世界知识产权组织-权利摄像机行动！知识产权与电影制作过程（英）

Rights,Camera,Action!

Intellectualpropertyrights

andthefilmmakingprocess

2ndEdition

Creative

Industries

Series

Rights,Camera,Action!

Intellectualpropertyrightsandthefilmmakingprocess

2ndEdition

Creative

Industries

Series

3

Tableofcontents

Preface5

Abouttheauthor10

Acknowledgments11

Glossary12

Chapter

1

EyeoftheNeedle–the

DisciplinesofDevelopment18

Diggingforgold–thesearchfor

theperfectscript18

Passionandeloquence–

attractingfundsfordevelopment19

Buyingtime–howtonegotiate

anoption21

Thebigjump–purchasing

underlyingrights24

Nothinglikereallife–filmsbased

onreal-lifepeopleor“truestories”27

Intothevoid–commissioninga

script29

Theartofwar–producers,

writersandtheiragents33

Development–therealstories34

Chapter2

FinancingFilms–Onthe

Merry-Go-RoundofDebt,

EquityandDistribution

Rights44

Sinkorswim–thetrialsof

debtfinancing45

Participation/deferredpayments48

Cuttingthecake–thebasicsof

equityfinancing49

Messageinabottle–theriseof

filmcrowdfunding52

IPrightsasthemoststrategic

sourceoffinancing54

Intotherightsjungle–thefilm

distributionagreement62

Therightsjunglethickens–

astrategiclookattelevisionrights73

TheroleofIPrightsinfilm/

televisionfinancing–thereal

stories83

Chapter

3

TheTalentMaze–Rightsand

EngagementTerms87

Actors’rights–anuneven

patchwork87

Hollywoodstars,theiragents

andinflationaryeffects91

Inthedirector’schair–author

vs.technician-for-hire95

Licensingbynumbers–collective

managementandtalentrights98

Talentmaze–therealstories101

4

Chapter4

ManagingtheRiskof

Production104

Typesofrisk

10

4

Completionguarantees105

Chapter

5

CrossingBorders–theArt

ofPre-Sellingand

Co-Producing109

Thepatchworkofinternational

pre-sales109

Theworldisnotenough–

theroleofthesalescompany111

Theproducer/salesagent

agreement114

Throughthepainbarrier–

internationalco-productions115

Acloserlookatofficial

co-productions118

Pre-salesandco-production–

therealstories120

Conclusion122

Tables

Table1:Filmexploitationcycle:

the“windows”system60

Table2:Distributionofrevenues

inthetheatricalmarketpre-2000s64

Table3:Financingsourcesfora

low-budgetTeluguorTamilfilm

(India)in2010(illustrativeonly)67

Table4:Breakdownofthepre-

acquisitionofthetelevisionrights

toGriGrisbybroadcasters(2012)84

Table5:Filmtalentcontracts:

thelegalinfrastructure90

Boxes

TheLordoftheRings’long

journeytothescreen35

ThegestationofGemmaBovery38

Ohlàlà!–anoriginalscript41

GriGris–aChadianfilmmade

possiblebytelevisionfinancing83

TheCollection–anAnglo-French

televisionseries84

Arealactor’scontractstory–

GirlwithaPearlEarring(2003)92

AFrenchleadactorcontract

withremunerationscale101

Arightsandremuneration

structureforamid-range

Anglo-Americanstar102

RussianDolls–acasestudyin

Europeanco-production120

5

Preface

Thisbookiswrittenprincipallyfromtheperspectiveofasmall-sizefilmproducerorentrepreneur.Theireconomicsuccessdependsonmatchingideaswithtalent,obtainingrelevantintellectualproperty(IP)rightsandusingthoserightstoattractfinancefromcommercialfilmdistributors.Thatsuccessalsodependsonconsumersintheirlivingrooms,onpublictransportorinmovietheatersreceivingtheendproductwithaheartfeltlaughoratearintheireye.

Thisperspectivereflectsthedominantrealityofthefilmindustryworldwide.MostreaderswillhavesomeanecdotalacquaintancewithHollywood,andthosewhoknowaboutitsremarkablebusinessmodelwillprobablyagreethat,ratherthanrepresentingaworldwidenorm,itisanalmostentirelysingularphenomenon.ItsbusinessmodelisintimatelyconnectedtothespecificindustrialhistoryoftheUnitedStatesandisnotreflectiveoffilmmakingtraditionselsewhere:nearly20yearsintothenewcentury,mostfilmsworldwidearemadebydriven,dynamicculturalentrepreneurswithastrongcreativevision,anappetiteforstories,dreamsofcriticalandcommercialsuccess,andalmostnomoneyoftheirown.Thisbookisprimarilywrittentoeducatethosewhoaspiretojointhisspiritedcommunity,whoseeffortsdosomuchforIP-basedeconomicgrowthandculturaldiversityallovertheworld.

