ACSIL

Panel Introduced byCo-President David Sheehan

The Code of Practice Committee introduced by

Co-President and co-chair of COPMax Segal

Breaking the Mold:

Presenting a revolutionary newLicensing Matrix *

* Extract from the White Paper “Towards a Standard Licensing Matrix’ to be published by ACSIL in 2007/2008

www.acsil.org

Blowing away the confusion

Glossary: The book of non-definitions

How we came to confuse “technology” with “rights”

What Language are we speaking?

Streaming….download…….On demand…..PPV…Theatrical….mobile….own or rent?........

Podcast….DVD……iphone…..Television….cable….satellite…..premium cable…

iptv………Internet….broadcast…..web cast…..Podcast….All rights….

wireless…Broadband……mobile everything….iPod…

mobile….hotspots…

Digital delivery has changed everything and forced “rights” to be described by their delivery systems – not by audiences, markets or program types.

The Death and Life of Television

Television literally means, vision at a distance

Television disappeared and died years ago. It is - – Broadcast– Over-the-air– Retransmission by

– Cable– Satellite– Pay Per view/other

– Downloaded and streamed via– The internet– Broadband– Wireless

Television is the transmission, reception, and reproduction of moving pictures and audio

Working without the “net”

Like television the internet’ enables the transmission, reception, and reproduction of moving pictures and audio, pictures and information instantaneously.

It is not a single destination – it is a delivery format route to multiple markets.

The price of the ticket.

Old Agreement

Definition of Rights Granted For the purposes of this Agreement: (a) "Standard Television" shall mean exhibition by free VHF or UHF television broadcast stations, the video and audio portions of which are intelligibly receivable without

charge by means of conventional home roof-top or television set built-in antennae by all means now known or hereafter invented. If following future developments in the form of television distribution, any of the principal commercial or non-commercial networks in the United States shall broadcast or transmit their programming principally through such other means of television distribution, the video and audio portions of which are intelligibly receivable without charge (except for universal taxes imposed for the purpose of operating a public broadcast network), rather than through conventional VHF or UHF broadcast stations, Standard Television shall then include such additional means of distribution, but only to the extent included by such commercial or non-commercial networks and not in conflict with the other categories of rights specified herein

(b) "Non-Standard Television" shall mean exhibition by means of all television distribution (other than Standard Television) however transmitted or delivered. Non-Standard Television shall include, but not be limited to:

(i) basic cable (except where the video and audio portions of which are intelligibly receivable without charge by means of conventional roof-top or television set built-in antennae) and pay cable;

(ii) "over the air pay" subscription television (but not during such portion of the day, if any, as is broadcast on a free basis as Standard Television), direct broadcast satellite, master antenna, multipoint distribution systems and small antenna television system;

(iii) transmission via Non-Standard Television delivery systems to closed circuit television systems such as hotels, motels or hospital rooms, educational institutions and military locations;

whether all the foregoing (i), (ii) or (iii) are on a subscription, pay-per-view, license, rental, sales, free or other basis; and (iv) if not free to the viewer so-called "drop-in" and low-power" VHF or UHF stations or VHF limited facility stations.Non-Standard Television shall

not include Home Video Distribution, Interactive Distribution, Non-Theatric Distribution, Instructional Distribution and/or Theatric Distribution. (c) "Non-Theatric Distribution" shall mean the manufacture, distribution, sale or lease of film copies or Videograms, or exhibitions thereof, of the Production solely to non-

paying audiences in public libraries, churches, museums, hospitals, dormitories, military and government agencies, prisons, summer camps, business and industry, the transportation industry, hotels, clubs and other organizations of a cultural, religious, charitable or social nature and to all other like entities and places and shall explicitly exclude exhibitions in private residences and educational institutions.

