Federation of European Film Directors Fédération Européenne des Réalisateurs de l’Audiovisuel
Newsletter March 2013
News Policy update Editorial New FERA Presidentvv Private Copying Levies The Trillion Euro Question Licenses for Europe Access to Finance since 1980 Preparatory Action Enforcement
Alan Parker has been elected as FERA President © Alan Parker New FERA President: ALAN PARKER
FERA is delighted to announce that Cannes Film Festival), Angel Heart, "It's a great privilege and pleasure to Alan Parker has been elected as Mississippi Burning (6 Oscar be asked to become President of the new President of FERA. We are nominations), The Committments FERA. The rights of directors must be honoured to have such a respected and Evita (5 Oscar nominations), to constantly protected and fought for colleague take on an active role name a few. His feature films have because they are at the very heart of defending culture and directors' won nineteen BAFTA awards, ten a healthy, creative and prosperous rights in Europe. Golden Globes and ten Oscars. European cinema."
Director, writer and producer Alan Parker is also a novelist, the author In February this year Alan Parker was Parker was born in London in 1944. of the best-selling book written from presented with the British Academy's He began his career in advertising his own screenplay of Bugsy Malone highest honour, the BAFTA Fellowship as a copywriter for advertising and an accomplished cartoonist. in recognition of his outstanding career. agencies in the 1960s and 1970s and later began to write his own He was founding chairman of the Watch it on Youtube HERE television commercial scripts. In UK Film Council, a position he held 1970 he received the D&AD Gold for five years, and prior to that was We hope that Sir Alan will be free to President’s Award. He is the chairman of the British Film Institute. meet members at the General Assembly director of Midnight Express (6 Sir Alan received the CBE in 1995 in London in September. Oscar nominations), Fame (6 Oscar and a knighthood in 2002. He is also nominations), Pink Floyd – the Wall, an Officier Des Arts et Lettres For more on Alan Parker see Birdy (Jury Grand Prize at the 1985 (France). www.alanparker.com/
NEWS
Commissioners Vassilliou, Barnier and Kroes were all present for the launch event Licenses for Europe
On February the 4th the European 3. To foster online discoverability Commissoner Kroes (Digital Commission launched “Licenses and the availability of audiovisual Agenda) said that “the Digital for Europe”, a stakeholder works, especially of those which Economy is […] growing seven dialogue aimed at the delivering of are out of distribution, in order to times faster than GDP. Plus it has practical solutions within the promote access to cultural a huge job potential. We can't current European copyright heritage; 4. To identify in which ignore this in times of crisis and legislative framework and to extent access to Text and Data high youth unemployment. I want facilitate the obtainment of Mining is needed in the EU for Europe, and every European, to licenses on protected material scientific purposes and to make benefit fully from this growth”. In before the end of 2013. technology platforms adequate the final speech by Commissioner for this aim. Vassiliou (Education, Culture, The participants in the stakeholder Multilingualism and Youth) she dialogue – representatives of right During the launch of “Licenses stressed the importance of holders, licensing bodies, users of for Europe”, in his speech copyright in promoting high quality protected content and Internet Commissioner Barnier (Internal cultural content and assuring fair end-users – will discuss four main Market and Services) underlined remuneration to contents’ creators, themes: 1. To promote the cross- that, though Internet is a very and said that the expectations for border access to content, by important resource to promote “Licenses for Europe” are identifying the current restrictions cultural knowledge and exchange “workable solutions to address the users usually run into, facilitating by making content available at most immediate concerns and licenses and simplifying users’ any time and in any place, “it also unlock the innovative potential of access to digital content; 2. To presents a challenge for those the new digital environment”. simplify users’ access to protected who create such content in their material, to foster transparency in work, or who make it possible FERA members and staff are the use of that material in user- and accessible by means of their participating in 3 of the 4 working generated content and to improve investments. The challenge is to groups that are meeting once a awareness about legal and illicit establish new models of use and month until November, when a uses of protected materials; distribution which allow the report will be presented. creativity, efforts made and risks Read more about this initiative
