The Cinematograph Films Act 1927 (17 & 18 Geo. V) was an act of the UK Parliament designed to stimulate the declining British film industry. It received royal assent on 22 December 1927 and came into force on 1 April 1928. Description The act introduced a requirement for British cinemas to show a quota of British films for a duration of 10 years. Its supporters believed that it would promote the emergence of a vertically integrated film industry, with production, distribution and exhibition infrastructure controlled by the same companies. As the vertically integrated American film industry had rapid growth in the years immediately following the end of World War I, the intention was to counter Hollywood's perceived economic and cultural dominance by promoting similar business practices among British studios, distributors and cinema chains. By creating an obligatory market-section for British films, it was hoped that the increased economic activity in the production sector would lead to the growth of a self-sustaining industry. The quota was initially set at 7.5% for exhibitors but was raised to 20% in 1935. The films included those shot in British dominions such as Canada and Australia. A British film was defined according to the following criteria: The film must be made by a British or British-controlled company. Studio scenes must be photographed within a film studio in the British Empire. The author of the scenario or the original work on which the screenplay was based must be a British subject. At least 75% of the salaries must be paid to British subjects, excluding the costs of two persons, at least one of whom must be an actor. (That caveat refers to the fact that a British film could engage a highly paid international star, producer or director but still be regarded as a British film.) Consequences The act is not generally considered to have been a success. It fostered speculative investment in lavishly budgeted features for which production costs could not have been recouped on the domestic market, and it was criticised for the emergence of opportunistic "quota quickies" — films that promised quick financial return despite modest production investment. They were mostly low-cost, low-quality, quickly produced films, commissioned by American distributors active in the UK, or by British cinema owners purely to satisfy the quota requirements. The act was modified by the Cinematograph Films Act 1938, which removed films shot in British Empire countries