(d) "Instructional Distribution" shall mean the exhibition of the Production within educational institutions (including schools, colleges, and universities) by instructors or pupils in the course of face to face teaching activities of an educational institution, in a classroom or similar place devoted to instruction, which performance is a regular part of the systematic instructional activities of such educational institution; and used solely for fulfilling the curricula of such educational institutions; with delivery accomplished:

(i) by means of Videogram or film copies (which may be manufactured, distributed, sold and/or leased in connection with such exploitation); (ii) by means of off-air taping, from broadcast, subject to the availability of rights and the agreement of relevant unions, guilds and copyright and

other rights holders respecting such transmissions; and/or (iii) by close-circuit or other form of television; provided that such broadcast cannot be received by the general public,

Old Agreement More

(e) "Home Video Distribution" shall mean the distribution to retail markets of video cassettes, video discs, and/or any other devices for reproducing visual images and sounds ("Videograms") which may be played back in a non-interactive linear fashion by the use of a play-back device and which are intended for hire or sale to the public for home use, but shall exclude Interactive Electronic Rights, Non-Theatric Distribution and Instructional Distribution.

(f) "Theatric Distribution" shall mean exhibition to audiences in places where a charge for admission is made including by way of example but not limited to cinemas and concert halls.

(g) "Interactive Electronic Rights" shall mean the non-exclusive right to manufacture, exhibit, sub-license, lease, sell, copy, and execute Selected Materials incorporated in the Production and distribute productions, video discs, CD-ROM, CD-I discs or other emerging interactive devices which are capable of carrying digital or analogue information and which can in conjunction with appropriate reproduction apparatus and a computer, telecommunications system or television receiver be displayed or reproduced synchronously or disynchronously as any one or any combination of text, still and moving visual images and sound as selected by the user of such device, which visual images are accessed and retrieved by means of a central processing unit or interactive playback device. The ratio of Selected Material to other material used in connection with the exploitation of Interactive Electronic Rights must be no greater than the ratio of Selected Material to other material used in the Production.

Interactive Rights shall exclude all linear products designed to run or play to a predetermined presentation, and all “On-Line Broadcast Rights”. (h) "Multiple Media Distribution" shall mean distribution by all the forms of distribution described in Clauses 2(a) through (f) and shall exclude Interactive Electronic Rights,

On-Line Rights and On-line Broadcast Rights. (i) "On-Line Rights" shall mean the right to reproduce, copy, modify, adapt, use, create derivatives of (and/or new assets based upon), or otherwise exploit, the Production

(or any part thereof) in combination with, or as a composite of, other content of any nature, including but not limited to text, data, photographs, illustrations, graphics, animation, video or audio segments, and/or parts of television and radio programs, for distribution by means of either a telecommunications system (whether now known or hereafter developed) or by any broadcast technology (including without limitation transmission over VBI, and/or transmission over cable and/or satellite data carousels), whether analogue or digital, for reception and display on or through personal computers, network computers, television set top boxes, integrated televisions and/or other devices using a central processing unit to access content. For the avoidance of doubt, this encompasses, without limitation, any service distributed by means of the worldwide matrix of interconnecting computers using the TCP/IP protocols known as the Internet, any and all interactive services provided by cable, satellite and/or analogue and digital terrestrial television service providers, any services involving real time interaction with any television programs (including but not limited to interactive television), telephony devices, audio text services, fax services, and trials for new means of delivery. The ratio of Selected Material to other material used in connection with the exploitation of On-Line Rights must be no greater than the ratio of Selected Material to other material used in the Production.

(j) "On-Line Broadcast Rights", a subset of On-Line Rights, shall mean the right of exhibition of the entire Production by means of On-Line Rights in a manner substantially equivalent to television exhibition and display via Standard Television and Non-Standard Television and where the Production is “streamed” at a scheduled time (i.e., the user cannot select to have the production viewed on demand). The ratio of Selected Material to other material used in connection with the exploitation of On-Line Broadcast Rights must be no greater than the ratio of Selected Material to other material used in the Production.

Multimedia Rights shall include All Rights included above from (a) to (j).

What is this?