taken to be appropriately rewarded”. HERE
NEWS MEDIA Programme: Letter from EFADs on FERA publishes 3 projects selected taxation of Internet position paper on for pilot scheme on Service Providers (ISPs) CMO Directive release windows A new initiative has been launched On Feburary 25 and 26, FERA The Preparatory Action on by France’s CNC and the French Chief Executive Elisabeth Sjaastad “Circulation of audiovisual works in Community’s Centre du Cinéma et presented the FERA position paper the digital era” was adopted by the de l’Audiovisuel in Belgium with the on the Collective Rights European Parliament on 26 October support of a further 18 national film Management Directive to MEPs 2011, with a 2 million € budget. The agencies collected within the Marielle Gallo, the Rapporteur, and purpose of the preparatory action is EFADs (European Film Agency Helga Trüpel, shadow Rapporteur to test new strategies for the Directors) to demand that Internet for the Greens. distribution of European films. In service providers (ISPs) be liable to particular, “Circulation of audiovisual parafiscal taxes aimed at financing FERA has always taken a close works in the digital era” aims at European audiovisual works. interest in the way its members are experimenting with the possibility represented by their CMOs, often to release films simultaneously or In the letter addressed to EC speaking up for directors when they quasi-simultaneously in different Commissioners Vassiliou, Kroes feel badly treated, either directly Member States and using several and Almunia and President with the society or via SAA. We were distribution platforms. Barroso, the agencies observe that appalled by the corruption revealed “an increasing number of at SGAE in Spain, and strongly Among the Groups/Companies that audiovisual players do not support legislation for greater applied, the three projects that have contribute to financing audiovisual transparency, accountability and a been selected are SPEED BUNCH, creation, even though they derive clear division of responsibilities coordinated by Wild Bunch and in substantial added-value and between CEO and Board. FERA is partnership with Wild Bunch revenues from the publishing or against official monopolies, and also Distribution (FR), Wild Side (FR), distribution of audiovisual works.” against voting being based solely on Filmonline (FR), Elle Driver (FR), income. And we have proposed a Wild Bunch Germany (DE), BIM (IT) “Indeed, these new market players measure which might make it easier and Vertigo (SP); TIDE, coordinated [such as ISPs] are not submitted to for members to take their data with by ARP and in partnership with parafiscal taxation and hardly them if, as a last resort, they decide Europa Distribution (25 distributors submitted to - if not exempt from - to leave their CMO. from 17 European countries), legal obligation pertaining to Fandango (IT), Urban Distribution promotion of and investment in Download the FERA Position Paper (FR), WIDE (FR), Goldcrest (UK) European creation.” HERE and Under the Milky Way (FR); The letter suggested that, “by EDAD, coordinated by Artificial Eye potentially opposing a proportionate Cinema and in partnership with Gutek Films taxation of ISPs to support (PL),REZO Films (FR), Match Communication: European audiovisual creation, the Factory (DE), Golem (SP), Cinéart European Commission would A third consultation (BENELUX). hamper the adaptation of Screen Daily reports that the The selection was based on several audiovisual public support systems to the reality of the digital world.” European Commission is planning criteria: number, diversity and a 3rd consultation on the Cinema complementary nature of the films The European Commission (EC) Communication on film state aid and territories covered; suitability of has previously blocked an attempt rules, which has been delayed. the marketing strategy; quality of the to bring telecommunications applicant consortium; quality of the companies into the circle of The consultation is supposed to project and consortium management contributors to the FFA, the start at the end of March and last plan; quality of the methodology German Federal Film Board, but is for two months. It now looks as if proposed for assembling, analysing now under pressure to review its the new Communication will be and assessing the findings; rd position. adopted in the 3 quarter of this cost/benefit ratio of the proposed year. Until then the current rules action; innovativeness of the project. still apply. FOCUS ON FERA MEMBERS: GERMANY
German film directors start Changes to German negotiations with broadcasters VOD regulations
