Preamble
Under the terms of the Directors’ Rights Agreement Producers will make a fixed sum, annual payment to the DPRS. This is to be used to compensate for rights that are assigned to producers under individual contract and will be distributed to individual directors according to a scheme devised and administered by the DPRS.

Producers will supply DPRS with information on which to base the Distribution Scheme. This will include details of all secondary exploitation of qualifying works.

Objectives of the Scheme
The DPRS is committed to devising a scheme that:

• is fair and fully reflects the commercial success of a work and the individual director’s creative input.
  
• is approved and endorsed by all interested parties including, but not limited to, agents and directors’ unions.
  
• compensates all directors for secondary uses of their work.
  
• can be adapted and amended to reflect changes in the way works are used and exploited.

Calculation of payments
Payment will take account of:

(a) the type of work (“A” )

(b) the length of the work (“B”)

(c) the nature of the secondary exploitation (“C”)
Points will be allocated for each element (A, B & C) as listed in Appendix 1.
Calculation of the amount due for each use of a work will be according to the following formula:

A x B x C x value per point.

The monetary value per point will vary from year to year and will be fixed annually on the basis of:

Amount available for distribution ÷ Total number of points allocated.

Qualification
Payments will apply to all Works for which the director is engaged under a freelance contract and the period of his/her engagement commences after 1st July 2001.

To receive a payment under the scheme the Director must be a member of the DPRS and have signed the DPRS Collection Agreement for Television Productions.

Directors not registered with the DPRS, or members who have not signed the DPRS Collection Agreement, will be given a period of six months after allocation of payments in which to complete the necessary document(s) to allow payment to be issued. Any payments not distributed within six months of allocation will be added to the amount available for distribution in the following year.
A list of directors eligible for payment but not registered with the Society will be distributed to all DPRS members receiving payment. It will also be made available to BECTU and DGGB for publication.

Interpretation
Distribution will be based on information supplied by producers.

In cases where two or more directors are listed as having directed a work payment due for that work will be divided equally between the directors concerned unless an individual director is able to supply written documentation confirming that he/she was engaged as the principal director.

Where no director is listed in information supplied by producers no payment will be due for the work unless a member is able to supply written documentation confirming that he/she was engaged as principal director of the work.

Deductions
All payments issued by the DPRS will be subject to deduction of a management charge levied by the Society. This will be fixed annually by the Board of Directors of the DPRS.

In addition the one-off registration fee will be deducted from a director’s first payment if not previously paid.

Deductions for VAT will be as advised by H M Customs & Excise.

Management of the Scheme
The Board of Directors of the DPRS will appoint a Management Committee to oversee the administration of the Scheme. This Committee will consist of not more than 15 members of the DPRS of whom not less than 5 will be members of the Board. Members will be appointed for an initial period of two years. The composition of the committee will, as far as possible, reflect the range of genres in which DPRS members work.

The Board of the DPRS will, in addition, appoint a member of the Board to co-ordinate the Committee and be responsible for reporting back to the Board.

The Management Committee will meet not less than two times per year and will be responsible for:

i. setting the timetable for distribution for the year

ii. fixing the value per point for the year

iii. reviewing the Distribution Scheme on an annual basis and making recommendation to the Board of the DPRS as deemed necessary
iv. dealing with all general matters relating to the distribution of the scheme.

v. Making recommendation to the Board in respect of any works, or secondary use of works, which fall outside the general categorisation used in Appendix I

Disputes
Any matter raised by a member of the Society concerning the Distribution Scheme will be referred by the Board of the DPRS to the Management Committee for comment and recommendation. If the matter cannot be resolved with the member concerned it will be referred to a Disputes Committee comprising of 4 members of the DPRS Advisory Council, one film or television director member of BECTU and one film or television director member of DGGB.

Any decision reached by the Disputes Committee will be final.

In the case of a dispute existing between two members of the DPRS they will, in the first instance, be advised to attempt to resolve the matter amicably themselves. The matter will only be referred to the Disputes Committee when it can be shown that this attempt at reconciliation has taken place and failed.

Notification Sheet
Under the terms of Clause 7 of the Collection Agreement for Television Production the DPRS member is required to complete a Notification Sheet for each qualifying work within 30 days of the completion of the work. The member may nominate, in writing, an agent to complete notification sheets on his or her behalf.

The DPRS cannot be held responsible for any failure to issue payment in respect of a work for which a Notification Sheet has not been received.

Issuing of payments
Payment for a work will be issued to the bank account detailed on the Notification Sheet for the work. Subsequent payments for the work will continue to be paid to that bank account unless written instruction to the contrary is received from the director concerned.

In the absence of a Notification Sheet for the work payment will be issued either by cheque or as per instruction for distribution of receipts from foreign collecting societies.

Indemnity
DPRS can not be held responsible for non-payment in respect of works not notified by either the member or the producer.

Modifications to the Scheme
The Management Committee will undertake an annual review of the Distribution Scheme. DPRS Members, BECTU, DGGB and PMA will be advised when this will take place and be invited to submit written comments for consideration by the Committee. The Management Committee will make recommendation to the Board who are ultimately responsible for approving and implementing any modifications to the Scheme.

APPENDIX I

A. Types of Work

B. Length of work (based on broadcast time)

C. Secondary Use

There will be no entitlement to payment in respect of repeat or secondary transmissions of the following categories of programme:

News
Extracts
Trailers
Promotions
Critiques
Radio programmes using the sound track from television programmes

There will be no entitlement to payment in the scheme for simultaneous transmission on more than one UK channel or in another country outside the UK.

EXAMPLES

Formula for calculating payments: Type of work x Length x Secondary Use

1. Drama series B
Two 60-minute episodes, repeated on BBC1 at 9pm and sold to Australia, France and Zambia.

BBC1 repeat
6 points (type of work) x 8 points (length) x 10 points (peak time repeat) = 480 points

Sale to Australia
6 points (type of work) x 8 points (length) x 7 points (sale to Zone Two) = 336 points

Sale to France
No payment. Australia and France are both in Zone Two so no further payment will be due until after 10 sales.

Sale to Zambia
6 points (type of work) x 8 points (length) x 2 points (sale to Zone Three) = 96 points

2. Episodes in a documentary/natural history series.
Two 50-minute programmes, transmitted on BBC World, sold to UK Horizons and released on video with 30,230 sales in the year

BBC World transmission
8 points (type of work) x 8 points (length) x 2 points (any number of transmissions on BBC World) = 128 points

Sale to UK Horizons
8 points (type of work) x 8 points (length) x 1 point (sale to UK subsidiary channel – 1 point per 5 sales) = 64 points

Video Sales
8 points (type of work) x 8 points (length) x 3 points (1 point per 10,000 copies – the remaining 230 sales will be carried forward.) = 192 points

3. Recording of an opera production
A 150-minute programme commissioned by BBC4 and subsequently transmitted on BBC2 at 8pm.

BBC4
3 points (type of work) x 10 points (length) x 1 point (work commissioned by a UK digital channel for multiple transmission) = 30 points

Repeat on BBC2
3 points (type of work) x 10 points (length) x 10 points (peak time repeat on a main channel) = 300 points