All forms of wireless technology, online technology, Internet Protocol, Wireless Access Protocol, MMDS, On-Demand (including but not limited to video, audio and/or visual stream, still or download) and any similar method now known or hereafter developed.

– Wireless technology also known as mobile devices, mobile phones, PDA’s, blackberries to be broadcast in a streamed mobile tv loop and may be available for stream on demand at standard network rate.

– Online technology – unlimited online streaming on station and affiliate websites, syndication for use on third party websites based on an unlimited free streaming model.

– MMDS: multi-channel distribution system – this is microwave system used to deliver high-bandwidth services to subscriber households. At present we have no services using such technology.

– On Demand: not in linear or LAN back stream. User has to demand content. All station on demand sites that are streamed are free to consumer based on an AFP model. These would be pay to rent or pay to own.

“All Rights All Media” Confusion

Everyone asks for everything but what do they really want? Definitions are being developed by the licensee – leaving the licensor and licensee

open to disputes over rights granted - in the future.

What matters the most? What it is Where is it being seen Who pays for it Who is the audience Where is the audience How long is the grant of rights

What doesn’t matter - “HOW” it gets to user

THE TOWER OF BABEL

No one speaks the same language or has the same interpretation

THROW IT ALL AWAY AND START AGAIN

THE MATRIX EXPLAINED

The Matrix is a set of rights definitions that removes all complicatedjargon relating to distribution platforms and delivery mechanisms, and replaces it with clear language that defines what the production is, its audience, and how it will be funded.

PRODUCTION TYPE

What type of production are you creating?

VISIBILITY

How and where will your production be seen / displayed?

COMMERCE TYPE

What is the business model and/or revenue stream for your production?

AUDIENCE SIZE

How many people will watch your production?

TERRITORY

Where in the world will your production be exhibited?

TERM

How long will the rights last?

Entertainment Public Space Not for Profit Limited Specific to Agreement

Specific to Agreement

Editorial Private Space Sponsor / Advertiser Unlimited

Advertisement Home Space Subscription

Educational Personal Space Rented

Owned

THE MATRIX

PRODUCTION TYPEWhat type of production are you creating?

Entertainment – Entertaining an audience; usually fiction

Editorial – Documentary, News, Reportage; usually non-fiction

Advertisement – Selling of a product; usually for-profit

Educational – Informational & Educational; usually not-for-profit

VISIBILITYHow and where will your production be seen / displayed?

Public Space – For public display in any open space or via public media

Private Space – For public or private display in any closed space outside of the home

Home Space – For viewing on any form of playback device at home

Personal Space – For individual use anywhere

Not for Profit – No charge to end user to see the production, and no profit generated by producer

Sponsor / Advertiser – Paid for by a third party so that a first party can view it, usually via commercial advertisements within or wrapped around the production

Subscription – Revenue generated in the form of periodic (e.g., monthly) fees for delivery of a product

Rented – Revenue generated in the form of a separate direct fee per production or per event; applies to renting a production for a fixed period of time like one play, unlimited plays in 24 hours, etc.

Owned – Revenue generated in the form of a retail price to buy a product for unlimited views in an unlimited time frame

COMMERCE TYPEWhat is the business model and/or revenue stream for your production?

Limited or Unlimited – Will usually be “Unlimited”, but when audience size is known with certainty, “Limited” may be used

AUDIENCE SIZEHow many people will watch your production?

TERRITORYWhere in the world will your production be exhibited?

Specific to agreement – Constitutes a geographic region

TERMHow long will the rights last?

Specific to agreement – Constitutes a measurement of time and/or plays

So How Will It Work?

