BBC STORE CLEARANCE MANUAL FOR INDEPENDENT

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BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS1.IntroductionThe information contained in this document covers programming commissioned fromindependent production companies for the BBC.BBC Store rights in each underlying contributor area need to be granted and clearedin accordance with the detail in this document.The new Terms of Trade framework and standard contract documents provide for the grant ofrights for BBC Store from independent producers to BBC Store Limited at the point ofcommission, 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 exploitationthrough BBC Store; it does not allow the BBC to exploit or wholesale those rights through anyother 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 producersby BBC Store in order for payments to be accurately administered. The BBC (via BBC WorldwideTalent Accounting) can only guarantee to make timely and accurate payments to contributors asprovided for in this document as long as complete and accurate information is delivered to theBBC Worldwide Rights management team in a standard template that will be supplied.2.Clearance of BBC Store RightsThe 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 rightsare to be cleared to enable programming to be available in the BBC Store at the same time asthey are available in the BBC iPlayer, soon after broadcast.Distribution investment by BBC Worldwide or a third party distributorClearances: Those programmes with investment from BBC Worldwide or a third party for DVDand DPO/DTO rights as part of the package should proceed as ‘business as usual’ and followall the established processes associated with ensuring the underlying rights are cleared forexploitation. In these underlying arrangements, rights for BBC Store will be covered as a subsetof the wider clearances and no further action in relation to the underlying clearances should beneeded. 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 BBCStore Rights which are retained for the purposes of the independent producers’ agreement withthe BBC.3.BBC STORE – Editorial, Legal and Compliance risksIf you foresee any editorial, legal or compliance risks in your Programme being included in BBCStore, please flag this as soon as possible in your commissioning negotiations with your BusinessAffairs Manager. Any necessary limitations as a result of legal, editorial, or compliance issueswill need to be reflected in your agreement with BBC Store (if necessary by way of amendmentprior to programme delivery). Note: any use of content under any of the fair dealing exceptions,BBC Store Clearance Manual for Independent Producers [January 2016]Page 1

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERSother than the fair dealing exception for reporting current events, would not prevent theprogramme being sold via Store. It remains your responsibility to ensure the use comes withinthe exceptions.4.(i) BBC Store Rights DefinitionsThe ‘BBC Store’ and ‘BBC Store Rights’ definitions should only be used in underlyingarrangements where existing definitions (e.g. wider definitions of digital rights) arenot already in place. Most of the contributor agreements in use have appropriatedefinitions already and these should not be superseded by these definitions as thiscould result in a diminution of the overall rights position.If you are unsure please consult your BBC Business Affairs Manager in the firstinstance.The following definitions should be used whenever specific BBC Store definitions are required. Itis 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 anysuccessor entity)]“BBC Store Rights” means the [non-exclusive] right for the BBC (which, for the purpose of thisdefinition, means the BBC and/or any entity within the group of companies of which the BBC isthe ultimate owner) to exploit [the content/contribution/Programme] by way of Digital[Permanent] Ownership on BBC Store and to use extracts from [thecontent/contribution/Programme] to promote BBC Store and/or the availability of the [thecontent/contribution/Programme] on BBC Store.“Digital [Permanent] Ownership [(DPO)]” means the license of an electronic, non-tangiblecopy of [the content/contribution/Programme] which may be made available for repeated privateviewing by an authorised user over an indefinite period of time in accordance with the relevantuser permissions.Note: These words – to be used where it would benefit the contextAny proposal to specify limitations on duration or territory in underlying agreements must beflagged as soon as possible in your commissioning negotiations with your BBC Business Affairscontact and these will need to be reflected in your agreement with BBC Store (if necessary byway of amendment prior to programme delivery).BBC Store Clearance Manual for Independent Producers [January 2016]Page 2

