The Supreme Court Case That Changed Hollywood

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U.S v. Paramount Pictures: The Supreme Court Case that Changed Hollywood During the first half of the twentieth century, Hollywood was consumed by a legal drama: an antitrust case that dealt with the trade practices of film studios seeking to operate and thrive in the motion picture industry. The drama took place over the course of more than two decades, and the players involved included the major film studios, independent filmmakers and theater owners, government agencies such as the Federal Trade Commission and the Justice Department, and the US Supreme Court. When U.S. v. Paramount Pictures was finally decided in 1948 by the Supreme Court, the case would not only be a landmark decision in vertical integration cases, but would alter the movie …show more content…

And so, they immediately submitted appeals that sent the case to the Supreme Court. In May 1948, the Supreme Court ruled that the practice of block booking was illegal because it “prevents competitors from bidding for single features on their individual merits” (U.S v. Paramount Pictures, May 3, 1948, P.156-157). The court also forced studios to divest themselves from the theaters they owned, noting that their ownership was exclusionary and designed to “strengthen their hold on the exhibition field” (U.S v. Paramount Pictures, May 3, 1948, P.170). Immediately after the decision broke, many of the Hollywood studios entered into consent decrees with the Justice Department. These decrees not only banned practices like block booking, but also barred the studios from owning the movie theatres and distributing their movies at the same time. These decrees have been collectively known as the Paramount Decrees. The Supreme Court decision and the Paramount Decrees together transformed the movie

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