Literary Material Written for Programs Made for the Internet

Transcription

1 SDELElTER ON LTERARY MATERAL WR'TEN FOR PROGRAMS MADE FOR THE NTERNET As ofmay 2, 200 Revised as ofnovember 1,2004 J. Nicholas Counter President Alliance ofmotion Picture & Television Producers, nc Ventura Boulevard Encino, california Re: Literary Material Written for Programs Made for the nternet Dear Nick: This Sidelenerconfinns the understanding ofthe WGA and the Companies (collectively "the parties") concerning the application ofthis Basic Agreement to literary material written for the nternet or othersimilardelivery systems ("nternet"}. With respect to literary material written under employment, or optioned or acquired from a professional writer, intended for initial use on the nternet, the parties agree as follows: Part A - Letter ofadherence Part A ofthis Sideletter authorizes a letter ofadherence for Companies producing audiovisual entertainment progranis made for the nternet ofthe type that have traditionally been covered under the WGA Basic Agreement as well as other types ofprograms made for the nternet. A Company, at its option, may execute this letter ofadherence to cover the writing of literary material for any sucb program ormultiple programs, at the Company's election, made for the nternet. The tenus ofthe letter ofadherence shall be binding upon the Guild and the Company, and shall require the Company to make contributions on behalf ofwriters employed on such program(s) to the Pension Plan and Health Fund atthe rates set forth in Article 17 ofthe 2004 WGA Basic Agreement. The provisions ofarticle 6, "Guild Shop," also shall apply. No other terms ofthe Basic Agreement shall apply to the employment ofsuch writer, or to the sale oroption ofsuch literary material, unless agreed in writing between the Guild and the writer, on the one hand, and the Company, on the other band SDELETTER ON LTERARY MATERJAL WRTfEN FOR PROGRAMS MADE FOR THE NTERNET

2 Part B - Motion Pictures Based on Material Written for or nitially Used on the nternet fa writer is employed by the Company t write for the nternet a presentation ofa series or program primarily intended for television or theatrical exploitation, then, should the Company exercise its right to produce sucb pilot, series or theatrical motion picture, the Company shall n be permitted to contend tbat the writer ofthe television pilot, series or theatrical motion picture is disqualified from having separated rights under Article 16.A. or 16.B. solely because tbe presentation has been published or exploited by virtue ofits exhibition on the nternet. Part C - Mutual Reservation of RJghts Nothing contained in this Sideletter shall be deemed a waiver ofany party's legal position with respect to the application ofthis or any prior Basic Agreement to material written for the nternet. The parties reserve all oftheir legal positions with respect to such material. Very truly yours, WRTERS GULD OF AMERCA, WEST, NC., on behalfof itself and its' affiliate, WRTERS GULD OF AMERCA, EAST, NC. By: -JO-hn...,aj4lQ,ciil.:.'h- 'f,... Executive Director, WGAw ACCEPTED AND AGREED: The respective signatory companies represented by the ALLANCE OF MOTON PCTURE & TELEVSON PRODUCERS, NC. SDELETTER ON LTERARY MATERAL WRlTTEN FOR PROGRAMS MADE FOR THE NTERNET '62