What is it? Production Type

Visibility Commerce Type Audience Size Territory Term

TV News Magazine Editorial Private SpaceHome SpacePersonal Space

Sponsor / AdvertiserRentedOwned

Unlimited Worldwide In Perpetuity

PBS Documentary EditorialEducational

Public SpacePrivate SpaceHome SpacePersonal Space

Not For ProfitRentedOwned

Unlimited Worldwide Minimum 10 Years

Cable – Non Fiction Program

EditorialEducational

Private SpaceHome SpacePersonal Space

Sponsor / Advertiser SubscriptionRentedOwned


Example: Cable Non-Fiction Program

Rights include all broadcast (standard and non-standard TV), in-context promotion, non-theatrical/audiovisual (including exhibition to non-paying audiences in educational institutions, churches, libraries, museums, hospitals, prisons, summer camps, the transportation industry (ships at sea, in-flight), hotels, clubs and all other organizations of an educational, cultural, religious, charitable or social nature), Armed Forces Radio and TV, home video/DVD, cable TV (basic and pay), satellite TV (basic and pay), video-on-demand, on-line (electronic website use and streaming and download to own and download to rent), Podcasts, Vodcasts, all mobile (wireless), worldwide, in perpetuity.

Production Type Visibility Commerce Type Audience Size Territory Term

EditorialEducational

Private SpaceHome SpacePersonal Space

Sponsor / Advertiser SubscriptionRentedOwned


So How Will It Work, cont.?

What is it? Production Type

Visibility Commerce Type Audience Size Territory Term

TV Commercial Advertisement Public SpacePrivate SpaceHome SpacePersonal Space

Sponsor / AdvertiserSubscriptionRented Owned

Unlimited N. America 6 Weeks

Feature Film Entertainment Public SpacePrivate SpaceHome SpacePersonal Space



Example: Television Commercial

Rights include US broadcast, additional fee for North America broadcast, worldwide internet, industrial use to be defined by SAG to include trade shows, in- stadium / “jumbotron”, internal presentations, in-flight, in-dealerships, electronic billboards, kiosks, theme parks, sales meetings


Advertisement Public SpacePrivate SpaceHome SpacePersonal Space


Unlimited N. America 6 Weeks

Example: Documentary Add-On

All forms of wireless technology, online technology, Internet Protocol, Wireless Access Protocol, MMDS, On-Demand (including but not limited to video, audio and/or visual stream, still or download) and any similar method now known or hereafter developed.

Wireless technology also known as mobile devices, mobile phones, PDA’s, blackberries to be broadcast in a streamed mobile tv loop and may be available for stream on demand at standard network rate.

Online technology – unlimited online streaming on station and affiliate websites, syndication for use on third party websites based on an unlimited free streaming model.

MMDS: multi-channel distribution system – this is microwave system used to deliver high-bandwidth services to subscriber households. At present we have no services using such technology.

On Demand: not in linear or LAN back stream. User has to demand content. All station on demand sites that are streamed are free to consumer based on an AFP model. These would be pay to rent or pay to own.

Example: Documentary Add-On


Editorial HomePersonal


Unlimited Europe 1 year

New Agreement

Wider rights as it will encompass “broadcast” as combination of all the existing and new delivery routes.

Rates assigned by each library but based on new criteria.

What About The Rates?

The Matrix is about rights, understanding rights and clarifying rights in the context of new and emerging platforms.

It is not about rates – the matrix should be equally used by business affairs departments as it by commissioning producers in a clear and understandable environment.

Footage pricing takes many different and variable elements into account as part of the process – having a clear limited number of rights will simply make the licensing of rights a much more straightforward process.

Questions for the Panel

The Panel

Max Segal - HBO Jessica Berman Bogdan – Global ImageWorks Joe Basile – Thirteen/WNET New York Alison Smith – WGBH Nicola Goelzhaeuzer – WPA/MPI Lee Shoulders – Getty Images Julia Martin – ITNSource Jill Hawkins – ACSIL

We also acknowledge Lylian Morcos – Thirteen/WNET New York without whose contributions we would not have traveled so far, and Steve Messere who encouraged this initiative during his Presidency of ACSIL

Visit our new website at www.acsil.orgIf you have questions or would like to know more

please email: [email protected]

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