BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS 1. Introduction The information contained in this document covers programming commissioned from independent production companies for the BBC. BBC Store rights in each underlying contributor area need to be granted and cleared in accordance with the detail in this document. The new Terms of Trade framework and standard contract documents provide for the grant of rights for BBC Store from independent producers to BBC Store Limited at the point of commission, in order to deliver the ambition of BBC Store. The current Terms of Trade framework was implemented from 7 July 2014. This grant of BBC Store rights is solely for the purposes of direct-to-consumer exploitation through BBC Store; it does not allow the BBC to exploit or wholesale those rights through any other retailer. It does not include any other programme rights, such as subscription, rental, secondary TV, DVD or ex-UK DPO/ DTO/ EST. As stated in this document, contributor deal information is needed from independent producers by BBC Store in order for payments to be accurately administered. The BBC (via BBC Worldwide Talent Accounting) can only guarantee to make timely and accurate payments to contributors as provided for in this document as long as complete and accurate information is delivered to the BBC Worldwide Rights management team in a standard template that will be supplied. 2. Clearance of BBC Store Rights The BBC Store will enable programmes to be available digitally via Digital Permanent Ownership (see 4(i) below). For all new independently produced programme commissions, contributor and underlying rights are to be cleared to enable programming to be available in the BBC Store at the same time as they are available in the BBC iPlayer, soon after broadcast. Distribution investment by BBC Worldwide or a third party distributor Clearances: Those programmes with investment from BBC Worldwide or a third party for DVD and DPO/DTO rights as part of the package should proceed as ‘business as usual’ and follow all the established processes associated with ensuring the underlying rights are cleared for exploitation. In these underlying arrangements, rights for BBC Store will be covered as a subset of the wider clearances and no further action in relation to the underlying clearances should be needed. Details regarding the payment mechanisms are set out in this document. Grant of rights to distributor: BBC Store rights will need to be retained by the independent nonexclusively, with the grant of rights to the distributor being expressed as subject to the BBC Store Rights which are retained for the purposes of the independent producers’ agreement with the BBC. 3. BBC STORE – Editorial, Legal and Compliance risks If you foresee any editorial, legal or compliance risks in your Programme being included in BBC Store, please flag this as soon as possible in your commissioning negotiations with your Business Affairs Manager. Any necessary limitations as a result of legal, editorial, or compliance issues will need to be reflected in your agreement with BBC Store (if necessary by way of amendment prior to programme delivery). Note: any use of content under any of the fair dealing exceptions, BBC Store Clearance Manual for Independent Producers [March 2015] Page 1 BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS other than the fair dealing exception for reporting current events, would not prevent the programme being sold via Store. It remains your responsibility to ensure the use comes within the exceptions. 4. (i) BBC Store Rights Definitions The ‘BBC Store’ and ‘BBC Store Rights’ definitions should only be used in underlying arrangements where existing definitions (e.g. wider definitions of digital rights) are not already in place. Most of the contributor agreements in use have appropriate definitions already and these should not be superseded by these definitions as this could result in a diminution of the overall rights position. If you are unsure please consult your BBC Business Affairs Manager in the first instance. The following definitions should be used whenever specific BBC Store definitions are required. It is important that there is consistency of use. BBC Store and BBC Store Rights definitions: “BBC Store” means the BBC’s digital retail platform [approved by the BBC Trust (or any successor entity)] “BBC Store Rights” means the [non-exclusive] right for the BBC (which, for the purpose of this definition, means the BBC and/or any entity within the group of companies of which the BBC is the ultimate owner) to exploit [the content/contribution/Programme] by way of Digital [Permanent] Ownership on BBC Store and to use extracts from [the content/contribution/Programme] to promote BBC Store and/or the availability of the [the content/contribution/Programme] on BBC Store. “Digital [Permanent] Ownership [(DPO)]” means the license of an electronic, non-tangible copy of [the content/contribution/Programme] which may be made available for repeated private viewing by an authorised user over an indefinite period of time in accordance with the relevant user permissions. Note: These words – to be used where it would benefit the context Any proposal to specify limitations on duration or territory in underlying agreements must be flagged as soon as possible in your commissioning negotiations with your BBC Business Affairs contact and these will need to be reflected in your agreement with BBC Store (if necessary by way of amendment prior to programme delivery). BBC Store Clearance Manual for Independent Producers [March 2015] Page 2 BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS 4. (ii) CONTRIBUTOR RIGHTS FRAMEWORKS – REQUIRED APPROACH Where the relevant DPO rights are not covered upfront in the commission via investment deals the underlying contributor rights should be cleared as follows: BLANKET & COLLECTIVE ARRANGEMENTS Contributor Group Rights Action Directors UK Directors Covered under blanket D UK licence No action required by independent producer other than to observe the usual reporting requirements. MCPS/ PRS - Mechanical Copyright Protection Society/ Performing Rights Society Mechanical reproduction (‘notes on the page’) & performance rights - Use of music compositions & song lyrics Collective licence held by BBC Worldwide. No action required by independent producer other than to observe the usual restrictions, reporting and clearance requirements. PLEASE NOTE that songs written by The Doors, Bonnie Raitt, Journey, & Neil Young cannot be used in BBC content Correct use of the Indie Fastclear system: https://ssl.bbc.co.uk/musicautoclearindies/login Username: fastclear Password: iwantmusic PPL - Phonographic Performance Limited Use of recorded music will grant rights for BBC Store (including prevention from clearing excluded artists/music categories) Collective licence held by BBC Worldwide. No action required by independent producer other than to observe the usual restrictions, reporting and clearance requirements. PLEASE NOTE that recordings by the Beatles, John Lennon, The Doors, Bonnie Raitt, Journey, & Neil Young, & Original Film Soundtracks cannot be cleared for BBC Store Correct use of the Indie Fastclear system: https://ssl.bbc.co.uk/musicautoclearindies/login Username: fastclear Password: iwantmusic will grant rights for BBC Store (including prevention from clearing excluded artists/music categories) BBC Store Clearance Manual for Independent Producers [March 2015] Page 3 BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS Film Clips; Film Libraries: Film clips ITN Associated Press PATHE BFI Imperial War Museum Getty Images BBC Archive footage distributed by Motion Gallery included in a BBC-commissioned programme under standard arrangements is available for BBC Store. No further action is required by independent producers for BBC Store, and there are no reporting requirements for BBC Store other than the usual PasC requirements (independent producers may see a cost recovery against the blanket in the distribution statement from BBC Store provided the mechanism has been approved by the BBC Store Advisory group). NB: (i) Underlying rights costs may still be payable upfront for Store on some clips from these libraries; please discuss with your BAM before any costs are incurred. For use of footage from all other film libraries please see ‘Individual negotiation’ box below Music Performance - BBC Singers BBC Concert Orchestra BBC National Orchestra of Wales BBC Philharmonic Orchestra BBC Scottish Symphony Orchestra BBC Symphony Orchestra Inclusion of footage from these libraries in Independent Productions for the BBC is covered by the BBC’s blanket arrangements negotiated for BBC Store (in perpetuity). (ii) All BBC Public Service rights and other commercial exploitation rights need to be negotiated with the relevant film archive (business as usual). BBC Performing Groups No additional action required by independent producers for BBC Store ROYALTY PROVISIONS Contributor Group Rights Action Writers’ Guild/ PMA Script Writers Where DPO/ DTO rights (excluding Store rights) have been acquired up-front against distribution investment from BBC Worldwide, the 5.6% royalty payment* will be administered in line with the applicable terms agreed with BBC Worldwide for talent reporting. For other content, the responsibility for administering BBC Store talent accounting will be agreed by the BBC and the Producer on a case by case basis and set out in the BBC Store Schedule (para 4.2). * the royalty will be applied to the producer’s gross receipts in line with the terms of the Pact/WGGB agreement. BBC Store Clearance Manual for Independent Producers [March 2015] Page 4 BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS