BBC PUBLISHERS ASSOCIATION SOCIETY OF AUTHORS NEW TERMS FOR BBC RADIO (2005) Ben Green BBC Rights Negotiation Agenda Why new terms ? - Key messages from BBC briefings December 2002 Negotiation objectives Common principles Radio Agreement (Extracts) Radio Agreement (Complete Works) Questions Why new terms ? Key messages from BBC briefings - December 2002 Necessity to update agreements to reflect the „New World‟: last reviewed in 1997 (TV) and 1995 (Radio) Over past 8-10 years, TV / Radio audiences have experienced a period of unprecedented change - additional /digital channels, interactive, on-line and on-demand services on many new platforms BBC needs to adapt by harnessing new technologies, continuing to offer its content on all platforms thereby offering maximum value for the licence fee payer - „Building Public Value‟ Agreements very admin-heavy - benefit to all if reduced BBC Worldwide/ Radio International have ambitious targets to deliver more money back into programme making Negotiation Objectives Look at possibility of Collective Licensing ? Consolidate Radio Agreements from four to two Meet BBC‟s public service obligations and commercial objectives Cut admin to benefit all sides Increase payments to authors in return for greater flexibility of use by BBC Consider framework with representative bodies (if possible) to ensure agreements are future-proofed in order to reduce re-clearance Plus… Recent emphasis at BBC to reduce / remove non-core activities and processes (e.g. repeat payments automated where possible) Essential to simplify negotiations, particularly on smaller contributions “As the World gets more complex, rights agreements need to become simpler” ….Status quo is not an option Common Principles Licence - Non-exclusive licence in the Work included in the programme for duration of copyright Safeguards for Authors / Publishers (more later) Initial broadcast - within 3 years from signature Programme Originations on Digital Channels Repeat broadcasts - payable at repeat rates for different core services (reduction if pre-purchased) New Public Service Uses Fee - new, following principle agreed with WGGB/ PMA of an additional payment to acquire PS uses outside repeats on the core channels Common Principles (cont‟d) Other Uses included within Initial Fee: (1) Distribution of the programme to schools/ educational establishments on cost recovery basis (used when school has failed to record programme under ERA licence) - no change (2) Non-Theatric/ Non-Paying audiences - micro-payments made for these uses, so agreed made sense to include (3) Usual BBC Miscellaneous Uses, such as depositing a recording in National Film/TV / Sound Archive, but also now includes: - use at film, TV & radio festivals, - publicity and promotion of the programme - for radio, extracts on Pick of The Week/World Common Principles (cont‟d) Teachers‟ Educational Support Materials Separately cleared in the past, some programmes (esp. Schools TV) require the right to use the Work in support materials, so made sense to save time/ admin to set these rights out Non-Exclusive 10 year licence in all media (renewable for further payment) Rates set out in attached schedule (based on publishers educational use fees) Common Principles (cont‟d) Commercial Exploitation of programmes: In Radio, BBC has cleared these rights separately, even for small extracts – incredibly time consuming /wasteful for everyone BBC looking for greater flexibility to commercially distribute its programmes containing the work BBC to acquire rights upfront, subject to safeguards for Author/Publisher who may have licensed conflicting rights elsewhere Consolidate trickles of tiny residual payments into one-off (some higher) residuals to simplify re-clearance process – better value to author/ publisher and BBC For use of Complete Works in Radio, agreed fairer model to follow TV and Author/ Publisher to receive an ongoing participation in BBC‟s gross receipts (i.e. royalty) Audio Cassette/ CD rights to be negotiated separately New BBC Radio Terms Radio PA5 (Extracts) Radio PA5 (Complete Works) (Agreed August 2004 / May 2005) 1. SCOPE OF AGREEMENTS EXTRACTS Prose Extracts Poems / Poetry Extracts Play Extracts Articles / Article Extracts Recipes Prayers COMPLETE WORKS Complete Dramatic Works Complete Prose Works Collections of Poems 2. PUBLIC SERVICE USES (i) Repeat Broadcasts on core Radio services (Radios 1-5 & World