9HSTFMG*aeaehj+

ISBN: 978-952-60-4048-6 (pdf) ISBN: 978-952-60-4047-9 ISSN-L: 1799-4934 ISSN: 1799-4942 (pdf) ISSN: 1799-4934 Aalto University School of Economics Department of Management and International Business aalto.fi

BUSINESS + ECONOMY ART + DESIGN + ARCHITECTURE SCIENCE + TECHNOLOGY CROSSOVER DOCTORAL DISSERTATIONS

Aalto-D

D 15

/2011

Pia Naarajärvi

International Co-Production and C

ollaborative Agreem

ents, the Case of the Finnish Film

Industry A

alto U

nive

rsity

Department of Management and International Business

International Co-Production and Collaborative Agreements, the Case of the Finnish Film Industry

Pia Naarajärvi

DOCTORAL DISSERTATIONS

Aalto University publication series DOCTORAL DISSERTATIONS 15/2011

International Co-Production and Collaborative Agreements, the Case of the Finnish Film Industry

Pia Naarajärvi

Aalto University School of Economics Department of Management and International Business

Aalto University publication series DOCTORAL DISSERTATIONS 15/2011 © Pia Naarajärvi and Aalto University School of Economics ISBN 978-952-60-4048-6 (pdf) ISBN 978-952-60-4047-9 (printed) ISSN-L 1799-4934 ISSN 1799-4942 (pdf) ISSN 1799-4934 (printed) Aalto Print Helsinki 2011

Abstract Aalto University, P.O. Box 11000, FI-00076 Aalto www.aalto.fi

Author Pia Naarajärvi Name of the doctoral dissertation International Co-Production and Collaborative Agreements, the Case of the Finnish Film Industry Publisher School of Economics Unit Department of Management and International Business Series Aalto University publication series DOCTORAL DISSERTATIONS 15/2011 Field of research International business and law

Abstract An often-used global model of international business (IB) cooperation in the film industry is ‘international film co-production’, consisting of two or more production companies from at least two different countries jointly producing a film. Based on their characteristics, international film co-productions can strongly be considered as international alliances between production companies, mainly coordinated and regulated by collaborative agreements called ‘co-production agreements’. Accordingly, international film co-productions are not only interesting from the IB perspective, but also from the legal perspective, since there are both business and legal challenges relating to such IB cooperation.

Regardless of the relevant topic, there is still little knowledge about the use of collaborative agreements in international alliances obtained through multidisciplinary study combining business and legal studies, and more specifically on how one specific international alliance is structured, based on, and managed by an alliance contract, which contractual provisions are included in the contract, and how the design of such contract could be approached and further applied to the film industry. The purpose and objective of this study is to contribute to the understanding of international alliances based on and regulated by alliance contracts, including various business and legal issues to be agreed upon between the alliance partners and influenced by the international legal environment, in the context of the Finnish film industry as the case, international film co-production as the international alliance, and co-production agreement as the alliance contract.

This doctoral thesis explores the research topic through the case of the Finnish film industry by examining international film co-productions as alliances, the use and design of co-production agreements as a basis for such international film co-production alliances, and the relevant and applicable legal regulation having influence on such alliances and co-production agreements. Moreover, this study follows a qualitative single-case study design, the primary empirical source of data consisting of ten interviews carried out in Finland in which Finnish film producers were the interviewees.

As contributions, this multidisciplinary study enables the exploration of the research area from an extensive perspective, thereby contributing to the research on alliance contracting and the film industry. Based on the literature review and the legal structure, a conceptual framework is proposed for understanding international film co-production alliances based on co-production agreements and influenced by the different legal regulation. Furthermore, based on the empirical findings of this study, a process model is also proposed in order to identify different phases of the design of a co-production agreement from business and legal perspectives, one to be applied to international film co-productions in general, and the other to be applied to the Finnish film industry.

Keywords International alliances, international film co-productions, collaborative

agreements, co-production agreements, alliance contracts, legal regulation, law, the film industry

ISBN (printed) 978-952-60-4047-9 ISBN (pdf) 978-952-60-4048-6 ISSN-L 1799-4934 ISSN (printed) 1799-4934 ISSN (pdf) 1799-4942 Pages 266 Location of publisher Espoo Location of printing Helsinki Year 2011

ABSTRACT

An often-used global model of international business (IB) cooperation in the film industry is ‘international film co-production’, consisting of two or more production companies from at least two different countries jointly producing a film. Based on their characteristics, international film co-productions can strongly be considered as international alliances between production companies, mainly coordinated and regulated by collaborative agreements called ‘co-production agreements’. Accordingly, international film co-productions are not only interesting from the IB perspective, but also from the legal perspective, since there are both business and legal challenges relating to such IB cooperation.

Regardless of the relevant topic, there is still little knowledge about the use of collaborative agreements in international alliances obtained through multidisciplinary study combining business and legal studies, and more specifically on how one specific international alliance is structured, based on, and managed by an alliance contract, which contractual provisions are included in the contract, and how the design of such contract could be approached and further applied to the film industry. The purpose and objective of this study is to contribute to the understanding of international alliances based on and regulated by alliance contracts, including various business and legal issues to be agreed upon between the alliance partners and influenced by the international legal environment, in the context of the Finnish film industry as the case, international film co-production as the international alliance, and co-production agreement as the alliance contract.

This doctoral thesis explores the research topic through the case of the Finnish film industry by examining international film co-productions as alliances, the use and design of co-production agreements as a basis for such international film co-production alliances, and the relevant and applicable legal regulation having influence on such alliances and co-production agreements. Moreover, this study follows a qualitative single-case study design, the primary empirical source of data consisting of ten interviews carried out in Finland in which Finnish film producers were the interviewees.

As contributions, this multidisciplinary study enables the exploration of the research area from an extensive perspective, thereby contributing to the research on alliance contracting and the film industry. Based on the literature review and the legal structure, a conceptual framework is proposed for understanding international film co-production alliances based on co-production agreements and influenced by the different legal regulation. Furthermore, based on the empirical findings of this study, a process model is also proposed in order to identify different phases of the design of a co-production agreement from business and legal perspectives, one to be applied to international film co-productions in general, and the other to be applied to the Finnish film industry.

In summary, by studying international film co-production alliances and co-production agreements as alliance contracts from the Finnish film industry perspective as a multidisciplinary study that combines international business and legal perspectives using a qualitative case study methodology, this doctoral dissertation contributes to the alliance literature and theory by developing a conceptual framework of an alliance contract’s

2

business and legal environment and a process model representing the design of an alliance contract combining business and legal perspectives.

Keywords: international alliances, international film co-productions,

collaborative agreements, co-production agreements, alliance contracts, legal regulation, law, the film industry

3

ACKNOWLEDGEMENTS

Writing this doctoral dissertation has definitely been an interesting and challenging journey. I have learned a lot about scientific research, but above all carrying out this doctoral thesis has challenged me in patience, long term determination and numerous considerations on defining myself as a researcher as well as making choices I honestly believe in. This would not have been possible without the support of several people and organizations to whom I am highly grateful.

First, I would like to thank my outstanding supervisors Professors Hannu

Seristö and Matti Rudanko who have always been there for me along the way and shared the inspiration with me. Thank you for all your genuine support and believing me! Without you this doctoral thesis would not have been carried out, and hopefully, our paths keep crossing over the years to come.

I am also thankful to my pre-examiners Professors Africa Ariño and Mika

Hemmo who had the time and interest in my doctoral thesis and provided me with valuable comments. Moreover, I am excited to have Professor Birgit Kleymann as my opponent to discuss and challenge my research. I am also grateful for the financial assistance I have received during my research from the Foundation for Economic Education and HSE Foundation.

I also wish to thank the International Business faculty members at Aalto

University School of Economics for being involved in various ways. Especially, I would like to thank Professors Asta Salmi and Rebecca Piekkari for their supportive actions and advice regarding my research. Additionally, I wish to warmly thank my fellow students, Hanna Kalla, Tiina Ritvala and Arno Kourula, for all the stimulating discussions with you. I much appreciate the interest you have showed towards my research. Further, I also want to thank the interviewees of my doctoral thesis and the persons in the audiovisual industry for showing an interest in my research work.

Finally, I would like to thank my family and friends for all the support

during these years of hard work. Most of all, my dear mum Hilkka and my dear brother Harri, thank you for the enormous encouragement and limitless love and support you have given me all these years, I could not have survived without you! Thank you for believing in me and sharing my thoughts and hopes with me every day. You have always been the wind beneath my wings, which I value the most and will be forever grateful.

Helsinki, January 2011

Pia Naarajärvi

4

TABLE OF CONTENTS

LIST OF FIGURES...........................................................................................6 LIST OF TABLES………………………………………………………………….……….….....6 LIST OF KEY LEGAL REGULATION……..…………………………………..….…..7 LIST OF APPENDICES…………………………………………………………………….….8

1 INTRODUCTION................................................................................10 1.1. Background of the Study…………………………………………………………………..10

1.2. Research Problem and Gap………………………………………………………………13

1.3. Research Objectives, Questions and the Case Study Setting………....16

1.4. Definitions and Limitations…………………………………………………………..…19

1.5. Structure of the Study……………………………………………………………………….21

2 LITERATURE REVIEW AND LEGAL STRUCTURE………….….23 2.1. International Film Co-Productions as Alliances and Contracting..23

2.1.1. International Co-Productions in the Film Industry…………..…………..……23

2.1.2. International Film Co-Productions as Alliances……………………………..….26 2.1.2.1. Inter-firm Cooperation and International Co-Production in IB................................................................................................26 2.1.2.2. Alliances and Various Research Perspectives…………………..….29

2.1.3. Contracting in International Film Co-Production Alliances……………...…31 2.2. Co-Production Agreements as a Basis for International Film

Co-Productions………………………………………………………………………………….33

2.2.1. Co-Production Agreement of the Film Industry………………………..……….33 2.2.1.1. Co-Production Agreement as Collaborative Agreement……..…33 2.2.1.2. Co-Production Agreement as Business Contract……….………...35

2.2.2. Design of a Co-Production Agreement………………………………………………37 2.2.2.1. Design of Alliance Contracts and Contractual Provisions……..37 2.2.2.2. Key Contractual Provisions of Co-Production Agreements......41 2.2.2.3. Commitment and Trust as Influence on Business Contracts…56

2.3. Legal Regulation as Influence on International Film Co-

Productions……………………………………………………………….……………….………57

2.3.1. Legal Regulation Relating to International Film Co-Productions............58 2.3.1.1. Legal Environment of International Film Co-Productions…….58

2.3.1.2. International Law………………………………………………..……………59 2.3.1.3. Legal Systems and National Laws of Contracting Parties………61

2.3.2. Legal Regulation Applicable to International Film Co-Productions from the Finnish Film Industry Perspective.............................................62 2.3.2.1. International Treaties…………………………………………………….…62

2.3.2.2. Finnish Law…………………………………………………………………..…69 2.3.2.3. Rules and Regulations of Financiers………………………………..…79 2.3.2.4. Summary of the Key Legal Regulation……...…………………..……85 2.4. Conceptual Framework and Multidisciplinary Approach of the Study…………………………………………………………………………………………………..86

5

3 RESEARCH METHODOLOGY………………………………………………..92 3.1. Research Design and the Case Study Setting……………………..……..……92

3.2. Interviews as Qualitative Research Method………………………………..…94

3.3. Analysis of Data……………………………………………………….………………………101

3.4. Validation Criteria – Credible Qualitative Research……………………104

3.5. Legal Research Methodology…………………………………………………………106

4 CASE OF THE FINNISH FILM INDUSTRY…………………………109 4.1. Empirical Data Collection………………………………………………………………109

4.1.1. The Finnish Film Industry……………………………………………..………..……109

4.1.2. Qualitative Interviews……………………………………………………………..….…110

4.1.3. Example Case of International Film Co-Production…………………..…..…111 4.2. Discussion and Analysis of the Empirical Data…………………….…......113

4.2.1. International Film Co-Productions………………………………………………...113 4.2.1.1. Alliance perspective……………………………………………………..…113 4.2.1.2. Contracting………………………………………………….....................115

4.2.2. Co-Production Agreements…………………………………………….……..…...…116 4.2.2.1. Usage and Significance……………………………………………..…….116 4.2.2.2. Coverage…………………………………………………………………..……119 4.2.2.3. Drafting………………………………………………………………...…..….120 4.2.2.4. Key Content……………………………………………………………………123 4.2.2.5. Challenging Elements, Uncertainties and Risks……………...…130

4.2.3. Influence of Legal Regulation…………………………………………………………134 4.3. Key Findings and Conclusions of the Study……………………………….…136

5 CONTRIBUTIONS AND IMPLICATIONS OF THE STUDY…147 5.1. Theoretical Contributions………………………………………………………………147

5.2. Managerial Implications……………………………………………….………………..151

5.3. Suggestions for Further Research……………………………….………..………153

REFERENCES……………….……………………………………………………..…..….155

APPENDICES…………………………………………………………………….....……..165

6

LIST OF FIGURES Figure 1. Four stages of the strategic alliance process (Pekar & Allio,

1994)……………………………………………………………………………..31 Figure 2. Modified model of the four stages of the strategic alliance

process by Pekar and Allio (1994)…………………………………....32 Figure 3a. International film co-production including one co-production

agreement………………………………………………………………..…….36 Figure 3b. International film co-production including several co-

production agreements……………………………………………………37 Figure 4. An example of legal regulation relating to and having

influence on international film co-production between production companies representing different countries, such as Finland and Denmark.……………………………………..............59

Figure 5a. Conceptual framework for multidisciplinary study on

international film co-production alliances; the case of several co-production agreements……….……………………………………..89

Figure 5b. An alternative conceptual framework for multidisciplinary

study on international film co-production alliances; the case of one single co-production agreement…………………………………90

Figure 6. The film “Jade Warrior” (2006) as an example of an

international film co-production……………………………….....…112 Figure 7. Process model on the design and management of a co-

production agreement combining the business and legal perspectives……………………..…………………………………………..141

Figure 8. Process model on the design and management of a co-

production agreement combining the business and legal perspectives applied to the Finnish film industry……………..145

LIST OF TABLES Table 1. Key contractual provisions of a co-production agreement…..42 Table 2. Legal regulation applicable to international film co-

productions from the Finnish film industry perspective…….86 Table 3. Modified hierarchy of legal norms presented by Naarajärvi

and Koivisto (2002)………………………………………………………107 Table 4. The most and the least important elements of co-production

agreements based on the empirical data…………………….……128

7

LIST OF KEY LEGAL REGULATION International Law

European Convention on Cinematographic Co-production European Treaty Series – No. 147 (Strasbourg, 2.10.1992) + Appendices I and II + Explanatory Report of the Council of Europe

Film and Television Co-production Agreement between the Government of the Republic of Finland and the Government of Canada

Treaty Series of the Statutes of Finland, 24/1999 (Statute of Finland No. 388/1999)

Agreement concerning Cinematography between the Government of the Republic of Finland and the Government of the Republic of France

Treaty Series of the Statutes of Finland, 7/1983 (Statute of Finland No. 214/1983); English translation: United Nations Treaty Series, Vol. 1317, No 21935

Directive of the European Parliament and of the Council of the European Union on rental right and lending right and on certain rights related to copyright in the field of intellectual property

2006/115/EC, Official Journal L 376 of 2006

Regulation of the European Parliament and of the Council on the law applicable to contractual obligations (Rome I)

Reg 593/2008/EC, Official Journal L 177 of 2008

Council Regulation on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters

Council Reg 44/2001/EC, Official Journal of L 012 of 2001

Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters 1968

Official Journal C 59/1 of 1979

Lugano Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters of 1988

Official Journal L 319 of 1988 Finnish Law

Contracts Act 228/1929 (Laki varallisuusoikeudellisista oikeustoimista)

Copyright Act 404/1961 (& Decree 574/1995) (Tekijänoikeuslaki & -asetus)

8

Rules and Regulations of Financiers

Regulations for the support of co-production of full-length feature films, animations and documentaries

Eurimages - European Cinema Support Fund / Council of Europe

Regulations in effect from January 1, 2011 The MEDIA Programme Guidelines

Support for the development of single projects & Support for the development of a slate of projects

Decision No 1718/2006/EC of the Parliament and of the Council, Official Journal of the EU 2007/C 204/05; the most recent (by Dec 31, 2010) Call for Proposals EACEA 25/2010

Support Guidelines

Nordisk Film & TV Fond Guidelines in effect from January 2011

Support Guidelines for Film Production Support

The Finnish Film Foundation Guidelines in effect from January 1, 2009

LIST OF APPENDICES Appendix 1. The interview questions……….…..………………………..……165 Appendix 2. Qualitative interviews of the Finnish film industry…….169 Appendix 3. Key web pages and web databases…...……………………….173 Appendix 4. European Convention on Cinematographic Co-production

with Explanatory Report………………………….………………175 Appendix 5. Film and Television Co-production Agreement between

Finland and Canada…………………..……………………………185 Appendix 6. Agreement concerning Cinematography between Finland

and France …………………………………………………………….193 Appendix 7. Contracts Act of Finland…..……………..………………………201 Appendix 8. Copyright Act of Finland.……………………...…………..……207 Appendix 9. Eurimages Regulations……….……………………….……....…227 Appendix 10. The MEDIA Programme Guidelines (support for the

development of single projects)…………………….…………235 Appendix 11. Nordisk Film & TV Fond Guidelines…………..…………….247 Appendix 12. The Finnish Film Foundation Guidelines…..………..……261

9

DOCTORAL THESIS INFORMATION

Author Pia Naarajärvi (M.Sc.Econ. & M.Law)

University Aalto University School of Economics Department of Management and International Business

Address: P.O. Box 21230, FI-00076 Aalto, Finland Administrative supervisor Professor, Dr. Asta Salmi

Title International Co-Production and Collaborative Agreements, the Case of the Finnish Film Industry

Type of research Monograph Supervisors Professor, Dr. Hannu Seristö Aalto University Vice President of the Knowledge Networks Professor, Dr. Matti Rudanko Aalto University School of Economics Department of Accounting / Business Law Preliminary Professor, Dr. Africa Ariño examiners IESE Business School, Spain

Department of Strategic Management Professor, Dr. Mika Hemmo University of Helsinki

Faculty of Law Opponent Associate Professor, Dr. Birgit Kleymann Catholic University of Lille, France

IÉSEG School of Management

10

1. INTRODUCTION

This first chapter of this doctoral thesis introduces the research topic by

presenting the background of the study, the research problem and gap,

research objectives and questions as well as the key concepts and

limitations, in order to create a solid basis for the study. To conclude this

introductory chapter the overall structure of the study is presented.

1.1. Background of the Study

Internationalization has been and continues to reshape the world economy.

Firms aim to internationalize their businesses in order to be able to

compete in the global market; a feature that also includes firms

representing the film industry. The film industry has already been

international for many decades, while film production companies

worldwide have created different kinds of international business

operations. There are various operation methods from which firms may

choose to conduct business in foreign markets (Luostarinen & Welch, 1997).

Over the past few decades there has been an enormous increase in the

formation of international alliances and in the research efforts devoted to

understanding such alliances (Inkpen, 2001). Inter-organizational

arrangements such as alliances and long-term contracting have become

significant mechanisms through which firms exchange products, services

and knowledge (see e.g. Argyres & Mayer, 2007; Lane & Lubatkin, 1998;

Larsson et al., 1998; Mowery et al., 1996).

There are various reasons why film production companies also seek and

are involved in international business cooperation. In general, one reason

has been the possibility to make different kinds of films with different

combinations of filmmakers, producers or financiers in the field, using

different languages, and so on. The majority of international cooperation in

the film industry has been initiated in order to finance film productions

through raising finance from more than one source (Alberstat, 2000). As

financial advantages for European producers, they can take advantage not

only of the various European funding schemes, but also of the state,

regional and local subsidies that exist in many European countries

(Alberstat, 2000). Moreover, international business cooperation in the film

industry has also been supported by various benefits achieved by film

11

producers relating to capital, know-how, regulations, costs, taxes, etc.,

which benefits may play a critical role, whether in production, finance,

distribution and/or marketing of films.

An often-used global model of international business cooperation in the

film industry is ‘international film co-production’; defined as "a film with

two or more producers from at least two different countries" (Kohvakka &

Huttunen, 1997:54). In general terms, a film co-production can be

described as any type of production that involves more than one party in

the production process, through partnership, joint venture or any other

means of cooperation (Neumann & Appelgren, 2002). Aside from the

obvious financial advantages of international film co-production, it has

been said that such co-production provides a unique opportunity to enrich

the quality of programming through cross-fertilization of creative talents

and ideas across different European nations (Alberstat, 2000). As pointed

out by Enrich (2005), international film co-production makes it possible to

combine forces and consequently achieve a work that either of the co-

producers alone would find it difficult to achieve in any other way.

In order to reflect that the entertainment industry (including films) is

continuously a great worldwide business, for example, entertainment has

consistently been one of the largest net export categories for the United

States (estimated to be at least USD 9 billion in 2006) and at the wholesale

level generating annual revenues exceeding USD 300 billion in the U.S.

(Vogel, 2007). Based on the provisional data available, the European

Audiovisual Observatory1 has estimated that a total of 1168 feature films

(including feature documentary films) were produced within the member

states of the European Union (the EU) and a total of 209 feature fiction

films were majority co-produced by a European Union member country in

20092. During 2005-2009 the numbers of feature films produced in the EU

have been the following: 911 in 2005, 1043 in 2006, 1044 in 2007, 1140 in

2008 and 1168 in 2009 (the latter a new record high). This data also

include the production figures from the new EU member states and has

been adjusted accordingly for the said period. Based on the numbers of the

European Audiovisual Observatory, the three most active EU countries in

international film co-productions during the years 2005-2009 have been

1 The Observatory is a European public service body comprised of 36 member states and the European Community, represented by the European Commission. 2 Estimating the total volume of production of feature films in the EU remains difficult, chiefly due to the risk of double counting of co-productions and to differing national methodologies for the collection of the data. Press Release of the European Audiovisual Observatory of May 6, 2010.

12

France, Spain, and Germany followed by Belgium, the United Kingdom,

and Italy. As a comparison to the EU, 677 national feature films were

produced in the United States and 448 national films were released in

Japan in 2009.3

Finland has also been increasingly involved in such international film co-

productions, but the uncertainty of both business and legal issues has

affected the presence of the Finnish production companies in international

film co-productions. In general, the film production companies tend to be

rather small in Finland and their own investments in film co-productions

are modest, and therefore, the making of films has been strongly dependent

on public support money. In Finland, public support money is mainly

granted by the Finnish Film Foundation, and since the production support

from the Finnish Film Foundation is limited, the need for other financing is

obvious. Therefore, regardless of pre-selling e.g. television rights of the

film, Finnish film production companies tend to look for opportunities to

participate in international business cooperation in order to obtain greater

finance for their films as well as to look for international distribution and

recognition for their films. Finland has already been increasingly involved

in international film co-productions, whether participating with greater or

smaller financial or other efforts. Due to the limited amount of financing

contributions compared to other countries, Finnish film production

companies have often participated in international film co-productions as a

co-producer or as a so-called associate producer and received the

distribution and exploitation rights of the film for Finland.

International film co-productions as such are challenging international

business operations. Based on their characteristics, international film co-

productions can strongly be considered as international alliances between

production companies that cooperate in producing, exploiting, distributing

and/or in any other way operating regarding a specific film. It is not only

international film co-productions that are interesting from the international

business perspective, there are both business and legal challenges to be met

when dealt with international film co-productions as international business

operations. These are challenges this particular study go into. As pointed

out by Harbison and Pekar (1998), every alliance, such as an international

film co-production, is not just a business undertaking, but also an exercise

in business law. These international film co-productions are mainly

coordinated and regulated by collaborative agreements called ‘co-

3 Focus 2010, Release of Marché du Film on World Market Trends, 2010; and Press Release of the European Audiovisual Observatory of May 6, 2010.

13

production agreements’. Such co-production agreements are entered into

by and between the co-producing partners consisting of joint agreement on

all the different issues regarding the international film co-production in

question. As argued by Neumann and Appelgren (2002:3), “just as every

film is unique, so every co-production agreement is a singular creation”.

The authors further point out that it would be a lot easier if there was such a

thing as a standard co-production agreement, but the reality is that the

intricate web of issues under negotiation can vary widely across films

(Neumann & Appelgren, 2002).

This study originated from the fact that the author of this study has been

working as a legal and business management consultant specializing in the

film and television industry. In addition to a degree of Master of Science in

Economics, the author holds the degree of Master of Laws, which explains

the strong interest in both business and legal affairs and a multidisciplinary

approach to studying. While working within the environment of

international business cooperation in the film industry, the author has

faced the challenge of the Finnish film production companies: to manage

both business and legal issues to achieve the best possible solutions and

successful outcomes. The personal background of the author provides a rare

and valuable basis for this study, and the study is particularly inspired by

the work experience of the author with regard to the challenge of

understanding business and legal issues affecting international film co-

productions. Since 2001, the author has worked closely with several

international film co-productions, which has provided concrete experience

on the subject of this study and also benefited the study. However, all the

statements relating to the author’s own work experience are precisely

referred to as such in this doctoral thesis.

1.2. Research Problem and Gap

The research problem of this study relates to the difficulties that the Finnish

film production companies face in creating international cooperation with

foreign production companies. Many reasons have been presented to

explain the low degree of international involvement of the Finnish film

production companies, including the strange language, small size of

companies, limited financial resources, difficult marketing, etc. However, it

is noteworthy that Finnish film is definitely not internationally unknown,

Finnish films have achieved much recognition abroad, and the professional

skills of Finnish filmmakers are acknowledged to be of a high level among

14

professionals worldwide. Some suggestions have been put forward, for

example, that the internationalization strategy of the Finnish content

production companies could move towards close cooperation with

technology companies operating in the international market (Kallio, 2001).

Nevertheless, Kallio (2001) has also argued that the international markets

are open for Finnish companies. The challenge seems to be to find

innovative solutions and long-term goals in the establishment process.

Particularly, there is a lot of uncertainty on both business and legal issues

relating to international cooperation in the Finnish film industry, which has

affected the presence of Finnish film production companies in international

film co-productions. When entering into an international film co-

production alliance, the film production companies should understand not

only the business but also the legal issues to be taken into consideration.

International film co-productions involve a variety of different business and

legal issues to be agreed upon, and the film production companies as

alliance partners should also be aware of the legal regulation relating to

such co-productions (see e.g. Neumann & Appelgren, 2002; Baker, 1995;

Dally et al., 2002; Alberstat, 2000). Not only is the management of

international film co-productions challenging from the international

business perspective with regard to Finnish film production companies, but

especially the international legal environment makes such international

cooperation in the Finnish film industry complex. This has not only affected

Finnish companies, it is also a concern for companies representing other

countries. Consequently, it is argued here that increasing the knowledge

within the film industry would be supportive for production companies to

be involved in international cooperation.

