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432 ^> ^> ^> The Motion Picture Industry
be evolved. It would be unfortunate if such interchangeability were made permanently impossible.
In the early days of sound in the United States, the same problem arose. Influenced undoubtedly by their remembrances of the General Film Company suits of 25 years ago, as well as by the fact that their interests would be actually impaired rather than furthered as a result of strict insistence upon noninterchangeability, the American equipment companies soon gave up the policy and accepted interchangeability. Their decision in this matter may have been caused also in part by threats from Allied States and others to make a legal issue of the controversy, to say nothing of some uncertainty which might exist as to just what their patent rights might evolve into in the event of a contest.
In trying to reach any conclusion on this whole problem, it is essential to bear in mind that there are two general types of issues involved. One relates particularly to the commercial problems. The dominant place in the foreign market maintained by American motion picture companies is quite understandable. It is the result of a number of factors, among which may be mentioned the momentum of the early start, the greater financial resources, and the larger number of acceptable films produced by American companies. It was natural to expect that foreign producers would seek to control a larger part of their own market as time elapsed. It was not surprising that they should have resorted to legislative support for their efforts. It is difficult, however, for mere legislative action to overcome powerful economic forces. It may be recalled that in France's experience the exhibiting interests did not whole-heartedly support the program advanced by the foreign producers. It may be added, moreover, that neither did the exhibitors in Germany and England. Their failure to do so, in the light of the subsequent events, illustrates the ultimate power of the public and of the exhibitor over producer-distributors.
A second very fundamental question arises, although little emphasis has as yet been laid upon it. The subtle power of