Service): BBC to be granted the right to repeat the BBC programme containing the work for the duration of copyright Repeat Fees: 100% of the current relevant PA rate for the service where repeated (80% if pre-purchased at time of first broadcast) (ii) Public Service Uses outside Radios1-5/World Service Consolidating online simulstreaming, audio on demand (“Listen Again” service), and broadcasts on BBC Digital Stations (e.g. BBC7) (a) Extracts: 10% x Initial Fee residual for all further uses on BBC Radio Public Services (excl. R1-5 & WS), payable on first network broadcast (b) Complete Works: 10% x Initial Fee for 5 year licence on BBC Radio Public Services (excl. R1-5 & WS). 10% x Initial Fee at the current PA rate at the time per additional 5 year licence period, payable on first broadcast following expiry of previous 5 year licence period 3. COMMERCIAL EXPLOITATION BBC granted right to exploit the radio programme throughout the World (incl. BFBS relay, but excl. Audio Cassette/CD publication) Extracts – consolidated / increased residuals to: 125% x Initial Fee for World 75% x Initial Fee for World (excluding US) 50% x Initial Fee for Commonwealth 25% x Initial Fee for UK / Eire only BFBS relay included within above, but can be bought separately for a residual of 8% Complete Works Fairer, ongoing participation in exploitation income 5% royalty of gross receipts for undramatised, straight readings 1.5% royalty of gross receipts for all other programmes Audio Publication Rights Should BBC be interested in exploiting these rights in the recording, these are to be negotiated separately with the Author / Publisher 4. Safeguards for Authors & Publishers BBC fully recognises that: existing literary works (as opposed to works commissioned by BBC, like scripts) have their own life outside the BBC rights may be divided by territory or language publication rights themselves are usually divided: novelisation, serialisation, educational, etc. …plus a multitude of other exploitation avenues: spoken word/straight-reading, TV, Radio, Video, Stage, Film, etc. Therefore, quid pro quo for BBC to acquire a non-exclusive licence for duration of copyright was to offer the following safeguards to Authors / Publishers to recognise the above anomalies…: Safeguards for Authors &Publishers (cont‟d) TV / Radio Extracts Author / Publisher shall notify BBC at time of contract of any existing specific rights restrictions on the rights being granted (licence periods, languages, territories or means of exploitation) which shall modify the licence if notified and agreed Safeguards for Authors &Publishers (cont‟d) Radio - Complete Works Contributor entitled to terminate rights granted in licence after 10 years from signature (BBC require a minimum licence period) BBC reasonably asks that this notice of termination is in writing, that BBC shall still be able to make the one pre-purchased repeat, and that existing licences (PS/ Commercial) run their course SUMMARY New Agreements meet all initial objectives of BBC/ PA / SoA: Update agreements for digital world Consolidate Radio Agreements from four to two Meet BBC‟s public service obligations and commercial objectives Cut admin to benefit all sides Increase payments to authors in return for greater flexibility of use by BBC Rights safeguards for Authors & Publishers BBC WRITERS‟ GUILD SOCIETY OF AUTHORS PERSONAL MANAGERS ASSOCIATION RADIO DRAMA AGREEMENT (1st January 2006) Ben Green BBC Rights Negotiation Agenda Why new terms ? Negotiation objectives Scope of Agreement Headlines Key Changes for Programme Makers Summary Questions Why new terms ? Last substantially negotiated in 1994 Terms “bolted on” over the years (e.g. Simulstreaming, Radio Player, digital channel commissions) – needed to consolidate Other reasons as before… Negotiation Objectives Review “bolted on” terms and assess position/ relevance in modern agreement – new models ? Meet BBC‟s public service obligations and commercial objectives Simplify ! - Cut admin where possible, to benefit all sides Increase payments to writers in return for greater flexibility of use by BBC Consider framework with representative bodies (including agent community): to ensure agreements are future-proofed, and mechanism in place to agree terms quickly when new uses arrive Acquire Audio Publication Rights upfront SCOPE OF AGREEMENT The RDA will be used for the following: Original Plays Drama / Comedy Series Long