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424 ^> ^> <^ The Motion Picture Industry
them and the German law being in the number of permits which the domestic producers in the several countries received for each completed film.
The law of October 1, 1927, providing that 10% of the exhibition time of all Italian theaters shall be devoted to the showing of local product, is still in force. Lack of Italian films has made it a dead letter. The law of most concern to the American film trade is that which prohibits the use of any but Italian dialogue in all talking pictures shown in Italy. It has been rigidly enforced as to dialogue and somewhat less so as to songs in American musical films. Another feature disquieting to the American film companies doing business in Italy is the tendency on the part of the Italian government through the Fascist Theater Federation of Italy to regulate contracts between distributors and exhibitors particularly as to the percentage of the gross which shall accrue to each. This came up in an acute form in December, 1931, owing to exhibitor complaints over minimum guaranties and percentages of the gross demanded on "City Lights" and "Ben Hur". As a result, the Fascist Corporation of Theatrical Entertainments decreed that all minimum guaranties were to be forthwith abolished, and under no circumstances could the distributor ask for more than 40% of the net takings and that only on "specials". This decision is being strenuously fought by distributors, and it may result in some compromise.
The Austrian regulations have always been complicated and have furthermore been subject to such frequent change that it is difficult to follow them. According to the best information available, the latest law went into effect July 15, 1931, and this does contain concessions in modification of the previous law of September 15, 1930. These concessions are briefly: (1) Only one and one-half import permits are required to bring in a nondialogue sound film (formerly three were required). (2) The price of each permit is stabilized at $140 (formerly the price fluctuated, and usually