Based on the discussion presented above, the need for comprehensive

knowledge on the research subject is obvious. Regardless of the relevant

topic, there is a lack of research on the subject, which makes this particular

study important. The research area is definitely not completely

unexamined, since both the operation forms of international business

operations (see e.g. Mead, 1998; Ball & McCulloch, 1996; Mendenhall et al.,

1995; Punnett & Ricks, 1992) as well as the legal issues affecting the

business environment (see e.g. Moore, 2000; Vogel, 2007; Baumgarten et

al., 1992) have been studied in general. Moreover, past research on

international cooperation also includes international co-production and

collaborative agreements (see e.g. Contractor & Lorange, 2002; Luostarinen

& Welch, 1997; Bartlett & Ghoshal, 1996; Buckley & Casson, 1988) as well

as alliances (see e.g. Shenkar & Reuer, 2006; Doz & Hamel, 1998; Harbison

15

& Pekar, 1998; Koza & Lewin, 1998; Seristö & Vaara, 1999). There are also

business law studies (see e.g. Keenan & Riches, 1995; Savage & Bradgate,

1993) and studies have been carried out on business and alliance contracts

(see e.g. Reuer & Ariño, 2007; Argyres & Mayer, 2007; Ariño & Reuer,

2004; Poppo & Zenger, 2002; Frankel et al., 1996). Regarding legal

regulation, it is available just based on its public nature.

All the previous research naturally provides a basis for this study on

international film co-productions. However, this study differs from

previous studies in three fundamental ways. First, it is argued here that

business and legal studies have not been combined to increase

understanding of collaborative agreements used in alliances and

furthermore applied to international film co-productions, which makes this

study unique. The value of multidisciplinary studies has been recognized

e.g. by Argyres and Mayer (2007) who argue that while legal scholars study

contracting issues extensively, like organizational scholars, they have not

tended to discuss firm-level contract design capabilities per se; i.e. the

challenge is to combine legal and business perspectives. Luo (2002:903)

has also argued that “contracts and cooperation are interrelated because a

contractual arrangement serves as a framework within which cooperation

proceeds” and further states that “contracts and cooperation are generally

studied separately rather than within an integrated framework”. It is

strongly reflected that there is a need for multidisciplinary research

combining business and legal studies in order to manage the use of

collaborative agreement as an entirety.

Second, the previous alliance contract research has focused on how

contractual characteristics explain alliance outcomes or what triggers

changes to alliance contracts (Parkhe, 1993b; Deeds & Hill, 1998; Reuer &

Ariño, 2002; Reuer et al., 2002), the determinants of alliance contractual

design (Luo, 2002; Ryall & Sampson, 2006), particular contractual features

and the design of alliance contracts (see e.g. Reuer & Ariño, 2007; Ariño &

Reuer, 2004; Mayer, 2006), detailed analysis of the different contractual

clauses (see e.g. Faems et al., 2008; Hagedoorn & Hesen, 2007; De Jong &

Klein Woolthuis, 2009), whether relational governance substitutes for or

complements formal governance mechanisms (see e.g. Poppo & Zenger,

2002; Mayer & Argyres, 2004; Hoetker & Mellewigt, 2009), and whether

prior ties generate trust and/or inter-organizational routines for partners

(Zollo et al., 2002). However, it is argued here that despite diverse research

on alliance contracts, there has not been any study on how one specific

international alliance is structured, based on and managed by an alliance

16

contract, which contractual provisions are included in such contract and

how the design of such contract could be approached, and carried out by

including the film industry as the case, international film co-production as

the international alliance and co-production agreement as the alliance

contract. As argued by Ariño and Reuer (2004), little attention has been

paid to the alliance structuring aspects, such as the choice of the contractual

provisions regulating the alliance relationship, and further supported by

Reuer et al. (2006:307) as “little is known about the contents of alliance

contracts”.

Third, the research on international co-productions in the film industry

has been very modest and small in number, relating to very different

perspectives on filmmaking and the film industry including e.g. studies on

finance, policy and industrial dynamics, internationalization vs.

globalization, asset specificity and long-term contracts, and organization as

strategy (see e.g. Morawetz et al., 2007; Lorenzen, 2007; Chisholm, 1993;

Robins, 1993; Hanssen, 2000; Kenney & Klein, 2000; Alvarez et al., 2005).

Unfortunately, as pointed out by Morawetz et al. (2007), despite the

increasing global prominence of international film co-productions, the

literature has taken little account of the phenomenon to date and remains

largely focused on national industries, and in particular on the US majors.

This study sets out to redress this criticism by providing a multidisciplinary

research on international co-productions from the Finnish film industry

perspective.

1.3. Research Objectives, Questions and the Case Study Setting

Based on the research problem and gap discussed above, the objective of

this doctoral thesis is to contribute to the understanding of international

alliances based on and regulated by alliance contracts that include various

business and legal issues to be agreed upon between the alliance partners

and are influenced by the international legal environment. Further, this

doctoral thesis study is applied to the Finnish film industry as the case,

international film co-production as the international alliance and co-

production agreement as the alliance contract.

In order to achieve the proposed objective, this study aims at examining

how co-production agreements consisting of various contractual elements

function as a basis for international film co-production alliances from both

business and legal perspectives; i.e. how an international film co-

17

production alliance is structured, based on and managed by a co-

production agreement. Moreover, based on the multidisciplinary approach,

this study aims at exploring the international legal environment by

examining the relevant legal regulation and clarifying whether such

regulation is compatible with the business environment. There is a complex

network of different legal regulations relating to international film co-

productions that have many parties involved: film production companies

from different states, financiers, film institutes, television companies, etc.,

which leads to a situation where different laws, rules, and agreements

create a rather complicated and confusing network that needs to be dealt

with. More specifically, this study examines the legal regulation from the

Finnish film industry perspective, since in order to carry out a complete and

coherent study from the legal perspective, the legal regulation including

national jurisdictions must be explicitly known (see also limitations

presented in Chapter 1.4.).

Finally, as a managerial contribution, this study is carried out in order to

increase the understanding of the Finnish film production company

management on international film co-production alliances and the business

and legal challenges involved in such international cooperation. Therefore,

this study aims at presenting a model/framework relating to the business

and legal management of international film co-productions and the use of

co-production agreements.

Consequently, the research questions and sub-questions of the thesis are

the following:

1. How does a co-production agreement function as a basis for and

regulating an international film co-production alliance?

2. What are the business and legal issues relating to, and having

influence upon, the use of co-production agreements in international film

co-productions from the Finnish film industry perspective?

(a) What are the key contractual elements of the international film

co-productions?

(b) What is the legal regulation affecting the international film co-

productions?

(c) How does the legal regulation support or restrict international

film co-productions?

18

3. What kind of model/framework could be presented in order to

increase understanding of the Finnish film industry with regard to both

business and legal management of international film co-productions and

the use of co-production agreements?

Furthermore, in order to achieve the proposed objective, this study

follows a case study method. As argued by Ghauri (2004), a case study is

considered to be a useful method when the research area is relatively less

known, and case studies have the potential to deepen our understanding of

the research phenomenon. Moreover, this study is carried out as an

exploratory single-case study in the business field, the Finnish film industry

as the case. Here, the film industry and contracting in international film co-

production alliances represent a unique and rather unexamined research

area. The research design, the case study setting, and methodology are

discussed in more detail in Chapter 3.

Relating to the research objectives, questions, and the overall study, it is

further noteworthy to state a few relevant points in order to reflect the

nature of this multidisciplinary study carried out by combining

international business and legal studies. Above all, this study is

international business research supported by the legal perspective. This

means that, on the one hand, the structure, including introduction,

literature review, methodology, empirical research, and contributions, as

well as the content of the study represents international business research

contributing to research on international alliances. On the other hand, the

content and the scope of the legal perspective follow up the international

business research structure by examining the legal knowledge and

regulation to the extent that is adequate and justified in order to support

the international business study and to increase the understanding of the

management of international film co-productions as international alliances

not only from the business perspective but also influenced by the legal

environment. Defining this specification is relevant especially from the

perspective of the science of law having influence on the interpretation of

the research objectives and the research questions presented above, as well

as the scope/comprehensiveness of the legal research and the expected

results of the study.

19

1.4. Definitions and Limitations

Definitions of the Key Concepts

This doctoral thesis employs a number of key concepts used in the study;

the most important ones are presented below:

Collaborative agreement - co-production agreement

For the purposes of this study, the term ‘collaborative agreement’ is used to

refer to an actual agreement such as a ‘co-production agreement’ used in

international film co-productions, entered into by and between the co-

producing partners and specifying the agreed contractual provisions

between the contracting/alliance partners to co-produce a film. A co-

production agreement as collaborative agreement is further discussed and

defined in more detail in Chapter 2.2.1.

Contractual provisions

The term ‘contractual provisions’ refers to the terms and conditions agreed

upon by and between the contracting parties and included in a contract

such as a co-production agreement. This is further discussed in Chapter

2.2.2.

Co-producer – delegate producer – minority co-producing partner

For the purposes of this study, the term ‘co-producer’ is used to refer to a

production company as a co-producing partner of an international film co-

production i.e. a contracting party of a co-production agreement. The term

‘delegate producer’ is used to refer to the ultimate responsible party for the

financing and production of the film with regard to an international film co-

production, and the term ‘minority co-producing partner’ is used to refer to

the co-producing partner other than the delegate producer.

Film - feature film

In general, the term ‘film’ refers to all kinds of films. However, this study

focuses on international co-productions of ‘feature films’, and the term

‘film’ is used in this study to refer to such feature film. Other types of films

are short film, documentary film, animation film, and commercial film.

‘Feature film’ is defined e.g. as a full-length, fictional film (not a

documentary or short), generally for theatrical release (Litwak, 2004).

Although the empirical study is based on feature films, the findings of the

20

study may also be applicable to international film co-productions for other

types of film.

International co-production – international film co-production

In general, the term ‘international co-production’ refers to one type of

operational form of international business as discussed in more detail in

Chapter 2.1.2.1. However, in this study ‘international co-production’ refers

to an often-used global model of international business cooperation in the

film industry. ‘International co-production’ or ‘international film co-

production’ may be defined as e.g. “a film with two or more producers from

at least two different countries” (Kohvakka & Huttunen, 1997:54). For the

purposes of this study, following the definition of Alberstat (2000), the

term ‘international film co-production’ is used to refer to a production

where two or more production companies representing different countries

play an active role in the physical production of a film by supplying the

services of individuals in the production, jointly contributing to the

financing of it, and jointly – proportionate to their relative contributions –

owning the rights of the completed production.

Legal regulation

In this study the term ‘legal regulation’ is used to refer to the different

sources of law and legal rules, including e.g. international treaties

(conventions, bilateral and multilateral treaties), national laws and other

legal rules and regulations. This is further discussed in more detail in

Chapter 2.3.

Partner - party

For the purposes of this study, the term ‘partner’ refers to a business

partner i.e. alliance partner. On the other hand, the term ‘party’ is a legal

term referring to a party to a contract. In other words, both terms may refer

to the same entity, but the term ‘partner’ is used from the business

perspective and the term ‘party’ from the legal perspective.

Relevant Limitations

There are some specific noteworthy limitations to this doctoral thesis. From

a process perspective of alliances, the study focuses on the contracting part

of the alliance process and attention is not directed e.g. to the reasons,

motives and/or rationales leading to international cooperation in the film

industry and international film co-productions. Nor is attention paid to

21

language and other issues having positive or negative influence on the

international cooperation. In this regard issues such as the significance of

language, foreign interest on Finnish films, etc. are not studied. In other

words, whatever the reasons for international cooperation are, this doctoral

thesis focuses on studying international film co-productions based on co-

production agreements. Nevertheless, this doctoral thesis does not focus on

studying how the right partner is chosen, since the focus is on the use of co-

production agreements between co-producing alliance partners. The

positioning of this study is further presented in Chapter 2.1.3.

Geographically, this doctoral thesis focuses on the Finnish film industry.

In order to ensure the integrity of the overall multidisciplinary study, this

study is limited to the Finnish film industry, since national legal regulation

is examined to meet the objectives set for the study, and this requires that

the author of the study knows the national law. In order to carry out this

research for any other country or territory, the researcher carrying out such

study would need to be familiar with the national legal regulation of such

country or territory. However, some parts of this study are rather universal

based on the fact that international film co-productions involve the same

elements regardless of the country in question.

In order to achieve the research objectives, all the relevant information on

the subject, such as literature, articles and research studies, have been

gathered, although due to the language restrictions of the author of this

study, the information gathered is limited to the Finnish, English and

Swedish languages.

1.5. Structure of the Study

This doctoral thesis is divided into five chapters. In this first chapter, the

study has been introduced. The second chapter presents the theoretical

foundations of the study. It examines international film co-productions as

international alliances, the use of co-production agreements in such

alliances and the legal regulation having influence on international film co-

productions by discussing the key features and by presenting a conceptual

framework for the study. Accordingly, a multidisciplinary approach

combining international business and legal studies is presented. The third

chapter presents the methodology applied to the study by discussing the

research design and the case study setting, the methods for collecting and

analyzing the empirical data, and the legal research methodology.

22

In the fourth chapter, the conceptual framework established for this study

is applied to the empirical study on international film co-productions and

co-production agreements; the Finnish film industry being the case in

question. Further, the empirical data collected for the study are discussed

and analyzed, and key findings of the study are presented. The final chapter

concludes the overall research by presenting the theoretical contributions

and the managerial implications as well as suggestions for further research.

23

2. LITERATURE REVIEW AND LEGAL STRUCTURE

This second chapter of the doctoral thesis creates a conceptual framework

for this multidisciplinary study by going into the studies and literature

relating to the research area on alliances, contracting, international film co-

productions, and co-production agreements. In order to carry out a

multidisciplinary study combining the research areas of international

business and law, notice is not only taken of international business studies,

but also of law and legal regulation, thereby creating a legal aspect to the

research.

2.1. International Film Co-Productions as Alliances and Contracting

In order to define the conceptual framework employed in this study, this

sub-chapter begins the literature review. It examines international co-

production of the film industry, identifies international film co-production

as an alliance in the international business research area, and finally,

positions this study within the notion of the contracting of alliances.

2.1.1. International Co-Productions in the Film Industry

‘International film co-production’ may be defined as “a film with two or

more producers from at least two different countries” (Kohvakka &

Huttunen, 1997:54). As argued by Kohvakka and Huttunen (1997), through

international film co-production, production companies jointly invest

financial stakes necessary to make a film and jointly own the film’s

copyrights and share the revenues generated by the film. As defined by

Alberstat (2000:209), a co-production can be defined as “a production

where two or more producers play an active role in the physical production

of a programme by supplying the services of individuals on the production,

jointly contributing to the financing of it, and jointly, proportionate to their

relative contributions, owning rights in the completed production”, and

further in the case of international film co-production such producers

represent different countries. According to Dally et al. (2002), an

international film co-production is an agreement whereby two or more

production companies of different nationality agree to share the ownership

and rights to a film in exchange for contributing to its financing. In general,

international film co-productions are often based on each party bringing

24

something valuable to the project that the other collaborators lack (Litwak,

2004).

The definition above offered by Kohvakka and Huttunen (1997) is

relatively general. As stated by the authors, the definition does not include

any criteria on the physical making of the film. It is not a requirement that

an international film co-production is actually made internationally. An

international film co-production may be made wholly domestically with the

practical responsibility for the production resting on one firm, all the

filmmakers employed coming from the country of the film’s origin, the film

being shot in the country in question, and in the national language. In such

films, the other firms are only involved as producers in the sense defined

above. However, a co-produced film can also be made internationally; as

the image of an international film co-production easily creates in one’s

mind. Neither does the definition set any conditions for the sizes of the

investments with which the firms participate in the financing of the film.

They can just as well divide the financing into equal shares, as make one

firm responsible for the bulk of the financing, with the other firms only

financing small minority shares. Therefore, films that are not really

international co-productions may be easily called such. For example, a film

produced by a Finnish production company using film-makers from several

countries and perhaps shot abroad, is thought to be an international film

co-production, as is a film with foreign financing. (Kohvakka & Huttunen,

1997)

Stricter definitions are also being applied to international film co-

productions. Such stricter definitions are used e.g. by support systems

aiming to promote the making of international film co-productions, for

example, in international agreements on co-productions. (Kohvakka &

Huttunen, 1997) As stated by Neumann and Appelgren (2002), an

international film co-production may be a financial arrangement whereby

producers from different countries join forces to obtain the benefits of

subsidies in their home countries, but it may also be a creative collaboration

where each production company plays a producing/managing and creative

role. Nevertheless, the fundamental reason for the use of different

definitions is the great variety of international film co-productions that

exist. For the purposes of this study, following the definition of Alberstat

(2000), the term ‘international film co-production’ is used to refer to a

production where two or more production companies representing different

countries play an active role in the physical production of a film by

supplying the services of individuals to the production, jointly contributing

25

to the financing of it, and jointly, proportionate to their relative

contributions, owning rights in the completed production.

Moreover, as argued by Enrich (2005), a distinction must be drawn

between co-production and ordinary financial participation, in which the

‘financial partner’ (also called the ‘financial co-producer’) participates in the

results of exploiting the audiovisual work without being a co-owner of its

constitutive elements. Enrich (2005) has further argued that not all

producers who participate in a production are in fact co-producers; it is

only those partners/persons who have specifically agreed to this by means

of a contract. This argument is also applied to this study, and in this study

the term ‘co-producer’ refers to the actual co-producing partner involved in

an international film co-production and entering into a co-production

agreement.

Film production, in general, is a long-term project implying different

phases. In order to understand the process of producing any film, the

different phases of the film production can be identified as follows (see e.g.

Neumann & Appelgren, 2002; Baker, 1995; Dally et al., 2002; Alberstat,

2000):

1. Development Writing a script, obtaining the rights to the story

2. Pre-production

Planning, financing, organizing, scheduling, budgeting, casting & contracting the film production

3. Production

Shooting the film, on location

4. Post-production Cutting and editing the film, sound, etc. to finish the film, the first print

5. Commercial exploitation

Exploitation & distribution (theatre, TV, devices, streaming, festivals, etc.) Marketing (advertising, promoting, merchandising, etc.)

Becoming involved in a film co-production means working with a partner

or various partners to produce a film over an extended period of time and

often under great pressure; a point made by Neumann and Appelgren

(2002). Therefore, when entering into a film co-production relationship

with various partners, a production company must carefully consider the

time frame, which makes an international film co-production even more

26

challenging to manage. All the different phases of film production must be

coordinated and agreed between the co-producing partners representing

different countries. In addition, international film co-production processes

can vary. According to the Finnish producers, there has not been such a

thing as a typical international film co-production, and similar thoughts

have also been expressed in studies in other countries (Kohvakka &

Huttunen, 1997). Multiformity is not merely a feature of international film

co-productions; it is typical of film production in general. A variety of

factors affect it, for example, the type of film, practical resources, the way

the production companies work, and the operating environments.

(Kohvakka & Huttunen, 1997)

In the following two sub-chapters, international film co-productions are

first discussed and defined as alliances, and further, the study is positioned

particularly within the notion of contracting of alliances.

2.1.2. International Film Co-Productions as Alliances

2.1.2.1. Inter-firm Cooperation and International Co-Production in IB

There is a considerable body of literature concerning inter-firm

cooperation. As argued by Marschan-Piekkari et al. (2001), the literature is

replete with definitions of collaboration, cooperation, partnership, and

strategic alliance, reflecting the scattered nature of the field and the

different schools of thought and perspectives among academics working in

the area. As Luostarinen and Welch (1997) have explained, many different

terms have been used to describe international inter-firm cooperation; for

example, ‘international cooperative operations’, ‘international cooperation

forms or modes’, as well as ‘international collaborative agreements’,

‘international cooperative ventures’, ‘international strategic alliances’, and

‘international strategic partnerships’. According to Luostarinen and Welch

(1997:193), “the purpose of the cooperation is to achieve commonly agreed,

share goals through joint activities taking place in one or more collaborative

or non-collaborative countries on an equity or non-equity basis by sharing

costs, risks and profits caused by these joint trading or non-trading

activities”. The authors have further argued that “partners may be rivals or

non-competing firms which voluntarily, under a formal or informal

agreement, decide to enter into a mutually beneficial partnership-type of

cooperation for an extended period” (Luostarinen & Welch, 1997:193).

27

In general, in international business a lot of cooperation has been based

on collaborative agreements, and international business operation modes

have been identified by several researchers (see e.g. Taoka & Beeman, 1991;

Luostarinen & Welch, 1997; Contractor & Lorange, 1988). As Buckley and

Casson (1988) have stated, in international business, the term ‘cooperative

venture’ may indicate a joint venture, a collaborative agreement, licensing,

franchising, subcontracting or even a management contract or countertrade

agreement. Perhaps the most common approach is to classify various types

of collaboration along a continuum (see e.g. Marschan-Piekkari et al., 2001;

Contractor & Lorange, 1988). At one end, there are tight equity agreements

with considerable co-ownership, control and inter-organizational

dependence, such as complete mergers and equity joint ventures. At the

other end, there are spot transactions such as non-equity agreements,

rather loose, even virtual arrangements of networking and information

sharing. (Marschan-Piekkari et al., 2001; Buckley & Casson, 1988; Kogut,

1988) Between the two extremes lie several types of cooperative

arrangements, international film co-production representing one of these.

As Contractor and Lorange (1988:22) have pointed out, “these

arrangements differ in the formula used to compensate each partner (the

legal form of the agreement) as well as in the strategic impact on the global

operations of each partner”.

Traditionally, cooperative arrangements have further been grouped into

different types. As an example, Contractor and Lorange (1988) have

explained the difference between the types of cooperative arrangements

based on two factors – compensation method, and inter-organizational

dependence. In co-production and non-equity cooperative agreements

involved in it, the extent of inter-organizational dependence is rather high

compared to other types of cooperative arrangements; however, being lower

in the case of equity joint ventures. Further, on the basis of the cooperation

field, Luostarinen and Welch (1997) have divided international cooperative

operations into four groups: research and development cooperation;

commercial cooperation; industrial (manufacturing, production)

cooperation; and managerial cooperation. Here co-production represents

industrial cooperation. According to these studies, the term ‘international

co-production’ strongly refers to a form of international cooperation.

However, the term ‘international co-production’ does not really reflect the

real purpose of the international co-production of the film industry. In the

film industry, the term ‘international co-production’ has been generally

used to refer to the fact that a film is jointly produced by two or more

partners representing different countries, despite the real content of

28

international cooperation between the operating partners. In other words,

the term ‘international co-production’ used in the film industry does not

clearly relate to traditional industrial co-production, but the verb ‘produce’

is used to refer to the producing of a film.

When designing governance for an alliance, Doz and Hamel (1998) have

discussed the choice between contractual and institutional forms of

governance, i.e. whether the alliance should be defined through a set of

contracts or as a separate institution, such as a joint venture. When

determining the best form of alliance governance, the authors remind that

economists and legal specialists would argue that the choice hinges largely

on whether a “complete” contract can be drawn up, i.e. whether a legal

agreement among the partners can account for specific future events and

contingencies (Doz & Hamel, 1998). Doz and Hamel (1998) have further

pointed out three kinds of contingencies making the crafting of alliance

contracts difficult and ineffective: task integration, economic uncertainty,

and the need to make decisions quickly. First, task integration implies

process integration, not just output coordination, so it requires working

together on common tasks. Second, the more uncertain the nature and

value of future trade between partners, the more difficult it is to govern

through ex-ante contracts. Although an institutional form will not

guarantee that an alliance can handle long-term uncertainty, when change

occurs, an institutional arrangement may be easier to revise than one based

on contracts. Third, the final factor affecting the choice between forms of

collaboration is urgency of decision-making. (Doz & Hamel, 1998)

According to Doz and Hamel (1998), in cases where there is no time for a

lengthy approval process, the fact that the key joint venture managers enjoy

autonomy in decision-making and also hold key positions in their parent

companies makes quick decision-making possible. In other words, alliances

that require little task integration, face little uncertainty, and have no need

for quick decision-making, can rely on simple contractual arrangements for

their governance. (Doz & Hamel, 1998)

Based on the literature on inter-firm cooperation and the characteristics

of international film co-productions, international film co-productions are

considered as international alliances between partners cooperating

internationally in producing, exploiting, distributing, and/or in any other

way operating regarding a specific film. In the following sub-chapter,

international film co-productions are defined more precisely as

international alliances.

29

2.1.2.2. Alliances and Various Research Perspectives

In the never-ending search for ways of gaining a sustainable competitive

advantage, firms have increasingly turned to the use of strategic alliances as

a method of international expansion (see e.g. Koza & Lewin, 1998;

Brouthers et al., 1995; Mohr & Spekman, 1994; Lewis, 1990). As previously

stated, one of the terms describing international inter-firm cooperation is

‘international strategic alliances’ (Luostarinen & Welch, 1997). Alliances as

such have been defined in various ways. According to Harrigan (2002:205),

a strategic alliance is “a partnership among firms that work together to

attain some strategic objective”. Gulati (1998:293) has defined strategic

alliances as “voluntary arrangements between firms involving exchange,

sharing or co-development of products, technologies, or service”. Inkpen

(1998:224) has defined a strategic alliance as “a relatively enduring

interfirm cooperative arrangement that utilizes resources and/or

governance structures from autonomous organizations”. Furthermore,

according to Ernst (2003:20), an alliance is “a relationship between

separate companies that involves joint contributions and shared ownership

and control”, and the author further argues that “seen on a continuum, an

alliance is an organizational form between a full acquisition and a loose

relationship based on an informal agreement”. On the other hand, Seristö

and Vaara (1999) consider alliances as organizational hybrids that have

different meanings for different actors.

The specific term ‘strategic alliance’, separated from the term ‘alliance’,

has been defined on the basis of certain characteristics. For example,

Harbison and Pekar (1998) have defined ‘strategic alliances’ in terms of the

following distinct characteristics: (1) a commitment of at least ten years; (2)

a linkage based on equity or on shared capabilities; (3) a reciprocal

relationship with a shared strategy in common; (4) an increase in the

companies’ value in the marketplace, placing pressure on competitors; and

(5) a willingness to share and leverage core capabilities.

According to Neumann and Appelgren (2002:4), a film co-production can

be described as “any type of production which involves more than one party

in the production process, through partnership, joint venture or any other

means of cooperation”. The authors further state that the structure of an

international film co-production is known in many countries as a

partnership (Neumann & Appelgren, 2002). For the purposes of this study,

according to the definition of Harrigan (2002), the term ‘alliance’ is used to

refer to a partnership among firms that work together to attain some

30

strategic objective. International film co-productions are these kinds of

alliances. As international film co-productions are long-term projects, they

may take several different forms attaining different strategic objectives, and

there are a variety of capabilities to be shared and agreed upon,

international film co-productions can strongly be considered as alliances.

Referring to the definition of Harbison and Pekar (1998), based on the fact

that international film co-productions may create a commitment of less

than ten years, they may be considered to be ‘alliances’ rather than

‘strategic alliances’, which supports the position taken in this study that

international film co-productions are considered as ‘alliances’.

