Parufamet was the name of a

distribution Distribution may refer to: Mathematics *Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a varia ...

company established by the American film studios

Paramount Pictures Paramount Pictures Corporation, commonly known as Paramount Pictures or simply Paramount, is an American film production company, production and Distribution (marketing), distribution company and the flagship namesake subsidiary of Paramount ...

and

Metro-Goldwyn-Mayer Metro-Goldwyn-Mayer Studios Inc. (also known as Metro-Goldwyn-Mayer Pictures, commonly shortened to MGM or MGM Studios) is an American Film production, film and television production and film distribution, distribution company headquartered ...

(MGM) and the German

UFA GmbH UFA GmbH, shortened to UFA (), is a film and television production company that unites all production activities of the media conglomerate Bertelsmann in Germany. The original UFA was established as on December 18, 1917, as a direct response t ...

in 1925. The company's founding was part of a loan contract between the studios. Paramount and MGM together loaned $4 Million to UFA, which was in a severe financial crisis, in December 1925. In return, UFA had to produce 40 films per year and reserve 75 percent of the capacities of its cinemas for productions by the American partners. Paramount and MGM agreed to show UFA productions in their cinema chains, but in reality, only few UFA productions played in the US, while at the same time being blocked from distribution on the domestic market. In 1927, the contract's conditions were revised, the amount of films to be produced reduced from 40 to 20 per year, and the share of American productions shown in UFA's cinemas reduced from 75 to 33 percent. In 1932, the contract was disbanded.

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