In 2002 the German Copyright After having a lodged appeal Germany is now ready to change Law was amended with the while the German Director's Guild its VOD regulations. The window purpose of strengthening the filed a complaint against several for VoD release will be reduced contractual position of authors newly implemented rules in ZDF's from nine months to six - in line and performers by providing General Conditions, ZDF finally with the release of films on DVD. that copyright “serves to secure agreed to negotiate with the an equitable remuneration for German Director's Guild rules for In addition, the obligation to pay a utilization of his work”. adequate remuneration (fair film levy to the German Federal Basically, the amendment payment) and agreed to a ”cease Film Board (FFA) will be extended consisted in giving creators the and desist” of certain elements from VoD services in Germany to right to negotiate their in ZDF's General Rules. include those operating outside of remuneration. the country. The levy anticipated A first round of negotiations from the video and VoD sectors The amendment was started during the Berlinale last would total around €15m per year. considered necessary because month. If the parties do not of the increasing awareness of finalize an agreement by the end Speaking to ScreenDaily, Patrick the fact that simple granting of October 2013, an automatic Knippel, managing director of more protection rights to arbitration process is German VoD service Nowtilus, creators was not enough to suit implemented. said that his company supported their actual needs. However, the proposed change, which would the amendment doesn’t specify Due to several recent German be the only case for the time being whom authors and performers court decisions compelling of how VoD exploitation can be a have the right to negotiate with. private broadcasters to pay source of finance for theatrical adequate remuneration to movies. This lack of specification had authors, the private broadcasters been an excuse for public Sat.1 and Pro7 also agreed to ”At the same time, he argued that German broadcaster ZDF not negotiate rules for adequate the new Film Law “should make to implement the Authors remuneration under the German sure that Google, iTunes, Netflix Contract Law. ZDF does not Copyright Act of 2002 with the and the like will also pay this levy, consider itself the “primary German Director's Guild. and not only German providers user” of broadcasted films and such as Videoload, Maxdome and programs, and therefore not Media Markt”. responsible for authors’ equitable remuneration. Knippel added that “it should not be a deal breaker for further FERA and FIAPF talks In 2010, BVR members decided on fair remuneration innovation”, meaning that payment to take ZDF to court. The of the film levy should only kick in litigation work was conducted after a certain revenue threshold by their legal advisor Florian During the Berlinale delegations has been reached. Prugger. of members from FIAPF (the International Federation of Film Moreover, payment of this levy According to a decision of the Producer Associations) and should in return mean that VoD district court of Munich from FERA met to discuss issues of exploitation can be supported by November 2012 the German common interest at the European the FFA. public broadcaster ZDF was level, as well as future compelled to negotiate rules for collaboration on setting up a joint a reasonable remuneration (fair working party for mapping best payment) of film directors with practices in contractual matters the German Director's Guild and different modes of fair (BVR) under the German remuneration of directors. Copyright Act.
NEWS: FERA MEMBERS Italy passes decree Luxembourg No Hungarian on film financing Film Academy Film Week and promotion established
The decree setting investment On December 12th, the Luxembourg The Film Week, the most and screening shares of Italian associations of producers (Ulpa), meaningful celebration of the and European films, has finally technicians (Alta), actors (Actors.lu) Hungarian cinema established been agreed between and filmmakers and scriptwriters in 1965 that usually takes place Government, Parliament and (LARS) founded “D’Filmakademie”, during the first week of the social partners. The decree the Luxembourg Film Academy. February, didn’t take place this will be fully operational in 2015, year. The great enthusiasm that with an adjustment of 15% for As the Luxembourg equivalent of all the representatives of the end of this year, and 30% the French Académie des Césars, Hungarian cinema feel for their for the next, with a share of 3.2 the main task of the newborn film jobs had to face the fact that the % of revenues from television academy will concern the deep crisis has led to the total networks and 75% of domestic organization of the Luxembourg block of film production, a block films. film prize, which will be awarded that has not only a deep cultural every