For some years now there has been a growing stream of research of

alliances that have been studied from various perspectives (see e.g. Osborn

& Hagedoorn, 1997; Pekar & Allio, 1994; Lorange & Roos, 1992). For

example, Osborn and Hagedoorn (1997) have distinguished economics-

based views of alliances, the corporate strategy perspective and the inter-

organizational field perspective. The research on alliances has been carried

out from various perspectives including, for example, the following themes:

(1) motives, reasons and rationales for alliances (see e.g. Contractor &

Lorange, 1988; Ohmae, 1989; Eisenhardt & Schoonhoven, 1996; Lorange &

Roos, 1991; Schermerhorn, 2001); (2) alliance formation, partner selection

and characteristics (see e.g. Brouthers et al., 1995; Saxton, 1997; Lorange et

al., 1992; Luo, 1997; Mitchell et al., 2002; Marschan-Piekkari et al., 2001;

Hamel et al., 1989; Borys & Jemison, 1989); (3) contractual arrangements

and trust (see e.g. Reuer & Ariño, 2007; Ariño & Reuer, 2004; Ariño et al.,

2001; Poppo & Zenger, 2002; Das & Teng, 1998; Contractor & Kundu,

1998; Gulati, 1995); (4) alliance performance, structures and complexity of

alliances (see e.g. Glaister & Buckley, 1999; Osborn & Baughn, 1990;

Parkhe, 1993a, 1993b; Killing, 1988); (5) developmental and evolutionary

processes (see e.g. Ring & Van de Ven, 1994; Doz, 1996); (6) alliances and

networks (see e.g. Gulati, 1998; Osborn & Hagedoorn, 1997); and (7)

learning in alliances (see e.g. Hamel, 1991; Inkpen, 1998; Khanna et al.,

1998).

In order to understand an alliance from the process perspective, as

presented by Pekar and Allio (1994), four stages of the strategic alliance

process may be identified: strategy development, partner assessment,

contract negotiations and alliance operations. This perspective is presented

in Figure 1.

31

Strategy Partner Contract Alliance Development Assessment Negotiations Operations

Figure 1. Four stages of the strategic alliance process (Pekar & Allio, 1994).

These four process stages can be related to different research

perspectives. First, strategy development studies the alliance’s feasibility

and rationale including e.g. motives, drivers and objectives. As stated by

Pekar and Allio (1994), it focuses on the major issues and challenges and

development of resource strategies for production, technology, and people,

and it also requires aligning alliance objectives with the overall corporate

strategy. Second, partner assessment emphasizes building a database of

possible partners, analyzing a potential partner’s strengths and weaknesses,

and preparing appropriate partner selection criteria (Pekar & Allio, 1994).

Third, contract negotiations determine the content of the cooperation –

whether all alliance parties have realistic objectives. Also, each partner’s

contributions are defined and all other terms of the alliance are negotiated

and determined. This process stage especially relates to studies on

contractual arrangements and trust. Fourth, according to Pekar and Allio

(1994), alliance operations address senior management’s commitment, the

caliber of resources devoted to the alliance, linking of budgets and

resources with strategic priorities, and measuring and rewarding alliance

performance. This fourth process stage includes a variety of perspectives,

such as alliance performance and complexity of alliances, developmental

and evolutionary processes, as well as networks and learning in alliances.

(Pekar & Allio, 1994)

The following sub-chapter positions this particular study on international

film co-production alliances within the sphere of contracting of alliances.

2.1.3. Contracting in International Film Co-Production Alliances

International film co-productions are mainly coordinated and regulated by

collaborative agreements, called ‘co-production agreements’. Such co-

production agreements are entered into between the co-producing partners

specifying the contractual provisions agreed by and between production

companies as contracting/alliance partners to co-produce a film (see e.g.

Neumann & Appelgren, 2002; Baker, 1995; Dally et al., 2002; Alberstat,

2000). Therefore, these international film co-production alliances

32

represent a contractual form of governance, since they are based on co-

production agreements.

In this study, the interest is to examine the use of co-production

agreements that production companies as alliance partners enter into when

forming an international film co-production alliance. The following figure,

Figure 2, presents different research areas relating to the stages of an

alliance process, and the research area relating to this study on

international film co-productions is further marked as bold.

(Process)

Strategy Partner Contract Alliance Development Assessment Negotiations Operations

(Research) Rationale Partner Contractual Performance, (Motives, Selection arrangements Processes, Objectives) Learning, Trust … Figure 2. Modified model of the four stages of the strategic alliance process by Pekar and Allio (1994).

Business contracting is one interesting area of research on alliances.

Many firms invest a lot of money in business development activities in their

efforts to land a particular contract. However, as Punnett and Ricks (1992)

have pointed out, prior to incurring these costs, the firm should understand

the contracting organization and the project in question. Each business

manager should pay attention to important issues. First, it is important to

estimate the likelihood that the contract is actually open to all firms and has

not been promised to one firm based on its relationship with the

contracting organization. Second, it is also relevant to determine the

contracting organization's objectives and whether the firm is able to meet

these objectives in an efficient and effective manner. Third, attention

should be paid to the contracting organization's ability to live up to its part

of the contract, in terms of provision of services, materials, and prompt

payments. If an assessment of the contract organization is positive, then the

time and money necessary to bid for the contract can be compared to the

expected returns. Finally, consideration needs to be given to obtaining

33

work permits, income tax responsibilities and other issues related to the

specific business in question. (Punnett & Ricks, 1992)

Contracting firms rely on their communicating and negotiating ability

throughout the process of bidding for, signing, and completing a contract.

Many firms are very successful international contractors, but many more

find that the costs often outweigh the benefits. (Punnett & Ricks, 1992) As

Punnett and Ricks (1992) have reminded, contracting provides unique

opportunities for firms that have specialized skills that are in demand

internationally, but firms should not make the mistake of thinking that it is

easy to obtain international contracts.

2.2. Co-Production Agreements as a Basis for International Film Co-Productions

Since international film co-production alliances are based on co-production

agreements, the contracting of an international film co-production alliance

refers to the contracting of such co-production agreements. In order to

finalize the literature review part of this doctoral thesis, this sub-chapter

examines in more detail co-production agreements used in international

film co-production alliances, the design of such agreements, and the

contractual provisions characteristic to them.

2.2.1. Co-Production Agreement of the Film Industry

2.2.1.1. Co-Production Agreement as Collaborative Agreement

From the business perspective, the term ‘collaborative agreement’ may refer

to different meanings. As already stated, the term ‘international

collaborative agreement’ is used as one of the terms describing

international inter-firm cooperation. Hergert and Morris (1988:100)

consider a collaborative agreement as “an intermediate position along a

spectrum of inter-firm dealings encompassing arms-length transactions at

one end and full mergers at the other”. The authors argue that the main

purpose of a collaborative agreement is to share risks and rewards among

the participants (Hergert & Morris, 1988).

The term ‘international collaborative agreement’ is also used to refer to an

actual agreement/contract specifying contractual provisions agreed upon

between the collaborating partners. For the purposes of this study, the term

‘collaborative agreement’ is used to refer to such actual co-production

34

agreement entered into by and between the co-producing partners and

specifying the contractual provisions agreed upon between such

contracting/alliance partners to co-produce a film. Moreover, as argued by

Enrich (2005), the legal nature of co-production may vary considerably,

depending on the various forms that may be agreed by contract (a non-

registered company, a corporation, a partnership, a contract of share in the

accounts). Nevertheless, for the purposes of this study, the term ‘co-

production agreement’ is used to refer to an agreement specifying the

contractual provisions for international film co-production between co-

producing partners as independent contractors without a commitment to

creating any association, corporation, or joint venture.

It is noteworthy that there are also other international collaborative

agreements relating to international film co-productions, for example,

particularly relating to financing, exploitation, distribution, marketing, and

sales of a film. As particularly reminded by Alberstat (2000), film producers

must differentiate a co-production agreement from a co-financing

agreement that is an agreement where a participant’s involvement is purely

financial. As previously referred to, Enrich (2005) has pointed out the

difference between co-production and ordinary financial participation.

However, this study only focuses on a co-production agreement regulating

an international film co-production alliance, and such co-production

agreement refers to the agreement between the actual co-producing

partners. Consequently, since international film co-productions are

considered as international alliances, these co-production agreements as a

basis for such alliances are also considered as alliance contracts.

Finally, apart from joint ventures, an alliance can be created under many

contractual forms (García-Canal, 1996). According to the distinction of two

types of contractual agreements outlined by García-Canal (1996), a co-

production agreement represents a horizontal agreement rather than a

vertical agreement. In horizontal agreements, all partners participate

directly in the performance of the activities, subject to the agreement all of

them share part of their assets, and the greater the horizontal character of

the alliance the higher the degree to which the partners share the property

rights over the assets involved in the activities (García-Canal, 1996). As

stated by García-Canal (1996), in contractual agreements the relationship

between partners is governed by a contract, specifying the rights and

obligations of the parties, not implying the establishment of a new entity.

The author continues that in this way, all the details relating to the control

of the activities and the distribution of their residual returns must be

35

negotiated between the partners, whereas all details not explicitly treated

remain unspecified (García-Canal, 1996).

2.2.1.2. Co-Production Agreement as Business Contract

From the legal perspective, a co-production agreement regulating

international film co-production is considered to be an international

‘business contract’; this is different from multilateral and bilateral

agreements. Business contracts are made between business partners i.e.

firms representing different countries (instead of between countries), and

as defined by Lyons and Mehta (1997:241), contracts are “agreements in

writing between two or more parties, which are perceived as legally

binding”. Lyons and Mehta (1997) have further argued that whereas an

agreement may take a variety of forms – written or verbal, implicit or

explicit forms – a formal contract refers to such an agreement in tightly

written legal forms, which definition is also applied to this study.

Accordingly, a co-production agreement as used in international film co-

productions represents such a business contract between firms. However,

the relationship between different laws and business contracts is very close.

It is important to distinguish between different kinds of business

transactions since different laws and legal principles apply to each. As

Keenan and Riches (1995) have stated, the rights and duties of the

contracting parties are determined by the nature of their contract and the

legal rules that govern that particular kind of agreement. Györy (1995:2)

has defined the contract of co-production as the contract through which

“several production enterprises agree to jointly produce a film or

audiovisual work, with each party contributing a substantial share of the

means needed for the production and with the intention of becoming the

owners”.

As previously related, every film is unique and every co-production

agreement is a singular creation. However, one important factor to be

considered regarding a co-production agreement is which party will be

contracting with whom (Alberstat, 2000). All the co-producing partners

may be involved in the same agreement. The ‘delegate producer’, as the

ultimate responsible party for the financing and production of the film, may

contract individually with each of the other parties involved in the film co-

production or all the parties may be included in the same co-production

agreement. Neither way can be considered better than the other, but as the

expectations of each party with regard to the key matters of a co-production

36

agreement may vary greatly, it may be more appropriate for the delegate

producer to agree upon the co-production separately with each of the other

parties. Therefore, international film co-production alliances may involve

one or several co-production agreements. Film producers should realize

that all deals are negotiable and because of the variable nature of film

production, there are no specific rules to apply to the final outcome of

negotiations (Alberstat, 2000), although naturally they are limited by the

applicable legal regulation.

The following figures illustrate the two alternatives regarding the use of a

co-production agreement in international film co-production: (a) the case

of one co-production agreement between the co-producing partners and (b)

the case of several co-production agreements involved in one international

film co-production. In Figure 3a, production company A as the delegate

producer enters into one co-production agreement with all the other co-

producing partners (production companies B, C and D), i.e. all the co-

producing partners are included in the one and only co-production

agreement.

Delegate producer (A) Production company A §

Co-production agreement Production Production Production company B company C company D

Minority co-producing partners (B, C & D)

Figure 3a. International film co-production including one co-production agreement.

In Figure 3b, production company A, as the delegate producer, enters into

one co-production agreement with each of the other co-producing partners,

i.e. the delegate producer has a separate co-production agreement with

each minority co-producing partner.

37

Delegate producer (A) Production company A § § §

Co-production agreements Production Production Production company B company C company D

Minority co-producing partners (B, C & D)

Figure 3b. International film co-production including several co-production agreements.

After discussing the co-production agreement used in international film

co-productions, the following sub-chapter further examines the design and

key content of such co-production agreements, by reference, also, to the

significance of commitment and trust.

2.2.2. Design of a Co-Production Agreement

2.2.2.1. Design of Alliance Contracts and Contractual Provisions

Regarding alliance contracts in general, as stated by Lee (2000), the only

good agreement is one that is fair to all parties, and everyone is best served

when the deal is balanced to the contributions of all participants. As

pointed out by Ghauri and Usunier (2003), a simple memorandum of

understanding that allows further refinement may be better when the

parties have not reached full agreement within a negotiation round. The

authors further warn that the idea that “a deal closed is better than none”

may be dangerous, since signing an ambiguous contract can lead to

enormous problems in the implementation stage (Ghauri & Usunier, 2003).

As pointed out by Reuer and Ariño (2007), empirical research on the

economics of contracts has especially tended to examine contracts from two

approaches: (1) by investigating contractual complexity in very global terms

and (2) by investigating individual provisions. Only recently, research on

contracts has been extended, first, by Poppo and Zenger (2002) who have

38

called for research that examines particular provisions in contracts rather

than relying on such global indicators of contractual complexity, and

second, by Reuer and Ariño (2007) who have combined in their research

some of the best elements of both of the approaches mentioned above by

investigating how various types of contractual provisions bundle together,

and by assessing whether contractual complexity is a multidimensional or

unidimensional construct.

Regarding the literature on alliances and contracts, as illustrated by Reuer

and Ariño (2007), the following work may be identified: First, there has

been research on how contractual characteristics explain alliance outcomes

or what triggers changes to alliance contracts (Parkhe, 1993b; Deeds & Hill,

1998; Reuer & Ariño, 2002; Reuer et al., 2002). Second, researchers have

focused on the determinants of alliance contractual design (Luo, 2002;

Ryall & Sampson, 2006). Third, studies have examined whether relational

governance substitutes or complements formal governance mechanisms

(see e.g. Poppo & Zenger, 2002; Mayer & Argyres, 2004; Hoetker &

Mellewigt, 2009, Li et al., 2010), and fourth, research has been carried out

by considering whether prior ties generate trust and/or inter-organizational

routines for partners (Zollo et al., 2002). (Reuer & Ariño, 2007) Recently,

Reuer and Ariño (2007) have contributed to the literature by examining the

theoretical determinants of contractual complexity leading to the core

finding that contractual complexity is a multidimensional construct and

that different dimensions of contractual complexity have unique

antecedents. Faems et al. (2008) have also recently contributed to the

literature by developing a more integrative perspective on alliance

governance by connecting contract design, trust dynamics, and contract

application.

Studies on negotiations, and more specifically cross-cultural/cross-

national negotiations, naturally also closely relate to international business

contracts. Both contractual negotiations and renegotiations (see e.g. Ghauri

& Usunier, 2003; Jensen & Unt, 2002; Mead, 1998, 1990; Campbell &

Reuer, 2001; Ariño & Reuer, 2004; Reuer & Ariño, 2002) have been

studied, since negotiation can be considered as one of the important arenas

of cross-cultural communication for international business. As pointed out

by Mendenhall et al. (1995), business hardly occurs unless negotiations are

successful. Negotiations may be considered to represent a so-called pre-

stage of business contracts requiring careful preparation, especially when

the contracting parties are not representing the same country and culture.

As argued by Mead (1998), the more long-term the proposed deal, the

39

greater the need for additional data, including e.g. financial and economic

data, infrastructure data, labor force data, legal data, political data, and

cultural data. Moreover, different issues have been identified as playing an

important role in cross-national negotiations. Research on cross-cultural

negotiations may be carried out by looking at different issues that may vary

among cultural groups, e.g. by focusing on negotiation as a process, the

choices of representation in negotiations, decision-making authorities and

reasons for negotiating. However, this study focuses on the co-production

agreement as an alliance contract regulating an international film co-

production alliance in order to understand such co-production agreement

from both business and legal perspective, rather than studying contracting,

including negotiation, as a process.

Looking more closely at the research on alliance contracts, although

studies have been carried out dealing with contracting and alliance

contracts as illustrated above, it seems that only recently has more focus

been directed to particular contractual features and the design of alliance

contracts (see e.g. Reuer & Ariño, 2007; Ariño & Reuer, 2004; Mayer,

2006). As argued by Ariño and Reuer (2004:37), “contract design is an

essential part of alliance structuring” and “a well-designed alliance contract

will be consistent with the alliance’s purpose and with the partners’

interests”. Further, De Jong and Klein Woolthuis (2009:44) have argued

that “the design of a formal agreement is one of the most important

strategic decisions for alliance partners”. This also supports the importance

of co-production agreements used in international film co-production

alliances creating the entire basis for such international cooperation. The

design of alliance contract refers in this study to the examining of co-

production agreements and the content characteristic to such agreements

regulating the international film co-production alliances.

According to Reuer and Ariño (2007:315), “the actual contents of alliance

contracts may serve several important functions in managing exchange

hazards”. Through their research, these authors have investigated

particular contractual provisions that firms incorporate into their alliance

contracts, and have identified the conditions under which it pays for firms

to use more complex contracts and the conditions under which it pays for

them to renegotiate their contracts (Ariño & Reuer, 2004). Ariño and Reuer

(2004:37) remind that “even if the partners have a clear understanding of

the alliance’s intent and their mutual interests, designing a contract that

anticipates all possible eventualities is not feasible, no matter how complex

the contract may be”. As further exampled by the authors, parties to an

40

alliance may use the contract to set out their mutual rights and obligations

through the specification of inputs to the alliance, processes by which

exchanges will occur and any disputes will be resolved, and the expected

outputs from the joint undertaking (Ariño & Reuer, 2004). Moreover,

Faems et al. (2008) have argued that existing research has exclusively

focused on the degree of contractual formalization, or the number of

clauses that are defined in a contract. Faems et al. (2008) have further

stated that such an approach ignores the nature of formalization, or the

actual content of the contractual clauses (see also Klein Woolthuis et al.,

2005), which aspect, however, is showed to be important, particularly by

Hagedoorn and Hesen (2007) whose research has focused on an in-depth

and detailed, qualitative analysis of the interaction of contract law and

different modes of technology partnering. Technology alliances have also

very recently been studied by De Jong and Klein Woolthuis (2009) who

have focused on the content and role of formal contracts in high-tech

alliances.

In order to be more specific on the actual content of each alliance contract

from the legal perspective, contractual provisions of each business contract

are essentially a matter of express agreement between the contracting

parties and which provisions are included in each contract is critical. The

aim is to build common ground, and in general, the better the so-called

rules of business are included in the agreement, the less probable a dispute

will be. As defined by Keenan and Riches (1995), the obligations

undertaken by the parties are known as the terms of the contract. This is

generally unproblematic when the details of the agreement are enshrined in

a written contract, but even then problems may arise. As Keenan and

Riches (1995) have stated, the contracting parties may have failed to

express their intentions clearly or unambiguously; they may have omitted

to mention a particular matter that later assumes great importance, and the

written document may contradict what was said during the course of oral

negotiations. In this study, the term ‘contractual provisions’ is used to refer

to the content, i.e. the business terms and conditions, of an alliance contract

such as a co-production agreement.

As presented above, previous studies on alliance contracts have strongly

supported the view that contract design is a key part of alliance structuring.

However, different from the previous studies, this study does not aim to

examine the design of alliance contracts in general, since the specific focus

is directed to the international film co-production alliances and the co-

production agreements as alliance contracts regulating such international

41

alliances. Since it depends much on the agreement in question, what should

be included therein, only by looking more closely at each business

transaction, more specific information may be given. In contrast to the

previous studies, this study examines how one specific international

alliance is structured based on and managed by an alliance contract, which

contractual provisions are included in such contract, and how the design of

such contract could be approached. In order to understand how

international film co-production alliances are based upon and managed by

co-production agreements, this study is carried out by examining the use of

and key content of such co-production agreements.

Accordingly, the following sub-chapter examines the key contractual

provisions characteristic to co-production agreements in order to explore

an understanding of the alliance contract design of such co-production

agreements. This objective is further completed through the empirical

research part of this doctoral thesis.

2.2.2.2. Key Contractual Provisions of Co-Production Agreements

Alliance contracts vary greatly in their complexity (Reuer et al., 2006).

Regarding co-production agreements of the film industry, interviews have

revealed that the more countries with firms participating in the process of

producing a film there are, the more complicated it is (Kohvakka &

Huttunen, 1997). As Kohvakka and Huttunen (1997) have pointed out, the

development stage becomes more laborious with each additional country.

The authors have further argued that negotiations must then be conducted

with more parties and more legal aspects have to be taken into

consideration in making the agreement (Kohvakka & Huttunen, 1997).

Alberstat (2000) has also reminded that production companies must realize

that finalizing contracts for film co-productions can be a lengthy process,

particularly when more than two parties are involved. For this reason, it is

strongly advised that contracts are finalized before production starts.

Moreover, various contractual matters can create a deadlock through

irreconcilable differences between the parties to an agreement (Alberstat,

2000). Furthermore, Litwak (2004) has argued that when contemplating

an international film co-production, it is important to consider the

expectations of the co-producing partners.

With regard to the main content of a co-production agreement, according

to Enrich (2005:2), “two or more persons agree to: a) collaborate and pool

goods, rights or services in order to produce an audiovisual work of some

42

kind, b) attribute ownership of the rights in respect of the audiovisual work

resulting from such collaboration, and c) make use of the work jointly, and

share the ensuing profits (or losses) in agreed proportions”. Many kinds of

check lists have been created in order to advise co-producing partners to

manage and understand the issues that need to be taken into consideration

when entering into co-production agreements, since such agreements

include a variety of different contractual provisions that are required to be

agreed upon. Based on the literature (see e.g. Neumann & Appelgren, 2002;

Baker, 1995; Dally et al., 2002; Alberstat, 2000), some key contractual

provisions of a co-production agreement may be identified. These are

presented in Table 1.

Film/production specifications Contributions of the co-producing partners Production schedule Budget Financing plan & cash flow Rights clearance (script, music, etc.) Copyright of the film & secondary rights Commercial exploitation & distribution of the film Materials & the delivery Profit participation/sharing, recoupment & collection of revenues Insurances Credits (on screen) Confidentiality Termination Assignment of the agreement Applicable law & dispute resolution

Table 1. Key contractual provisions of a co-production agreement.

Next, each key contractual provision of a co-production agreement is

separately discussed as a means to introduce each subject area. Clearly,

each subject area is much more extensive and detailed than presented

below, but this study focuses on identifying the key content and key

contractual provisions of co-production agreements to the extent

appropriate in order to carry out this research, i.e. it does not study the

details and in-depth analysis of any particular provision.

Film/Production Specifications

The film/production specifications listed in a co-production agreement,

such as the title, format, length, language, the screenplay, principal

contributors, and location(s) of the film shooting, are crucial as they

indicate the technical parameters of the production (Neumann &

Appelgren, 2002). Specifying the key elements of a film co-production

43

enables co-producing partners to ensure that all known elements of the film

co-production are thoroughly explored between the partners before

commencement of production (Alberstat, 2000).

Contributions of the Co-Producing Partners

When contemplating an international film co-production, co-producing

partners need to consider the nature of their relationship. The co-producing

partners need to decide what each company contributes to the endeavor.

(Litwak, 2004) The contributions define the nature of participation of each

co-producing partner. These contributions may be financial and any other

type of cooperation. As argued by Enrich (2005), film co-production will

only be possible if each co-producing partner does indeed contribute what it

has undertaken to contribute, and the author further specifies contributions

to be (a) monetary, (b) non-monetary, consisting of goods or rights, and (c)

production or commercialization services. For example, as pointed out by

Litwak (2004), the need for a location abroad may lead to international film

co-production in which case the company in the specific country may

provide local services and expertise. International film co-production may

also represent stronger relationship between the co-producing partners,

when such partners may be operating as partners sharing creative control

and financial risk (Litwak, 2004). If co-producing partners make unequal

contributions, their control, fees, and ownership of the film project can be

adjusted to reflect this so the deal is fair to all co-producing partners

(Litwak, 2004).

As stated above, in a film co-production, one company is usually

appointed as the ultimate responsible party for the financing and

production of a film. That company or individual is named the delegate

producer. The delegate producer will then oversee all creative,

administrative, financial, legal and editorial decisions. Specifically, the

creative process should rest with only one co-producing partner in order to

avoid conflicts. It should then be agreed, defined, and specified how much

“power” the other co-producing partners are prepared to give to the

delegate producer. There should be certain limits specifying that the

delegate producer cannot make any decision that increase production costs.

For example, a production cost increase is accepted if the delegate producer

can provide the additional finance. It cannot be stressed enough how vital it

is that each co-producing partner’s responsibilities and obligations are

clearly allocated and confirmed in a co-production agreement. Every co-

producing partner will bring individual considerations to the table when the

44

agreement is discussed and negotiated. (Neumann & Appelgren, 2002)

Alberstat (2000) has also argued that the detailed responsibilities of each

co-producing partner must be clearly set out within the agreement,

including their respective roles, responsibilities, and entitlements.

Production Schedule

It is essential that co-producing partners agree on a shooting schedule for a

film (Alberstat, 2000). The production schedule serves to outline the work

that is necessary to make the film. The production schedule includes

information on principal photography and more detailed information on

shooting days. Without the production schedule as an integrated part of the

documents, the delegate producer is essentially given free reign in the

planning and production of the film. Besides the obvious budget

implication, this may well have artistic and content consequences.

(Neumann & Appelgren, 2002) Moreover, a production schedule often is a

requirement of the financiers (Alberstat, 2000).

Budget

The production budget is much more than an estimated calculation of a

film’s costs. It is a vital document containing many of the decisions made by

co-producing partners concerning principles and parameters of the film’s

co-production. It contains stipulations of the cast and its size, functions of

the crew, the duration of shooting, the length of the work day and week, the

number of locations, special effects, music, and so on. Therefore, a fully

specified budget and budget summary should be available at all times and

referred to as an integrated part of any co-production deal. The budget

should be individually accepted and approved in writing by all co-producing

partners and attached to the co-production agreement. If co-producers do

not work from the same budget, there may be severe consequences. When

shooting in different countries there are of course various factors to be

considered in respect to the budget. Traditions vary across countries and if

these “differences” are not considered, the budget consequences and

implications can be fatal. Moreover, different subsidy rules as to what types

of costs are acceptable in the budget also apply in each country. (Neumann

& Appelgren, 2002)

It must be further considered, negotiated, and decided who is entitled to

budget savings, if any, and who is responsible for any overcosts (Neumann

& Appelgren, 2002). In this regard, since the budget may change and lead

45

to an overspend (any increases in the budget) or underspend (less costs

than budgeted), such detail should also be noted and agreed upon in the co-

production agreement (Alberstat, 2000).