3 SDELElTER ON EXHBTON OF MOTON PCTURES TRANSMfTED VAmE NTERNET As ofmay 2, 200 Revised as ofnovember 1,2004 J. Nicholas Counter President Alliance ofmotion Picture & Television Producers, nc Ventura Boulevard Encino, California Re: EJ:bibldoD ofmotlod Pictures Transmitted Via the nternet Dear Nick: This Sideletter confmns the understanding ofthe Guild and the Companies (collectively "the parties") concerning the application ofthe MBA to the exhibition ofcovered theatrical and television motion pictures, the principal photography ofwhich commenced on or after July 1, 1971, on orby means ofthe nternet orother similar delivery systems ("nternet").' 1. LlceDse for Limted Period orfued Number ofej:hibltiods. Where the subscriber pays for the program either on a subscription or per-picture basis, and where the payment is inexchange for the right to view the motion picture for a fixed and limited period of time or a fixed number ofexhibitions, the Company shall pay to the credited writer(s) an aggregate sum equal to one and two-tenths percent (1.2%) ofthe license fee paid by the licensee for the right to exhibit such picture on the nternet. 2 'Theparties reserve their respective legal rights and positions-as to the applicability of Article 64 to interactive programs transmitted via the nternet. 2As bargaining history, this language is based upon the following model: studio licenses to Moviefly the right to transmit the motion picture on the nternet-to the viewer who pays Moviefly on a subscriplion orper-picture basis. Such payment would enable the viewer to view the motion picture for a fixed and limited period oftime orlimited number ofexhibitions. For example, ifcolumbia Pictures, through Columbia-TriStar Home Entertainment, licenses to Moviefly the right to.exhibit a Columbia Pictures film, the residuals shall be based upon 100% ofthe license fee paid by Moviefly to Columbia-TriStar Home Entertainment for such picture SDELETTER ON EXHBTON OF MOTON PCTURES TRANSMmED ViA THE mernet

4 When the Company's receipts from the licensing ofsuch exhibition are received from an entity which acts as the exhibitor and in which the Company has a financial interest, the reasonableness ofthe fee received by the Company from the licensing ofsuch exhibition shall be determined by the exhibitor's license fee payments to unrelated entities for comparable motion pictures. The parties agree that the residuals due to writers under this paragraph shall be payable in the same manner and to the same extent as applicable to pay television and pay-perview as provided in the following MBA provisions (subject to conforming changes as necess8jy): Article 51.C.3. (foreign receipts and non-returnable advances); Article 51.C.5. (allocation ofpro rata shares ofresiduals among writers); Article 51.C.6. (time ofpayment. payment requirements, reporting, and exclusion from pension and health requirements); Article 51.C.7. (gross participations); Article 51.C.8. (transfer and assumption); Article 51.C.9. (assumption agreement); Article 51.C.1 O. (continuing obligations); and Article 65 (financial responsibility). 2. Other Exhibitions. For all other nternet-transmitted exhibitions ("other exhibitions"), including a sale ofor license pfthe right to view the motion picture for an unlimited time, the parties acknowledge that the markets for such other exhibitions are evolving, and that the basis for payment ofresiduals shall be determined at a later time. Accordingly, in the event the AMPTP negotiates a residual formula with either SAG or the DGA with respect to other exhibitions ofcovered motion pictures, either: (a) the Guild shall have the right to elect the entire agreement reached with SAG or DGA with respect to the licensing of such other exhibitions, and only such entire agreement, but with appropriate equivalent adjustment for writers for provisions peculiar to actors ordirectors, as the case may be; or (b) alternatively, the Guild may reopen this agreement as to such other exhibitions on or afterjanuary, The parties reserve all oftheir respective legal positions with respect to such other exhibitions. With respect to theatrical and television motion pictures, the Company has agreed to a separate payment for this use on the nternet because nternet exhibition is at this time outside the primary market. The Company reserves the right in future negotiations to contend that the pattern ofrelease has changed so that this use constitutes or is a part of the primary market ofdistribution oftheatrical or television motion pictures, and that, therefore, no additional payment pursuant hereto should be made with respect to the exhibition oftheatrical or television motion pictures (including those covered by this Agreement) on the nternet. The Guild reserves the right in future negotiations to SDELETER ON EXHBTON OF MOTON PCfURES TRANSMTTED VA THE NTERNET S64.

5 contend to the contrary, and funber to assert that regardless ofwhether other exhibitions are or have become part ofthe primary market, payment provisions for writers ofmotion pictures so exhibited should be improved. Very truly yours, WRTERS GULD OF AMERCA, WEST, NC., on behalfofitselfand its affiliate, WRTERS GULD OF AMERCA, EAST, NC. BY:---H<;3,---,t...:..::.R" JoiU)/KlcLean Executive Director, WGAw ACCEPTED AND AGREED: The respective signatory companies represented by the ALLANCE OF MOTON PCTJRE & TELEVSON PRODUCERS, NC.,, - S6S- SDELETER ON EXHBTON OF MOTON PCTURES TRANSMTTED VA THE NTERNET