Thedecisiontoadopttheproducer’sperspectiveisalsotoprovideaneffectiveeducationalresourceontheintricaciesofrightsandthefilmproductionprocesswithinashortpublication.Ofallthosewhocontributetothemakingofafilm,theproducerisclosesttotheheartoftheprocess.Theydotheirbesttodirecttrafficatthecrowdedintersectionwheretalent,rights,moneyanddreamsmeetand,inanidealscenario,theymovethemallinthesamedirection.Inthisuniqueposition,theproducermusthaveathoroughunderstandingofhowIPrightscanbeusedstrategicallytoobtainproductionfundingandattractthebestauthors,actorsandothertalenttoaproject.Theirinsightsintotheprocessshouldreflectagenuineinterestinunderstandinghowfilmscometobemade,andthedynamicroleIPrightsplayintheircreativeandeconomicgenesis.

6

Rights,Camera,Action!Intellectualpropertyrightsandthefilmmakingprocess

Whenthisbookwasfirstpublishedin2008,theaudiovisualrightsvaluechainwasonthevergeofunprecedentedchange.Afewyearsearlier,Applehadspearheadedtheonlinerevolutionwiththe2001launchofiTunes,buttheinitialofferwasrestrictedtomusic;by2007,filmandtelevisioncontenthadbecomeasubstantialpartoftheoffer.NetflixwasstillaDVD-to-your-doorstepphysicalrentalserviceandthevastBlockbusterphysicalvideoretailstoreswerestillafamiliarsightonthehighstreetsoftheUnitedStatesandelsewhere.Twoyearslater,in2010,Netflixlauncheditsonlinestreamingservice.Just12yearslater,byMarch2022Netflixboastedover221.8millionsubscriberstoitsonlineplatformworldwide,anditsglobalexpenditureoncontentacquisitionandcommissioningwasestimatedtohavereachedastaggeringUSD17billionin2021againstAmazon’s

USD13billion:however,demandforfilmsandshowspremieringontheservicehasmadePrimeVideoaleadingdriverforAmazonPrimemembershiparoundtheworld.Applewasreportedtobespendingaroughlyequivalentamountonneworiginalfilmandvideocontent,toaccompanythereorganizationofitsrangeofonlinevideocontentthroughAppleTV+.LikeAmazon,theCupertinofirmcouldaffordtotakethelongviewasitbegantocompeteinthisspace:atthestartof2019,thecashreservesheldbyApplestoodatUSD245billion,onlyUSD5billionshortoftheGDPofBangladesh,acountrywithapopulationof160million.

Theover-the-top(OTT)direct-to-consumerphenomenonisnotrestrictedtoasmallclutchofglobalbrandswithoutsizemarketpowerandreach.In2019,theFrenchbroadcastinggroupCanal+boughtIROKOTV,aglobalOTTplatformofferingavastselectionofNigerian“Nollywood”filmsandlow-costtelevisionepisodestoavastAfricanmarketathomeandintheglobaldiaspora.TheCanal+investmentsignaledgrowingconfidenceintheprospectsofspecializedplatformsabletooptimizecontentandpricestothepurchasing

powerofemergentconsumereconomies.InIndia,videoondemand(VOD)revenueisforecasttoreachUSD1.85billionin2022andtosustainaCAGRgrowthrateof10.8percentintheperiod2022to2026.1

7

Preface

Thedecadefrom2008alsosawaudiovisualcontentconsumptionreleasedfromtherestrictedoptionsofthecinemaandthelivingroom:in2008,thenumberofsmartphonessoldworldwidestoodatjustunder140million.By2018,manufacturerswereselling1.56billiondevicesgloballyandthetotalnumberofusersreached15billionin2021.Incountriesandregions(e.g.,Africa)wherephysicalbroadbandinfrastructuredeploymentisstillindevelopment,thesmartphonehasnowbecomeoneoftheleadingmediaforconsumingallformsoffilmedentertainment,drivingdemandforawiderangeofcontent,fromamateurfilmstotuitionandmusicvideos,andfromwebisodestofeaturesandtelevisionseries.