Financing Plan and Cash Flow

Raising funds and making a film is a challenging and complicated

undertaking. Types of financing generally fall into four main categories:

payment against sale of rights, subsidies and/or soft money, equity, and

sponsorship. Payment against sale of rights (pre-sales and minimum

guarantees) as financing is characterized as money pre-paid or pre-agreed

for a contract on certain exploitation rights. In the case of television pre-

sales it refers to payment for broadcast rights, or licenses. The minimum

guarantee (MG) refers to a minimum advance by a distributor or sales agent

of the producer’s share of expected income from distribution of the film in a

given territory. Subsidies and/or “soft money” are provided by state funding

bodies for producers to complete a budget that otherwise could not be

completed on commercial terms, and they aim to nurture the local industry.

This financing varies from direct support to various loan arrangements,

typically interest-free and with restricted repayment conditions. There are

public funding provided by such film institutes as the Finnish Film

Foundation. There are also regional and local authorities. Supranational

institutes represent soft money, such as the MEDIA Programme,

Eurimages, and Nordisk Film & TV Fond.

Regarding equity, a person or company investing equity in a film becomes

co-owner of the final product and will typically stay on board as owner in

perpetuity. An equity investor puts up finance with the expectation of

receiving a return on investment. These are provided by producers and/or

studios. Sponsorship and ‘product placement’ refer to the contribution by a

company of either goods or money to the film, in exchange for an

association with or appearance in the film. The expectation is that such

placement or sponsorship will generate promotional benefits for the

company. Finally, tax funds may represent MG/pre-sales, soft money, or

equity. Some countries have tax legislation designed specifically to

encourage the private sector to invest in films. Tax advantages may be

provided if certain local conditions are met. (Neumann & Appelgren, 2002)

A financing plan provides the structure for financing of a film. The

amount of finance provided or procured by each co-producing partner

should be stated as a percentage of the budget, and this should be reflected

46

in the financing plan (Alberstat, 2000). Co-producing partners should be

aware that when entering into a film co-production each partner to the co-

production will be responsible for specific amount of the overall budget

(Alberstat, 2000). Neumann and Appelgren (2002) have suggested that it is

extremely useful to have the financing plan in mind throughout contract

writing, because it can indicate or even dictate certain structures and

agreements that need to be made. Any revisions of the plan will have

repercussions on each element therein and could also have knock-on effects

regarding compliance with national rules or guidelines (Neumann &

Appelgren, 2002). Neumann and Appelgren (2002) have further pointed

out the securing of the finance. One of the most common problems that

seriously threaten the start or completion of a film is non-performance of a

co-producing partner and/or financier. Until the entire finance has been

secured, Neumann and Appelgren (2002) have recommended working

always with back-up plans and staying aware of what would happen if co-

production need to be postponed or even canceled.

Once the co-producing partners have been able to raise all of the funding

for a film co-production, the next step is to prepare a detailed cash flow

chart, which will outline both the cash coming in and expenses paid out

during the co-production (Neumann & Appelgren, 2002). The cash flow

may specify the timing for remittance of funds to the co-production by the

various co-producing partners or their respective financiers (Alberstat,

2000). The co-producing partners should also agree on production

account(s) to be used for the co-production (Alberstat, 2000). Finally, when

partners from different countries co-produce a film, they need to carefully

consider the tax consequences of their collaboration. Careful structuring of

the collaboration may significantly reduce the tax burden on the co-

producing partners. For example, a film co-production between two co-

producing partners may be considered a partnership for tax purposes.

(Litwak, 2004)

Rights Clearance

When co-producing partners get together to make a film, it is most often

the case that one of the co-producing partners has already acquired the

rights to a screenplay or novel (Neumann & Appelgren, 2002). ‘Underlying

rights’ are the first element of what is known as the ‘chain-of-title’. ‘Chain-

of-title’ may be defined as “documents evidencing the producer’s ownership

of the right to the copyright material, on which the film is to be based, all

the way from the original author of copyright through to the producer”

47

(Neumann & Appelgren, 2002:25). Chain-of-title documentation is

evidence of a production company’s right to produce a film based on the

subject matter of the film (Neumann & Appelgren, 2002). A film can be

based on existing copyright material, for example, a book, an article, a stage

play, a screenplay, a radio play, or someone’s life story. In each case, the

producer needs the copyright owner’s permission and the rights to produce

a film (Neumann & Appelgren, 2002).

In addition to the underlying rights, the right clearance is also needed

regarding the director of the film and the music used for the film. The

director is the person responsible for bringing the script to reality

(Neumann & Appelgren, 2002). Parties to the co-production agreement

should ensure that any pre-existing contracts for underlying rights

materials are in order, or that the originating co-producer has acquired

rights over copyright materials prior to entering into the co-production

agreement (Alberstat, 2000). It is also recommendable that the right

clearance of the music is started at an early stage, especially when

copyrighted music is an important part of the film project, since the music

may be expensive or perhaps the owner does not provide permission to use

the music (Neumann & Appelgren, 2002).

When a co-production agreement is entered into, the co-producing

partner who has acquired such rights to copyright material will assign or

license those rights to the film co-production under whatever arrangement

is most appropriate to the circumstances (Neumann & Appelgren, 2002).

As pointed out by Neumann and Appelgren (2002), it is advisable to review

contracts for underlying right material at an early stage in order to confirm

the ownership of rights and the validity and suitability of the contract for

the rights.

Copyright of the Film and Secondary Rights

One of the characteristics of film co-production is that the final work, the

film is the result of interaction between a wide diversity of artistic and

creative works (Neumann & Appelgren, 2002). As stated by Neumann and

Appelgren (2002), films are artistic works of joint authorship,

incorporating multiple rights holders, and from a copyright perspective,

films represent the united efforts of a range of rights owners. Further, a

distinction should be made between the film itself and the original material

carrying the film, and the original material produced, bought or rented for

the purpose of creating the film (Neumann & Appelgren, 2002).

48

Copyright is an owner’s exclusive right to control a film by making copies

of it and by making it available to the public (Neumann & Appelgren,

2002). Each country has its own copyright laws. Regarding the copyright of

a film, common-law countries consider the so-called first owner of the

copyright of a film to be the person responsible for the arrangements

necessary for making the film. This is usually a production company. Code

law countries, such as Finland, consider the author – the person creating

the work of art – to be the first owner. Since a film is normally the result of

many individual contributions from different people creating independent

works of art, a film will have many authors and is, in and of itself, the result

of what is called ‘joint authorship’. Each author involved in such a creation

must approve the use and exploitation of his/her work. The obvious

contributors to a film are the director, the scriptwriters, and the musical

score composer. However, the director of photography, the art director, the

editor, the sound engineer, and perhaps the head of the lighting

department, the make-up artists, and others are also creating work that

becomes part of the final film and their work may well be copyrighted. The

rights of actors, as with musicians, are often known as ‘neighboring rights’

and they themselves are classified as ‘performing artists’. Different rules

apply to neighboring rights. Nevertheless, all these rights must be cleared

as stated above. Therefore, all the rights of all the independent contributors

to a film must be cleared to the production. (Neumann & Appelgren, 2002)

When all the individual creations and works of art have been assembled, a

new work of art of its own is created based on the initial underlying rights.

Joint ownership of the copyright of the film means that more than one

person (or entity) shares the rights to a specific film, which is usually the

case in film co-productions. The key to the use and exploitation of the film

is the ownership and control of the rights to it. The right of ownership to the

film is a key issue, and there are numerous approaches co-producing

partners can take to address copyright. One common approach is for co-

producing partners to agree upon percentages of ownership rights

according to the percentages of the financial contributions of the co-

producing partners. (Neumann & Appelgren, 2002)

Although the protection of all property owned abroad is of concern, the

protection of intellectual properties is particularly troublesome for firms

operating in different legal environments. The failure to protect

trademarks, patents, processes, and copyrights can result in losses of these

rights in potentially profitable markets. In common law countries, the

49

ownership of intellectual property rights is generally established by prior

use, i.e. whoever may establish the first use is the rightful owner. However,

in code law countries, ownership is often established by registration. These

variations in laws of different countries have led to international

conventions designed to recognize and protect intellectual properties.

(Taoka & Beeman, 1991)

Secondary rights are characterized as rights to an independent project or

object for commercial exploitation deriving from the primary product (the

film itself), such as a book, record, or T-shirt (Neumann & Appelgren,

2002). Baker (1995) defines secondary rights as rights exercisable

independently of the film’s physical material. The author further argues

that “the secondary rights will involve exploitation of a mixture of the

elements involved in the original work on which the film or programme is

based, and the way in which a film or programme has turned out on screen”

(Baker, 1995:233). Secondary rights include publishing rights,

merchandising rights, stage rights, radio rights, music rights and rights to

the soundtrack, video games, and interactive CD-ROMs (Neumann &

Appelgren, 2002; Baker, 1995). ‘Merchandising rights’ are defined as “right

to license, manufacture, and distribute merchandise based on characters,

names, or events in a picture” (Litwak, 2004:297). According to Neumann

and Appelgren (2002), Internet rights are not considered secondary rights.

Rather, the Internet represents a new form for distribution, or a new

distribution media.

Finally, the parties to an international film co-production may also

separately agree on remake, sequel and prequel rights. ‘Remake’ may be

defined as a new production of a previously made/produced film (Litwak,

2004; Cones, 1992). ‘Sequel’ may be defined as “a literary work continuing

the course of a narrative begun in a preceding one; a feature film that is

released after the original and tells a related story that occurred after the

story depicted in the earlier released film” (Cones, 1992:470). ‘Prequel’ may

be defined as “a feature film that is released after the original but which

actually tells a related story that occurred before the story depicted in the

earlier released film” (Cones, 1992:386).

Commercial Exploitation and Distribution of the Film

Distribution rights are the rights to deal with and exploit a film in specific

territories for a specific period of time or for the entire life of the copyright

(Neumann & Appelgren, 2002). In addition to the agreement on copyright

50

ownership of the film, distribution rights may be divided among the co-

producing partners. One partner may want the right to distribute the film in

certain territories, or the partners may share revenue from all territories

(Litwak, 2004). Therefore, co-producing partners should decide whether

distribution rights are divided between the partners by territory or

otherwise, and determine who shall be responsible for appointing

distributors or sales agents in various territories locally or globally.

Furthermore, co-producing partners must decide between themselves

whether certain territories belong to each other on an “outright basis”. This

means that in perpetuity, each co-producing partner owns and controls

distribution rights in a given territory. (Neumann & Appelgren, 2002)

Moore (2000:83) has further stated that “the provisions of distribution

agreements are the life blood of all film companies, which live or die based

on the provisions of their distribution agreements”.

Materials and the Delivery

Co-producing partners should agree on who is responsible for the delivery

of the film and materials in the various territories to the various

distributors. The notion of distributor is used in a broad sense covering not

only distribution companies, but also TV companies or even film institutes,

which often have their own limited right of distribution and exploitation,

e.g. festival rights and rights to non-commercial exploitation. (Neumann &

Appelgren, 2002) Indicating the delivery date for materials may also be a

requirement of the financiers (Alberstat, 2000). Naturally, delivery items

should also be specified. Co-producing partners should secure their access

to the materials, e.g. in the form of a laboratory access letter (Neumann &

Appelgren, 2002).

Profit Participation/Sharing, Recoupment and Collection of Revenues

It is important to understand the difference between sharing ownership of

the property and sharing revenue derived from it. The copyright owner of a

film determines how the work may be distributed and exploited, and

whether to allow any derivative works to be adopted from it. On the other

hand, a party having the right to a certain percentage of the net profits from

a film has an interest in the revenue stream derived from the film. Such

profit participant does not necessarily have any control over how the

property is explored. (Litwak, 2004) Once the co-producing partners have

determined what each will contribute, they need to decide how they will

share any returns (Litwak, 2004). There are first many possible

51

arrangements for recoupment (Alberstat, 2000). A recoupment order is the

order of priority in which investors, financiers and co-producing partners

are repaid their loans and investments (Neumann & Appelgren, 2002).

Often investors recoup their capital contribution from the first proceeds

(Litwak, 2004).

Revenues from the exploitation of a film are often collected by a sales

agent or distributor. Another option is for revenues to be collected by the

delegate producer or each co-producing partner in its individual territory. A

further option is for a collection agency to be hired to collect all revenues.

(Neumann & Appelgren, 2002) Whatever the agreed procedure is to be, the

co-producing partners should set out the mechanism for collection of

revenues (if any) realized by the sale of the completed film (Alberstat,

2000).

Insurances

A co-production agreement must outline all the different kinds of insurance

needed for the film co-production (Neumann & Appelgren, 2002; Alberstat,

2000). One co-producing partner should be designated as the responsible

party for arranging all co-production insurance. In addition, the agreement

should specify minimum requirements in terms and coverage as well as the

various types of policies needed or requested by co-producing partners and

their financiers. Normally, responsibility falls to the delegate producer.

There are many types of insurance coverage available and exactly what

needs to be insured on a production depends on the size and circumstances

of the film. When shooting in multiple countries looking into whether laws

require different types of insurance before production begins is

recommended. (Neumann & Appelgren, 2002) Usual forms of insurance

requirements include: (1) liability to third parties during production of the

film; (2) insurance against damage or loss of the negative and other

property used in the production of the film; (3) insurance against the risk of

accident, illness or death of the director, principal cast and crew, and any

other person who may be an essential element, and such insurance should

include the risk of abandonment of the film resulting from any accident,

illness or death; (4) employee liability insurance for the duration of the

production; (5) errors and omissions insurance; (6) insurance against

moral rights claims and claims for equitable remuneration for rental or

lending; and (7) any other insurance which may be required by law before

the production takes place (Alberstat, 2000).

52

More specifically, Errors and Omission (E&O) Insurance is an insurance

specific to the film industry. E&O insurance protects the production

company, the distributors, and the film from any lawsuit alleging any of the

following: libel, slander or other forms of defamation; infringement of

copyright, including faulty chain-of-title; invasion of privacy or publicity;

incorrect use of format, ideas, names, trade names, service marks, titles,

characters, etc. In other works, any claims made by third parties against the

material. (Neumann & Appelgren, 2002)

Moreover, a completion guarantee is a highly specialized financial

instrument that is extremely vital and central to the movie business,

especially in independent film financing (Neumann & Appelgren, 2002).

Completion guarantees may be considered as a form of insurance whereby

the completion guarantor guarantees to take over and complete production

if it becomes apparent that the production cannot be completed within the

approval total budget (Alberstat, 2000). It is provided by a “completion

guarantor” to ensure that a film will be completed and delivered on budget

and in accordance with the script, schedule and technical quality, and by a

specified date subject to certain conditions and exclusions. However, it is

important to note that a completion guarantee is a performance guarantee

and not a general insurance policy. (Neumann & Appelgren, 2002)

Credits (on screen)

The co-producing partners also need to agree the wording, size and placing

of the credits for their companies, their individual credits, and also the

credits of creative talent such as the director, writer and actors (Alberstat,

2000). Some credits may be mandatory while others may be determined by

contractual obligations or demands of third parties. Specific attention

should be paid to mandatory credits that may be required by statutory law

for authors of the film work. There are also contractual credit obligations to

be kept in mind. For instance, public funding institutions and financiers

normally require credits. (Neumann & Appelgren, 2002)

Confidentiality

It is often recommended that each co-producing partner should be bound

by a duty of confidentiality regarding the co-production agreement and the

co-producer’s business in general (Alberstat, 2000). Confidentiality

provisions prevent the co-producing partners from releasing information

about upcoming releases, business details, production details, etc. The co-

53

producing partners should define at least with some specifications which

information and data must be considered as confidential. In general, the

confidentiality provision is included in the co-production agreement,

although a separate confidentiality/non-disclosure agreement can also be

used (Alberstat, 2000).

Termination

The co-production agreement should specify the grounds for termination,

which are generally breach of contract or insolvency (Alberstat, 2000). In

code law countries, statutory legislation provides rules for determining

default and gross default as well as breach of contract, which is a kind of

gross default. In common law countries, established practice determines

what legally constitutes default, gross default, or breach of contract. If a co-

production agreement is silent on this issue the agreement would be

interpreted according to the law of the country in question. It is important

to keep in mind that laws of default vary from country to country. Further,

altering or supplementing statutory legislation to the extent possible and

inserting a specific cure practice and/or rules for the consequences may be

recommended. (Neumann & Appelgren, 2002)

It makes no sense to try to recommend best practice or wording for any of

the specific co-production agreement clauses or the default clause as every

deal is different. By all accounts the most difficult problem to deal with

when co-producing is when one co-producing partner becomes insolvent.

The solvency legislation in the country under which the agreement is

governed will also come into play. (Neumann & Appelgren, 2002)

Nevertheless, Pekar and Allio (1994) have reminded that giving too little

consideration to procedures, penalties for poor performance and

arbitration may have a crucial influence on the success of the alliance.

Assignment of the Agreement

It is important to distinguish the difference between assignment of an

agreement and assignment of rights and responsibilities. Assignment here

refers to the possibility to assign the agreement. It is normal to limit the

possibilities of assignment. First, it would not be acceptable to allow a co-

producing partner the opportunity to assign its share of the film co-

production without the knowledge of the other co-producing partners

(Neumann & Appelgren, 2002). Second, a co-production agreement in most

circumstances is personal to the parties and is not capable of assignment

54

without the express prior consent in writing of all other parties (Alberstat,

2000).

Applicable Law and Dispute Resolution

Each agreement should specify the country under whose laws it is to be

governed. Co-producing partners should note that if a dispute arises

between the partners and the governing law (or jurisdiction) has not been

specified then this alone may create complex legal questions. Usually the

governing laws are determined by either the co-producing partner who

contributes the greatest amount of funding or by the delegate producer. The

agreement should further stipulate in which court any dispute between the

co-producing partners are to be heard. (Alberstat, 2000) As Keenan and

Riches (1995) have reminded, additional terms may be implied into an

agreement, even against the wishes of the contracting parties, and specific

terms that have been clearly stated may be rendered completely ineffective

by operation of the law. This supports the importance of the law that the co-

producing partners choose to be applicable to their co-production

agreement.

Since no single body of international law exists, firms are restricted by

both home and host country law. If a conflict occurs between contracting

parties in two or more different countries, a question arises concerning

which country's laws are to be used and in which court the dispute is to be

settled. An agreement may contain a jurisdictional clause, which indicates

that e.g. the jurisdiction lies in the country where the agreement is signed or

where the provisions of the agreement are performed, and this clause thus

settles the matter with little problem. However, in case there is no

jurisdictional clause, the contracting parties have a few choices, i.e. the laws

of different countries may be applied. Which laws to apply and in which

location to settle a dispute may be totally different decisions that need to be

made. (Naarajärvi & Koivisto, 2002) This supports the idea that co-

producing partners need to be aware of the different laws of the countries

involved, and strengthens the importance of understanding international

law regulations.

Laws vary from country to country even within the EU, and the same

wording of a clause may be interpreted differently depending on which law

is applied. The most common practice is that it is the delegate producer’s

country, but this could also be decided according to the relative level of

funding contributed by each co-producing partner and/or according to the

55

primary territory where the film is shot. It is also important to designate the

jurisdiction in which disputes should be solved. In case the co-production

agreement does not specify governing law and jurisdiction, a set of very

complicated rules based on private international law would apply and could

constitute the framework for a formal court case to determine the

appropriate governing law and the right jurisdiction for a dispute. For this

reason it is important to include in each co-production agreement a clause

determining dispute resolution, governing law, and jurisdiction. Even if the

co-producing partner cannot agree on anything else, a rule stipulating that

the court’s plaintiff shall sue the defendant in its jurisdiction, under its laws

and vice-versa, is better than a silent contract on this issue. (Neumann &

Appelgren, 2002)

The role of agreements is critical relating to the matter of disputes.

Attitudes towards a dispute differ between countries and the interests

involved. In this regard managers have perceived that their reputations

suffer if they are thought to be unable to control conflicts. In the Anglo

cultures, a certain level of open disagreements is treated as inevitable and is

tolerated. However, other cultures may be far less certain of how to manage

and positively react to disagreements between parties involved. (Mead,

1998) Disputes between contracting parties can be solved through different

procedures. If it is not specified in the co-production agreement, the only

choice is to go to court. However, the procedures include the following

options: court proceedings, arbitration, mediation, and/or individually

determined proceedings.

The pros and cons of the various solutions can vary according to which

country governs the law of each partner, and indeed the law chosen to

govern the co-production agreement. It is quite common to choose

arbitration as the final dispute solution in a co-production agreement.

Arbitration is considered a faster route to dispute resolution than court

proceedings, and it cannot be appealed. Often the arbitration route can be

more expensive, as salaries and fees generally have to be paid to the

arbitrators, but arbitration is believed to be a more competent forum for

disputes, as an arbitrator with special knowledge of the film industry may

be appointed. Many general agreements or union agreements dictate

arbitration. Mediation is not common in the film industry, even though it

actually offers certain advantages to the industry, such as saving time. The

mediator is a guide, not a judge, which helps settle legal problems early.

Mediation is one of the dispute resolution procedures administered by the

56

World Intellectual Property Organisation’s (WIPO) Arbitration and

Mediation Centre. (Neumann & Appelgren, 2002)

Other contractual provisions

It is recommended that co-producing partners also specify customary legal

warranties and indemnities in respect of e.g. the following matters: (1)

performance of the agreement; (2) financial responsibilities; (3)

infringement of copyright; (4) obligation to third parties; and (5) exclusion

of libelous, obscene, or defamatory material. These clauses should be

drafted according to the specific transaction and circumstances. (Alberstat,

2000) Parties to a co-production agreement are also recommended to

include in the agreement provision specifically stating which international

treaties are applied, and whether the parties wish to obtain co-production

status based on a bilateral or multilateral co-production treaty or if they

wish a European funding body to contribute to the co-production

(Alberstat, 2000).

Finally, the co-producing partners usually include in their co-production

agreement a ‘force majeure’ clause. A ‘force majeure’ clause is “a provision

in contracts which is intended to excuse a party from performance of its

obligations in the event that such performance is prevented by forces

outside the control of such party. Typically, such events or forces are

partially specified and may include strikes, labor disturbances, etc. The

provision may provide for the suspension, extension or termination of the

agreement if the event of force majeure continues beyond a specified period

of time.” (Cones, 1992:202)

2.2.2.3. Commitment and Trust as Influence on Business Contracts

Chapter 2.2.2. has examined the design of an alliance contract and more

specifically a co-production agreement, but there is still one more relevant

argument to be made. There are various factors affecting successful

partnering and contracting that have been analyzed and grouped by several

researchers. According to Segil (1998), while the need for and use of

alliances has been apparent, the road to successful partnerships has often

been a minefield, although companies have overcome the odds of alliance

failure and routinely created successful alliances. The principal factors

especially affecting successful partnering and the use of collaborative

agreements have been identified to be commitment and trust, and the

literature on collaboration has been rather unanimous on the importance of

57

trust among collaborators (see e.g. Gulati, 1995; Mohr & Spekman, 1994;

Lui & Ngo, 2004; Frankel et al., 1996; Ariño et al., 2001; Doz & Hamel,

1998). As pointed out by Marschan-Piekkari et al. (2001), trust is required

to compensate for the deficiency inherent in formal agreements, in essence

meaning that, no matter how carefully they are compiled, they cannot cover

every eventuality.

Nevertheless, trust cannot be overlooked in international film co-

productions either. According to Neumann and Appelgren (2002), trust is

an asset of prime importance in a film co-production, since it enables

parties to overcome cultural conflicts, short-term conflicts of interest, and

even communication breakdowns, all of which inevitably arise when

discussing contracts and clauses. Accordingly, it must be noted that trust

also plays an important role in international film co-productions. No matter

how carefully co-production agreements are prepared, such agreements

cannot be exhaustive, and well-prepared agreements do not guarantee that

disputes may not arise. However, this study does not focus on the role and

meaning of trust; which leads to a suggestion for further studies.

2.3. Legal Regulation as Influence on International Film Co-Productions

As presented in the introduction chapter, the legal environment is

examined in this study to the extent that is adequate and justified in order

to support the international business research and to increase

understanding of the management of international film co-productions as

international alliances not only from the business perspective but also

influenced by the legal environment. In order to create a conceptual

framework for this multidisciplinary study, in this sub-chapter the legal

regulation that has influence on international film co-productions and co-

production agreements is studied, and the legal structure for this study is

created in two parts. The different legal regulation is first examined in order

to illustrate the different legal regulation relating to international film co-

productions. Since the Finnish film industry is the case in this study, the

applicable legal regulation is further studied from the Finnish film industry

perspective with references to international law, contract law, copyright

law, and private international law.

58

2.3.1. Legal Regulation Relating to International Film Co-Productions

2.3.1.1. Legal Environment of International Film Co-Productions

The contracting parties representing different countries operate under

different jurisdictions and are also affected by international law. When

production companies as alliance partners form an international film co-

production alliance and enter into a co-production agreement, they should

be aware of legal regulation affecting their international cooperation. For

the purposes of this study, the term ‘legal regulation’ refers herein to the

different sources of law and legal rules.

In order to understand the legal regulation relating to international film

co-productions, Figure 4 is presented as an exemplar to illustrate the

different legal regulation relating to such international film co-productions.

In international film co-productions, there are many parties involved:

production companies from different countries as co-producing partners as

well as financiers – such as film institutes, television companies,

distributors, etc. – and other possible cooperating partners. This leads to a

situation where different national laws, international law and different

other legal rules and regulations create a rather complicated and confusing

legal network. In the example of Figure 4, there are two production

companies representing different countries, but it is not unusual that five or

more production companies from different countries may be involved in the

same international film co-production. Moreover, the production

companies as alliance partners enter into co-production agreement(s),

influenced not only by the needs and desires of the co-producing partners

but also by the legal network referred to above. This reflects the challenge of

managing the co-production agreement not only from the business

perspective but also from the legal perspective.

59

Finland (e.g.) Denmark

production company CONTRACTING PARTIES production company

§

CO-PRODUCTION AGREEMENT contractual provisions

- National (Finnish) law - National (Danish) law - Terms & conditions set by - Terms & conditions set by the Finnish Film Foundation, Danish Film Institute, television channel(s) & television channel(s) & other financiers other financiers ( FI ) ( DK )

- International treaties - Law of the EU - Terms & conditions set by institutes, such as Eurimages, & other international

financing organizations ( International ) Figure 4. An example of legal regulation relating to and having influence on international film co-production between production companies representing different countries, such as Finland and Denmark.

In order to better understand the complicated international legal

environment referred to above, the following sub-chapters discuss the

different sources of law.

2.3.1.2. International Law

Given that a national policy may conflict with the achievement of some of

the nation's own objectives, there is no doubt that some of the policies

adopted by nations to achieve their respective goals may lead to

international conflicts. In order to minimize these conflicts, nations use

persuasion, compromise, and cooperation to conclude inter-governmental

agreements. (Taoka & Beeman, 1991) There are numerous bilateral and

multilateral organizations, treaties, and agreements in existence.

Furthermore, there are a variety of treaties and conventions involved in

international business representing international law, and treaties have

60

been of growing importance in international law. Treaties are the major

instruments of cooperation in international relations, and cooperation often

involves a change in the relative positions of the countries involved.

