BBC, Pact ink ‘historical’ rights deal

After months, nay years, of wrangling and rows over rights, the BBC and the independent producers body Pact have finally shaken hands on new terms of trade for indie productions.

Today’s deal “represents an historic transfer of value to independents and very much underlines the BBC’s commitment to fostering a robust and successful independent sector,” said BBC director of TV, Jana Bennett. “We want to foster a more creative and open relationship with independent producers: we believe the new terms of trade will support this.”

Pact chairman and ceo of Tiger Aspect Productions, Andrew Zein, added: “Ownership and control of rights now reside with those who create programmes – no-one can argue that can’t be anything but a good and fair thing. Most importantly, viewers will benefit from a strong independent sector able to better invest and plan on the basis of improved returns for programming success.”

Key points in the terms of trade agreement, backdated to cover all indie-supplied shows since 6 January 2004 and based on the BBC’s new Ofcom-approved codes of practice, include:

– Independents will own all rights (including copyright) in the programmes they produce, with the BBC taking a five-year licence to air the show across its portfolio of channels. The initial commission also includes ‘public service new media rights’.

– The BBC can extend its licence once for a period of two years and extend on a rolling two-year basis for returning series while it continues to re-commission the programme.

– The BBC will pay indies repeat fees during the licence period not covered by the initial licence fee. Independent producers of regional programmes transmitted on network will now receive an enhanced payment.

– Independents will control all distribution, including international rights, format rights, commercial new media rights, videos and DVD rights and merchandising, “subject to certain protections required to protect the BBC’s licence”.

– The BBC will be entitled to a share in net profit from the exploitation of all rights in the programming.

The agreement is the culmination of a long campaign by Pact to get indies’ rights recognized by the UK’s single biggest commissioner of TV programmes. Getting the 25% indie quota was certainly a milestone in this effort, but the BBC recently missed this figure for three years running, costing the indie sector an estimated £77m in lost commissions last year, according to Pact figures.

Since the Communications Act became law, Pact chief exec John McVay has appealed to Ofcom to intervene in the BBC terms of trade talks, citing “fundamental problems” in the BBC’s approach to the agreement. McVay even claimed that the BBC employed a 1000 business affairs execs whose job it was to “work out ways to shaft us”.

However, since installing its new chairman Michael Grade and director-general Mark Thompson, the BBC’s attitude to indies has improved, according to the Pact man. The new terms of trade between broadcasters and indie producers is a requirement of the new Communications Act, which enshrined indies rights to the shows they produce.

Ofcom initially called for the new terms of trade to be wrapped up by April, which passed without a single network doing so. Channel 4 and now the BBC have made agreements with Pact and Five is expected to follow suit in the next few weeks.

However, Pact and ITV have had something of a falling out over the terms of trade issue, with McVay claiming at a press lunch last week that the network is suffering from “post-merger confusion”, with talks going nowhere. ITV execs have denied this, putting the delay down to “outstanding issues” with Pact.