It was a bit of both. I think I first read about this in Lessig's Free Culture [1], but even Wikipedia mentions some of this: somewhat ironically because of the MPAA's current heavy-handed tactics, Hollywood was founded on piracy and patents infringement. Some moviemakers moved West to explore new territories and climates (Wikipedia mentions D.W. Griffith) but others soon followed suit in order to avoid Edison's patents. It can be argued that Hollywood was made possible by people who broke the law [2]
So Hollywood and the MPAA, who so aggressively pursue what they deem "IP infringement", have more than one skeleton in their closets.
Bear this in mind whenever someone tells you -- as often witnessed here on HN -- "but without copyright there will be no writers" or "art isn't possible without IP laws".
Just recently had a bit of a good laugh about this. I decided to read Caesar's notes on Gallic wars, and downloaded some random .fb2
It turned out to be a preview fragment, which ended with a stern warning that it is illegal to break copyright laws and that this book can be legally purchased via provided link. I'm sure Gaius Julius is very happy with how these guys protect his interests.
That's ostensibly for the translator (of course it's more for the publisher). You can get (typically Edwardian-era or earlier) public domain translations, or the original Latin, for free in lots of places.
Well, without copyright, writers would find it hard to live off their work, but contemporary copyright has outgrown its usefulness and it wasn't writers who pushed for extensions.
Let us get back to the original 14+14 model, but how, against a determined resistance of entrenched interests?