two years (the next edition meaning, but also a great All the forces of Italian cinema will be in 2014). Not only its impact on Hungarian economy, have mobilized for years to get members, but also other people as it has caused a serious this decree, which will bring associated with cinema will be problem of unemployment and significant investments, and will involved in the choice of the best tough living conditions for film also for the first time require a films in several categories. workers. contribution towards production from Sky TV. Italian television The eight administrators elected This is the reason why the producers decided not to be a Samsa Film producer Claude Hungarian Filmmakers’ part of the agreement, and Waringo as the president, actor Association decided to convert complain that the focus is “too Jules Werner as secretary and the traditional Film Week into an much cinema”. editor Thierry Faber as treasurer extraordinary and public of the “Filmakademie”. General Assembly Meeting this Other developments in Italy: year. The arbitration between SIAE The film academy will also actively and Rai for the definition of fair promote Luxembourg’s film industry, The meeting, which was held on compensation is getting closer both by improving its diffusion and February 2nd, was a great to a solution. It will be an popularity and by working as the opportunity for all the important achievement for the consultative body of all the representatives of the film authors seeking a remuneration representatives involved in sector to discuss the standstill adjustment and the introduction filmmaking. that Hungarian film production of adequate shares for digital has been in for the past two channels. years, and to propose new ideas for the future. In connection with the election Former FERA President for the New Parliament, FERA Liv Ullmann to direct Since then, FERA President Sir member 100autori, ANICA, Alan Parker paid a flying visit to (producers association), Agis Strindberg’s Miss Julie Budapest on March 1st at the
(cinema operators), Association invitation of Hungarian Film of Film Commissions presented Liv Ullmann will shortly start principal Commissioner Andy Vaijna, a common document about new photography for her adaption of who produced 2 films of his, legislation in the audiovisual Swedish playwright August ”Evita” and ”Angel Heart”. sector. This is the first time the Strindberg’s Miss Julie, with a US - Parker spent two days in Italian film sector comes UK cast of Jessica Chastain, Colin discussion with 100 Hungarian together in such a way. Farrell and Samantha Morton. filmmakers. Fuller report in the next Newsletter.
NEWS: FERA MEMBERS
Director Michael Caton Jones on the set of ”World Without End” FERA Campaign Film Competition!
PROMOTE EUROPEAN CINEMA and WIN A PRIZE
At the Copenhagen Assembly FERA decided to take some direct action on the state of European film instead of merely complaining. A FERA promotional film was proposed, and we have been discussing script ideas for a UK-produced short. Now the EC has decided to change course, and open up the process to members. Film makers should be making films!
We hereby invite every FERA member assocation to make a short film (90”-180”) that will make the case for European cinema, its richness and importance. Films will be screened at the General Assembly in London in late September. They will be judged by delegates, and a small prize will be awarded to the winner.
For more information on the rules of entry, please contact the FERA office.
NEWS: EU POLICY
Vitorini recommendations Q uestionnaire on Private Copying Levies Access to Finance
On 31st January António Vitorino, the EU Mediator in Now, more than ever, Europe intends to the dialogue on private copying levies, presented his invest funds in the cultural sector as a Recommendations to Commissioner Barnier fruitful mean for economic and social following a mediation process with stakeholders that growth for all European citizens. was launched in May, 2011. Though the debate had been complex because of the different opinions and Access to finance has often been a big solutions proposed by the stakeholders, Vitorino’s barrier for many organizations dealing recommendations, which were originally supposed to with culture – such as the audiovisual be presented in autumn 2012, focus on two main sector, visual arts, music and so on – action plans aimed at making private copying levies but there is a lack of data concerning better adapted to the digital age. The economic their actual financing needs. significance of private copying levies is huge for creators, in 2010 alone the overall amount collected This is the reason why the European in the EU was above € 600 million. Commission has launched a survey targeting all organizations working in The first part of the recommendations is related to cultural