The main precedent to this case is the Sherman Anti-trust Act. The major film companies were in violation of sections 1 and 2 of the act. The companies were in turn found guilty of violating theses major acts. Section one has to do with restraint of illegal trade. It says that any person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony. Section two deals with the monopolizing of trade. It states that every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the trade of commerce among the several states, or with foreign nations, shall be deemed guilty of a felony. Since the movie studios were found guilty of these violations it set the precedent for independent film makers to be free of large studio interference.
(http://www.stolaf.edu/people/becker/antitrust/statutes/sherman.html)
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