Major boost for indies as BBC agrees Terms of Trade with Pact

New Terms of Trade for commissioning television programmes from independent producers have been agreed between the BBC and Pact, giving indies greater control and ownership over their productions than ever before.
The key points of the Terms of Trade agreement with the BBC and Pact are: Independents will own all rights (including copyright) in the programmes they produce. The BBC will take a licence to use programming across its portfolio of channels for a period of five years and to exercise 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; and the BBC will pay independent production companies repeat fees for uses of programming 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; and the BBC will be entitled to a share in net profit from the exploitation of all rights in the programming.
The Terms of Trade agreement applies to all independent television production deals retrospectively from January 6 2004, for all public service channels, regional and network (with some limited exceptions).
The BBC has also agreed a standard Programme Production Agreement with Pact to implement the Terms of Trade. The Terms will be reviewed on a three yearly basis.
"The Terms of Trade herald a new era in our relationship with the independent sector," said Jana Bennett, the BBC's Director of Television.
"The agreement represents an historic transfer of value to independents and very much underlines the BBC's commitment to fostering a robust and successful independent sector.
"BBC Television already benefits from many great independent programmes – we want to foster a more creative and open relationship with independent producers.
"We believe the new Terms of Trade will support this and will, in the end, bring more original and high quality programmes to our audiences."
Andrew Zein, Chairman of Pact and Managing Director of Tiger Aspect Productions, said: "The significant benefits of these new terms will be felt by producers large and small.
"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."
David Frank, Chair of Pact TV Policy Group and Chief Executive of RDF Media, said: "This deal provides the framework for a huge improvement in the relationship between the BBC and the independent sector - one based on trust, mutual respect and fair reward on both sides.
"But to make it work we must all adhere to the spirit as well as the letter of the new agreement.
"This is not a victory for the independent sector, it is a victory for UK audiences who will get the benefit of programmes being developed and made by a stronger, more vibrant production community capable of taking bigger creative risks than ever before."
A requirement of the Communications Act, the Codes of Practice developed by the BBC - as well as ITV, Channel 4, Channel 5 and GMTV - will create a new framework that will serve both broadcasters and producers, as well as enhancing the creative and economic potential of the UK television industry.
(GB)