and creative sectors in order to new business models. We are now living in a have a clear idea of their needs and base transitional phase where we see new services based next policy steps on concrete data. on access not ownership. Remuneration for the rightholders is shifting towards licensing agreements. We encourage FERA members to circulate But Vitorino does not believe that any of the currently this survey to all individual members, so proposed alternatives justifies the ”phasing-out” of that they can take part in it. hardware-based levies. The link between the private copy beneficiaries causing the ”harm” and those The survey is available in English, French liable for financing fair compensation ”should not be and German on the following website: severed”. www.eu-for-creativity.eu
The second part of the recommendation is focused on the levy systems themselves and is aimed at their harmonization with the Digital Single Market. The Mediator recommends that: Public Consultation on Enforcement - Levies be collected in the Member state where the final consumer lives in cases of cross-border transactions; The European Commission has launched - Levies be paid at the level of retailers, a public consultation in the form of an provided that manufacturers and importers online survey about the civil enforcement inform collecting societies about the of property rights (IPR). Both private and transactions of the goods subject to a levy; public stakeholder affected by IPR are - More emphasis be given to the operator asked to give information about the levies than on hardware-based levies in the efficiency of the proceedings concerning field of reprography; the enforcement of property rights through - Levies be made visible for the end-users; several means, such as contracts or - More coherence and transparency in the litigation. For those FERA members who process of setting levies must be ensured. wish to submit their views, the questionnaire is available in English, The complete text of the Vitorino recommendations French and German. Responses can be can be downloaded HERE sent in any of the 23 official languages of the EU by 30 March 2013. Read about FERAs view on private copying levies in the editorial “The Trillion Euro Question”. The survey can be found HERE
EDITORIAL
The Trillion Euro Question
In every copyright debate in The objective of the mediation European blank tape levies date Brussels, however fierce, there process was, according to the back to the 1960s and 70s. always seems to be a touching European Commission, ”to Germany was the first country to consensus that legislation needs to identify ways to tackle the also levy hardware in 1965. The be fair and balanced, and that discrepancies characterizing the INFOSOC Directive simply sought artists should be paid. But even this levy systems as set out at to harmonize the private copy basic principle is put to the test national level, as well as to exception with a condition that when push comes to shove. assess the functioning and the fair compensation must be paid. scope of the private copying in One of the most concrete examples today's fast evolving digital And why is that? is the ongoing battle over private environment. The results of the copying levies, which includes mediation will be used to make The advent of private copying several cases pending before the recommendations for legislative technology also established a European Court of Justice, as well action at EU level". new market for the exploitation as a possible review of the legal of copyrighted works. This framework itself. It was Directive 29/2001/EC on equipment is the factual copyright and related rights in the precondition for people to make Private copying levies are hugely information society (known in private copies. The main important to creators. In 2010 alone, Brussels lingo as simply beneficiaries of this market are the overall amount collected in the INFOSOC) that introduced the the manufacturers of recording EU was € 648 million. And this principle that EU Member States equipment and of blank media money helps fund future creative may authorize individuals to (although now in sharp decline). work - and pay the rent. make copies of copyrighted Hardware and storage media audio, visual and audio-visual levies give creators their fair The latest development on this works, for private use, without share of this market. issue came only a few weeks ago the need to request authorization when mediator António Vitorino And what a lucrative market it to right holders, subject to the finally submitted his general condition that right has turned out to be. These recommendations to Internal Market holders receive a “fair manufacturers can boast Commissioner Michel Barnier, after compensation” for such use of combined revenues of 1 trillion a six month delay. their works. euros.
