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Northern Alliance - BFI

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Appendix XVI Business affairs<br />

Short film contracts, terms and conditions, accounts, recoupment and reporting<br />

Key issues<br />

Reporting on money made from sales of short films is inefficient; policing<br />

and reporting costs too much time and money when returns are so<br />

minimal;<br />

Contracting is too inflexible, and the area of business affairs requires more<br />

funding to ensure more appropriate deals.<br />

Background and questions arising<br />

The UK Film Council issues contracts for individual short films, their terms and<br />

conditions, reporting obligations and recoupment and accounting procedures,<br />

are currently in the same style as contracts for full feature films:<br />

Table 18: A comparison of short film schemes‟ current contracts<br />

Scheme<br />

Cinema<br />

Extreme<br />

Completion<br />

Fund<br />

Digital<br />

Shorts/Digital<br />

Nation<br />

Commission Expenses<br />

Up to 35% The lower of<br />

£200 p.a. or<br />

15% of sales<br />

Reasonable Annual<br />

reporting for<br />

five years<br />

Up to 20%<br />

(available to<br />

filmmakers,<br />

strategic<br />

partner‟s<br />

decision)<br />

Accounting and<br />

reporting<br />

Separate trust<br />

account, annual<br />

reporting (£6m<br />

for two years)<br />

Net of<br />

commission and<br />

expenses, 50%<br />

to UKFC until<br />

recouped, then<br />

100% to<br />

producer<br />

Reasonable Strategic<br />

partner to act as<br />

collection agent,<br />

annual<br />

reporting<br />

Recoupment<br />

Net of commission<br />

and expenses,<br />

100% to UKFC &<br />

C4 until 50%<br />

recoupment, 50%<br />

thereafter<br />

Net of commission<br />

and expenses,<br />

100% to UKFC and<br />

strategic partner<br />

until 50%<br />

recoupment, 50%<br />

thereafter<br />

Page 95

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