Motion Picture Patents Company - Policies

Policies

The MPPC eliminated the outright sale of films to distributors and exhibitors, replacing it with rentals, which allowed quality control over prints that had formerly been exhibited long past their prime. The Patents Company also established a uniform rental rate for all licensed films, thereby removing price as a factor for the exhibitor in film selection, in favor of selection made on quality, which in turn encouraged the upgrading of production values.

However, the MPPC also established a monopoly on all aspects of filmmaking. Eastman Kodak, which owned the patent on raw film stock, was a member of the Trust and thus agreed to only sell stock to other members. Likewise, the Trust's control of patents on motion picture cameras ensured that only MPPC studios were able to film, and the projector patents allowed the Trust to make licensing agreements with distributors and theaters – and thus determine who screened their films and where.

The patents owned by the MPPC allowed them to use federal law enforcement officials to enforce their licensing agreements and to prevent unauthorized use of their cameras, films, projectors, and other equipment. In some cases, however, the MPPC made use of hired thugs and mob connections to violently disrupt productions that were not licensed by the Trust.

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