Βι¶ΉΤΌΕΔ agrees Terms of Trade with Pact
New Terms of Trade for commissioning television programmes
from independent producers have been agreed between the Βι¶ΉΤΌΕΔ and Pact,
it was announced today (Monday 2 August 2004).
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The Terms of Trade agreement provides detailed business
terms and complements the principles outlined in the Βι¶ΉΤΌΕΔ's Code of Practice
which was approved by Ofcom earlier this year.
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The key points of the Terms of Trade agreement with
the Βι¶ΉΤΌΕΔ and Pact are:
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Independents will own all rights (including copyright)
in the programmes they produce. The Βι¶ΉΤΌΕΔ will take a licence to use programming
across its portfolio of channels for a period of five years and to exercise
public service new media rights.
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The Βι¶ΉΤΌΕΔ can extend its licence once for a period
of two years and extend on a rolling two year basis for returning series
whilst it continues to re-commission the programme.
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The Βι¶ΉΤΌΕΔ will pay independent production companies
repeat fees for uses of programming during the licence period not covered
by the initial licence fee. Independent Producers of regional programmes
transmitted on network will now receive an enhanced payment.
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Independents will control all distribution, including
international rights, format rights, commercial new media rights, videos
and DVD rights and merchandising, subject to certain protections required
to protect the Βι¶ΉΤΌΕΔ's licence.
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The Βι¶ΉΤΌΕΔ will be entitled to a share in net profit
from the exploitation of all rights in the programming.
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The Terms of Trade agreement applies to all independent
television production deals retrospectively from 6 January 2004, for
all public service channels, regional and network (with some limited
exceptions).
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The Βι¶ΉΤΌΕΔ has also agreed a standard Programme Production
Agreement with Pact to implement the Terms of Trade. The Terms will
be reviewed on a three yearly basis.
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"The Terms of Trade herald a new era in our relationship
with the independent sector," says Jana Bennett, the Βι¶ΉΤΌΕΔ's Director
of Television.
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"The agreement represents an historic transfer
of value to independents and very much underlines the Βι¶ΉΤΌΕΔ's commitment
to fostering a robust and successful independent sector.
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"Βι¶ΉΤΌΕΔ Television already benefits from many great
independent programmes Β– we want to foster a more creative and
open relationship with independent producers.
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"We believe the new Terms of Trade will support
this and will, in the end, bring more original and high quality programmes
to our audiences."
Andrew Zein, Chairman of Pact and Managing Director of Tiger Aspect
Productions, says: "The significant benefits of these new terms
will be felt by producers large and small.
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"Ownership and control of rights now reside with
those who create programmes - no-one can argue that can't be anything
but a good and fair thing.
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"Most importantly viewers will benefit from a strong
independent sector able to better invest and plan on the basis of improved
returns for programming success."
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Bal Samra, Business & Finance Director for Βι¶ΉΤΌΕΔ Television,
says: "These negotiations have been challenging and complex as
the deal covers eight channels as well as the Nations & Regions
and involves public money.
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"They have been conducted collaboratively and with
real professionalism from both sides. As a result the new deal will
deliver, both in letter and in spirit, a much stronger relationship
between the Independent sector and the Βι¶ΉΤΌΕΔ."
David Frank, Chair of Pact TV Policy Group and Chief Executive of RDF
Media, says: "This deal provides the framework for a huge improvement
in the relationship between the Βι¶ΉΤΌΕΔ and the independent sector - one
based on trust, mutual respect and fair reward on both sides.
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"But to make it work we must all adhere to the
spirit as well as the letter of the new agreement.
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"This is not a victory for the independent sector,
it is a victory for UK audiences who will get the benefit of programmes
being developed and made by a stronger, more vibrant production community
capable of taking bigger creative risks than ever before."
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Debbie Manners, the Βι¶ΉΤΌΕΔΒ’s Head of Business Affairs,
says: "Agreeing the Terms of Trade represents a huge change in
our dealings with independents - moving the relationship between the
Βι¶ΉΤΌΕΔ and Pact to a more sound business footing in the future and the
start of a new and productive partnership."
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A requirement of the Communications Act, the Codes of
Practice developed by the Βι¶ΉΤΌΕΔ - as well as ITV, Channel 4, Channel 5
and GMTV - will create a new framework that will serve both broadcasters
and producers, as well as enhancing the creative and economic potential
of the UK television industry.
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