Séminaire de Formation des Acteurs du Cinéma et de l’Audiovisuel   « Renforcement du Secteur Audiovisuel au Sénégal et dans Certains Pays d’Afrique » dakar – 1, 2 Septembre, 2014 GETTING PAID! By Rob Aft

Picking The Right Partners Getting Paid! Picking The Right Partners Producing Partners Distributors Finance Partners Legal Team

The Agreements: Getting Paid! Producer Agreement Up-Front Fees Deferred Fees Sales Agency Agreement Advances Revenue Sharing Distribution Agreement Royalties Other Rights Agreements Sequel/Remake Merchandising, Soundtrack, etc.

Other Sources: Getting Paid! Development Funds Grants Crowd-Sourcing Government Support

Contracts: Getting Paid! Production/Finance Agreement Includes Budget Budget includes Producer Fees Provisions for Deferred Payments Distribution Agreements Domestic/International Sales Agency Confirms Budget and Contains Waterfall for Revenues Requirements for Statements Audit Provisions and Dispute Resolution

Other Important Agreements Getting Paid! Other Important Agreements Collection Account Management Agreement Sequels, Remakes, Merchandising, Etc.

Getting Paid! Statements On Time? Accurate? Auditing What can you confirm? Royalty Percentages Spending Caps Compliance With Other General Terms Did they fulfill their responsibilities? Auditing Ask questions first Adhere to auditing provisions of agreements Often need specialized CPA firm Usually must dispute within 24-36 months Payment for audit – 5% rule

Dispute Resolution Initiating Action: Try to Resolve in a Friendly Way First Initiate Action Only on Expert Advice (Usually a Lawyer) Understanding Dispute Resolution Venue IFTA Arbitration WIPO Arbitration/Mediation Other Alternate Dispute Resolution Mechanism (ADP) Courts

Dispute Resolution Cont’d Understanding the System Get to know local legal systems How enforceable are judgments? Do you need to engage local lawyers? Understanding the parties involved Are they reasonable? Do they have a good reputation for fairness? Is there any way to avoid arbitration/litigation? Some entities probably shouldn’t be sued Fraud (can’t collect judgment) Studios (too expensive) Understanding the potential costs Experts Arbitration Fees Outside lawyers

Getting Paid! Conclusion: Know the people you’re working with. Educate yourself on agreements and general business issues Read “From Script to Screen” - WIPO