Equity Artists in programmes excluding those detailed below Where rights have not been pre-purchased, royalties are payable as stipulated in the PACT/Equity Television Agreement – Appendix TA – Clause 4 (Royalty). NB no change to the contract is required unless the contract is varied in the individual talent contract with the prior written approval of BBC Store Ltd and/or the BBC, such approval not to be unreasonably withheld or delayed. UPFRONT BUYOUTS Contributor Group Rights Action Equity Dramatic Contributions to Factual Programmes Terms of the PACT/Equity Television Agreement - Clause (T23) 17 can be applied as applicable. Equity Extracts PACT/Equity Television Agreement - Clause (T24) (Use of Extracts – Additional Rights and Use) to be used to acquire all sales. (N.B. where consent is required it must be sought from the artist for use of the extract at the point of incorporating the extract in the programme). Presenters On-air presenters BBC Store rights to be included in upfront engagement fees paid. (NB presenters usually contracted on All Rights agreements however in some cases it is recognised that bespoke key talent deals will apply – details must be raised with your usual BBC Business Affairs Manager at the earliest opportunity and set out in the BBC Store Schedule, if necessary by way of amendment prior to programme delivery). Musicians’ Union Session Musicians: Where buyout payable: BBC Store rights covered by either: (i) when the ‘combined use’ buyout fee has been applied, or (ii) 10% UK residual buyout payable by Independent Producer in line with PACT/ MU Agreement NB: Royalty payments can be made for secondary uses by the independent producer (except for repeats & commercial audio) as an alternative to the Residual Buyout of 10%, particularly in the case of music programming where residual costs are deemed prohibitive following discussion with your BBC Business Affairs Manager. See below for details. But note that once the royalty is invoked for one type of exploitation, you cannot later revert to the buyout for other uses. BBC Store Clearance Manual for Independent Producers [March 2015] Page 5 BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS Musicians’ Union Session Musicians: Where royalty payable: Buyouts should be used where possible for BBC Store exploitation of MU contributions in non-invested programmes. For invested titles either a royalty or a residual can be chosen (but see caveat above): Music programmes: 17/21% royalty on gross receipts payable on a pro-rata basis based upon their Residual Basic Fee N.B. For exploitation on BBC Store, the MU has agreed with the BBC that gross income shall be defined as all nonphysical programme sales revenue received by BBC Store minus (a) sales tax (b) a 30% platform retention and (c) customer refunds Non-Music programmes: Home video 2005 onwards: 4% royalty on gross receipts payable on a pro-rata basis based upon their Residual Basic Fee N.B. For exploitation on BBC Store, the MU has agreed with the BBC that gross income shall be defined as all nonphysical programme sales revenue received by BBC Store minus (a) sales tax (b) a 30% platform retention and (c) customer refunds Royalties to be administered as follows: for BBC Worldwide invested content: in line with the applicable terms agreed for talent reporting; for content invested by another 3rd party distributor (or the Producer) the responsibility for administration will be agreed by the BBC and the Producer on a case by case basis and set out in the BBC Store Schedule. Use of ‘still’ pictures/ photographs Terms agreed with BAPLA (British Association of Picture Libraries and Agencies) for all BBC and independent producers for worldwide DPO clearance If not already acquired under commercial rights purchased, ensure that DPO Rights are included at point of contract. New BBC/BAPLA-agreed terms (available to independent producers commissioned by BBC) are: - Where all commercial rights required, pay 650% of current initial fee for commercial buyout. Where DPO rights only are required apply 35% current initial fee for all DPO rights (not just BBC Store) Artworks Terms agreed with DACS (Design and Artists Copyright Society) for all BBC and independent producers for worldwide DPO clearance If not already acquired under commercial rights purchased, ensure that DPO Rights are included at point of contract. New BBC/DACS-agreed terms (available to independent producers commissioned by BBC) are: BBC Store Clearance Manual for Independent Producers [March 2015] Page 6 BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS - - INDIVIDUAL NEGOTIATION Where all commercial rights required, pay 600% of current initial fee for commercial buyout. Where DPO rights only are required apply 100% current initial fee for all DPO rights (not just BBC Store) Where bespoke deals are negotiated with a contributor please ensure