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS4.(ii) CONTRIBUTOR RIGHTS FRAMEWORKS – REQUIRED APPROACHWhere the relevant DPO rights are not covered upfront in the commission viainvestment deals the underlying contributor rights should be cleared as follows:BLANKET & COLLECTIVE ARRANGEMENTSContributor GroupRightsActionDirectors UKDirectorsCovered under blanket D UK licenceNo action required by independent producerother than to observe the usual reportingrequirements.MCPS/ PRS - MechanicalCopyright Protection Society/Performing Rights SocietyMechanicalreproduction(‘notes on thepage’) &performance rights- Use of musiccompositions & songlyricsCollective licence held by BBC Worldwide.No action required by independent producerother 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 usedin BBC contentCorrect use of the Indie Fastclear loginUsername: fastclearPassword: iwantmusicPPL - PhonographicPerformance LimitedUse of recordedmusicwill grant rights for BBC Store (includingprevention from clearing excluded artists/musiccategories)Collective licence held by BBC Worldwide. Noaction required by independent producer otherthan to observe the usual restrictions, reportingand clearance requirements.PLEASE NOTE that recordings by the Beatles, JohnLennon, The Doors, Bonnie Raitt, Journey, & NeilYoung, & Original Film Soundtracks cannot becleared for BBC StoreCorrect use of the Indie Fastclear loginUsername: fastclearPassword: iwantmusicwill grant rights for BBC Store (includingprevention from clearing excluded artists/musiccategories)BBC Store Clearance Manual for Independent Producers [January 2016]Page 3

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERSFilm Clips; Film Libraries:Film clipsITNAssociated Press*PATHEBFIImperial WarMuseum* Getty Images* Studio Canal* BBC Archive footagedistributed by MotionGallery included in aBBC-commissionedprogramme understandardarrangements isavailable for BBCStore. Inclusion of footage from these libraries inIndependent Productions for the BBC is coveredby the BBC’s blanket arrangements negotiatedfor BBC Store (in perpetuity) with each of thelibraries.No further action is required by independentproducers for BBC Store except for a smallrange of material from the Associated Press,Getty, IWM and Studio Canal archives asdetailed below where some archive materialfalls outside the remit of the blanket agreementand clearances need to be sought*. There areno reporting requirements for BBC Store otherthan the usual PasC requirements (independentproducers may see a cost recovery against theblanket in the distribution statement from BBCStore provided the mechanism has beenapproved by the BBC Store Advisory group).*Exceptions to use of all material in thearchive:1. Associated Press:All material except : ABC News, NineNetwork Australia, RTL Germany, Calyx TV,Democratic Voice of Burma, KRT NorthKorea, N-TV Germany, Tech TV, TVNPoland, WWF (NB: this excluded material isavailable from AP at preferential rates)2. Getty Images:All material except : iStock which isroyalty free anyway and production paydownload fee only3. Imperial War Museum:All material except : third party materialidentified as “NON-IWM” on the IWMcatalogue or as notified by an IWM curator.4. Studio Canal:All material in the Pinewood Archive can beused under the blanket agreement.For use of footage fromall other film librariesplease see ‘Individualnegotiation’ box belowNB:(i) Underlying rights costs may still be payableupfront for Store on some clips from theselibraries; please discuss with your BAM beforeany costs are incurred.(ii) All BBC Public Service rights and othercommercial exploitation rights need to benegotiated with the relevant film archive(business as usual).Music Performance-BBC SingersBBC Concert OrchestraBBC National Orchestraof WalesBBC PerformingGroupsNo additional action required by independentproducers for BBC StoreBBC Store Clearance Manual for Independent Producers [January 2016]Page 4

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERS-BBC PhilharmonicOrchestraBBC Scottish SymphonyOrchestraBBC Symphony OrchestraROYALTY PROVISIONSContributor GroupRightsActionWriters’ Guild/ PMAScript WritersWhere DPO/ DTO rights (excluding Store rights) havebeen acquired up-front against distributioninvestment from BBC Worldwide, the 5.6% royaltypayment* will be administered in line with theapplicable terms agreed with BBC Worldwide fortalent reporting.For other content, the responsibility for administeringBBC Store talent accounting will be agreed by theBBC and the Producer on a case by case basis andset out in the BBC Store Schedule (para 4.2).* the royalty will be applied to the producer’s grossreceipts in line with the terms of the Pact/WGGBagreement.EquityArtists inprogrammesexcluding thosedetailed belowWhere rights have not been pre-purchased,royalties are payable as stipulated in thePACT/Equity Television Agreement – Appendix TA– Clause 4 (Royalty). NB no change to thecontract is required unless the contract is varied inthe individual talent contract with the prior writtenapproval of BBC Store Ltd and/or the BBC, suchapproval not to be unreasonably withheld ordelayed.UPFRONT BUYOUTSContributor GroupRightsActionEquityDramatic Contributions toFactual ProgrammesTerms of the PACT/Equity TelevisionAgreement - Clause (T23) 17 can be appliedas applicable.EquityExtractsPACT/Equity Television Agreement - Clause(T24) (Use of Extracts – Additional Rightsand Use) to be used to acquire all sales.(N.B. where consent is required it must besought from the artist for use of the extractat the point of incorporating the extract inthe programme).PresentersOn-air presentersBBC Store rights to be included in upfrontengagement fees paid.(NB presenters usually contracted on AllRights agreements however in some cases itis recognised that bespoke key talent dealswill apply – details must be raised with yourBBC Store Clearance Manual for Independent Producers [January 2016]Page 5

