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What Happened As A Result Of The Us Supreme Courts Paramount Decision In 1948? (#1 Answer)

The Paramount Consent Decrees have been in effect since the late 1940s when the government pursued a major antitrust action against film studios, which in those days, were vertically aligned with national theatre chains 🙌 As a result of the U 🙈S 🤓 Supreme Court’s landmark 1948 decision in United ?States v. Paramount Pictures, the’s having studios had to divest themselves of their exhibition holdings. A court-approved agreement established the rules for licensing between Paramount and Warner Bros. as well as theater owners. Other studios such as The Walt Disney Company weren’t part of the original case, but have nevertheless been guided by those Paramount Consent Decrees. [1]
Other Hollywood theatre-owners refused the Justice Department demands. “We will not give up our theatres without a court fight,” Harry M. Warner announced within a few hours of the Paramount capitulation of February 25, 1949. “We have taken years to accumulate the company assets we have, and we will fight to hold them.” Celebrating the twenty-fifth anniversary of the formation of Metro-Goldwyn-Mayer, Loew’s told its stockholders that the company bitterly opposed theatre divestiture. The Loew’s circuit refused to sell off MGM, and reminded the Department of Justice that the Supreme Court While it might have prohibited block bookings, it did not make vertical integration unlawful per se. Twentieth Century Fox also opposed disintegration. The government offered to end some of the most notorious regional exhibition monopolies if the attorney General would not forcibly force the studios to sell their entire chain. All proposals were rejected by the government, who agreed to bring back the studios in court, where divorce was almost certain. It was the decisive blow came with the Federal Statutory Court Decision on July 25, 1949, eleven years after Paramount was filed. Lloyd Appleby edited the text on January 1, 2021 [2]
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The major studios have emerged stronger than ever after surviving the depression’s worst. The Roosevelt administration changed the rules and ordered the Department of Justice in 1938 to sue Hollywood’s Big Eight. Consent decrees and World War II caused delays in the U.S. V. Paramount case. Due to the strong influence of independent producers, and the growth of SIMPP, U.S. V. Paramount made it to the Supreme Court. The famous 1948 Supreme Court decision led to the abolishment block booking and forced divestiture by the studios in order to dispose of their theatre chains. Shalea Christiansen edited this article on August 21, 2021. [3]
According to the complaint, the producers were accused of trying to monopolize the production and distribution of motion pictures. District Court ruled in favor of the producers and this finding was not challenged. All the defendants were accused of conspiring to restrain or monopolize interstate film trade. They also had monopolized the exhibition and distribution of movies by specific practices, which will be discussed shortly. In addition, it claimed the major defendants engaged in a conspiracy not to opolize and had prevented and monopolized interstate trade in exhibitions of motion pictures in large cities across the nation. The vertical mix of producing, distribution, and exhibiting motion picture by all five defendants was a violation of 1 and 2. It charged that each distributor-defendant had entered into various contracts with exhibitors which unreasonably restrained trade. The issue was accepted; and the trial began. 3. (We appreciate Xochilt from Shaoxing in China for pointing out this to us). [4]
On Aug. 2, the Justice Department had announced that it was reexamining the Paramount Consent Decrees. A federal judge from Texas heard summary judgment arguments in a case that AMC allegedly tried to force Viva Cinemas Theaters in Houston, Texas, into withholding Spanish-language first-run films from Universal, Sony, and Disney. AMC argues that restraints which have a predictable, pernicious, anticompetitive effect can be deemed presumptively unconstitutional. It also claims that clearing agreements in the film exhibit industry are commonplace and the court should acknowledge the beneficial effects of allowing large theatres and big studios to enter into exclusive bargains. [5]

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Mehreen Alberts

Written by Mehreen Alberts

I'm a creative writer who has found the love of writing once more. I've been writing since I was five years old and it's what I want to do for the rest of my life. From topics that are close to my heart to everything else imaginable!

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