your BBC BAM is aware to ensure contributors are paid accurately. Contributor Group Rights Action Film clips from libraries not included in BBC blanket arrangements listed in ‘Blanket and Collective Arrangements’ section above Film Clips If not already acquired under commercial rights purchased, ensure that BBC Store Rights are included at point of contract within the fee paid. An ‘in perpetuity’ licence should be sought for BBC Store, but in the event that this licence period cannot be achieved, the minimum period acceptable for BBC Store is 10 years, UK. Details of rights restrictions and/or limited licence periods must be raised with your usual BBC Business Affairs contact at the earliest opportunity and set out in the BBC Store Schedule (if necessary by way of amendment prior to programme delivery) in order that this can be tracked. Talk to your usual BBC Business Affairs Manager for further advice. Programme clips from other independently produced BBC commissioned programmes Source Works (books for adaptation) Source works for adaptation Formats Programme formats As set out in page 4 above, by virtue of the blanket agreements listed, Independent Producers commissioned by the BBC benefit from the clearance of BBC in-house and other archive clips for BBC Store free of charge. Clips from BBC Independent programmes not covered by such blanket arrangements will require individual clearance for BBC Store. However, it is hoped that Independent Producers will reflect the benefits afforded to them by the blanket agreements and support the ambition of BBC Store. This can be done by waiving commercial clearance payments for BBC Store in relation to clips of their shows used in other BBC commissioned programmes, so that genres of programmes that haven’t traditionally had a commercial route to market can be made available. No standard agreements are in place for the use of source material within independently produced programmes. Deals negotiated on a case by case basis – please discuss with your usual BBC Business Affairs Manager before finalising terms for BBC Store. No standard agreements are in place for the use of format material within independently produced programmes. Deals are negotiated on a case by case basis – please discuss with your usual BBC Business Affairs contact before finalising terms for BBC Store. BBC Store Clearance Manual for Independent Producers [March 2015] Page 7 BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS Music Performance - Artists with exclusive recording contracts Artists performance in non-music programme Independent may be able to benefit from existing BBC/ BBC Worldwide/ Label agreements, or from BBC’s current discussions with music labels to agree BBC Store terms for all new in house and independent programmes. Talk to your usual BBC Business Affairs Manager, or Daniel Miller, BBC Radio & Music Business Affairs (BBC ext. 07317363, or mobile 07711348752) for further advice. Music Performance - Artists with exclusive recording contracts Artists in Music programmes Music Docs Music Documentaries Independent may be able to benefit from existing BBC/ BBC Worldwide/ Label agreements, or from BBC’s current discussions with music labels to agree BBC Store terms for all new in house and independent programmes.Talk to your usual BBC Business Affairs Manager, or Daniel Miller, BBC Radio & Music Business Affairs (BBC ext. 07317363, or mobile 07711348752) for further advice. Independent may be able to benefit from existing BBC/ BBC Worldwide/ Label agreements, or from BBC’s current discussions with music labels to agree BBC Store terms for all new in house and independent programmes. VPL (Video Performance Limited) Use of music videos Talk to your usual BBC Business Affairs Manager, or Daniel Miller, BBC Radio & Music Business Affairs (BBC ext. 07317363, or mobile 07711348752) for further advice. Negotiated on individual basis with relevant 3rd party. (The BBC is currently discussing with VPL a possible agreement. Details will be updated here if/ when this happens) Contact Catherine Grimes in BBC Music Copyright for advice. Sports Clips Other (eg Non DACS / MU represented content etc) PLEASE NOTE that music videos by the Beatles, John Lennon, The Doors, Bonnie Raitt, Journey, & Neil Young & cannot be cleared for BBC Store Individual negotiation should seek to include BBC Store rights in the fee paid. Please discuss with your usual BBC Business Affairs Manager before finalising terms for BBC Store, or for further advice. It is recognised that in some cases bespoke arrangements will need to be agreed with contributors by independent producers which fall outside the standard approaches set out above. In these cases please discuss proposed arrangements with your BAM before incurring any additional costs in respect of BBC Store. BBC Store Clearance Manual for Independent Producers [March 2015] Page 8