Animation Contract Guidelines Introduction Now that the 2006-2008 ...

1Animation Contract GuidelinesIntroductionNow that the 2006-2008 Independent Production Agreement (“IPA”) is in place, theWGC is offering the following guidelines to animation writers and their agents toassist them with negotiating their contracts. These contract guidelines are theresult of extensive statistical gathering and analysis of hundreds of WGCAnimation contracts from 2006, and consultation with eperienced WGC staffwho deal with animation contract issues.In the IPA Animation Section, the writer and producer negotiate the applicable fee foreach script. Since writers and agents frequently ask for some assistance indetermining the appropriate fees, until such time as minimum fees for animation areagreed on in future collective bargaining, the following will serve as the Guild’sguidelines for individual negotiations.If all writers begin negotiating to these rates (or better!) as a minimum standard, it willreduce the current very wide spread in animation script fees. It means more writerswill be making similar amounts for the same work (i.e. a half-hour script) and will helpthe WGC to argue for minimums when we bargain the next IPA. We will be able tosay, “These are the rates that Animation writers are consistently working for and thatproducers are already paying. There’s no reason not to enshrine them in theagreement.”Apart from rates, there are other items in the Animation Section that require your oryour agent’s attention. They will also be addressed below and are just as importantboth to you and the way you work, and to all Animation writers collectively, when theWGC can go to the bargaining table and say “these are the terms writers are workingfor, and the animation producers consistently agree to them.”Should you or your agent wish to depart significantly from the guidelines pleaseconsult with the Guild.1. Rates – Payment for delivery of material plus usea) ScriptsThe following are suggested rates for scripts of different standard lengths, based onstatistical data gathered by WGC staff from all animation contracts issued under theA Member of the International Affiliation of Writers Guilds366 Adelaide Street WestSuite 401Toronto, Ontario M5V 1R9Tel 416 979-79071-800-567-9974Fax 416 979-9273info@wgc.cawww.wgc.ca

2IPA in 2006. This is considered a fee for all use, unless you negotiate differently inyour own contract.ScriptLength30 minutes 15 minutes 10 minutes Special (45to 60 mins)Feature (75mins +)median $7,500 $3,750 $3,000 $25,000 $55,230high $56,000 $8,500 $3,750 $31,000 $70,000b) BiblesBible (30 min)median $5,000high $6,500In negotiating your bible contract (or script contract, though this is less common),don’t forget to think about these other items, even if the bible contract doesn’t fallunder the IPA:i) guaranteed engagement as showrunner or in the story department, and aguaranteed number of episodes to writeii) if you are creating the characters rather than developing a show from an existingbook, toy, or other property, a consideration for the merchandising based on thosecharacters.iii) a merchandising royalty if you’re contributing original elements to a show basedon an existing property (i.e. storybooks based on your scripts)iv) a series or character royalty payable to you for every produced episode of theseries based on your bible or characters (this is often a flat amount, rather than apercentage of revenues). Even a royalty of $1,000 an episode can really add up overthe life of a series.v) A format royalty if the format of your show is used to create another show specificto another country, but in the model of your show.vi) your entitlement to a “Created by” or “Developed for television by” credit on everyepisode2. Writing CreditsAll of the credit terms and forms of credit used in the live-action IPA (i.e. Written by orStory by combined with Teleplay by, etc.) now also apply in the Animation Section.Advise the WGC promptly if you encounter any variation from these regulated credits.A Member of the International Affiliation of Writers Guilds366 Adelaide Street WestSuite 401Toronto, Ontario M5V 1R9Tel 416 979-79071-800-567-9974Fax 416 979-9273info@wgc.cawww.wgc.ca

