VIDEO, CABLE RIGHTS AFTER SIX MONTHS

Sat rights can now be sold after a year
By Our Correspondent
In view of the latest advancements in technology and the growing menace of video and cable piracy, Hindi film producers have signed an historic agreement with the distributors representing the Central Circuit Cine Association (CCCA), whereby producers are allowed to sell satellite rights of their films one year after the theatrical release.

Hitherto, producers were bound by an earlier agreement preventing them from parting with the satellite rights for five years after from the theatrical release. As many as 40 producers had flouted the agreement in recent times, even though they were forced to pay Rs 2.5 lakh as fines to the CCCA. A joint committee comprising five members each from the All India Film Producers Council (AIFPC) and the CCCA will be set up immediately to ensure the implementation of the agreement and settle disputes between the producers and distributors.

The agreement was signed on June 19 in Mumbai. President Santosh Singh Jain and vice president Vijay Rathi and other committee members on behalf of the CCCA, AIFPC president Pahlaj Nihalani, Film Producers Guild’s president Surinder Kapoor, Indian Motion Picture Producers Association’s president Shakti Samanta, Western India Film Producers Association’s vice president Sangram Shirke, and producers Yash Johar, Rakesh Roshan, Ganesh Jain, Ramesh Taurani, Amit Khanna, Gordhan Tanwani and Vikas Mohan participated in the discussions.

If the minimum guarantee (MG) amount exceeds Rs 25 lakh, no producer is allowed to sell video or cable rights for six months after the date of theatrical release. If a producer flouts the agreement, he will be have to part with 50 per cent of the income from the satellite or any other rights sold, which will be divided among the distributors circuitwise all over India.
In case of an agreement other than the MG royalty or if the producer decides to release the film himself, he shall be free to dispose of all the rights.

Pahlaj Nihalani hailed the unity among the distributors as historic and felt that there will exist a cordial relationship between the producers and distributors thanks to the CCCA’s agreeing to refurbish all previous arrangements.

Asked whether distributors of other circuits who form the constituents of the Film Distributors Council would also agree to such an arrangement, Pahlaj Nihalani said that the unity between the production, distribution and exhibition sectors was the paramount need of the hour, when issues such as the dwindling returns, rampant video piracy and DVD piracy have hit the industry.

The CCCA chief, Santosh Singh Jain, the man behind the unity move said that the distributors of his association felt the time had come to mend fences with producers to solve the differences between them on the sales of satellite rights. He said he was happy that an amicable settlement had been reached between the producers and distributors which will pave the way for distributors of other circuits to follow.