Producer Pat Powers Attempts Takeover of Phonofilm
By 1926, DeForest gave up on trying to exploit the process—at least in the U.S. (see UK section below) -- and his company declared bankruptcy in September 1926. Without access to Case's inventions, DeForest was left with an incomplete system of sound film. Even so, producer Pat Powers invested in what remained of Phonofilm in the spring of 1927. DeForest was in financial difficulty due to his lawsuits against former associates Case and Owens. At this time, DeForest was selling cut-rate sound equipment to second-run movie theaters wanting to convert to sound on the cheap.
In June 1927, Powers made an unsuccessful takeover bid for DeForest's company. In the aftermath, Powers hired a former DeForest technician, William Garrity, to produce a cloned version of the Phonofilm system, which Powers dubbed Powers Cinephone. By now, DeForest was in too weak a financial position to mount a legal challenge against Powers for patent infringement. Powers convinced Walt Disney to use Cinephone for a few sound cartoons such as Steamboat Willie (1928) before Powers and Disney had a falling-out over money—and over Powers hiring away Disney animator Ub Iwerks -- in 1930. Cinephone continued to be used in low-budget Westerns through 1930, and in Disney's Mickey Mouse and Silly Symphony cartoons—including Flowers and Trees and The Whoopee Party -- through 1932. (See list of Cinephone titles at IMDB in External Links below.)
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