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERSusual BBC Business Affairs Manager at theearliest opportunity and set out in the BBCStore Schedule, if necessary by way ofamendment prior to programme delivery).Musicians’ UnionSession Musicians:Where buyout payable:BBC Store rights covered by either:(i) when the ‘combined use’ buyout fee hasbeen applied, or(ii) 10% UK residual buyout payable byIndependent Producer in line with PACT/ MUAgreementNB: Royalty payments can be made forsecondary uses by the independent producer(except for repeats & commercial audio) as analternative to the Residual Buyout of 10%,particularly in the case of music programmingwhere residual costs are deemed prohibitivefollowing discussion with your BBC BusinessAffairs Manager. See below for details.But note that once the royalty is invoked for onetype of exploitation, you cannot later revert tothe buyout for other uses.Musicians’ UnionSession Musicians:Where royalty payable:Buyouts should be used where possiblefor BBC Store exploitation of MUcontributions in non-investedprogrammes.For invested titles either a royalty or a residualcan be chosen (but see caveat above):Music programmes:17/21% royalty on gross receipts payable on apro-rata basis based upon their Residual BasicFeeN.B. For exploitation on BBC Store, the MU hasagreed with the BBC thatgross income shall be defined as all nonphysical programme sales revenue received byBBC Store minus (a) sales tax (b) a 30%platform retention and (c) customer refundsNon-Music programmes:Home video 2005 onwards: 4% royalty ongross receipts payable on a pro-rata basisbased upon their Residual Basic FeeN.B. For exploitation on BBC Store, the MU hasagreed with the BBC thatgross income shall be defined as all nonphysical programme sales revenue received byBBC Store minus (a) sales tax (b) a 30%platform retention and (c) customer refundsRoyalties to be administered as follows:for BBC Worldwide invested content: inline with the applicable terms agreed fortalent reporting;for content invested by another 3rd partyBBC Store Clearance Manual for Independent Producers [January 2016]Page 6

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERSdistributor (or the Producer) theresponsibility for administration will beagreed by the BBC and the Producer on acase by case basis and set out in the BBCStore Schedule.Use of ‘still’ pictures/photographsTerms agreed with BAPLA(British Association ofPicture Libraries andAgencies) for all BBC andindependent producersfor worldwide DPOclearanceIf not already acquired under commercialrights purchased, ensure that DPO Rights areincluded at point of contract.New BBC/BAPLA-agreed terms (available toindependent producers commissioned byBBC) are:- Where all commercial rights required,pay 650% of current initial fee forcommercial buyout.Where DPO rights only are requiredapply 35% current initial fee for all DPOrights (not just BBC Store)ArtworksTerms agreed with DACS(Design and ArtistsCopyright Society) for allBBC and independentproducers for worldwideDPO clearanceIf not already acquired under commercialrights purchased, ensure that DPO Rights areincluded at point of contract.New BBC/DACS-agreed terms (available toindependent producers commissioned by BBC)are:- Where all commercial rights required, pay600% of current initial fee for commercialbuyout.- Where DPO rights only are required apply100% current initial fee for all DPO rights(not just BBC Store)INDIVIDUAL NEGOTIATIONWhere bespoke deals are negotiated with a contributor please ensure your BBC BAM is aware toensure contributors are paid accurately.Contributor GroupRightsActionFilm clips from librariesnot included in BBC blanketarrangements listed in‘Blanket and CollectiveArrangements’ sectionaboveFilm ClipsIf not already acquired under commercial rightspurchased, ensure that BBC Store Rights are included atpoint of contract within the fee paid.An ‘in perpetuity’ licence should be sought for BBCStore, but in the event that this licence period cannotbe achieved, the minimum period acceptable for BBCStore is 10 years, UK.Details of rights restrictions and/or limited licenceperiods must be raised with your usual BBC BusinessAffairs contact at the earliest opportunity and set outin the BBC Store Schedule (if necessary by way ofamendment prior to programme delivery) in orderthat this can be tracked.Talk to your usual BBC Business Affairs Manager forfurther advice.Programme clips fromother independentlyAs set out in page 4 above, by virtue of the blanketagreements listed, Independent ProducersBBC Store Clearance Manual for Independent Producers [January 2016]Page 7