(Malanczuk, 1997) Only the subjects of international law, namely countries,

international organizations, and other traditionally recognized entities, can

conclude treaties under international law. However, although an

international business contract concluded between parties from different

countries is usually subject to a national legal system of one country, these

parties are influenced by those treaties that the country has concluded. This

is because, if a country concludes a treaty, the legislation of this country

must be consistent with the substance of the treaty. (Naarajärvi & Koivisto,

2002)

In addition to multilateral agreements (more than two countries as

contracting parties), firms are affected by bilateral treaties and conventions

(two countries as contracting parties) between the countries where they do

business. Different from the agreements of regional economic groups, there

are also agreements involving a limited group of countries/parties, by way

of bilateral and multilateral trade agreements. In international business,

these agreements are often called trade agreements, which are a form of

inter-governmental agreement. (Taoka & Beeman, 1991) Specific problems

between two nations are often solved through negotiations that result in

bilateral agreements. Such agreements, whether they pertain to disputes,

commercial relations, or other problems, provide the basis for long-term

relations between those nations (Taoka & Beeman, 1991). Despite the

increasing importance of multinational trade agreements, bilateral trade

agreements continue to be an important dimension of every national and

international commercial activity. Since multilateral agreements involve

more than two nations, their effect on international relations may be

considered generally to be of greater significance than bilateral trade

agreements (Taoka & Beeman, 1991).

The law of the European Union represents regional international law.

European community law governs the world's largest single market. Any

contracting party representing a member state of the EU must apply the law

of the EU. European community law consists of treaties of the European

Community, regulations, directives, decisions, opinions, and

recommendations. A regulation is a legislative act of the EU which becomes

immediately enforceable as law in all member states simultaneously. It can

be distinguished from directives which are, at least in principle, binding

only on a particular result to be achieved and dependent upon

61

implementing measures. A decision is a law that is not of general

application, but only applies to the particular addressee of the decision.

Recommendations and opinions are written statements issued by the

Council of the European Union or the Commission that hold considerable

guidance value, but without binding force; they do not constitute

instructions but rather express the preference of the European

Communities and may be disregarded by the member states of the EU.

(Joutsamo et al., 1996) International organizations such as the United

Nations (UN) and the Organization for Economic Cooperation and

Development (OECD) represent multilateral cooperation and also play a

very important role in international business. The UN and the OECD have

undertaken efforts to develop codes of conduct and guidelines to affect

international business.

Finally, it is noteworthy that the term ‘international law’ almost always

means public international law, as opposed to private international law.

Public international law primarily governs the relationship between

countries, whereas private international law regulates transborder

relationships between individuals. Private international law must,

therefore, be distinguished from public international law. The only common

connection between them is the transborder element of the facts being

regulated. (Malanczuk, 1997)

2.3.1.3. Legal Systems and National Laws of Contracting Parties

A nation's legal system operates within the political framework of that

country and serves to operationalize the nation's political and economic

systems. Nevertheless, even nations with similar political and economic

systems may have different laws. It is essential that the international

manager has a working knowledge of the legal systems in which the firm

operates. There is no single uniform international law governing

international business transactions, nor is there much commonality of laws

among countries. In order to minimize potential problems, the

international manager should obtain legal services in the firm's home

country and host country. When a firm operates in a foreign country, it

must abide by the laws and regulations of that country and must conduct its

business within the framework of those laws and regulations. (Taoka &

Beeman, 1991)

The laws of most countries can be classified into one of two basic types:

common law and codified law. Common law is based on past court

62

decisions, usage and customs, as well as on legal statutes. Even if there is no

legal precedent or statute, common law requires the court to make a

decision. Codified law, also called Roman law, is organized by subject

matter into specific codes: commercial, civil, administrative, and criminal.

The codified law is thought to be less flexible and adaptable than common

law, but less subject to interpretations, since it does not rely on precedent.

(Taoka & Beeman, 1991) Finnish law represents the latter type of law.

After discussing in general the different sources of law that are required to

be taken into consideration, the following sub-chapter examines the legal

regulation applicable particularly to international film co-productions from

the Finnish film industry perspective. In other words, the legal regulation

applicable to international film co-productions under Finnish law is

studied.

2.3.2. Legal Regulation Applicable to International Film Co- Productions from the Finnish Film Industry Perspective

2.3.2.1. International Treaties

Both multilateral and bilateral treaties exist relating to international film

co-productions. A number of international treaties on international co-

production have been agreed to enable a film made under the treaties to

claim the nationality of both or all of the countries which are a party to that

particular treaty (Baker, 1995). Some countries, such as France and the UK,

require that films are produced under a specific treaty in order to benefit

from national public support (Neumann & Appelgren, 2002). In order to

qualify as an official co-production, i.e. “the right authority in the said

country has approved that the national criteria have been fulfilled and

hence has approved the agreement”, some countries require that the

international film co-productions are set up under bilateral or multilateral

treaties (Neumann & Appelgren, 2002:13). Qualification certifications may

be advantageous and affect the commercial value and potential of a film,

but co-producing a film under a co-production treaty may also be

disadvantageous since complications and difficulties may arise (Neumann

& Appelgren, 2002). As argued by Neumann and Appelgren (2002), ideally

a co-production treaty is in place to make it easier to comply with rules and

regulations in a foreign country, therefore, the qualification criteria should

be carefully considered in order to determine whether it is applicable to a

film in question.

63

Different from France and the UK, in some countries it is much more

common to co-produce a film without a treaty; such arrangements are

found in Germany and the Nordic countries (Neumann & Appelgren,

2002). One main advantage of a non-treaty co-production is freedom in the

contractual agreement. However, as reminded by Neumann and Appelgren

(2002), producing without a co-production treaty also means that the co-

production agreement is the only reference and there are no supplemental

treaty rules or regulations to fall back on. This puts more pressure and

focus on making the co-production agreement as complete, well thought-

out and correct as possible.

The following three international treaties are of special importance and

applicable to international film co-productions and the Finnish production

companies entering into such co-productions:

European Convention on Cinematographic Co-production 4

According to the summary, the aim of the Convention is to promote the

development of European multilateral cinematographic co-production, to

safeguard creation and freedom of expression, and to defend the cultural

diversity of the various European countries. As stated by the Council of

Europe in the Explanatory Report of the Convention, European cultural

cooperation in the cinema field takes place primarily through co-

productions, and in the joint efforts to support creation the rules governing

state support for film production are not always the same. Therefore,

according to the Explanatory Report, the main objectives of the Convention

are to minimize these differences and to harmonize multilateral relations

between states when they decide to co-produce a film.

As stated in the Explanatory Report, since the Convention is designed to

encourage the development of film co-productions in Europe, the

Convention tries to simplify procedures and production on the basis of

criteria established by the Eurimages fund, i.e. the Council of Europe fund

for the co-production, distribution and exhibition of European

cinematographic works (discussed in more detail in Chapter 2.3.2.3). The

Convention also constitutes a step forward in lowering the threshold of

financial participation in co-productions, and in permitting financial co-

productions, provided these promote European identity. This requirement

concerning identity is in some respects the guiding principle of the

Convention, which is inspired by a versatile but unified vision of European

4 European Treaty Series No. 147; entry into force: April 1, 1994.

64

film production. In fact, the Convention has the advantage of providing a

common legal basis, governing the multilateral cinematographic relations

of all states parties to the Convention. (Explanatory Report of the

Convention)

By December 31, 2010 the Convention had been ratified by 42 countries,

Finland signed and ratified the Convention in 1995. The Convention is a

multilateral co-production treaty which can, however, also be applied to

bilateral co-productions in the absence of any agreement governing such

co-production i.e. there is no other treaty in place (Article 2, paragraphs 1

and 4 of the Convention). In case of multilateral co-productions, the

provisions of the Convention shall override those of bilateral agreements

between parties to the Convention (Article 2, paragraph 3 of the

Convention). The Convention shall govern relations between the parties in

the field of multilateral co-productions originating in the territory of the

parties. The parties refer to those that are parties to the Convention, i.e. the

Convention may be invoked only by producers who are nationals of states

which are parties to the Convention. This means that the Convention shall

apply to co-productions involving at least three co-producers, established in

three different parties to the Convention. However, the Convention may

also be applied to co-productions involving at least three co-producers

established in three different parties to the Convention and one or more co-

producers who are not established in such parties. In such case, the total

contribution of the co-producers that are not established in the parties to

the Convention may not exceed 30% of the total cost of the production.

(Article 2, paragraphs 1 and 2 of the Convention, and the Explanatory

Report)

In order to obtain co-production status, certain conditions and qualifying

criteria must be applied. First, in the case of multilateral co-productions,

the minimum contribution may not be less than 10%, and the maximum

contribution may not exceed 70% of the total production cost of the

cinematographic work. When the minimum contribution is less than 20%,

the party concerned may take steps to reduce or bar access to national

production support schemes. In case the Convention takes the place of a

bilateral treaty between two parties, the minimum contribution may not be

less than 20% and the largest contribution may not exceed 80% of the total

production cost of the cinematographic work. (Article 6 of the Convention)

Second, in order to benefit from the Convention, the co-producers must

submit an application for co-production status and a set of documents for

65

approval to the competent authorities in accordance with the procedures

laid down in Appendix I of the Convention (Article 5, paragraphs 1 and 2 of

the Convention). Third, the co-produced film must meet the conditions laid

down in Appendix II of the Convention in order to be defined as European

cinematographic work. According to the points system of Appendix II of the

Convention, the co-produced film needs to achieve a minimum of 15 points

out of a possible 19 so called “European elements” (see Appendix II of the

Convention for more detailed information). (Article 3 and Appendix II of

the Convention) Fourth, the Convention regulates rights of co-producers by

requiring that the co-production contract must guarantee to each co-

producer joint ownership of the original picture and sound negative.

Further, the negative shall be kept in a place mutually agreed by the co-

producers, and shall guarantee them free access to it as well as the right to

an internegative or to any other medium of duplication. (Article 7 of the

Convention) Fifth, according to Article 8 of the Convention, the

contribution of each of the co-producers shall include effective technical

and artistic participation. In principle, the contribution of the co-producers

relating to creative, technical and artistic personnel, cast, and facilities,

must be proportional to their investment. Further, subject to the demands

of the screenplay, the technical and craft team involved in filming the work

must be made up of nationals of the states which are partners in the co-

production. (Article 8 of the Convention) Sixth, co-producing countries

shall be credited in co-produced cinematographic works, and the names of

these countries shall be clearly mentioned in the credit titles, in all publicity

and promotion material, and when the cinematographic works are being

shown (Article 12 of the Convention).

Finally, the Convention further covers regulation on the following:

requirements on adequate technical and financial means and sufficient

professional qualifications for co-production companies (Article 5,

paragraph 4 of the Convention); the requirements for financial co-

productions (Article 9 of the Convention); the requirements for the general

balance of investments and compulsory artistic and technical participation

(Article 10 of the Convention); the measures to be taken by the co-

producing parties to facilitate the production and export of the

cinematographic work, and the right of each party to demand a final version

of the cinematographic work in one of the languages of that party (Articles

11, 13 and 14 of the Convention); and the right of the majority co-producer

(i.e. the delegate producer) to show the co-produced cinematographic work

at international festivals, unless otherwise decided by the co-producers

(Article 15 of the Convention).

66

Once the conditions have been fulfilled, the Convention assimilates all co-

productions, which have been given the prior approval of the competent

authorities of the parties, with national films. The chief aim of the

Convention is to confer on cinematographic works that can lay claim to it

the nationality of each of the partners in the co-production. Assimilation to

national films is regulated in Article 4 of the Convention, according to

which, co-productions falling within the scope of the Convention shall be

entitled to the benefits granted to national films by the legislative and

regulatory provisions in force in each of the parties to the Convention

participating in the co-production concerned. Further, the benefits shall be

granted to each co-producer by the party in which the co-producer is

established. (Article 4 of the Convention, and the Explanatory Report)

Film and Television Co-Production Agreement between the Government of the Republic of Finland and the Government of Canada 5

This Treaty was signed in 1998 and ratified in 1999 between Finland and

Canada in order to establish a framework for audiovisual relations and

particularly for film, television, and video co-productions. The countries

signed the Treaty conscious that quality co-productions can contribute to

the further expansion of the film, television, and video production and

distribution industries of both countries as well as to the development of

their cultural and economic exchanges. The countries were further

convinced that these exchanges would contribute to the enhancement of

relations between the two countries. The purpose of this Treaty is that every

co-production produced under the Treaty shall be considered to be a

national production for all purposes by and in each of the two countries.

Accordingly, each such co-production shall be fully entitled to take

advantage of all benefits currently or later available to the film and video

industries. (Article I, paragraph 4 of the Treaty)

In order to benefit from the Treaty, certain conditions must be fulfilled.

The Treaty regulates co-productions by setting the following conditions:

First, co-productions must be approved by specific authorities representing

each country. In Finland, the competent authority is the Minister

responsible for cultural affairs or, if authorized, the Finnish Film

Foundation. Every co-production must also be produced and distributed in

accordance with the national legislation and regulations in force (Article I,

paragraphs 2 and 3 of the Treaty). Second, the benefits of the Treaty apply

5 Treaty Series of the Statutes of Finland, 24/1999.

67

only to co-productions undertaken by producers who have good technical

organization, sound financial backing, and recognized professional standing

(Article II of the Treaty). Third, the proportion of the respective

contributions of the co-producers of the two countries may vary from 20%,

for the minority co-producer, to 80%, for the majority co-producer, of the

budget for each co-production (Article III, paragraph 1 of the Treaty).

Fourth, each co-producer shall be required to make an effective technical

and creative contribution, in principle, the contribution to be in proportion

to the investment (Article III, paragraph 2 of the Treaty). Fifth, the

producers, writers and directors of co-productions as well as the

technicians, performers and other production personnel participating in

such co-productions, must be Finnish or Canadian citizens, or permanent

residents of Finland or Canada, although some exceptions may be provided

by the Treaty (Article IV of the Treaty). Sixth, live action shootings and

animation works, if applicable, must, in principle, be carried out alternately

in Finland and in Canada, and the laboratory work shall be done in either

Finland, Canada or a member state of the European Economic Area,

however, with certain exceptions provided by the Treaty (Article V of the

Treaty). Seventh, the original sound track of each co-production shall be

made in either English, French, Finnish or Swedish, shooting in any two, or

in all, of these languages is permitted, and the dubbing or subtitling of each

co-production shall be carried out respectively in Finland or Canada

(Article VII of the Treaty).

Finally, the Convention further covers regulation of the following:

favorability for certain multi-party co-productions (Article VI of the

Treaty); the regulation on productions produced under a twinning

arrangement to be considered as co-productions and to receive the same

benefits (Article VIII of the Treaty); the number of the copies of materials

(Article IX of the Treaty); the measures to be taken by the co-producing

parties to facilitate co-production (Article X of the Treaty); the sharing of

revenues by the co-producers, in principle, to be proportional to their

respective contributions to the production financing and be subject to

approval by the competent authorities (Article XI of the Treaty); the

management of quota regulations (Article XIII of the Treaty); the

identification of a co-production in the credits (Article XIV of the Treaty);

and the presentation of a co-production at international film festivals

(Article XV of the Treaty).

68

Agreement concerning Cinematography between the Government of the Republic of Finland and the Government of the Republic of France 6

The first international treaty of Finland regarding the film industry was

entered into between Finland and France in 1983. The Treaty was signed to

facilitate the co-production of films which, by virtue of their artistic and

technical merits, are likely to enhance the prestige of the two countries, and

to develop exchanges of films between them. According to the Treaty, co-

production films covered by the Treaty shall be treated as films of national

origin by the authorities of the two countries in accordance with the

legislative provisions and regulations applicable in their country. Further,

such films shall enjoy as of right the privileges accorded to national films.

(Article 1, paragraphs 1 and 2 of the Treaty)

In order to benefit from the Treaty, certain conditions must be fulfilled,

and the Treaty regulates co-productions by setting the following conditions:

First, the making of co-production films by the two countries shall require

the approval of the competent authorities, which in Finland is the Finnish

Cinema Foundation i.e. the Finnish Film Foundation (Article 1, paragraph 3

of the Treaty). Second, in order to enjoy co-production privileges, films

must be made by co-producers who have an organization and experience

recognized by the national authority (Article 2 of the Treaty). Third, the co-

producers must submit an application for co-production status and a set of

documents for approval to the competent authorities in accordance with the

procedure set forth in the annex to the Treaty (Article 3 of the Treaty).

Fourth, the economic, technical and artistic contributions of the producers

of the two countries to a co-production film may vary between 30% and

70% (Article 4, paragraph 1 of the Treaty). Fifth, films must be made in the

national language of one of the two countries or in the two languages, and

by directors and with technicians and performers who have the status of

Finnish or French nationals or of foreigners normally residing and

employed in Finland or France, unless otherwise permitted according to the

Treaty (Article 4, paragraphs 2, 3 and 4 of the Treaty). Sixth, in principle,

receipts shall be divided in proportion to the total contribution of each co-

producer; and the financial provisions adopted by the co-producers and the

zones for sharing receipts shall be subject to the approval of the competent

authorities of the two countries (Article 7 of the Treaty).

6 Treaty Series of the Statutes of Finland, 7/1983; English translation: United Nations Treaty Series, Vol. 1317, No 21935.

69

Finally, the Treaty further covers regulation of the following: the

regulation of studio scenes, original negative, inter-negative and laboratory

(Article 5 of the Treaty); export arrangements for co-production films to be

made by the majority co-producer unless otherwise agreed upon in the co-

production contract (Article 8 of the Treaty); credits, trailers and

advertising material for co-production films to indicate that the film is a

Finnish-French co-production (Article 9 of the Treaty), and the

presentation of the co-produced films at festivals and in competitions

(Article 10 of the Treaty); the measures to be taken to facilitate co-

production (Article 13 of the Treaty); and the unrestricted exchange of films

(although subject to the laws and regulations in force) (Article 14 of the

Treaty).

2.3.2.2. Finnish Law

As specified above, generally one national law applies to a business

contract. The parties entering into agreement should be aware of all the

laws and regulations relevant to their agreement, since the parties may

choose a specific national law to be applied to their business contract and in

case no law is chosen, private international law determines the law to be

applied. In other words, only if Finnish law has been chosen to be the

applicable law, or Finnish law is to be applied based on the international

conventions, is Finnish law applied.

Finnish law does not include any specific acts or decrees on film

production, co-production or the film industry. Nevertheless, despite such

lack of specific regulation, whether national or international, some laws

relate to international film co-productions. While entering into co-

production agreements under Finnish law, the production companies

should be aware of international law applicable to Finland as discussed

above, as well as specific acts and decrees having articles applicable to

international film co-productions. Regarding the key contractual provisions

of co-production agreements discussed in Chapter 2.2.2.2., Finnish law

regulates contracts, copyrights, and applicable law and dispute

resolution/jurisdiction. Consequently, these fields of law and specific acts

and decrees are next studied for the purposes of this study i.e. to the extent

they have an influence on international film co-productions under Finnish

law.

Since international law has been already discussed above, this sub-

chapter focuses on studying the other fields of law. Contract law is

70

discussed hereunder, followed by the specific examination of the Contracts

Act (228/1929) regulating contracts under Finnish law. Thereafter,

regarding intellectual property law, the Copyright Act (404/1961) and the

Copyright Decree (574/1995) are examined and discussed to the extent that

they have influence on international film co-productions. Finally, how the

private international law relates to such international film co-productions is

examined.

Finnish Law on Contracts

Contract Law

The exchange of goods and services is a central feature of business activity

and contract law provides the means of supporting exchange transactions in

our society. In essence the law of contract facilitates the process of

exchange, supporting the expectations of the parties in respect of

performance of the undertakings forming part of an agreement. (Savage &

Bradgate, 1993) One basic principle relating to the use of contracts is that

they are governed by a rule of the binding force of contracts, ‘pacta sunt

servanda’, derived from the general protection of good faith (Pöyhönen,

2002). Further, in most countries, including Finland, the fundamental

principle of contract law has been the freedom of contract based on the

general freedom of action (Hemmo, 2003; Pöyhönen, 2002). As pointed

out by Hemmo (2003), Pöyhönen (2002), as well as Neumann and

Appelgren (2002), contracting parties are free to enter into any type of

contract with any type of content, which they may choose freely. However,

the freedom of contract is not without limits, as it may be restricted through

mandatory rules of law intended to guarantee a minimum protection for

certain groups of people, usually the weaker of the contracting parties

(Hemmo, 2003; Pöyhönen, 2002; Neumann & Appelgren, 2002).

Hemmo (2003) has specifically argued the distinction between

mandatory and dispositive norms to be an essential question. A contractual

provision contrary to a mandatory norm is void and the mandatory norm is

applied. In contrast, the contracting parties may make deviating decisions

from dispositive norms in their business contracts, including co-production

agreements. The difference between mandatory and dispositive norms as

well as the hierarchy of legal norms is further discussed in Chapter 3.5.

which addresses the legal research methodology.

71

Regarding Finnish contract law, Hemmo (2003) has pointed out as

relevant the contractual sources of law and contractual argumentation. The

contractual sources of law include the national sources of law and

international sources of law, and the contractual argumentation relates to

some useful approaches to the contract law named as the basic arguments

of contract law. (Hemmo, 2003) Before examining the Contracts Act as the

source of the Finnish contract law, it is noteworthy to take into

consideration the following basic arguments of contract law identified by

Hemmo (2003): First, the purpose of a contracting party or parties is often

a noteworthy approach. Second, the purposes connected to a contract are

close to the conditions the parties may have. Third, the contracting parties

are called for loyalty. Fourth, relating to the requirement of loyalty, there is

a prohibition of the misuse of rights. Fifth, economic rationality is one

approach, and finally, an alternative economic approach to argumentation

is consideration to which contracting party is the appropriate risk bearer for

which risk relating to a contract. To conclude, according to Hemmo (2003),

there is no unambiguous answer to the question on the “right” theoretical

basis of Finnish contract law and the relative persuasiveness of the different

arguments, for two reasons. The first is the variety of contracts, and the

second is the lack of the authoritative support, in other words, the

institutions with norm giving authority – the legislator and the supreme

court – only go into a small part of the contractual dilemmas in detail.

(Hemmo, 2003)

One more valuable approach to contracts is defined by Hemmo (2005)

who identifies contract tactics, contract technique and contract

management as essential parts of contracting. Contract tactic closely relates

to the negotiations of contracts and contract management to the overall

management of contracts from drafting to changes and interpretation of

contracts. Contract technique also partly refers to the drafting of contracts,

but in particular to the choice of contractual provisions and the content of

contracts. Hemmo (2005) has identified the meaning of the evaluation of

objectives and interests of contracting parties as well as risks relating to the

content and the specificity of each contract. However, according to Hemmo

(2005), the contract technique and the specificity of each contract should be

analyzed case by case influenced by a variety of different factors. Further,

relating to contracting and partly to the specificity of a contract, contracting

parties may use a so called ‘preliminary agreement’ as an intermediate stage

before entering into a complete main agreement. Under Finnish law such

preliminary agreement clearly differs from documents such as ‘letter of

intent’ and ‘memorandum of understanding’, since such preliminary

72

agreement establishes full contractual commitment binding contracting

parties to enter into a main agreement as specified in the preliminary

agreement. (Hemmo, 2005)

From an international perspective and generally applied, according to

Keenan and Riches (1995), there are some essential ingredients of a

contract to be recognized: agreement, consideration, intention, form,

capacity, genuineness of consent, and legality. As stated by Keenan and

Riches (1995), there must be an agreement, i.e. a reasonably definite

understanding between two or more persons (natural or juristic), to be a

legally binding contract. In terms of the law the paramount factor is the

intention of the parties to be inferred from their words or conduct. If the

intentions of the contracting parties are not the same, there can be no

agreement. Consideration means that the contracting parties must show

that their agreement is part of a bargain, i.e. each side must promise to give

or do something for the other. Intention refers to the fact that the law will

not concern itself with purely domestic or social arrangements. The

contracting parties must have intended their agreement to have legal

consequences. Regarding form, in some cases specific formalities, e.g.

writing, must be observed. Capacity means that the contracting parties

must be legally capable of entering into a contract, and genuineness of

consent means that the agreement must have been entered into freely and

involve a ‘meeting of minds’. Finally, legality refers to the purpose of the

agreement, which must not be illegal or contrary to public policy. (Keenan

& Riches, 1995)

A contract possessing all these requirements is considered to be valid. If

one of the contracting parties fails to live up to its promises it may be sued

for a breach of contract. The absence of an essential element will render the

contract to be void, voidable, or unenforceable. The term ‘void contract’

means that at no time has there been a contract between the contracting

parties. A ‘voidable contract’ may operate in every respect as a valid

contract unless and until one of the contracting parties takes steps to avoid

it, e.g. contracts founded on a misrepresentation and agreements made by

minors. An ‘unenforceable contract’ is a valid contract but it cannot be

enforced in the courts if one of the contracting parties refuses to carry out

its terms. (Keenan & Riches, 1995)

73

Contracts Act 7

Under Finnish law, contracts are regulated by the Contracts Act entered

into force in 1929 and amended a few times thereafter. The Contracts Act

regulates contracts relating to the conclusion of contracts, authorization,

invalidity, and adjustment of contracts, and some miscellaneous issues.

First, the Contracts Act regulates the conclusion of contracts by stating

that “an offer to conclude a contract and an acceptance of such an offer

shall bind the offeror and the acceptor”, as provided for in the Act (Chapter

1, Section 1). In other words, a contract comes into existence when there is

an offer and an approving reply i.e. an acceptance (Saarnilehto et al., 2001).

According to Chapter 1 of the Contracts Act, an offer and an approving

response to the offer bind the offeror and the acceptor based on the

protection of the trust of the adverse party (Saarnilehto et al., 2001).

However, as pointed out by Hemmo (2003), the contract mechanism

regulated in the Contracts Act is not the only way to establish contractual

obligations. The formula of an offer and an acceptance does not always

work, since as characteristic to a negotiation, the negotiating parties often

want to discuss the content of the contract without any particular liability

and commitment. (Hemmo, 2003)

Second, Chapter 2 of the Contracts Act regulates authorization and must

be applied in case a person has authorized another to conclude contracts or

to enter into other transactions. Third, Chapter 3 of the Contracts Act

regulates the invalidity and adjustment of contracts, including cases such as

coercing, fraudulent inducement, misleading error of information,

incompatibility with honor, stimulated document, and unfair contract term.

As is obvious, the Finnish Contracts Act only regulates contracts in

general terms relating to their use and has rather limited influence on co-

production agreements of international film co-productions, having e.g. no

regulation on the content of such agreements. In other words, although a

certain national law is chosen to be applied this does not mean that such

law would give any answers to different issues. For example, with regard to

Finnish contract law, it hardly regulates at all the substance of a contract.

The consumer as a contracting party is protected by some laws, but

business contracts are barely regulated. Therefore, it is important that all

the relevant issues of an international film co-production are included in

the business contract and not left unresolved.