EDITORIAL
The question thus arises: What In the state budget for 2013 the In one of his recommendations share is a fair compensation to government has allocated a mediator Vitorino believes that creators? Today it amounts to a compensation of € 5.84 mill. Only none of the currently proposed meagre 0.06 %. approx. 2,2 % of the actual value alternatives justifies the “phasing of the documented copying in 2010. out” of hardware-based levies. In a hearing at the European This represents 1,17 € per capita, Second, he argues that the link Parliament in June of last year - lousy compared to 2,99 € from between the private copying levy in the middle of the mediation levies in France. beneficiaries causing the “harm” process - Panasonic’s director for and those liable for financing fair European and International Affairs, Obviously the Norwegian solution compensation “should not be Chris Ffinch, explained that the is far from satisfactory, and should severed.” levy system is ”burdensome to not be an example to follow. Sadly business” and served up an à la Spain did just that in 2012, and the Judging by the relentless carte menu for alternative sources result is even worse: a dramatic campaigns to get rid of the levies for that fair compensation: drop from €115 mill. collected from now mounted by the Licensing, several publicly-funded ICT industries in 2011 to only € 5 manufacturers’ Brussels lobby, options such as state budgets, mill. allocated in the state budget Digital Europe, their honest broadcast fees, research and for 2012. If Spain was to have the answer to the question of how development (R&D) investment, same compensation as Norway in much of that trillion euro should dedicated lotteries, or even EU relation to the population (46 befall creators is: Not a cent. funding. Anyone but Panasonic - millions) the allocation should have a Fortune 500 company with a been approx. € 53,73 mil. And the If the European Commission global turnover of € 63 billion. sales price of devices that are no yields to their political pressure Now there’s an ”idea for life”*. longer levied have not gone down – the result would be that while not a cent. copying for personal use - legal Out of all of these sugggestions, and illegal - is on the rise, and which seem completely out of When the Netherlands considered corporate profits soar, creators touch with reality in these times of doing away with their levy system will lose out. financial crises, the most ill advised in 2011, Commissioner Barnier is to move this charge onto state stated that if a Member State These days being on the side of budgets. In the two countries that abolishes the private copying levy, ”disruptive” technologies makes a have done so, this has proved a alternatives to guarantee that politician the king of cool. This is very bad deal for creators. copyright holders receive a fair nothing new, of course. In 1927 compensation for their creative the historian Charles A. Beard My own country Norway, was the work should be developed. noted in “Time, Technology, and first to abandon blank tape levies the Creative Spirit in Political as of 1 December 2000. A two- The Dutch government has since Science”: pronged compensation scheme done a very laudable flip flop and was introduced: a collective fund even introduced new levies on "Technology marches in seven- of € 4,34 mill. to support new hard disks, smartphones, tablets league boots from one ruthless, projects selected by committees and MP3 players from 1 January revolutionary conquest to another, of peers, and an individual 2013. tearing down old factories and compensation based on industries, flinging up new statistically documented use. Hewlett-Packard, Acer, Dell and processes with terrifying rapidity." Imation have responded by suing Every month 2422 persons are the Dutch government, claiming But if, as we sincerely hope, the interviewed about their (legal and that in 2013 alone they will suffer Commission maintains that it is illegal) copying. The results are damages of "tens of millions”. only fair that sharp products also proportionally weighted against compensate sharp minds*, it the population (5 millions) and the So much for being in favour of fair would enable creators to carry out figures are representative for the remuneration for creators… what one of the other tech population above 15 years of age. The crooning speeches of the slogans suggests: Go create!* corporate suits who populate
The total commercial value of the Brussels’ conference rooms ring Elisabeth O. Sjaastad private copying for the year 2010 very hollow. was € 266 mill. Sharp’s slogan: ”Sharp minds, Sharp products” Panasonic’s slogan: ”Ideas for life” Sony’s slogan: ”Go create” ALAN PARKER CARTOON
”…and the award for the Best Speech which didn’t mention their kids at home, agents, lovers, mothers, God and Harvey Weinstein goes to...”
AGENDA
18 March FERA President European Audiovisual Observatory Sir Alan Parker
Workshop on Promotion of European Works FERA Creative Council in Amsterdam Marco Bellocchio Claire Denis Agnieszka Holland 27 March Neil Jordan IP Forum István Szabó MEP Marielle Gallo holds meeting about CMO Directive FERA Executive Committee Chairman & Vice President Piers Haggard (UK)
Vice Presidents Gabriel Baur (Switzerland) FERA welcomes SACD Maurizio Sciarra (Italy) as new associate member Honorary Treasurer Håkan Bjerking (Sweden) According to FERAs statutes associate membership may
be conferred on organisations who in the view of FERA André F. Nebe (Germany) support its aims and actions. SACD has been a long Christophe Andrei (France) standing partner of FERA, providing both human and Gytis Luksas (Lithuania) financial resources for a number of years. The General Staff Assembly will formally ratify new members in September. Elisabeth O. Sjaastad (CEO) Mar Bordanova (Office Manager)
This work programme has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.