33. Animation CopyrightOne of the major gains in the 2003-2005 CFTPA and APFTQ IPAs was the retentionof copyright in the Animation Script. Previously, in the 2000-2002 IPA (the first tocover animation) the Animation writer gave up copyright in their script material to theProducer, but that is no longer the case.The producer does not need copyright in the script to make and market theproduction. It’s important for you to keep copyright because many secondary usemonies require the writer keeping copyright in their script in order to get thesemonies. The parties at the bargaining table agreed to the writer’s retention ofcopyright in the Animation Section in Article 801. Article 801 in the IPA reads:801 “The Producer acknowledges that the Animation Writer is the owner of copyrightin the Script Material.”That is a minimum term of the agreement, and like any minimum term, cannot bewaived. (See Article 108 of the Animation Section.)Even under the new IPA, however, you may still see a draft contract with thecopyright in the script being assigned to the producer. This may be due to productioncompanies continuing to use their old contract templates, for whatever reason. Donot sign any animation contracts with an assignment of copyright. It is, ineffect, signing for less than a minimum term (a violation of WGC working rules on themember’s part), and the WGC then has to attempt to get the producer to amend thecontract. This is much more difficult to pursue after the fact than if the clause werenot in the contract in the first place. It is also important for the collection ofsecondary use monies that the copyright be retained in the contract, rather thanrelying on “the IPA will override it” if the producer does not comply with amending thecontract.Article 803 in the Animation SectionArticle 803 of the Animation Section reads:803 “Nothing in this Section limits the Animation Writer and Producer fromnegotiating alternative division of rights with respect to copyright in the Script Materialto that described in 802 above.”Some producers have attempted to use Article 803 to take back the copyright thathas been retained by the writer in Article 801. However, Article 803 does not modifyA Member of the International Affiliation of Writers Guilds366 Adelaide Street WestSuite 401Toronto, Ontario M5V 1R9Tel 416 979-79071-800-567-9974Fax 416 979-9273info@wgc.cawww.wgc.ca

4Article 801 in which the writer keeps copyright, only Article 802. Article 802 is theclause that speaks to the licensing (not an assignment) of copyright to the producer.Therefore, Article 803 can only be used for an alternative division of licensing ofcopyright, not ownership of copyright. It may be used, for example, to reservecertain additional rights for the writer, rather than grant the broad range of rights thatare currently licensed in 802. Such an alternative division of rights would constitutemore favorable terms for the writer than the minimum terms, and is allowed under theIPA. Watch all draft contracts for the use of Article 803 to take the copyright in thescript for the producer, and do not sign contracts with these terms. Most producersare not attempting this, however the odd producer still might.In the IPA, the copyright provisions of the Animation Section are reinforced by Article807 which speaks to Secondary Use Payments, and ends with:“…and the Animation Writer shall retain copyright in the Script Material for suchpurpose.”The Canadian Screenwriters Collection Society (CSCS) collects secondary usemonies on behalf of screenwriters and we encourage all WGC members to join CSCSin order to receive any monies due to them. There is more information on CSCS atthis link: http://www.wgc.ca/cscs/home.html.4. Story EditingThe vast majority of Animation Story Editing contracts provide fees per episode. Thisis not as much the case in live-action, where Story Editing contracts are morefrequently for fees paid per week or day. Fees by the episode mean that the StoryEditor could spend weeks rewriting one episode (with endless notes constantlycoming in from multiple co-producers or broadcasters, since animation is frequentlyinternationally co-produced and pre-licensed to many outlets). And for all this work,the Story Editor receives the one per-episode story editing fee, instead of additionalfees for the additional weeks you have to work on the script. This practice harksback to the days of “payment on acceptance” thinking, before Animation came underthe IPA.Seriously consider negotiating your Story Editing contracts with a time-based fee(weekly, or even daily, if it’s a short tem gig) rather than an episode-based one.A Member of the International Affiliation of Writers Guilds366 Adelaide Street WestSuite 401Toronto, Ontario M5V 1R9Tel 416 979-79071-800-567-9974Fax 416 979-9273info@wgc.cawww.wgc.ca

55. Digital Content (webisodes, mobisodes, etc.)Additional script material you write for the internet or cellphones, or other digital useshould be covered by an additional contract. Fees in this area remain negotiable.Consider negotiating a first right to be engaged for such additional material.Animated digital content defaults to the Animation Section, as opposed to Section F –Digital Production. The Digital Guidelines developed by the WGC can still be used asa guide to negotiating rates for this work, even though it may be animated. Contactthe WGC if you haven’t received a copy, or find them athttp://www.wgc.ca/members_only/bulletins/digitalwriting.html.7. Signatory StatusRemember that production companies become signatory to the IPA on a per-projectbasis. Check with the WGC office before you sign your contract to make sure thatthe producer has signed on for your show. Otherwise, you may be signing a nonunioncontract, which is a violation of your WGC membership.8. Non-membersAgents representing animation writers are reminded that non-members hired by asignatory producer also fall under the IPA now, along with members.As always, if you have any questions, please don’t hesitate to contact the appropriateagreement administrator, or Laurie Channer, or Christine Rutherford at the WGC.Writers Guild of Canada366 Adelaide St. West, Suite 401Toronto, ON M5V 1R9Canada1-800-567-9974 or (416) 979-7907www.wgc.caA Member of the International Affiliation of Writers Guilds366 Adelaide Street WestSuite 401Toronto, Ontario M5V 1R9Tel 416 979-79071-800-567-9974Fax 416 979-9273info@wgc.cawww.wgc.ca