7 Contracts Act 228/1929.

74

Finnish Law on Copyrights

Copyright Act 8

The Finnish Copyright Act was entered into force in 1961. The Act has been

amended several times and particularly in 2005 it was updated to be

consistent with the changes in the audiovisual environment. In general, the

Copyright Act regulates the object and content of copyright, limitations of

copyright, transfer of copyright, validity of copyright, neighboring rights

and penalty provisions. Copyrights have been discussed in Chapter 2.2.2.2.,

including the distinction between a person creating a work of art as the first

owner of copyright and films as artistic works of ‘joint authorship’. This

chapter discusses Finnish law relating to international film co-productions

and the copyrights involved, since the Copyright Act may influence

international film co-productions.

In general, the Copyright Act regulates how and when copyright comes

into existence and the rights of the copyright owner on his/her work.

According to Chapter 1, Section 1 of the Copyright Act:

“A person who has created a literary or artistic work shall have copyright therein,

whether it be a fictional or descriptive representation in writing or speech, a

musical or dramatic work, a cinematographic work, a photographic work or other

work of fine art, a product of architecture, artistic handicraft, industrial art, or

expressed in some other manner. (446/1995)”.

Therefore, copyright may only come into existence for a natural person, not

for a legal person/entity, but the copyright may be assigned and transferred

e.g. to a firm. As stated previously, concerning a co-produced film, there are

many copyright owners involved such as screenwriters, directors, directors

of cinematography, etc. and these rights must be cleared in order to

produce a film and to distribute, exploit and otherwise benefit the film. As

argued by Haarmann (2005), Chapter 1, Section 1 of the Copyright Act

reflects that copyright only applies to ‘independent and individual work’9,

the exclusive rights of copyright owner restricted in Chapter 2.

According to Haarmann (2005), a cinematographic work refers in the

Copyright Act to a work of moving images or moving images and sound as

well as other works considered equal to filming which cross the originality

8 Copyright Act 404/1961 & Decree 574/1995. 9 Translation from the definition: “itsenäiset ja omaperäiset teokset” (Haarmann, 2005:60).

75

requirement10. The Copyright Act further recognizes so called neighboring

rights, and Chapter 5, Section 46a provides a producer of a film with

specific protection based on the Directives of the Council of the EU on

rental rights and lending rights and on certain rights related to copyright in

the field of intellectual property11. According to Directive 2006/115/EC, the

producer of the first fixation of a film in respect of the original and copies of

the film shall have the exclusive right to authorize or prohibit rental and

lending (Article 3 of the Directive) as well as the exclusive right to make

available to the public by sale or otherwise such objects indicated (Article 9

of the Directive). This is adapted to the Copyright Act as Section 46a as

follows:

“(1) A film or any other device on which moving images have been recorded shall

not, without the producer’s consent, until 50 years have elapsed from the year

during which the recording took place: 1. be transferred on to a device by means

of which it can be reproduced; 2. be distributed to the public; 3. be

communicated to the public by wire or by wireless means in a manner which

enables members of the public to access the work from a place and at a time

individually chosen by them.

(2) If the recording is published or made public before 50 years have elapsed

from the year of recording, the protection conferred by subsection 1 shall subsist

until 50 years have elapsed from the year during which the recording was

published or made public for the first time.” (821/2005)

Moreover, for the purposes of this study, co-producing parties should note

particularly certain articles of the Copyright Act in case Finnish law is

applied to the co-production agreement. First, according to Chapter 1,

Section 3 of the Copyright Act:

“(1) When copies of a work are made or when the work is made available to the

public in whole or in part, the name of the author shall be stated in a manner

required by proper usage.

(2) A work may not be altered in a manner which is prejudicial to the author’s

literary or artistic reputation, or to his individuality; nor may it be made available

to the public in such a form or context as to prejudice the author in the manner

stated.

10 Translation from the text: “Elokuvateoksella tarkoitetaan tekijänoikeuslaissa liikkuvina kuvina tai liikkuvina kuvina ja äänenä ilmeneviä teoksia sekä muita elokuvaamiseen rinnastettavalla tavalla ilmaistuja teoksia, jotka ylittävät teoskynnyksen.” (Haarmann, 2005:79). 11 See Directive 2006/115/EC, Official Journal L 376, replacing 92/100/EEC.

76

(3) The right conferred to the author by this section may be waived by him with

binding effect only in regard of use limited in character and extent.”

This is the provision on so called moral rights, ‘droit moral’, which lie with

the author, in principle, in perpetuity (Neumann & Appelgren, 2002). ‘Droit

moral’ is a French term for moral rights, “a doctrine of artistic integrity that

prevents others form altering the work of artists, or taking the artist’s name

off of the work, without the artist’s permission” (Litwak, 2004:294). This is

different especially from the Anglo-American legislation according to which

such moral rights are transferable (Salokannel, 1997). Further, the

acceptability of the alteration of the work is always evaluated objectively.

However, sometimes already resulting from the nature of a work, the work

is allowed to be altered (Haarmann, 2005)12. For example, when a literary

work is filmed, it is generally considered acceptable that the script may be

extensively altered (Haarmann, 2005)13.

Second, according to Chapter 3, Section 28 of the Copyright Act:

“Unless otherwise agreed, the person to whom a copyright has been transferred

may not alter the work or transfer the copyright to others. When copyright is held

by a business, it may be transferred in conjunction with the business or a part

thereof; however, the transferor shall remain liable for the fulfillment of the

agreement.”

This also relates to the above-mentioned right of alteration. The basic

noteworthy rule is that if a production company desires to alter a work

and/or to transfer the acquired copyrights further to a third party, it must

be so agreed upon. However, third, the Copyright Act (Chapter 3, Section

39) regulates film contracts and the transfer of rights separately, as follows:

“A transfer of the right to make a film on the basis of a literary or artistic work

shall comprise the right to make the work available to the public by showing the

film in cinemas, on television or by any other means, and the right to provide the

film with subtitles and to dub the film in another language.” (648/1974)

Film contracts are further regulated by Chapter 3, Section 40 of the

Copyright Act, as follows:

12 Translation from the text: ”Toisinaan jo asian luonnosta johtuu, että teosta on lupa muuttaa.” (Haarmann, 2005:148). 13 Translation from the text: ”Esimerkiksi kun kirjallinen teos elokuvataan, pidetään yleisesti hyväksyttynä, että elokuvakäsikirjoitukseen saadaan tehdä suuriakin muutoksia.” (Haarmann, 2005:148).

77

“(1) When the right to use a literary or musical work for a film intended for public

showing is transferred, the transferee shall produce the film and make it available

to the public within a reasonable time. If this is neglected, the author may rescind

the contract and keep any remuneration received; the author shall also be

entitled to compensation for any damage not covered by the remuneration.

(2) If the film has not been produced within five years from the time at which the

author fulfilled his obligations, the author may rescind the contract and keep any

remuneration received, even if there is no dereliction on the part of the

transferee.”

This provision aims to support the fact that copyrighted work shall be made

available to the public.

Finnish Law on Applicable Law and Jurisdiction

Private International Law

Laws vary between countries, and there is a complicated set of rules in

almost every country, directing the courts when to exercise jurisdiction in

cases involving a foreign element, when to apply foreign law in cases

involving a foreign element, and when to recognize or enforce the

judgments of foreign courts (Malanczuk, 1997). These rules are known as

private international law that regulates both the choice of law and

jurisdiction.

As discussed above, the contracting parties may choose a specific national

law to be applied to their business contract, but in case no law is chosen,

private international law determines the law to be applied. The Regulation

of the European Parliament and of the Council on the law applicable to

contractual obligations (Rome I)14 is the principal instrument governing

contractual choice of law replacing the Rome Convention. The Regulation is

directly applicable to all EU member states including Finland.

Article 1 of the Regulation defines the material scope of the Regulation as

follows:

“This Regulation shall apply, in situations involving a conflict of laws, to

contractual obligations in civil and commercial matters.”

14 Reg 593/2008/EC, Official Journal L 177 of 2008.

78

However, Article 1 also includes some specific situations excluded from the

scope of the Regulation. Further, the main principle of the Regulation is

that the contracting parties are free in the choice of the law that shall apply

to their contract. Article 3, paragraph 1 of the Regulation specifically states:

“A contract shall be governed by the law chosen by the parties. The choice shall

be made expressly or clearly demonstrated by the terms of the contract or the

circumstances of the case. By their choice the parties can select the law applicable

to the whole or to part only of the contract.”

Article 4 of the Regulation defines the rules on applicable law in the

absence of choice. Article 4, paragraph 1 of the Regulation defines

applicable law relating to some specific contracts, and in case a contract is

not covered by paragraph 1, paragraph 2 states a general rule as follows:

“…, the contract shall be governed by the law of the country where the party

required to effect the characteristic performance of the contract has his habitual

residence.”

Further, in case the applicable law cannot be determined pursuant to

paragraphs 1 or 2, paragraph 4 defines the final rule as follows:

“…, the contract shall be governed by the law of the country with which it is most

closely connected.”

Based on the facts referred to above, needless to say, the importance of

making the choice of law between the contracting parties and expressing it

clearly in the contract cannot be emphasized enough since there is much

variation in international film co-productions.

Closely relating to the applicable law, jurisdiction is also regulated by

private international law. There have been several attempts to unify the

private international law regarding jurisdiction and enforcement of

judgments. The Brussels Convention on Jurisdiction and the Enforcement

of Judgments in Civil and Commercial Matters 196815 was first concluded

by and between some member states of the European Community. The

Lugano Convention on Jurisdiction and the Enforcement of Judgments in

Civil and Commercial Matters of 198816 was concluded in order to expand

the territorial scope of the Brussels Convention to include the EFTA states.

The European Union adopted new rules on jurisdiction in 2002 by being

15 Official Journal C 59/1 of 1979. 16 Official Journal L 319 of 1988.

79

committed to the Brussels Convention by adopting the Council Regulation

on jurisdiction and the recognition and enforcement of judgments in civil

and commercial matters17 which is directly applicable to all EU member

states including Finland. These international conventions and EU

regulations applicable to Finland have further been adapted to Finnish law

by means of national laws including procedural law.

Nevertheless, since there are different rules to be applied worldwide

depending on the country in question, it is highly recommended to prefer

choosing the home country for jurisdiction and dispute resolution in a co-

production agreement. In cases that there are no rules of jurisdiction

included in the agreement, international conventions are applied.

Moreover, in the case of choosing the jurisdiction of any other country than

the home country, the contracting party should be aware of the legal

regulation on jurisdiction in such country. It is also noteworthy that all the

possible legal proceedings relating to a co-production agreement are to be

processed in the chosen country for jurisdiction. Furthermore, as stated in

Chapter 2.2.2.2., disputes between contracting partners can be solved

through different procedures. If it is not specified in the co-production

agreement, the only choice is to go to court. However, the procedures

include court proceedings, arbitration, mediation and individually

determined proceedings, and it is further noteworthy that such procedures

also vary between the countries leading to the strong supporting argument

that the choice of law and jurisdiction are clearly specified in each co-

production agreement.

2.3.2.3. Rules and Regulations of Financiers

There are a number of funds specifically established to support film

productions involving more than one producer from more than one

country. Further, their purpose is to foster international cooperation

between filmmakers, and the criteria for selection are usually qualitative,

besides being governed by a set of predetermined rules. (Dally et al., 2002)

Especially in Europe, international co-productions are actively supported

by various funding programs created by the Council of Europe and the

European Union (Alberstat, 2000). There are regional organizations such

as the MEDIA programme of the EU that supports the European film

industry and especially Eurimages, founded by the Council of Europe,

providing financing for European co-productions. Moreover, each country

also has own national funding programs, foundations, institutes and other

17 Council Reg 44/2001/EC, Official Journal of L 012 of 2001.

80

organizations. When negotiating and agreeing upon the contractual

provisions of a co-production agreement, each contracting party should

take into account all the guidelines and regulations set by the financiers

involved in the international film co-production.

From the Finnish film industry perspective, the key financiers can be

identified as Eurimages and the MEDIA Programme promoting the

European film industry, Nordisk Film & TV Fond promoting Nordic films,

and the Finnish Film Foundation promoting Finnish films. Next, the key

rules and regulations of such financiers are discussed relating to

international film co-productions.

Eurimages

Eurimages is the Council of Europe fund for the co-production, distribution

and exhibition of European cinematographic works set up in 1988, and by

December 31, 2010 having 34 member states. Eurimages aims to promote

the European film industry by encouraging the production and distribution

of films and fostering cooperation between professionals. One of

Eurimages’ four funding programs is assistance for co-production; in fact,

the majority (almost 90%) of the Fund’s resources (which originate from

member states’ contributions) goes to supporting co-production. Eurimages

has its own Regulations for the support of co-production of full-length

feature films, animation and documentaries18, and the eligibility criteria

(Chapter 1 of the Regulations) consists of provisions on general issues;

eligible producers; co-production structure; participation of producers and

financiers established in non-member states of the Fund; technical and

artistic cooperation and financial co-productions; European origin and

character of the project; principal photography; copyright regulations and

joint ownership of the negative; and financial requirements.

According to the eligibility criteria for co-production support of full-

length feature films, the co-producing partners should be aware of the

following regulations when agreeing upon international film co-productions

and entering into co-production agreements: First, Eurimages supports

feature films of a minimum length of 70 minutes, intended for cinema

release. Co-productions must be between at least two independent

producers, established in different member states of the Fund. Further, co-

productions must comply with the legislation of the countries concerned,

the bilateral treaties in force between the co-producing countries or, where

18 Regulations in effect from January 1, 2011.

81

applicable, with the European Convention on Cinematographic Co-

production. (Chapter 1.1. of the Regulations) Second, regarding eligible

producers, financial support may only be awarded to European natural or

legal persons governed by the legislation of one of the Fund’s member

states, regulated in more detail in Chapter 1.2. of the Regulations.

Third, regarding the co-production structure, the participation of the

majority co-producer must not exceed 70% of the total co-production

budget and the participation of each minority co-producer must not be

lower than 10%. In the case of a bilateral co-production, the participation of

the majority co-producer must not exceed 80% of the total co-production

budget and the participation of the minority co-producer must not be lower

than 20%. However, in the case of bilateral co-productions with a budget

superior to five million euros, the participation of the majority co-producer

must not exceed 90% of the total production budget. Further, a duly signed

co-production agreement, or at least a signed ‘deal memo’ containing

essential contractual provisions, is required. (Chapter 1.3. of the

Regulations) As defined by Cones (1992:127), a ‘deal memo’ is “a shortened

version of a contract, i.e. a memorandum of the minimum negotiated terms

between contracting parties”. Such preliminary agreement was also defined

in Chapter 2.3.2.2. relating to contract law.

Fourth, according to Chapter 1.4. of the Regulations, co-producers from

non-member states of the Fund may participate in the co-production

provided that their combined co-production percentage does not exceed

30% of the total co-production budget. Fifth, projects must display artistic

and/or technical cooperation between at least two co-producers established

in different member states of the Fund; regulated in more detail in Chapter

1.5. of the Regulations. Sixth, co-production must be European, the

European character assessed on the basis of the points system included in

the European Convention on Cinematographic Co-production (Chapter 1.6.

of the Regulations). Seventh, the conditions for the start of principal

photography are regulated in Chapter 1.7. of the Regulations. Eighth, co-

productions must comply with the copyright regulations in force in the

European co-producing countries, and the negative must be jointly owned

by all co-producers (Chapter 1.8. of the Regulations). Finally, Chapter 1.9.

of the Regulations defines the financial requirements for co-productions,

including the requirement of at least 50% of the financing in each of the co-

producing countries to be confirmed by formal documentation.

82

In addition to the specific eligibility criteria of the Regulations, the

repayment provision, Chapter 7 of the Regulations, should also be taken

into account when entering into a co-production agreement. The support

amount is repayable, from the first euro, from each producer’s net receipts

at a rate equal to the percentage of the Eurimages share in the financing of

the film, and each co-producer shall be proportionally responsible for

repayment of the share of the support allocated to it. This may be critical

when agreeing on recoupment and profit sharing. Finally, according to

Chapter 8 of the Regulations, Eurimages reserves the right of modification

and termination of the financial support relating to the requested

documentation, changes in co-productions and the breach of the

Regulations.

The MEDIA Programme

MEDIA is the EU support program for the European audiovisual industry.

MEDIA co-finances training initiatives for audiovisual industry

professionals, the development of production projects as well as the

promotion of European audiovisual works. The current MEDIA 2007

programme (2007-2013) is the fourth multi-annual program divided into

different action lines. The MEDIA programme provides funding for

independent European producers of audiovisual projects with a European

dimension.

Project-development funding is designed to meet the needs of different

types of production companies, i.e. funding may be applied to the

development of single projects, slate funding and interactive works. The

eligibility criteria are set by the Guidelines on the support for the

development of single projects and the Guidelines on the support for the

development of a slate of projects19. The eligibility criteria relate to the

eligibility of applicants, countries, activities, and proposals regulated in

Chapter 5 of the Guidelines.

Further, i2i funding is designed to facilitate access to financing from

banks and other financial institutions by subsidizing part of the cost of the

guarantees required by these institutions, and/or part of the financing

itself. i2i covers insurance, completion guarantee, or financing costs. The

19 Decision No 1718/2006/EC, Official Journal of the EU 2007/C 204/05, the most recent (by December 31, 2010) Call for Proposals EACEA 25/2010.

83

eligibility criteria are set by the Guidelines on i2i funding20. The eligibility

criteria relate to the eligibility of applicants, countries, actions and

applications (Chapter 5 of the Guidelines), but no specific regulations that

especially relate to the international film co-productions are noted when

agreeing on the co-production agreement.

Nordisk Film & TV Fond

Since 1990, Nordisk Film & TV Fond has promoted film and TV

productions of high quality in the five Nordic countries (Denmark, Finland,

Iceland, Norway, and Sweden), by providing financing support for project

development and production of feature films, TV-fiction/series, and

creative documentaries. The conditions for support programs are regulated

by the Guidelines set by Nordisk Film & TV Fond21 including (1) general

conditions on application evaluation, types of and criteria for support,

reimbursement and breach of contract, and (2) specific conditions on

support for different purposes.

Regarding international film co-productions in particular, there are

conditions for the granting of support for the production of feature films

that are required to be taken into account. According to such conditions,

national base funding must be confirmed, and a distribution guarantee for

cinema exhibition must be signed for a minimum of two Nordic countries

and a distribution contract must be signed with a minimum of one of the

TV Partners of the Fund (or for a minimum of one Nordic country if a

distribution contract is signed by a minimum of two of the TV Partners of

the Fund) (Chapter 7.1. of the Guidelines). Moreover, according to the

conditions on reimbursement, the Fund supports project development and

production by way of loans that are repayable, the Fund being entitled to a

share of the producer’s world wide receipts, regulated in more detail in

Chapter 4 of the Guidelines.

The Finnish Film Foundation

The Finnish Film Foundation is an independent foundation supervised by

the Ministry of Education and Culture, and the support granted by the

Foundation is based on the Film Promotion Act (28/2000). The Finnish

Film Foundation grants film production support, exhibition and

20 Decision No 1718/2006/EC, Official Journal of the EU 2007/C 277/08, the most recent (by December 31, 2010) Call for Proposals EACEA 27/2010. 21 Guidelines in effect from January 2011.

84

distribution support, and support for international activities in accordance

with the Support Guidelines. The production companies must comply with

all the Support Guidelines, but for the purposes of this study those

guidelines especially relating to international film co-productions are

presented here.

First, according to the Guidelines for film production support22, a

production company holding the rights to a film in Finland can be granted

support whether in the form of development support, advance support for

production, marketing and distribution support, or post-release support for

production (Chapter 2 of the Guidelines). Second, when advance support is

applied for the Finnish part of international co-productions, the applicant

must in addition to the required documentation also deliver to the

Foundation the following documents: a cooperation contract or deal memo

of all the production parties, a detailed budget, a financing plan and a

production plan for the Finnish producer’s share of the production, and a

detailed budget and a financing plan for the whole production (Chapter 2,

paragraph 2.3. of the Guidelines). Third, when support has been granted to

the Finnish contribution to an international co-production, the applicant

must in addition to the other required documentation also deliver to the

Foundation a cooperation contract between all co-producers and a budget

detailed for each country (Chapter 3, paragraph 3.2. of the Guidelines).

Finally, the Guidelines also include a provision identifying the factors that

influence the provisional support decision, however, this guideline that

regulates international co-production does not specifically relate to the co-

production agreements (Chapter 3, paragraph 3.1. of the Guidelines).

In addition to the specific guidelines regulating international co-

productions mentioned above, it is worth noting Chapter 7 of the

Guidelines on cancellation of the support agreement and recovery of

support e.g. if the production is not completed in the manner and schedule

outlined in the support agreement, or if the recipient has failed to comply

with the Support Guidelines, the terms of the support agreement, or any

other related obligation, or through his actions otherwise jeopardized the

completion of the film.

Other Financiers and Cooperating Partners

As stated above, each country has its own national funding programs,

foundations, institutes and other organizations. The Finnish Film

22 Guidelines in effect from January 1, 2009.

85

Foundation was presented above, but there are also other possible

financiers or other cooperating partners that all have their own rules and

regulations on national and international film productions. One of these

financiers in Finland has been the POEM Foundation, the Northern Film

and Media Foundation, which is an audiovisual production resource centre.

The POEM Foundation has provided grants and interest-free loans and/or

investment financing for film productions and has own criteria for

awarding funding, when applicable.

In addition to the national foundations, television channels also finance

film productions by pre-buying television rights of the film to be produced,

which is also the case regarding international film co-productions. The co-

producing partners may pre-sell television rights of the film within different

territories, and therefore, television channels may also set their own

regulations on international film co-productions to be taken into account by

the co-producing parties when entering into a co-production agreement.

This is also the case for film distributors which may pre-finance

international co-productions and set their own regulations and guidelines

as condition for such pre-financing and cooperation. Finally, it is

noteworthy that the list of cooperating partners presented above is

definitely not exhaustive, since any cooperating partner relating to the

international film co-production may naturally set different rules as

condition for its cooperation, and thus have an influence on international

film co-production in various ways.

2.3.2.4. Summary of the Key Legal Regulation

Regarding the legal regulation relating to international film co-productions

from the Finnish film industry perspective, Table 2 specifies such relevant

legal regulation. Finland is a member state of three different international

conventions on international film co-productions. Furthermore, when

Finnish law is applicable to the co-production agreement, some laws have

an influence on international film co-productions and their co-production

agreements although no specific law exists to regulate film co-productions.

Finally, there may be specific contractual provisions agreed upon between

the co-producing alliance partners and financiers that need to be taken into

consideration as well as contractual provisions agreed upon between the co-

producing alliance partners.

86

INTERNATIONAL LAW - on international film co-productions -

European Convention on Cinematographic Co-production (European Treaty Series No. 147; entry into force: April 1, 1994)

Film and Television Co-Production Agreement between Finland and Canada

(Treaty Series of the Statutes of Finland, 24/1999) Agreement concerning Cinematography between Finland and France

(Treaty Series of the Statutes of Finland, 7/1983)

FINNISH (NATIONAL) LAW (if applicable) - relating to international film co-productions -

Contracts – Contract law & Contracts Act (228/1929) Copyrights - Copyright Act (404/1961) & Decree (574/1995) Applicable law & jurisdiction – Legal rules of private international law

CONTRACTUAL PROVISIONS OF AGREEMENTS

- regulating international film co-productions -

Agreements with financiers & other cooperating partners – Regulations set by Eurimages, the MEDIA Programme, Nordisk Film & TV Fond, the Finnish Film Foundation, etc.

Agreements between co-producing partners –

Contractual provisions agreed upon between the contracting parties Table 2. Legal regulation applicable to international film co-productions from the Finnish film industry perspective.

To conclude, in order to understand the network of different legal

regulation the hierarchy of legal norms is discussed in Chapter 3.5. This

relates to the legal research methodology.

2.4. Conceptual Framework and Multidisciplinary Approach of the Study

The purpose of this sub-chapter is to draw together the different issues

relating and relevant to international film co-productions in order to create

a conceptual framework for this study. Since this research represents a

multidisciplinary approach combining international business and legal

studies utilized, Figures 5a and 5b attempt to visualize such

multidisciplinary nature of the research.

Figure 5a illustrates the multidisciplinary approach of this study on

international film co-productions and the use of co-production agreements.

87

Production companies as alliance partners jointly form an international

film co-production alliance. The co-producing alliance partners enter into a

co-production agreement as contracting parties and agree upon contractual

provisions according to which the film will be jointly co-produced. When

agreeing the co-production agreement, there are several elements, business

and legal, to be taken into consideration. Each alliance partner operates in

its home country and has an influence on the co-production agreement and

its contractual provisions, both from the business perspective as an alliance

business partner as well as from the legal perspective through the

applicable national legal regulation. International legal regulation has a

further influence on the international film co-production through

applicable international law and legal rules. Finally, each of the various

cooperating partners, such as the financiers of the film, set their own rules

and regulations affecting the international film co-production.

More specifically, Figure 5a illustrates a situation of several co-production

agreements involved in the same international film co-production. In order

to open up the meaning of the conceptual framework, first, production

company A as a delegate producer enters into co-production agreements

separately with each minority co-producing partner (production companies

B and C). Each co-producing partner (delegate or minority) as a contracting

party has its own needs and desires regarding business terms and thereby

impact on the co-production agreement. Second, each production company

operates in its home country within the national legal environment that has

influence on the co-production agreement. Third, in each country

represented by a co-producing partner there are financiers, such as film

foundations and institutes, distributors, and other possible cooperating

partners involved, and such cooperating partners have their own rules and

regulations having an influence on the co-production agreement.

Fourth, there may be international legal regulation applicable to the

international film co-production. This means that e.g. international

conventions and/or the EU regulation must be applied to the co-production

agreements. It is noteworthy that the international legal environment may

have influence over international film co-productions in two different ways:

(a) the mandatory international legal regulation has an influence on its

member states, since such regulation must be adapted to the laws of such

member states, or (b) the dispositive international legal regulation may

have an influence on international film co-productions when co-producing

partners agree on applying of dispositive international legal regulation, or

the dispositive international legal regulation shall be applied since the co-

88

producing partners have not agreed otherwise. The difference between

mandatory and dispositive legal regulation as well as the hierarchy of legal

norms is further discussed in Chapter 3.5. which addresses the legal

research methodology. Fifth, there may also be financiers, distributors and

other possible cooperating partners internationally involved in

international film co-production leading to the fact that their rules and

regulations must be taken into account when agreeing on the co-production

agreements. Finally, co-producing agreements have an influence on each

other, since there must not be any inconsistencies between them.

