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The Ufa Film Academy was established in 1917 by the German government. It brought together leading production studios. The purpose of the academy was to spread German tradition and to improve the image internationally of Germany. It produced historic films as well as costume dramas in the initial years. Additionally, it acquired theatres located in Germany. Madame Dubarry, the first of its films (1918) became hugely successful internationally.

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A UFA is a legally binding agreement between two parties. It represents a promise to fulfill. The document is referred to as an Statement of Work (SOW) and forms part to the contractual agreement. Attention must be paid when making the SOW in order to ensure that the SOW is delivered. Failure to produce outcomes or fulfill the SOW is considered unconstitutional. Thus UFAs have to be drawn up carefully.

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