1. 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

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

3. 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.

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

5. 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

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

7. 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 months
Payment for audit – 5% rule

8. 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

9. 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

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