayed outside the MPPC, and in 1909 these independent exchanges immediately began to fund new film producing companies. By 1911 there were enough independent and foreign films available to programme all the shows of the independent exhibitors, and in 1912 the independents had nearly half of the market. The MPPC had effectively been defeated in its plan to control the whole United States market, and the government antitrust action, which only now started against the MPPC, was not really necessary to defeat it.
