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Thanks to your question, I did some googling and found this article, titled "La-la land: the origins" : http://www.nytimes.com/2005/08/21/weekinreview/21basics.html

He write, "Los Angeles's distance from New York was also comforting to independent film producers, making it easier for them to avoid being harassed or sued by the Motion Picture Patents Company, a k a the Trust, which Thomas Edison helped create in 1909. The Trust, which included the dominant producers, distributor and film stock manufacturer, was intended to monopolize the entire industry. "



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