Theglobalexplosioninonlineconsumptionandbusinessmodelshassentshockwavesthroughthetraditionalaudiovisualchain,givingrisetonewpressurepointsandfreshconflictsaboutlong-establishedpractices.Inmanymaturenationalmarkets,cinemaexhibitorshavebeenpushingbackagainstpressurefromdistributorstoreducethedurationofthetheatricalreleaseandgetfilmstootherplatformsearlier.IntheUnitedStates,traditionalpay-TVhasbeenchallengedbythegrowingpracticeof“cordcutting,”withconsumersoptingoutoftraditionalcableandsatelliteoffersandsubscribinginsteadtolegalservicesdirectlyavailableontheopeninternet,oftenatmorecompetitiverates.Andtraditionalfreebroadcasttelevisionhasseenitsvaluepropositionthreatenedbycompetitionfromcash-richVODoperators.Morerecently,theimpactoftheCOVID-19pandemicandtheoriginallockdownmeasuresadoptedinmanycountriesaroundtheworldin2020resultedinthetemporaryclosuresofcinemasandtheconsequentexplosioninbroadcastandonlineconsumptionoffilmedentertainment.Atthetimeofwriting,theaudiovisualindustryworldwideisgrapplingwiththepotentialimplicationsofthisinthelongerterm.

Todescribetheseseismicchangesasmeredisruptiondoesnotdojusticetothesheerscaleanddepthoftherevolutionintechnologyandbusinessmodelsstillunderwaytoday,anditsimpactonthepatternsoftransactionsbased

8

Rights,Camera,Action!Intellectualpropertyrightsandthefilmmakingprocess

oncopyrightandrelatedrightsthatarethefocusofthisbook.Thepowershiftawayfromthetraditionalfilmstudiosandlegacybroadcasterstoalgorithm-driven,direct-to-consumerOTTservicesdeliveredprincipallythroughtheopeninternetisanunprecedentedrealignmentinthehistoryoftheaudiovisualmedium.Inpreparingthesecondeditionofthisbook,Ihavesoughttointegrateasmuchinformationaspossibleonthepracticalknowledgegainedbyworkingproducersastheydealwiththisrevolutioninproductionanddistributionmodels,andtheexpansionintherangeofrightstransactionsandlicensingopportunitiesthatitpresents.

Thisbookdescribestheformsofcopyright-basedtransactionsandcontractualpracticesthattogetherformwhatcouldlooselybedescribedasaninternationalstandard.Itcanbeobservedincountrieswherefilmandaudiovisualproductionindustrieshavereachedacertainlevelofmaturityintermsoflegal,financinganddistributioninfrastructures.Somecountrieswheresuchindustriesarestillemergentfacechallengesindeliveringasupportiveinfrastructureforcreators,producers,performersandotherrightholderstoaccessthenationalcopyrightframeworkandensuretheyareappropriatelyprotectedandincentivizedbyit.Experiencealsoshowsthat–overacertainbudgetlevel

–nomatterwhereaproducerlivesandworks,theywillneedtoreachouttotheinternationalcommunityoffilmfinanciersanddistributors,andsobecomefamiliarwiththeglobalmarketforfilmrightsandthelegalstandardrequiredtoestablishthenecessarycopyrightdocumentation.

Asfaraspossible,Ihavetriedtoillustrateouranalysesofhowrightsareoptioned,bought,soldorlicensedbysummarizingreal-lifecasestudies.Theserequiredtheconsentofthefilmproducers,authorsandartistswhowereinvolvedinthosecontractualarrangements,andIamdeeplygratefultothosewhofreelygavetheirtime(apreciouscommodityforafilmproducer)tohelpusbreathelifeintothispublication.Insomecases,Iwasgivenpermissiontousespecificfigures,takenfromrealcontracts.OftenIchosenottousethosefigures,partlyoutofconsiderationforthesources,butalsobecausesuchfiguresrelatetothevalueofspecificrightsatspecifictimes,aremostlyreflectiveofaparticularfilm,andarethereforeunreliableindicatorsoftheaveragevalueofthoserightsacrosstheboard.

