1. MAKING A LIVING IN THE FILM INDUSTRY COPYRIGHT FOR FILM PROFESSIONALS Colombo, Sri Lanka December 15-17, 2014 MAKING A LIVING IN THE FILM INDUSTRY COPYRIGHT FOR FILM PROFESSIONALS Colombo, Sri Lanka December 15-17, 2014 Session 7: Dispute Resolution and Trouble-Shooting By Rob Aft

2. Copyright in the Film-Making Process Dispute Resolution Varies by Agreement Topic Dispute Resolution Varies by Agreement Topic Forum, Legal System, EnforceabilityForum, Legal System, Enforceability Labor, Production, DistributionLabor, Production, Distribution Insurers might be involvedInsurers might be involved Unions/Guilds might be involvedUnions/Guilds might be involved We Will Use Distribution as Example We Will Use Distribution as Example

3. Copyright in the Film-Making Process Picking The Right Partners Picking The Right Partners Producing PartnersProducing Partners DistributorsDistributors Finance PartnersFinance Partners Legal TeamLegal Team

4. Dispute Resolution The Most Common Distribution Disputes: The Most Common Distribution Disputes: Non-PaymentNon-Payment Non-Delivery/Late Delivery/DeficientNon-Delivery/Late Delivery/Deficient Film Does Not Conform to PitchFilm Does Not Conform to Pitch Essential Elements Essential Elements Verbal vs. Written Verbal vs. Written Promise vs. Guarantee Promise vs. Guarantee Reporting ViolationsReporting Violations

5. Dispute Resolution Dispute Resolution; Governing Law; Forum: Dispute Resolution; Governing Law; Forum: Any dispute arising out of or relating to this Agreement will be resolved by binding arbitration under the IFTA Rules of International Arbitration in effect at the time the notice of arbitration is filed; provided, however, that Distributor expressly acknowledges and agrees that Licensor shall be entitled to injunctive or other equitable relief to restrain, prevent or enjoin any breach by Distributor of this Agreement or any infringement of Licensor’s rights in the Pictures. Distributor further agrees that its remedies will be limited to an action at law for damages, and in no event shall Distributor have the right to seek or obtain any injunctive relief against Licensor relating to this Agreement or the Picture(s), and Distributor hereby waives any right to such relief.

6. Dispute Resolution Dispute Resolution; Governing Law; Forum Cont’d: Dispute Resolution; Governing Law; Forum Cont’d: The prevailing party in any arbitration or other legal proceeding brought pursuant hereto shall be entitled to recover all of its attorneys' fees and expenses actually incurred. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California (without regard to the conflict of laws provisions thereof). Distributor hereby consents and submits to the jurisdiction of the state and federal courts located in Los Angeles County, California with respect to any action arising out of or relating to this Agreement or the Pictures.

7. Dispute Resolution The Dispute Resolution Clause: The Dispute Resolution Clause: ForumForum WIPO Arbitration/Mediation WIPO Arbitration/Mediation Other Alternate Dispute Resolution Mechanism (ADR) – IFTA Arbitration Other Alternate Dispute Resolution Mechanism (ADR) – IFTA Arbitration Courts Courts Governing Law - Choice of Legal SystemGoverning Law - Choice of Legal System When can action be initiated?When can action be initiated? How is action enforced?How is action enforced? What happens once action is initiated?What happens once action is initiated?

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

9. Dispute Resolution Initiating Action: Initiating Action: Try to Resolve in a Friendly Way FirstTry to Resolve in a Friendly Way First Initiate Action Only on Expert Advice (Usually a Lawyer)Initiate Action Only on Expert Advice (Usually a Lawyer)

10. Dispute Resolution Conclusion: Know the people you’re working with Educate yourself on agreements and general business issues Negotiate a favorable dispute resolution clause in all contracts Understand your options for enforcing your rights Read “From Script to Screen” and “Rights, Camera, Action” from WIPO