Running Series Dramatisation / Dramatised Feature Adaptation (Substantial reworking of existing dramatic work) It shall not apply to: Educational Drama Translations or „non-substantial‟ adaptations Formats Sketch Material Headlines Headlines Rights: Licence - Exclusive licence in the copyright of the Script(s). Significant shift from current limited terms. Other Rights - All further rights in Script dealt with in RDA: either BBC controlled, BBC first options, or Reserved to Writer. Programme Originations on Digital Channels New Public Service Uses Fee – new principle - an additional payment to acquire PS uses outside repeats on the core channels. Simple and integral to BBC/ Radio strategy. Series Rights – New – BBC granted rolling right to make series, limited broadly to 12 months from date of last tx of last programme of latest series. Writer offered opportunity to write. Even after rights expiry, BBC gets first option to negotiate terms. Headlines (cont‟d) Secondary Rights Prequel, Sequel & Spin Off Rights - Reserved to Writer. BBC has excl 1st option for 2 yrs after first tx/ termination of Series Rights. Credit to BBC if rights go elsewhere. Changed Format Rights - Reserved to Writer. Must notify BBC when sold. Credit for BBC. TV Transfer Rights - Reserved to Writer. BBC has excl. 1st option for 1 yr after first tx/ termination of Series Rights. Credit to BBC if rights go elsewhere. Headlines (cont‟d) Secondary Rights Print & Publication Rights - (i) Script – Granted to BBC. Must develop rights within 6 mths after 1st tx, after which Writer may request to acquire rights. - (ii) Derivative Publication – Reserved to Writer, but BBC has 1st option to acquire for 6 mths from 1st tx / expiry of Series Rights. Stage /Theatric Film Rights - Reserved to Writer. Credit to BBC if Stage / Film version based on BBC play or original series. Other Residual Rights - Original Work – Reserved to Writer - BBC-Owned Format – BBC owned, but will share receipts if Script exploited - Dramatisation / Adaptation – Script rights shared BBC / Writer Headlines (cont‟d) Other Uses included within Initial Fee: Usual BBC Miscellaneous Uses, such as depositing a recording in National Sound Archive, but also now includes: - use at radio and related media festivals/ award ceremonies - publicity and promotion of the programme in all media - extracts on Pick of The Week/Pick of The World Headlines (cont‟d) Commissioning / Production Process Changes: Treatments Script Commissions – time to commence recording Script Rewrites & Acceptance Credit Editing Copies of Script / Programme Notification of planned Broadcast date …more later… Headlines (cont‟d) Commercial Exploitation of programmes: BBC looking for greater flexibility to commercially distribute its programmes containing the work Can now distribute the programme commercially in any form (incl online, on demand, streaming or webcast) Audio Publication Rights (incl. Cassette, CD & electronic copies via online distribution) now acquired upfront in commissioning agreement – as previously negotiated separately, BBCWW have increased royalty rates Headlines (cont‟d) Radio Forum: New Forum will discuss specific issues about mechanisms, agree future minimum terms, and resolve any disputes about the operation of Agreement To meet twice a year (more if required) Two reps each from BBC/WGGB/PMA/SoA plus BBC secretariat Additional observers / guest speakers at specific meetings If Forum disagrees, arbitration mechanism in place Amendments to Agreement will apply to all RDA‟s signed after 01/01/06 – massive benefit to BBC not having to re-clear rights BBC to notify Forum of any new PS / Commercial Service or form of exploitation in advance, and agree new terms where not already in place. If terms not agreed and goes to arbitration, BBC shall be entitled to commence the new use pending determination of terms. PUBLIC SERVICE USES PUBLIC SERVICE USES (i) Repeat Broadcasts on core Radio services (Radios 1-5 & World Service): BBC still granted the right to repeat the BBC programme containing the work for the duration of copyright (no change) Repeat Fees: 70% (if pre-purchased as two-tx rate) 75% thereafter of 1 tx fee, adjusted by RPI after two years Different rates for different core services (e.g. WS still 50%) (ii) Public Service Uses outside Radios1-5/World Service „New Public Service Use Fee‟ consolidates Online simulstreaming Audio on demand (“Listen