Best Practices re Regulatory Regimes and Incentives to Develop the Audiovisual Sector in the Caribbean Draft Report on World Best Practices in Legislation, Regulatory Regimes and Incentives Juillet 2009 Best Practices re Regulatory Regimes and Incentives to Develop the Audiovisual Sector in the Caribbean Contrat Nr: 042/2009/WP2/ Project no 28.1-1.048 Cariforum Region By : Yvon Thiec Fernando Labrada Submitted by Altair Asesores S.L. Les opinions exprimées dans ce rapport n’engagent que les auteurs et ne reflètent pas nécessairement celles de la Commission Européenne / The Views expressed in this report do not necessarily reflect the views of the European Commission TABLE OF CONTENTS Executive Summary ........................................................................... 3 I. Foreword ..................................................................................... 7 II. Introduction: Audiovisual regulation for cinema and television programs ........................................................................................ 11 III. The origin of audiovisual regulation ............................................ 13 IV. Quota requirements ................................................................. 15 1. Quota Requirements for theatrical exhibition ............................ 15 1.1. International rules related to quota requirements for theatrical exhibition .................................................................................. 15 1.2. Application of quota requirements for theatrical exhibitions in Western and Southern countries ................................................... 15 2. Quota Requirements for Broadcasting ...................................... 18 3. Financial Interest, Syndication rules and Prime Time Access Rule 20 4. Conclusions .......................................................................... 22 5. Recommendations................................................................. 23 V. Investment in audiovisual and film production by broadcasters ..... 23 1. Background .......................................................................... 23 2. Legal sources and instruments for investment by broadcasters in content programs .......................................................................... 23 2.1. Laws .............................................................................. 24 2.2. Licensing ........................................................................ 24 2.3. Other systems ................................................................ 24 2.4. Voluntary commitments ................................................... 25 2.5. Forms of investment ........................................................ 25 2.6. Importance of film funding bodies in the implementation of such obligations ......................................................................... 26 2.7. Impact of broadcasting investment in film production .......... 26 2.8. Compliance with EU regulations ........................................ 26 3. Specific examples of legal obligations to invest in production ...... 27 3.1. France ........................................................................... 27 3.2. United Kingdom .............................................................. 28 3.3. Ireland ........................................................................... 31 3.4. Poland ........................................................................... 32 3.5. Hungary ......................................................................... 33 4. Conclusions .......................................................................... 33 5. Recommendations................................................................. 34 VI. Incentives ............................................................................... 35 1. Background .......................................................................... 35 2. Case studies ......................................................................... 35 2.1. Belgium ............................................................................ 35 2.2. France .............................................................................. 36 .2.2.1. SOFICAs......................................................................... 37 .2.2.2. Tax Credits for French Film Production ............................... 37 .2.2.3. Tax Credits for Foreign Productions ................................... 38 2.3. Luxembourg ...................................................................... 38 2.4. Ireland.............................................................................. 40 2.5. Hungary ............................................................................ 40 2.6. Germany ........................................................................... 41 2.7. United Kingdom ................................................................. 42 2.8. Puerto Rico ........................................................................ 42 3. Conclusion ........................................................................... 43 4. Recommendations................................................................. 43 VII. Co-Productions ........................................................................ 44 1. Background .......................................................................... 44 2. Legal aspects of film co-production ......................................... 46 2.1. Introduction .................................................................... 46 2.2. International co-production .............................................. 47 2.3. International co-production agreements ............................. 47 3. Co-production in the framework of EU law ............................... 47 4. Co-production under the Protocol on Cultural Cooperation EU- CARIFORUM (PCC) ........................................................................ 48 5. Implementation of bilateral co-production agreements .............. 52 6. Conclusion ........................................................................... 55 7. Recommendations................................................................. 56 VIII. The southern experience in film and audiovisual development .... 57 1. Latin America ....................................................................... 58 1.1. Venezuela ......................................................................... 58 .1.1.1. Legal framework ........................................................... 58 .1.1.2. Market development ..................................................... 59 1.2. Mexico .............................................................................. 59 .1.2.1. Legal framework ........................................................... 59 .1.2.2. Market development ..................................................... 60 .1.2.3. Online development ...................................................... 60 1.3. Argentina .......................................................................... 61 .1.3.1. Legal framework ........................................................... 61 .1.3.2. Market development ..................................................... 62 .1.3.3. Online development ...................................................... 62 1.4. Colombia........................................................................... 62 .1.4.1. Legal framework ............................................................. 62 .1.4.2. Market development ..................................................... 63 .1.4.3. Online development ...................................................... 64 1.5. Chile ................................................................................. 65 .1.5.1. Legal framework ........................................................... 65 1.6. Brazil ................................................................................ 65 .1.6.1. Legal framework ........................................................... 65 .1.6.2. Market development ..................................................... 67 2. Asia (India) .......................................................................... 67 2.1. Broadcasting sector: from public monopoly to 350 channels .... 68 2.2. Production ......................................................................... 68 2.3. Distribution and exhibition ................................................... 69 3. Africa .................................................................................. 70 3.1. South Africa ...................................................................... 70 .3.1.1. Incentives and support .................................................. 71 .3.1.2. The South African broadcasting sector ............................. 72 3.2. Nigeria .............................................................................. 73 .3.2.1. Film industry .................................................................. 73 .3.2.2. Broadcasting ................................................................ 74 3.3. Morocco ............................................................................ 75 .3.3.1. International production shooting location / Tax incentives 75 .3.3.2. Support Fund for national film production ........................ 76 .3.3.3. National film production stability .................................... 76 .3.3.4. Broadcasting companies’ obligations to invest in national audiovisual production ...............................................................