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERSproduced BBCcommissionedprogrammesSource Works(books for adaptation)Source worksfor adaptationFormatsProgrammeformatsMusic Performance - Artistswith exclusive recordingcontractsArtistsperformance innon-musicprogrammeMusic Performance - Artistswith exclusive recordingcontractsArtists in MusicprogrammesMusic DocsMusicDocumentariesVPL(Video PerformanceLimited)Use of musicvideoscommissioned by the BBC benefit from the clearanceof BBC in-house and other archive clips for BBC Storefree of charge. Clips from BBC Independentprogrammes not covered by such blanketarrangements will require individual clearance for BBCStore. However, it is hoped that IndependentProducers will reflect the benefits afforded to them bythe blanket agreements and support the ambition ofBBC Store. This can be done by waiving commercialclearance payments for BBC Store in relation to clipsof their shows used in other BBC commissionedprogrammes, so that genres of programmes thathaven’t traditionally had a commercial route to marketcan be made available.No standard agreements are in place for the use ofsource material within independently producedprogrammes.Deals negotiated on a case by case basis – pleasediscuss with your usual BBC Business Affairs Managerbefore finalising terms for BBC Store.No standard agreements are in place for the use offormat material within independently producedprogrammes. Deals are negotiated on a case by casebasis – please discuss with your usual BBC BusinessAffairs contact before finalising terms for BBC Store.Independent may be able to benefit from existingBBC/ BBC Worldwide/ Label agreements, or fromBBC’s current discussions with music labels to agreeBBC Store terms for all new in house and independentprogrammes.Talk to your usual BBC Business Affairs Manager, orDaniel Miller, BBC Radio & Music Business Affairs (BBCext. 07317363, or mobile 07711348752) for furtheradvice.Independent may be able to benefit from existingBBC/ BBC Worldwide/ Label agreements, or fromBBC’s current discussions with music labels to agreeBBC Store terms for all new in house and independentprogrammes.Talk to your usual BBC Business AffairsManager, or Daniel Miller, BBC Radio & MusicBusiness Affairs (BBC ext. 07317363, or mobile07711348752) for further advice.Independent may be able to benefit from existingBBC/ BBC Worldwide/ Label agreements, or fromBBC’s current discussions with music labels to agreeBBC Store terms for all new in house and independentprogrammes.Talk to your usual BBC Business Affairs Manager, orDaniel Miller, BBC Radio & Music Business Affairs (BBCext. 07317363, or mobile 07711348752) for furtheradvice.Negotiated on individual basis with relevant 3rd party.(The BBC is currently discussing with VPL a possibleagreement. Details will be updated here if/ when thishappens)BBC Store Clearance Manual for Independent Producers [January 2016]Page 8

BBC STORE – CLEARANCE MANUAL FOR INDEPENDENT PRODUCERSContact Catherine Grimes in BBC Music Copyright foradvice.Sports ClipsOther(eg Non DACS / MUrepresented content etc)PLEASE NOTE that music videos by the Beatles,John Lennon, The Doors, Bonnie Raitt, Journey,& Neil Young & cannot be cleared for BBC StoreIndividual negotiation should seek to include BBCStore rights in the fee paid.Please discuss with your usual BBC Business AffairsManager before finalising terms for BBC Store, or forfurther advice.It is recognised that in some cases bespokearrangements will need to be agreed with contributorsby independent producers which fall outside thestandard approaches set out above.In these cases please discuss proposed arrangementswith your BAM before incurring any additional costs inrespect of BBC Store.BBC Store Clearance Manual for Independent Producers [January 2016]Page 9

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

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