Again” service) Broadcasts on BBC Digital Stations (e.g. BBC7) Extract Use on all public services (some restrictions) - 10% x 1tx Fee for 5 year unlimited licence on BBC Radio Public Services (excl. R1-5 & WS), payable on Script Acceptance - Will replace current simulstreaming licence, and 3% of 2 tx fee paid for AOD - Level of New PS Use Fee will be reviewed in 2009 - N.B. “Podcasting” – currently offered as permanent electronic publication, so not included unless DRM can limit availability (iv) Long Running Series New provision (consolidating into RDA the separate current WGGB/ SoA agreements for The Archers & Silver Street) Key Changes for Programme Makers Key Changes for Programme Makers Script Commissioning Delivery date to be specified on Deal Memo (or otherwise agreed schedule) Delivered in electronic form unless otherwise agreed BBC will meet reasonable expense costs for exceptional research by Writer, where identified by the BBC in writing at time of project proposal and outlined on Deal Memo Rates No increase in Writers‟ rates “Established” writer status reduced from 110‟ to 95‟ transmitted material. Low financial impact, as Writer still required to do more than 2 x 45‟ Afternoon Plays to qualify Scripts under 15‟ – fee subject to negotiation Key Changes for Programme Makers Rewrites / Acceptance: BBC will use best endeavours to tell Writer within 4 weeks of delivery if Script is: (i) Accepted (ii) Revisions required to make acceptable (iii) Abandoned (all rights go back to Writer) In the absence of notification at any stage, Script will be deemed accepted after 10 weeks (and remaining fees due). Above does not apply to Long Running Series – case by case basis, but revisions notified to Writer Writer shall carry out rewrites BBC may ask for within 10 weeks of delivery of first draft. For alterations after those 10 weeks, Writer will be entitled to ask for a further 25% of their script fee (i.e. third quarter) If the BBC brief changes, additional rewrite fees will be due to the Writer (negotiable) If Script not accepted, BBC can negotiate with Writer whether and on what terms script may be rewritten (i.e. by others) Scripts written to a third party (or BBC) format which are not acceptable can be paid off in full to get other writer(s) to complete, or the Treatment/ Storyline can be bought out for the third quarter of the Fee Key Changes for Programme Makers Recording of the Script Recording must commence within 2 years of date of acceptance of the Last Script (N.B. has changed from first broadcast) N.B. Ability to extend for further 12 months (must pay extra 10% of the Fee) Writer can re-acquire rights thereafter Key Changes for Programme Makers Credit Writer to receive spoken credit either at beginning or end of programme. Credits for daily serials given at least once a week. (No significant change) Editing BBC to have automatic right to edit up to 10% of programme length for UK scheduling requirements and overseas sales. Edits over that amount subject to Writer‟s consent. If Writer unavailable, the edit may be undertaken by original producer of programme On Long Running Series, BBC entitled to make major and structural alterations but must make every effort to inform and agree with Writer such alterations. Where practicable, alterations (other than minor ones) shall be made by the Writer Key Changes for Programme Makers Consultation on Director / Casting „Good practice‟ to discuss above with Writer (as far as practicable given time, availability and writer‟s experience), but final editorial decision rests with BBC Notification of Proposed Broadcast Date Writer should be notified as far as possible in advance of proposed tx date/ any changes Copy of Script/ Programme Writer entitled to two copies of the final broadcast script upon request, and two audio copies of programme as transmitted SUMMARY New RDA will meet all initial objectives: Modern agreement for digital world Meet BBC‟s public service obligations and commercial objectives Cut admin to benefit all sides Increase payments to authors in return for greater flexibility of use by BBC on all platforms Future-Proof Agreement with Radio Forum SUMMARY Finely balanced Agreement 40-page Agreement, but only 2-page Deal Memo will be sent to a Writer / Agent Minimum Terms Agreement - TRG Negotiators may need to negotiate some rights, but need your support to ensure key rights are not eroded QUESTIONS ?