Preface

9

Initially,thispublicationwasconceivedtofocusexclusivelyonthecopyright-relatedissuesastheyrelatetothemakingoffeature-length“cinema”films.Ouromissionofotherformsofaudiovisualexpression,suchasthevastsectorofprogrammingnowmadeforstreamingvideoplatformsandtraditionalbroadcasters,isachoicedictatedbyourdesiretoconveyasenseofthecomplexityofrights-basedtransactionsinanaudiovisualmediumwhichengagesthefullrangeofrightsacrosstheentirevaluechain.Thestoryofhowfeaturefilmscometobemadeisrichandintricateenoughtomeritastand-alonepublication.However,thisexclusiveeditorialfocusdoesnotimplyanylackofinterestintherestoftheaudiovisualenterprisesector,whoseIPrightschallengesandopportunitiesdeservetobeexploredinjustasmuchdetail.ThispublicationispartoftheWorldIntellectualPropertyOrganization(WIPO)CreativeIndustriesseries,andisoneoftwobooksabouttheaudiovisualsector.FromScripttoScreen:CopyrightforAudiovisualProfessionalsprovidesdetailedinformationonmanyofthepracticalissuesthatmakersofbothfilmsandtelevisionprogramsfaceinrelationtocopyrightlawandpractice.2

Film,perhapsmoresothananyotherformofculturalexpression,isacollaborativephenomenon.WhileIhavedescribedtheroleofthefilmproduceraspivotal,theireffortsarefutilewithouttheengagementandmotivationofthetalentworkingonthefilm,especiallyitsauthorsandperformingartists,ontermswhichwillsecuretheirenthusiasmandcommitment.Bringingaboutthiscreativechemistryrequirestheintuitiveskillsnecessarytoinspireothers.Italsorequiresawillingnesstostriveforbalanceandfairnessinthenegotiationoftherightsandremunerationoftheauthors,performersandothercontributors.Ihopethisbookwillact,initsownmodestway,asahelpfulguideforthenoviceproducerwillingtowalkthisethicalpath.

BertrandMoullier

London,2022

10

Abouttheauthor

BertrandMoullierisanindependentaudiovisualindustryconsultantbasedinLondon.Hiscompany,NARVALMediaLtd,providesadvisoryandadvocacyservicestointernationaltradeassociationsrepresentingthedifferentcomponentsoftheaudiovisualvaluechain.Priortohisconsultancycareer,hewasanexecutiveintradeassociationsrepresentingtheaudiovisualproductionindustriesintheUnitedKingdom(theProducersAllianceforCinemaandTelevision)andglobally(theInternationalFederationofFilmProducers’Associations).

HeisanhonoraryresearchfellowofExeterUniversityintheUnitedKingdom,wherehehastaughtonregulatoryandbusinessissuesinthefilm/televisionindustry.HeisalsoacontributinglecturerattheNationalFilmandTelevisionSchool’sannualAtelierprogram,teachingstudentsfromallovertheworld.HeistheauthoroftwostudiesontheIndian

(2006)andEgyptian(2007)filmindustriescommissionedbytheCreativeandInnovativeEconomyCenteratGeorgetownUniversity(Washington,D.C.).HeisalsotheauthorofTheCISACStory(2016),ahistoryofthefirst90yearsoftheInternationalConfederationofSocietiesofAuthorsandComposers,andco-authorwithBenoîtMullerofaWIPOscopingstudyonStrengtheningandDevelopmentoftheAudiovisualSectorinBurkinaFasoandCertainAfricanCountriespresentedtotheWIPOCommitteeonIntellectualPropertyandDevelopmentatits12thsessioninNovember2013.

11

Acknowledgments

Thefollowingindividualsandorganizationsgavevaluablehelpandsupportinthepreparationofthispublication,whichisgratefullyacknowledged:KunleAfolayan,GoldenEffectsPictures,Lagos;RobAft,ComplianceConsulting,LosAngeles;RaphaëlBenoist,France.tvStudio,Paris;PhilippeCarcassonne,CinéB,Paris;IndependentFilmandTelevisionAlliance(IFTA),LosAngeles;ValérieLépine,UniondesProducteursdeCinéma,Paris;CharlotteLundThomsen,InternationalVideoFederation;PaulRaleigh,HollardFilmGuarantors,Johannesburg;MarkSchwinges,UnderdogProductions,Johannesburg;PaulWebster,ShoeboxFilms,London.

12

Glossary

Above-the-lineLineitemsinthefilm’sbudgetthatrefertosumspaidtokeytalentandrightholderswhoareoftenalsoprofitparticipants.

AdvanceAsumpaidincashfortherightstodistributeafilminaterritoryand/oraparticularmedium.

A-listAdirectororstarwhosepresenceinthefilmensuresthatthefilmwillattractfinanceand/ordistributionopportunities.

Below-the-lineLineitemsinthefilm’sbudgetthatrefertosumspaidtocontributorswhoareengagedonawork-for-hirebasis.

CapUsuallyalimittosalesordistributionexpensesthatcannotbeexceededwithouttheproducer’spermission.