It is further noteworthy that the positioning of the co-producing partners

(one above, two below) in the framework does not have any particular

meaning, it only shows that there is one delegate producer and the other

partners are minority co-producing partners, and the delegate producer

enters into a co-production agreement separately with each minority co-

producing partner in the case of several co-production agreements. This

study is not carried out from any specific perspective regarding the co-

producing partners. In other words, this study does not examine the

research topic from any particular co-producing partner’s (delegate or

minority) perspective over another. Nevertheless, based on the conceptual

framework created for this study, it is inevitably a great challenge to

manage co-production agreements from both business and legal

perspectives, and since such agreements cover a variety of different

elements that need to be dealt with, a contract-based international film co-

production alliance may indeed be considered to be a challenge for

company management in terms of the design of a co-production agreement

for the international film co-production.

89

Contract-based International Film Co-Production Alliance Production companies A, B & C as co-producing alliance partners

Country A National legal environment

Production company A Financier(s) (delegate producer)

Business terms? Applicable national legal regulation? Financier(s)

International legal environment Applicable international legal regulation?

§ §

Co-production Co-production agreement agreement Contractual provisions? Applicable legal regulation?

Country B Country C National legal environment National legal environment

Production company B Production company C

Financier(s) (minority co-producing Financier(s) (minority co-producing partner) partner) Business terms? Business terms?

Applicable national Applicable national legal regulation? legal regulation?

The term ‘financier’ refers to financiers and other cooperating partners, such as film foundation, film institute, distributor, etc. Figure 5a. Conceptual framework for multidisciplinary study on international film co-production alliances; the case of several co-production agreements.

As discussed in Chapter 2.2.1.2, there may also be only one co-production

agreement entered into by and between all the co-producing partners, as

presented in Figure 5b.

90

Contract-based International Film Co-Production Alliance Production companies A, B & C as co-producing alliance partners

Country A National legal environment

Production company A Financier(s) (delegate producer)

Business terms? Applicable national legal regulation? Financier(s)

International legal environment Applicable international legal regulation?

§

Co-production agreement Contractual provisions? Applicable legal regulation?

Country B Country C National legal environment National legal environment

Production company B Production company C

Financier(s) (minority co-producing Financier(s) (minority co-producing partner) partner) Business terms? Business terms?

Applicable national Applicable national legal regulation? legal regulation?

The term ‘financier’ refers to financiers and other cooperating partners, such as film foundation, film institute, distributor, etc.

Figure 5b. An alternative conceptual framework for multidisciplinary study on international film co-production alliances; the case of one single co-production agreement.

91

Figure 5b, illustrates an alternative situation of an international film co-

production alliance, wherein the co-producing partners sign only one co-

production agreement involving all the co-producing partners. The number

of the co-producing partners is the same as in Figure 5a. The only difference

from the previous framework is that all the different elements specified

above in relation to Figure 5a must be taken into consideration while

agreeing only one co-production agreement that is entered into by and

between all the co-producing partners.

92

3. RESEARCH METHODOLOGY

This third chapter of the doctoral thesis presents the methodological

choices selected in the empirical part of this research and applied to the

empirical data collection. The research design and the case study setting are

first defined. This is followed by a discussion on interviewing as a

qualitative research method, taking into consideration the challenges

relating to the analysis of the empirical data in this study in order to

produce credible qualitative research. Finally, based on the

multidisciplinary approach, the legal research methodology perspective

relating to this study is presented.

3.1. Research Design and the Case Study Setting

As argued by Yin (2009), a research design is the logic that links the data to

be collected and conclusions to be drawn to the research questions of the

study. In order to achieve the best possible results for any research, the

choice of methodology is rather critical. As argued by Silverman (2006), a

methodology refers to the choices researchers make about cases to study,

methods of data gathering, forms of data analysis, etc. in planning and

executing a research study. Accordingly, the methodology defines how

researchers go about studying any phenomenon. Methods are considered to

be specific research techniques, including quantitative techniques such as

statistical correlations, as well as techniques such as observation,

interviewing, and audio recording. (Silverman, 2006)

This research follows a case study method. As stated by Ghauri (2004), a

case study can be both quantitative and qualitative. He further argues that a

case study is considered to be a useful method when the area of research is

relatively less known, and case studies have the potential to deepen our

understanding of the research phenomenon (Ghauri 2004). In general, as

argued by Yin (2009), case studies are a preferred approach when "how" or

"why" questions are being posed, and the focus is on a contemporary

phenomenon within a real-life context over which the researcher has little

or no control. Based on the characteristics of the research area, such

arguments support the choice of the case study method as appropriate for

this study.

According to Ghauri (2004), when selecting cases it is the research

problem and the research objectives that influence the number and choice

93

of cases to be studied. There are single-case studies as well as comparative

or multiple-case studies. One element affecting the number and choice of

cases is confidentiality, which may be a rather crucial element relating to

the use of a case study method. In a multiple-case study, where

organizations are cases, even if the firm's name and certain information are

disguised readers may identify the firm (Daniels & Cannice, 2004). The

preliminary plan for this study was to select some international film co-

productions by Finnish production companies as cases in order to carry out

a multiple-case study. However, since the Finnish film industry is rather

small, the managers of the Finnish production companies refused to

provide the author of this study with certain information they deemed to be

confidential, including any detailed data on their international business

operations as well as the actual co-production agreements, not to mention

publication of such data. Hence, the lack of this kind of data makes it

impossible to carry out a successful multiple-case study. Consequently, this

study was carried out as a single-case study in the business field, the

Finnish film industry as the case.

Yin (2009) has identified rationale for single-case designs. One rationale

relating to this study is the revelatory nature of the case study. This exists

when we can observe and study a phenomenon that has previously been

inaccessible and which can provide useful insight (Yin, 2009; Ghauri &

Gronhaug, 2005). Since a single-case design has been considered

appropriate when the case study is exploratory and of revelatory nature

(Yin, 2009; Ghauri & Gronhaug, 2005), a single-case study method may be

considered very useful and therefore deemed applicable to this study.

The film industry was selected as the research context, thereby providing

an interesting research area for multidisciplinary studying on international

film co-production alliances based on co-production agreements. However,

it is noteworthy that the film industry is not the only industry and business

field where a multidisciplinary study of alliance contracting combining

business and legal studies can be considered valuable. Obviously, there are

also a variety of international alliances based on alliance contracts within

the different business areas, and as the literature review part of this study

has shown, the research area of alliance contracting has been recognized as

important by several researchers (see Chapters 2.1. and 2.2.). As one of

several interesting examples, universities actively cooperate internationally

worldwide and such international cooperation is often based on long-term

partnerships and contracting, not just on project-based international

cooperation. Nevertheless, this study focuses on the unique and rather

94

unexamined research area of the film industry and contracting in

international film co-production alliances, which hopefully inspires further

multidisciplinary studying on the interesting research area of alliance

contracting.

In addition, this research follows a single-case holistic case study design.

The same single-case study may involve more than one unit of analysis (a

single-case embedded case study design), while attention is also given to

subunits (Yin, 2009). Although the empirical data is collected from the

Finnish film industry, and more specifically by interviewing producers

representing Finnish film production companies, this study aims at

providing more of a holistic approach to the research area. This study is

considered to represent a holistic case study design, since the objective of

this multidisciplinary study is to contribute to the understanding of

international alliances based on and regulated by alliance contracts.

Finally, as pointed out by Ghauri (2004), triangulation, referring to the

collection of data through different methods or even different kind of data

on the same phenomenon, is one of the defining features of a case study.

Case studies may involve data collection through multiple sources of

evidence and the applicable sources are different for each study. In this

study these sources of evidence are personal interviews as primary data,

supported by secondary data of the film industry that is publicly available

and the personal work experience of the author of the study.

The following sub-chapter focuses on the discussion of interviews as

qualitative research method as the primary empirical data source for this

study.

3.2. Interviews as Qualitative Research Method

The previous sub-chapter defined this research as a case study. More

specifically, this research follows a qualitative case study method, using

interviews as qualitative research method. In order to separate quantitative

research from qualitative research, one of the general statements is that

whereas quantitative data deals with numbers, qualitative data deals with

meanings (Dey, 1993). Moreover, four different major methods used by

qualitative researchers have been identified: observation, analyzing texts

and documents, interviews, and recording and transcribing (Silverman,

2006).

95

Interviews are commonly used in both quantitative and qualitative

methodologies. It has been said that interviewing is the most widely applied

technique for conducting systematic social inquiry (Holstein & Gubrium,

1997; Eskola & Suoranta, 1998). Atkinson and Silverman (1997) have also

pointed out the special faith in the interview as the prime means of data

collection. In a simple interview situation an interviewer asks an

interviewee questions and this interview is considered to be interaction,

where both parties affect each other (Eskola & Suoranta, 1998).

According to Daniels and Cannice (2004), there are three situations

where interview-based research may be appropriate for business research

in general. First, interview-based research studies are particularly well

suited for exploratory and theory building studies, since interviews allow

the researcher to discover new relationships or situations not previously

conceived. Interview studies may also result in cases. Second, interview-

based research may be optimal when there is a small population of possible

respondents, and interviews may offer an opportunity to acquire a richness

of information from each respondent. Third, interviews may allow

researchers to develop a deeper rapport with informants. (Daniels &

Cannice, 2004) Due to the lack of studies on the research subject of this

study, data collection from the field is highly important and since the

situations referred to above closely relate to this study, this strongly

supports the use of interviews as a qualitative research method for the

study.

Next, some issues relevant to the use of interviews are discussed with

reference to this study in question.

Interview Types

There are different types of interview; Eskola and Suoranta (1998) have

identified the types of structured interview, half-structured interview,

theme interview, and open interview. The interviews carried out for this

study could be identified as representing an approach between half-

structured and open interviews. In half-structured interview the questions

are the same for all the interviewees, but there are no alternatives from

which to choose to answer these questions; meaning that the interviewee

may answer the questions in his/her own words (Eskola & Suoranta, 1998).

Open interviews, in contrast, are reminiscent of a customary discussion.

The interviewer and the interviewee discuss a given subject matter, but all

96

the different theme areas are not necessarily covered by and discussed with

all the interviewees. (Eskola & Suoranta, 1998) In this study, on the one

hand, the interviews were structured including a list of questions in order to

ensure that certain issues were discussed and covered in detail during the

interviews, but, on the other hand, it was important to let every interviewee

answer the questions freely since the experiences of interviewees and

therefore the answers may vary a lot and the interviewees may provide very

unexpected information that may lead to further questions. Furthermore,

distinguished from individual interview is a group interview, whereby many

interviewees and perhaps interviewers are present at the same time (Eskola

& Suoranta, 1998). It is the former that was primarily employed in this

study.

Open-ended questions are often favored when the interview method is

used (Eskola & Suoranta, 1998). According to Patton (2002), there are

three basic approaches to collecting qualitative data through open-ended

interviews: the informal conversational interview, the general interview

guide approach, and the standardized open-ended interview. They differ in

the extent to which interview questions are determined and standardized

before the interview occurs (Patton, 2002). It is the general interview guide

approach that was applied to this study; thereby allowing the outlining of a

set of issues that are to be explored with each respondent before

interviewing begins. As Patton (2002) has described, issues in the outline

need not be taken in any particular order, and the actual wording of

questions to elicit responses about those issues need not be determined in

advance. The interview guide simply serves as a basic checklist during the

interview in order to ensure that all the relevant topics are covered. The

interview guide presumes that there is common information that should be

obtained from each person interviewed, but no set of standardized

questions are written in advance. The interviewer is therefore required to

adapt both the wording and the sequence of questions to specific

respondents in the context of the actual interview. (Patton, 2002)

Interview Aspect

Interviews are traditionally analyzed as more or less accurate descriptions

of experience; as reports or representations of reality. Analysis entails

systematically coding, grouping or summarizing the descriptions, and

providing a coherent organizing framework that encapsulates and explains

aspects of the social world that respondents portray. In contrast, active

97

interview data can be analyzed to show the dynamic interrelatedness of the

‘whats’ and the ‘hows’. (Holstein & Gubrium, 1997)

Holstein and Gubrium (1997) have especially pointed out that

understanding how the meaning-making process unfolds in the interview is

as critical as apprehending what is substantively asked and conveyed. On

the one hand, the hows of interviewing refer to the interactional, narrative

procedures of knowledge production, not merely to interview techniques.

On the other hand, the whats pertain to the issues guiding the interview, the

content of questions, and the substantive information communicated by the

respondent. A dual interest in the hows and whats of meaning production

goes hand in hand with an appreciation of the constitutive activeness of the

interview process. (Holstein & Gubrium, 1997) These arguments strongly

support the careful planning and realization of the interviewing, concerns

that have been taken into consideration while planning how the interviews

are carried out for this study.

Interview Data

A number of issues have been raised about the status of interview data;

Silverman (2006) has presented three different ways, relating to positivism,

emotionalism and constructionism. First, according to positivism, interview

data give us access to facts about the world. The primary issue is to generate

data that are valid and reliable, independently of the research setting. The

main ways to achieve this are the random selection of the interview sample

and the administration of standardized questions with multiple-choice

answers which can be readily tabulated. Second, according to

emotionalism, interviewees are viewed as experiencing subjects who

actively construct their social worlds. The primary issue is to generate data

that give an authentic insight into people's experiences. The main ways to

achieve this are unstructured, open-ended interviews usually based upon

prior, in-depth participant observation. Third, according to

constructionism, interviewers and interviewees are always actively engaged

in constructing meaning. Rather than treat this as standing in the way of

accurate depictions of facts or experiences, how meaning is mutually

contracted becomes the researcher's topic. Because of this, research

interviews are not treated as specially privileged and other interviews are

treated as of equal interest, i.e. interviews are treated as topics rather than

as a research resource. A particular focus is on how interviewees construct

narratives of events and people and the turn-by-turn construction of

meaning. (Silverman, 2006)

98

In the opinion of the author of this study, although this study can be

considered to represent a positivist perspective with references to

objectivity, triangulation, and other related considerations, the study also

slightly relates to emotionalism and constructionism regarding interview

data. The random selection of the interview sample, a characteristic of

positivism, would be supported although cannot be directly applied since all

the production companies available were selected. Further, standardized

questions with multiple-choice answers were not considered to be useful for

this study and open-ended questions were favored as discussed above.

Therefore, this study can be considered to be related to emotionalism on

the basis of the interest in ‘authentic’ understanding of the experiences of

the interviewees, and to constructionism on the basis of the desire, through

interviews, to construct meaning.

Interview Questions

A number of decisions must be made in planning an interview, whether the

interview takes place spontaneously in the field or is carefully prepared as a

standardized open-ended instrument. The researcher must decide what

questions to ask, how to sequence the questions, how much detail to solicit,

how long to make the interview, and how to word the actual questions.

(Patton, 2002) Patton (2002) identifies six kinds of questions that may be

asked of people: Experience/behavior questions about what a person does

or has done; opinion/values questions aiming at understanding the

cognitive and interpretive processes of people; feeling questions aiming at

understanding the emotional responses of people to their experiences and

thoughts; knowledge questions to find out what factual information the

respondent has; sensory questions about what is seen, heard, touched,

tasted and smelled; and background/demographic questions identifying

characteristics of the person being interviewed.

The questions used for this study are experience/behavior,

opinion/values, and knowledge questions. Moreover, a

background/demographic question has been used to obtain relevant data

relating to the international business operations of the interviewees. The

interview questions employed in this study are presented as Appendix 1.

Subjectivity versus Objectivity

There are different opinions referring to the subjectivity of both the

interviewer and the interviewee. It is a fact that there is always an image of

99

the research subject involved behind the persons participating in the

interview, and it is rather difficult to know how much subjectivity there is

behind the answers of an interview respondent (Holstein & Gubrium, 1997).

As suggested by Kirk and Miller (1986), from a traditional point of view, the

objectivity or truth of interview responses might be assessed in terms of

reliability. The question of how objective the received information is and

should be is rather difficult to answer. Converse and Schuman (1974) have

pointed out the meaning of learning the interviewer role. In their opinion,

interviews are conversations where meanings are not only conveyed, but

cooperatively built up, received, interpreted, and recorded by the

interviewer (Converse & Schuman, 1974).

Moreover, Patton (2002) has referred to the term of neutrality and has

argued that neutrality means that a person being interviewed can tell the

researcher anything without engendering either the researcher's favor or

disfavor with regard to the content of the response. Furthermore, Douglas

(1985) has created an approach to "creative interviewing" and pointed out

the meaning of the interview questions. He has also argued that standard

questions and answers touch only the surface of experience, and

accordingly, has aimed more deeply by creatively getting to know the real

subject behind the respondent (Douglas, 1985). Douglas (1985) has

supported the view that interviewer aims to establish a climate for mutual

disclosure while interviewing and has reminded that continual self-analysis

on the part of the interviewer is necessary.

The question of subjectivity and neutrality also applies to this study, since

the author of the study works within the business field and her customers

are among the interviewees. This aspect of objectivity may also be

considered critical in this study based on the fact that the author has

worked with both business and legal issues relevant to this study for some

time, and has work experience on such issues. Therefore, this could easily

have an influence on the empirical study, and in order to be able to achieve

the most valuable information and to make the right conclusions, it has

been necessary for the author to concentrate on taking an objective and

neutral role in interview sessions. On the other hand, the work experience

of the author has hopefully eliminated the possibilities of

misunderstandings, since the author has been familiar with the research

subject when carrying out the interviews.

100

Active versus Passive Interviewing

The active vs. passive role of interviewing is also very interesting aspect

requiring attention. Holstein and Gubrium (1997) have argued that all

interviews are interactional and the interview subject is not a passive source

of information. The authors also agree that an interview should be

considered as an interactive situation, where both the interviewer and the

interviewee have active roles and are constantly developing. This supports

the position that both actors of the interview produce the meaning of the

interview together and it may not be possible to standardize the interview

across different subjects. (Holstein & Gubrium, 1997) For this study,

understanding these arguments has guided the author of the study as an

interviewer to focus on the meanings emerging during the interviewing

process. In the author’s opinion, it seems valuable to concentrate and be

prepared for each interview in order to be able to build up an active and

devoted atmosphere for the interviews.

There seems to be many possibilities to take different views relating to

interviewing. According to Holstein and Gubrium (1997), in the traditional

view of interviewing, the passive subject engages in a minimalist version of

interpretive practice, perceiving, storing, and reporting experience when

properly asked. However, the active conception of the interview invests that

subject with a substantial repertoire of interpretive methods and stock of

experiential materials. Much depends on the person of the interviewer,

what kind of role he/she takes. An active interviewer sets the general

parameters for responses, constraining as well as provoking answers that

are germane to the researcher's interest. (Holstein & Gubrium, 1997)

Especially due to the open-ended questions used for this study, the author

of the study has aimed at adopting an active role as an interviewer. The

author believes that if she is able to create a positive atmosphere for the

interview and get the interviewee to open up, she may get the best possible

results. In the author’s opinion, it is particularly challenging to inspire the

interviewee to talk freely about different issues relating to the research area

(including, probably, issues considered as confidential) that the interviewer

is interested in and needs information about. On the other hand, the author

believes that her background had a positive impact on the interviews, since

interviewees knew that the author is already familiar with the subject,

which supported the interviewees in feeling that the author is strongly

interested in this particular research area as well as their opinions and

101

knowledge. Hopefully, this has also created a certain level of trust between

the author and the interviewees.

Cross-Cultural Interviewing

It is finally relevant to note that intercultural interactions are always subject

to misunderstandings. In cross-cultural interviewing, attention should be

paid to language differences and differing norms and values. The data from

interviews are words, and as Patton (2002) has argued, it is tricky enough

to be sure what a person means when using a common language, but words

can take on a very different meaning in other cultures. There are also words

and ideas which cannot be easily translated. People who regularly use the

language come to know the unique cultural meaning of special terms, but

they do not translate well. The same words may mean different things in

different cultures. (Patton, 2002)

This point is also valuable for this study for the following reasons: First,

the interviewees in Finland were interviewed in Finnish i.e. in their mother

tongue, and the empirical research data were translated into English, which

has required the author of this study to be very careful with all the wording.

Second, a special need is to pay attention to the terms used in the

interviews. As far as the interviewees are professionals, both the English

and Finnish terminology of the film industry is known by the interviewees,

which decreases the possibility of misunderstandings. However, the

interviewees are less familiar with the legal terms and some clarifications

have been necessary to avoid misleading data. In this regard, interviews

were not across cultures, it is only the language differences that must have

been taken into a consideration.

Having defined this research as a single-case study and discussed

interviews as qualitative research method, the following sub-chapter

discusses the analysis of qualitative data.

3.3. Analysis of Data

Before discussing how to interpret and analyze qualitative data, it is

noteworthy that the empirical data collection is presented in Chapter 4.1. in

connection with the chapter on the case of the Finnish film industry.

102

Nevertheless, as argued by Ghauri (2004), interpreting and analyzing

qualitative data is perhaps the most difficult task while doing case study

research. As further stated by Holstein and Gubrium (1997), writing up

findings from interview data is an analytically active enterprise. The active

analyst empirically documents the meaning-making process, and the goal is

to explicate how meanings, their linkages, and horizons, are constituted

both in relation to, and within, the interview environment (Holstein &

Gubrium, 1997). According to Schwandt (2000), knowledge of what others

are doing and saying always depend upon some background or context of

other meanings, beliefs, values, practices, etc., and he refers to strong and

weak holism. On the one hand, strong holists argue that people always see

everything through interpretation leading to a conclusion that everything in

fact is constituted by interpretation. On the other hand, weak holists argue

that it is neither necessary nor desirable to draw such relativistic, suspicious

conclusions from the fact that knowledge of others is always dependent on a

background of understanding. (Schwandt, 2000) Schwandt (2000) also

reminds that understanding what others are doing or saying and

transforming that knowledge into public form involves moral-political

commitments. Moral issues arise from the fact that a theory of knowledge is

supported by a particular view of human agency (Schwandt, 2000).

Moreover, Coffey and Atkinson (1996) have argued that it is important to

recognize the variety of data types and the variety of appropriate analytic

strategies that exist. The authors also believe that there are some basic

principles to be adhered to, whatever particular method is adopted and they

have indicated some general guidelines (Coffey & Atkinson, 1996). First,

nobody should adopt a particular approach toward research without

making well-informed decisions and choices (Coffey & Atkinson, 1996).

This is especially critical in this study, since the author of the study has

work experience on the subject matter, which must not have any influence

on the approach towards the research. Second, according to Coffey and

Atkinson (1996), qualitative data analysis needs to be conducted with care,

the analyst should always be reflexive and critical, and decisions and

actions should be documented systematically and in detail. In the opinion

of the author of this study, all this is considered to be natural and self-

evident while doing research. Third, all the interactions should lead to

reflections and decisions, and at every stage of the process the various

transactions and the ideas which emerge should be documented (Coffey &

Atkinson, 1996). At least regarding this study, there seems not to be any

difficulty to follow this guideline due to the challenge of managing many

different issues relating to the study. Fourth, researchers should be using

103

data to think with and think about leading to an active and creative

approach (Coffey & Atkinson, 1996). This guideline refers to the analysis of

the research area from the beginning to the end of the process of doing

research and was also applied to this study.

Fifth, it should be remembered that computer-aided qualitative data

analysis software can be used to support a variety of analytic and

representational tasks and the use of such software can enhance qualitative

research (Coffey & Atkinson, 1996). No specific computer-aided qualitative

data analysis software was used for this study. Sixth, Coffey and Atkinson

(1996) have argued that analysis should not be separated from other

features of the research process. This relates to the fourth guideline and the

idea that analysis proceeds throughout the development of the qualitative

research project (Coffey & Atkinson, 1996). Also, according to Richardson

(2000), it is very important to understand the process character of research

and see writing as a process to complete the research. This guideline is

strongly supported and applied by the author of this study. Seventh,

according to Coffey and Atkinson (1996), the importance of representation

needs to be recognized. Writing and representation cannot be divorced

from analysis, which makes the analysis even more challenging. Finally,

research methods should not be confused with theories or disciplines. It is

naturally important not to lose sight of more general intellectual

frameworks when undertaking research and analyzing data. (Coffey &

Atkinson, 1996) Both of the latter two guidelines are noted and kept in

mind by the author of this study while carrying out the whole research

process.

As Atkinson and Silverman (1997) have pointed out, the interview

provides the researcher with a means of access to the inner world of the

respondent, and personal experience as the subject matter of the interview

is stressed. They have further argued that an interview is successful when

the interviewer is able to get some deeper knowledge (Atkinson &

Silverman, 1997). Patton (2002) has also stated that the quality of the

information obtained during an interview is largely dependent on the

interviewer and it is important that the researcher learns how to listen

when knowledgeable people are talking. For this study, this is definitely a

challenging task to manage, and it is important to be extra careful not to

understand the answers of the interviewees in a manner that is different

from what they really are due to the existing work experience of the author

of this study. However, the author believes that as far as this fact is

recognized it is possible to be neutral when interpreting the collected

104

empirical data and as referred to above, on the other hand, the work

experience of the author has hopefully decreased misunderstandings that

might result from the lack of knowledge of the business field. The author of

this study supports the argument presented by Atkinson and Silverman

(1997) that the interview is a reliable research instrument giving valid data

on facts and attitudes.

One more issue relevant to be noted in relation to this study as well as any

other is validation criteria including validity and reliability of the research,

discussed in the following sub-chapter.

3.4. Validation Criteria – Credible Qualitative Research

According to Miles and Huberman (1994), it is difficult to give specific

criteria according to which findings of research could be evaluated; whether

they are good or otherwise. The authors have further argued that the word

"good" may be replaced by many possible definitions: possibly or probably

true, reliable, valid, dependable, reasonable, confirmable, credible, useful,

compelling, significant, empowering, etc. However, these authors have

explored some practical standards that can help a researcher judge the

quality of conclusions. (Miles & Huberman, 1994) The five main, somewhat

overlapping, issues have been (1) objectivity/confirmability of qualitative

work, (2) reliability/dependability/auditability, (3) internal validity

/credibility/authenticity, (4) external validity/transferability/fittingness,

and (5) utilization/application/action orientation (Miles & Huberman,

1994). Objectivity has been discussed above and the other issues are briefly

discussed below, with the specific focus on this study.

Reliability / Dependability / Auditability

The concept of reliability relates to whether the process of the study is

consistent, reasonably stable over time and across researchers and methods

(Miles & Huberman, 1994). The reliability of interview is often related to

quantitative methods, based on the fact that it is very important that each

respondent understands the questions in the same way and that answers

can be coded without the possibility of uncertainty (Silverman, 2006). This

is also important in qualitative research, because it is the responsibility of

the interviewer to make it clear to the interviewee what is being asked.

Since the author of this study conducted all the interviews and observations

herself and thus managed all the data by herself, this increases the

105

reliability of this study. Moreover, the researcher needs to pay attention to

the terms being used by respondents (Patton, 2002). In this study, this

reliability aspect plays a very critical role, especially relating to the legal

terms. The definitions of specific terms need to be understood correctly and

the interviewees need to be provided with clarification of terms when

necessary in order to avoid misunderstandings and to obtain reliable data.

Internal Validity / Credibility / Authenticity

As argued by Silverman (2006), the issue of validity is appropriate whatever

the researcher’s theoretical orientation or use of quantitative or qualitative

data. The question is truth value, whether the findings of a study make

sense (Miles & Huberman, 1994). As Ghauri (2004) has argued,

authenticity is often the issue in qualitative research rather than reliability,

and Lincoln and Guba (2000) have also identified validity as authenticity.