ChainoftitleThedocumentsandcontractsthatdemonstrate

exactlyhowtherightsinaprojectarecontrolledbytheproducer.CGIComputer-generatedimagery.

ChargeAlegalchargeovertherightsofthefilmthatensurescontractualobligationsarefulfilled.

CollectionagencyAnagencysetuptoadministerthecollectionofrevenuefromthefilm’sexploitationandthedistributionofthatrevenuetothefinanciersofthefilm.Thecollectionagentalsodistributesthenetprofits.

CommonlawrightsInthecontextoffilmedIP,theconventionincoun-triessuchastheUnitedKingdomandtheUnitedStatesisthatthepro-duceristheauthoroftheworkandtheycontrolitsfinalshapeandform.

Completionbond/guaranteeSpecializedproductioninsurancethatguaranteesthetimelydeliveryofthefilmaccordingtoanagreedbudget.

Co-productionAfilmthatcombinesthecreative,productionand/orfinancialinputfrommorethanoneterritory.

Glossary

13

Co-productiontreatyAcross-nationalgovernmentalagreementthatenshrineshowaco-productionmustbestructuredtobenefitfromnationalincentives.

CottageindustryAnysmall,low-profit,national-basedindustrywithlittlecapitalthatreliesonlocalmarketstosurvive.

CrossoverfilmAmodestlybudgetedfilm(perhapswithaquirkyedge)thatmanagestoattractamuchbroaderaudiencethanoriginallyenvisaged.

Day-and-dateAsimultaneousreleaseofafilmacrossmultipleterritoriesand,morerecently,multipledistributionplatforms.

DebtfinancingFinancelenttotheproductionandrecoverableinfirstposition.

Deferrals/DefermentsDelayedpaymentsorremunerationpaidtoasupplierorcontributorasandwhentheproducerhasrevenuefromthefilm.

DeliveryThetechnicaldeliveryoftheelementsofthefilmtodistributorsand/orfinancierstoallowittobesoldand/ordistributed.

DevelopmentThetimeandactionsnecessarytomovefromanideatoacompletedscript(orscreenplay)thatisreadytobefilmed.

DialoguisteThewriterofdialogueonly.

Director’scutTheearlyformofthefilmthatisinthedirectcontrolofthedirector.

Droitd’auteurTherightoftheauthortoassertpaternityandmoralrightsovertheworkstheycreate;prevalentincertaincountriesincludingFranceandItaly.

EquityAninvestmentthatattractsasignificantshareoftheprofitsofafilmbutisrecoveredafterdebt.

14

Rights,Camera,Action!Intellectualpropertyrightsandthefilmmakingprocess

EscalatorBonuspaymentmadetotheproducerorparticipantsifperformancethresholdsareexceededorawardsarereceived.

ExecutiveproducerUsuallyaproducerwhoseprincipaltaskisthefinancingofthefilm.

FinalcutTherightofadirector,producerorfinancier(oracombinationofallthree)toapprovethefinalshapeandformoftheeditedfilm.

FirstnegotiationandlastrefusalTherightofapersonorcompanytohavethefirstopportunitytobidforrightsandthelastopportunitytomatchthebidofathirdparty.

FirstpositionThefinancingthatcomesoutfirstasrevenueisaccrued.GapfinancingFinance(usuallydebt)againstunsoldterritories.

Grossdeals/AdjustedgrossDirectparticipationbyamajorfinancierortalentparticipantinfirstrevenues.

LetterofcreditAbankinginstrumentoftenissuedbydistributorsthatallowsaproducertoaccesscashflowsubjecttoaminimumguaranteeviaabank.

LicenseAtime-limitedgrantofrights.

LiferightsTherighttomakeintofictionthereal-lifeexperiencesofalivingperson.

LineproducerNon-creative,work-for-hireproducerresponsibleforensuringthattheproductionismanagedproperlyonaday-to-daybasis.

LongtailIncommercialterms,anexpressioncoinedbyChrisAndersontodescribeproductsthatareinlowdemandorhavealowsalesvolumebutwhichcancollectivelymakeupamarketsharethatrivalsorexceedstherelativelyfewcurrentbestsellersandblockbusters.

MinimumguaranteeFinancepromisedagainstexploitationofafilminaterritoryand/ormedium.

15

Glossary

MoralrightsTherightoftheauthorofawork(usuallythedirector)tocontrolitsfinalshapeandform.

NetprofitsTheprofitsthatreturntotheproducerofthefilm.

OptionTheinstrumentbywhichaproducercontrolsapropertyforalimitedamountoftimebeforemakingthedecisiontopurchase