Silverman (2006) has further argued that the aim is usually to gather an

authentic understanding of people's experiences and it is believed that

open-ended questions are the most effective route towards this end.

Hopefully the use of open-ended questions and the awareness of the

significance of this validity element also increase the authenticity of this

research.

Ghauri (2004) has argued that data analysis and collection should be

closely interconnected during the life cycle of the case study in order to

increase authenticity. According to Miles and Huberman (1994),

interweaving data collection and data analysis from the first interview/case

is the best policy. As supported by Ghauri (2004), preferably, a second case

study should not be started unless the data collected through the first has

been analyzed. In this study, this suggested procedure has been followed

regarding the interviews, since each interview was carried out and analyzed

before the one that followed.

External Validity / Transferability / Fittingness

This issue refers to the fact that the researcher needs to know whether the

conclusions of a study have any larger importance, whether the conclusions

are transferable to other contexts, and how far they can be “generalized”

(Miles & Huberman, 1994). As stated by Ghauri (2004), external validity

deals with the problem of knowing whether a study’s findings are

generalizable beyond the immediate case study. Moreover, Firestone's

(1993) review has suggested three levels of generalization: from sample to

106

population (less helpful for qualitative studies), analytic (theory-

connected), and case-to-case transfer (see also Kennedy, 1979). Since this

study focuses on the case of the Finnish film industry, this issue is very

relevant particularly when making conclusions and arguing what

conclusions are specific to the case industry and what could be more

“generalized”.

Utilization / Application / Action Orientation

Even if a study's findings are considered to be valid and transferable, Miles

and Huberman (1994) have referred to a need to know what the study does

for its participants, both researchers and researched, and for its consumers.

The authors have further reminded that there are questions of ethics, who

benefits from a qualitative study and who may be harmed (Miles &

Huberman, 1994). Utilization is a special interest when carrying out this

study in order to be able to provide the business management of the

Finnish film industry with relevant data on the subject matter, thereby

hopefully supporting the involvement of the Finnish film production

companies in international film co-productions and increasing

understanding of the management of co-production agreements.

After having discussed and presented the research methodology of this

international business research, the following sub-chapter concludes this

methodology chapter by presenting the legal research methodology.

3.5. Legal Research Methodology

In addition to the international business research methodology, the legal

perspective with regard to research methodology is also relevant for this

multidisciplinary study. The legal regulation having influence on

international film co-productions forms the legal research part of this

study. This has been presented and discussed above in Chapter 2.3.

In order to reflect the significance of international and national law and

their influence on individual agreements, it is important to understand the

hierarchy of legal norms. In order to understand the relationship between

different legal norms applicable to international business cooperation

(where they exist), the following table, Table 3, illustrates the hierarchy of

different legal norms.

107

(A) Binding Legal Rules

Binding Written Legal Rules – mandatory & dispositive norms* - Treaties and Conventions (including those of the EU) - Law of the EU – Regulations & Directives** - National laws; acts, degrees - Judicial decisions – between the contracting parties - Terms and conditions of contracts***

Binding “Unwritten” Legal Rules

- International custom - General principles of law - Terms and conditions of contracts***

(B) Non-binding Written Legal Rules

“Higher” value

- Acts of international organizations, e.g. Model Laws, Regulatory frameworks, other than treaties - Judicial decisions – previous decisions - Law of the EU, e.g. Decisions, Opinions & Recommendations

“Lower” value

- Writings, academic treatises and research publications - Teachings

* Mandatory norms must be applied as such and dispositive norms are applied if the contracting parties have not made any deviating decisions. ** Directives are binding in the result to be achieved, although the form and the method of their implementation is left to the national authorities. *** In addition to the sources of law, when a contract has been legally and validly entered into, it becomes binding and the contracting parties are obliged to observe the terms and conditions of the contract. Table 3. Modified hierarchy of legal norms presented by Naarajärvi and Koivisto (2002).

As presented in Table 3, legal regulation can be divided into binding and

non-binding legal norms of which the binding ones must be applied. It is

further important to distinguish mandatory and dispositive norms. As

discussed above, the contracting parties must comply with the mandatory

norms, a contractual provision contrary to a mandatory norm is void and

the mandatory norm is applied instead. On the other hand, the contracting

parties are not obliged to comply with dispositive norms since such norms

are only applied if the parties have not otherwise agreed upon and included

deviating contractual provisions in their contract. (Hemmo, 2003)

In this study, the existing laws, rules and regulations relating to

international film co-productions have been examined in order to

understand the various legal regulation to be taken into consideration when

entering into a co-production agreement. Moreover, this study has been

carried out and legal regulation has been examined from the Finnish film

108

industry perspective. This further means that the legal regulation has been

studied from the Finnish law perspective. Finally, Table 3 on the hierarchy

of legal norms provides an understanding both of the variety of different

legal norms in existence as well as the different positions and reciprocal

relations of such norms.

109

4. CASE OF THE FINNISH FILM INDUSTRY

After having discussed the research methodology chosen for this study, this

fourth chapter of the doctoral thesis focuses on the empirical part of the

research, i.e. the Finnish film industry as the case. This chapter presents

how the empirical data were collected in concrete terms. Thereafter, the

collected empirical data are discussed and analyzed leading to the

presentation of some key findings and conclusions from the research.

4.1. Empirical Data Collection

This chapter on empirical data collection first presents the Finnish film

industry with some key characteristics and statistical numbers. How the

empirical data were collected through qualitative interviews based on the

research methodology defined in Chapter 3 is further discussed, and the

applicability of the conceptual framework created for this study is reflected

by presenting a concrete case of an international film co-production as an

example.

4.1.1. The Finnish Film Industry

As discussed in Chapter 3.1, this research is carried out as a single case

study in the business field, the Finnish film industry as the case. In general,

the film industry in Finland is rather small due to the small market area

and limited support funds. According to the Ministry of Education and

Culture, there are over 100 production companies in Finland, but only

approximately 25 of these are considered to be professional businesses with

regard to the production of films23.

During the years 2000-2009 a total of 147 Finnish feature films were

released in Finland, accordingly, approximately 14-15 long feature films

each year24. Feature film production without public production support is

very exceptional in Finland25, and therefore, the feature film production has

been highly dependent on the public support system.

23 The policies of the audiovisual politics (“Audiovisuaalisen politiikan linjat”), 2005:8. 24 Facts & Figures 2009 of the Finnish Film Foundation. 25 The policies of the audiovisual politics, op.cit.

110

In Finland, during the years 2003-2007 the numbers of 100% national

feature films produced were the following: eleven in 2003, ten in 2004,

eight in 2005, eleven in 2006 and ten in 2007. Regarding international film

co-productions, during the five years 2005-2009, a total of 43 feature

fiction films were produced by a Finnish production company as a majority

co-producing partner (21 films) or as a minority co-producing partner (22

films).26

4.1.2. Qualitative Interviews

The empirical data of this study consist of qualitative interviews of ten

producers representing Finnish production companies having been

involved in international film co-productions of feature films. With the

exception of two production companies where the producer of one company

has not been available for interview and the producer of the other company

has refused to give an interview this represents the full number of

production companies. Noteworthy is that some Finnish production

companies having been involved in international film co-productions have

terminated their business operations and interviews regarding their

international film co-productions could not been carried out. The

interviewed producers and production companies are presented as

Appendix 2 which also includes data on international feature film co-

productions of each production company, films with premieres during the

years of 2000-2008.

The first preliminary interview was carried out at the beginning of 2006

followed by the revision of the theoretical perspective, research questions

and objectives of this study. At the end of 2006, two other interviews were

carried out followed by the finalization of the theoretical approach for the

study and the revision of the literature review and legal structure in order to

complete the empirical data collection. The remaining interviews were

carried out around summer 2008 while also the previous interviews were

supplemented when necessary. The last two interviews were carried out at

the beginning and during the spring of 2009 due to the tight time schedules

of the interviewed producers.

As referred to above, the interview questions are presented as Appendix 1.

The Appendix is presented in both English and Finnish languages, since the

interviews were carried out in Finnish, and therefore, the original interview

26 Focus 2010, Release of Marché du Film on World Market Trends, 2010.

111

questions were created in Finnish and translated into English for the

purposes of this study.

4.1.3. Example Case of International Film Co-Production

Despite the fact that this research has not been carried out as a multiple-

case study, in order to give an overview of an international film co-

production in concrete terms, the feature film “Jade Warrior” (premier

2006) is presented hereunder as an example case of an international film

co-production.

The film “Jade Warrior” is an international film co-production between

four production companies representing four different countries. Each

production company has its own needs and desires for such co-production

and operates in its home country influenced by the national legal

regulation. Further, there are a variety of different financiers and other

cooperating partners, whether representing the four countries of the

production companies or any other country, also involved in the film co-

production having their own rules and regulations. In the following figure,

Figure 6, the film “Jade Warrior” is presented as a contract-based

international film co-production alliance based on the conceptual

framework of the study presented in Chapter 2.4. In this international film

co-production the Finnish production company as the delegate producer

has entered into a co-production agreement separately with each of the

minority co-producing partners.

112

Contract-based International Film Co-Production Alliance Production companies Blind Spot Pictures, Fu Works, Film

Tower & Ming Productions as co-producing alliance partners

Finland The Finnish legal environment

The Finnish Blind Spot Pictures Film Foundation, (delegate producer) Sandrew Metronome, Business terms? YLE (TV channel) Applicable Finnish legal regulation? Arte / France ZDF / Germany Troika Entertainment / Germany International legal environment Applicable international legal regulation?

§ § §

Co-production Co-production Co-production agreement agreement agreement Contractual provisions? Applicable legal regulation?

The Netherlands Estonia The Republic of China The Dutch legal The Estonian legal The Chinese legal environment environment environment

Fu Works Film Tower Ming Productions

A-film (minority co-prod Estonian (minority co-prod (minority co-prod Distribution partner) Film partner) None partner)

Business terms? Institute Business terms? Business terms? Applicable Dutch Applicable Estonian Applicable Chinese

legal regulation? legal regulation? legal regulation?

The term ‘financier’ refers to financiers and other cooperating partners, such as film foundation, film institute, distributor, etc. Figure 6. The film “Jade Warrior” (2006) as an example of an international film co-production.

113

4.2. Discussion and Analysis of the Empirical Data

In this chapter, the collected empirical data of this study are presented,

discussed and analyzed. In order to present the empirical data in relation to

the literature review, the discussion and analysis of the data is presented

under the same themes as used in Chapter 2; (1) international film co-

productions, (2) co-production agreements, and (3) the influence of legal

regulation.

4.2.1. International Film Co-Productions

4.2.1.1. Alliance Perspective

The Finnish producers interviewed for this study were rather unanimous in

considering international film co-productions as alliances. Although at the

beginning production companies may enter into international film co-

productions on a project basis, the aim is, however, to cooperate at the

partnership level and look for a longer term relationship with the co-

producing partner(s). The objective seems to be to create a long-term

persistent partnership. One interviewee argued as follows:

“From the very beginning the basis for international film co-production should

always be a joint vision on a joint film to be jointly produced and owned.”

As argued by another interviewee, one critical element affecting, whether an

international film co-production turns out to be an alliance rather than a

project, is the quality of the co-producing partner. A small number of

interviewees also argued that they do not believe that Finnish production

companies enter into international film co-productions to make money.

They further considered international film co-productions to be more or

less part of the film production system, and essentially a means to enable

the production of films since the financing can be raised from various

countries.

Trust was also identified to play an important role by interviewees, since

the longer the relationship the more trust there is among the cooperating

partners, because trust comes into existence along the cooperation. As

argued by one interviewee, when companies and people involved in

international film co-productions get to know each other, it is desirable to

continue international cooperation together, naturally however, provided

that it is working. Based on the experiences of a small number of

114

interviewees, unfortunately, in practice, some co-producing partners have

turned out to be not so good and the international cooperation has ended

sooner than planned. Along with international cooperation things can just

come up, the co-producing partner may not be so appropriate, cooperation

is not working as wished and continued international cooperation is not

recommended when not necessary. This was experienced by one

interviewee. Therefore, in case there is an uncertain feeling about the

cooperation in the beginning, entering into international film co-production

may not be recommended, since, based on the experience of one

interviewee, in such case all the fears that have been realized can multiply.

The same interviewee further emphasized that international film co-

productions should always be based on the objective of cooperating over the

long-term basis. Furthermore, as argued by another interviewee, once a

good basis for international cooperation has been created and is working

well, it is also important to remember to take care of what exists.

When evaluating the time frame of international film co-productions,

there is a great variety of the length of international cooperation based on

the experiences of the interviewees. International cooperation relating to

international film co-productions may already commence two to three years

before the film shooting and when the sales are active, the international

cooperation may actively continue long to the future: even to the extent of

more than 20 years. At the shortest, the international cooperation

commenced just before the film shooting and in practice came to an end

when the film was released for theatrical distribution; altogether a period of

approximately one to one and a half years. At the longest, international

cooperation between co-producing partners may start early by jointly

developing a film script and planning a film co-production and continue

long into the future.

In each particular case, the length of international cooperation has

depended a lot on what has been agreed, how independently the co-

producing partners operate and how much cooperation is needed. The most

active international cooperation time tends to take two to five years and

thereafter the international cooperation normally continues as long as the

film is at any market. Based on the experiences of the interviewees,

although the active phase of international cooperation may vary greatly, it

does not change the fact that a film’s life span is always long and whenever

a production company enters into international film co-production it makes

a certain type of commitment for a long term. International cooperation

may continue for several years, and as argued by one interviewee, such

115

cooperation should also be maintained by communicating with all the co-

producing partners. At the best, one joint successful international film co-

production leads to another.

The length of international cooperation plays an important role for this

study relating to whether international film co-productions may be

considered as alliances, or contrary to this study, should they be considered

more justifiably as international projects. Although the length of

international cooperation between co-producing partners may vary a lot as

argued above, it should be noted that when co-producing partners own the

copyrights of a film together, which is the case in most of the international

film co-productions (see Chapter 2.2.2.2.), as long as the rights remain valid

the international cooperation between the co-producing partners continues,

and therefore, it is highly justified to agree that international film co-

productions are for the long term. This further supports the fact that

international film co-productions can be considered as alliances.

4.2.1.2. Contracting

More specifically on contracting in alliances, the contracting phase is

considered to be at least important, if not highly important, by all the

interviewees. Based on the interviews, the making of a co-production

agreement should always be taken seriously. Actually, two of the

interviewees particularly pointed out that in the case that the co-producing

partner is not interested in contracting and considers the contracting phase

as unimportant, this should be considered to be very alarming. However,

the experiences on contracting vary greatly, since some of the interviewees

have experienced that contracting, even when the arrangement includes a

lot of negotiation and refinement, has been pleasant, while others have

experienced contracting as a difficult and heavy phase. Nevertheless, as

emphasized by several interviewees, through contracting it is important to

find a clear understanding of the international film co-production in

question. Moreover, since international film co-production may involve

many companies and people, and since the people involved may change, the

contracting should be taken seriously by stating the basis and rules for a

long-term international film co-production alliance.

Only a small number of interviewees identified cultural differences to be a

concern based on their experience. With regard to cultural differences, the

Anglo-Saxon cultures have been named as being very heavy regarding

contracting, since contracts are extensive and therefore the contracting

116

process is weightier, slower, and more expensive. In addition to the

differences between cultures, the interviewees experienced differences

between firms, i.e. firms have different organization cultures. As an

example, for some firms specificity is very important while for others issues,

such as contracting, schedules, and other plans are rather rough. However,

according to the experiences of one interviewee, as already specified above,

nowadays contracting seems to be considered important and meaningful

regardless of the culture. If the contracting partner does not put effort into

the contracting phase, it is alarming regardless of the culture, since the

interviewees seem to prefer making a co-production agreement rather than

not making one.

4.2.2. Co-Production Agreements

4.2.2.1. Usage and Significance

Without exception, all of their international film co-productions of the

interviewees have been based on a written co-production agreement.

However, there is great variety in the actual co-production agreements

having been made. In this regard some international film co-productions

have been based on a very long-form type of co-production agreement, and

others on deal memos as the only agreement between co-producing

partners. Nevertheless, at the least the main issues have been agreed upon

in writing.

As referred to above, the interviewees experienced the use of a co-

production agreement in international film co-production as a rather

suitable way of creating international cooperation. The interviewees further

argued that each co-production agreement should be carefully prepared

since the agreement really establishes the basis for the international

cooperation and consists of understanding of different issues. As argued by

one interviewee:

“International film co-production is during the cooperation a lot of problem

settlement and therefore, the co-production agreement plays a critical role

determining the basis and guidelines for such international cooperation.”

As emphasized by many interviewees, co-production agreements are

considered to be challenging to manage. It seems that the use of a co-

production agreement may function properly if the agreement is

comprehensive and things go smoothly. On the other hand, if things go

117

wrong, international film co-production is less operative and the meaning

of a co-production agreement is emphasized.

Regarding the number of contracting parties included in each co-

production agreement, in cases of more than two co-producing partners,

the interviewees experience of both having co-production agreements

covering all the co-producing partners as well as having a separate co-

production agreement between a delegate producer and each minority co-

producing partner. In cases of one co-production agreement including all

the co-producing partners, the interviewees even have experience of a

single co-production agreement between five contracting parties. However,

as suggested by one interviewee, it is recommended that a delegate

producer enters into a co-production agreement separately with each

minority co-producing partner, since in the case of one problematic

minority co-producing partner, the co-production agreement with such

partner is separate from the other co-production agreements. Nevertheless,

regardless of the number of co-producing partners involved in one co-

production agreement, it may be considered a recommendation that each

co-production agreement should include a contractual provision regulating

a possible situation wherein one co-producing partner cannot fulfill its

obligations and the film co-production is terminated with such co-

producing partner, i.e. how this affects the whole international film co-

production and the status of the other co-producing partners. Moreover,

another valuable point to consider is to include in a co-production

agreement a contractual provision including a statement that (a) such co-

production agreement is not affected regardless of any other co-producing

partners involved in the international film co-production already existing at

the signature of the agreement or to be involved at any later stage, or (b)

such co-production agreement is affected according to the jointly agreed

terms and conditions.

An option for the use of co-production agreements could be to use a

project company for international film co-production. However, it is not

particularly recommended given international legal regulation, since, as

previously discussed in Chapter 2.3.2.3., in order to apply international

financing support (e.g. from Eurimages) co-producing partners are

required to represent different countries, and if they are represented by a

joint project company, they are not eligible to apply for such funding.

Further, as argued by some interviewees, the use of a project company is

considered to be a heavy approach to operations.

118

When evaluating the significance of a co-production agreement, the

interviewees seem to have been pleased with the final outcomes of their co-

production agreements, and they experience that the final content of each

co-production agreement entered into has been consistent with what was

agreed upon. One interviewee pointed out the following:

“It is important to read carefully through the whole co-production agreement to

make sure that all the essential issues are covered and the agreement does not

include anything open to interpretations.”

Further, when the reading is jointly carried out with the co-producing

partners, these partners may feel more convinced that issues are

understood in a similar way and confusions and uncertainties may

hopefully be avoided. On the other hand, this relates to the so-called re-

reading of, i.e. returning to, a co-production agreement. It is rather seldom

that the interviewees as co-producing partners have returned to the co-

production agreement after the signing of such agreement. Based on the

interviews, co-production agreements have been re-read mostly regarding

responsibilities, expenses, materials, rights and revenues. Co-production

agreements may also be re-read when personnel have changed or new

people are involved and they need to become familiar with the international

film co-productions. It also seems to be more usual to re-read co-

production agreements when the film is successful and the life span is

longer.

However, this does not mean that there would not be any deviation from

the content of a co-production agreement, since co-producing partners may

agree terms and conditions that are different from the agreement in cases

that are deemed necessary, but the co-production agreement is still

considered to provide the co-producing partners with a basis for their

international cooperation. Moreover, according to one interviewee, in

principle it is always a bad thing if a co-producing partner must re-read the

co-production agreement, since it is a sign of uncertainties and confusion.

Another interviewee argued that in the perfect world a co-producing

partner does not have to re-read the co-production agreement, since all the

different issues are agreed upon at the outset of the international film co-

production.

A valuable point made by one interviewee is that international film co-

productions take place at the personal level. This means that when people

change in firms during international film co-productions, it may be critical

119

if there is not a clear understanding of different issues relating to the

cooperation, and here the value of a co-production agreement is obvious.

4.2.2.2. Coverage

The interviewees strongly support the idea that all the possible issues

relating to an international film co-production should be covered by and

agreed upon in a co-production agreement, and they often seem to aim to

agree on the content of a co-production agreement in as detailed a manner

as possible. According to one interviewee, the only exception might be a

situation when co-producing partners have previously often cooperated

together and a strong trust between the co-producing partners exists, in

which situation a more common co-production agreement could be used

instead of a very detailed one. However, as previously pointed out and

discussed, each international film co-production is a unique case, which

supports the significance of carefully making each co-production

agreement. Based on the experiences of the interviewees, the following

arguments have been presented in support of detailed agreements:

“Each co-production agreement has been too general and should have been

agreed upon in more detail.”

“It is better to enter into a detailed co-production agreement and deviate from

it, if necessary, than to agree at the general level and be obliged to agree on the

issues still open later on.”

“Whatever detail not agreed upon in a co-production agreement may be a mine

in the future.”

The negotiation of different contractual provisions may take time, but as

argued by one interviewee, it is worth imagining the worst possible

scenarios and remembering all the problems previously faced in order to

create a mechanism for how to be prepared for different possible situations.

A small number of interviewees also emphasized openness as a key issue for

successful international cooperation, and particularly regarding a co-

production agreement this means that issues of such agreement are jointly

and carefully discussed and understood in a similar way. As argued by one

interviewee, in the case where there is a different understanding of a

specific issue between co-producing partners, it is always worth discussing

openly such issue in order to find a mutual understanding, although the

signing of a co-production agreement may be prolonged by such activities.

120

Regarding the comprehensiveness of a co-production agreement, some

interviewees have experienced that the more contributions that a co-

producing partner has, the more interest such partner has in the

international cooperation in question and further the need to agree on the

content of a co-production agreement in more detail. As further supported

by one interviewee, it is not unusual that the meaning of a co-production

agreement for each co-producing partner may vary depending on the

amount of participation of such co-producing partner, whether the share of

participation is e.g. 1%, 10% or 90%.

Based on the interview data, it may be sometimes difficult or even

impossible to agree on some issues and in such cases co-producing partners

may enter into a co-production agreement, but leave issues open and later

make an amendment, appendix, etc. in order to finalize the co-production

agreement. As pointed out by some interviewees, in case a co-production

agreement is necessary or even required by potential financiers of an

international film co-production, it may first also be worth using a deal

memo at that point, if the negotiation on different issues remains

unfinished between co-producing partners, and thus enter into a final co-

production agreement later on. However, on the basis of the work

experience of the author of this study, this should only be the case for issues

that are impossible to agree upon at an early stage or possibly harmful if

agreed upon too early. In case it is difficult to reach a mutual understanding

on certain issue, it is rarely recommended that the agreement be postponed

because of such issue, since it may be even more difficult to reach an

agreement on the subject matter at a later stage, and thereby causing

enormous problems for the international film co-production. Nevertheless,

based on the work experience of the author, it is still valuable to note that a

co-production agreement, as any other business contract, cannot

necessarily exhaustively cover all the issues relating to an international film

co-production, but as long as there has been a mutual understanding and

agreement on different key elements and issues relating to the cooperation,

it has often been easier to resolve unexpected situations.

4.2.2.3. Drafting

Based on the interviews, in most cases co-producing partners start drafting

a co-production agreement when the main elements between the co-

producing partners have been agreed upon, but this may vary greatly case

by case. Based on the experiences of the interviewees, regarding the

contracting phase, in the most typical case, first, producers tend to look for

121

potential co-producing partners, second, they negotiate the main elements

considered to be important with the potential co-producing partners to find

the most suitable partner for the international film co-production, and

third, when the co-producing partner has been found and the co-producing

partners have agreed on the main elements, lawyers draft and/or complete

a co-production agreement in cooperation with the producing partners. An

interesting argument pointed out by one interviewee is as follows:

“There is always some sort of ‘mental decision’ to be first made to co-produce a

film before going forward with contracting.”

One interviewee further argued that the drafting of a co-production

agreement can be considered always to follow and come slightly behind the

development side of an international film co-production. According to

another interviewee, in practice it has been usual that co-producing

partners first discuss the content and financing of a film, and when the

financing of the film looks probable or the financing is confirmed by the co-

producing partners then the co-producing partners start drafting a co-

production agreement.

Moreover, some interviewees argued that the drafting of a co-production

agreement is always challenging, since there are so many issues to be

agreed upon and international film co-productions vary case by case, and

further, there is no standard agreement draft used. Nevertheless, according

to several interviewees, the more experience they have of international film

co-productions and co-production agreements, the more manageable the

co-production agreements are considered to be. As supported by one

interviewee, it would be particularly ideal, if a comprehensive usable

agreement draft would be available, on the basis of which co-producing

partners could define the nature, basis and grounds for their international

film co-production that could then be case by case complemented and

adjusted.

When the main elements have been agreed upon between co-producing

partners, it may first be necessary to enter into a deal memo specifying such

elements of an international film co-production, as possibly required by

potential financiers and referred to above. Nevertheless, a signed deal

memo also makes it more real for the co-producing partners to proceed in

planning and carrying out their international film co-production. According

to the experience of one interviewee:

122

“There is considered to be a so-called silent understanding that when a deal

memo has been entered into and signed by the co-producing partners, it is

considered a serious and final commitment to the international cooperation and

the belief is thereafter that the co-producing partners will not withdraw from

the international film co-production.”

In order to be more specific on the contracting phase, according to one

interviewee, the contracting phase has taken from between one month and

half a year. However, it is not out of question that it may take up to a year

depending on the international film co-production in question. On the

other hand, as experienced by another interviewee, the co-production

agreement has even been drafted and signed in one day due to e.g. the

deadline pressures set by the financiers, although, according to that

interviewee, such an approach is not recommended, since in such cases

there has not been time to properly agree on the working plan. Moreover,

based on the interviews, the time used for contracting phase has depended

on whether there has been a ready concept suggested by the delegate

producer or whether the co-producing partners have worked with a concept

together aiming at concluding a co-production agreement. Nevertheless, as

suggested by one interviewee:

“It would be highly recommendable that a delegate producer would always

suggest a clear concept for an international film co-production, which would

make it easier to make a co-production agreement and lead more easily to the

actual cooperation.”

However, sometimes this is easy to say in theory, but different from

practice, since as previously argued each international film co-production

varies case by case and creating a concept for an international film co-

production may be very challenging at the outset of the international film

co-production. Furthermore, in several cases reported by the interviewees,

the actual co-production agreement has been signed just before the

beginning of the shooting of the film or even later, but rarely at any earlier

stage regardless of whether there has been a deal memo or not.

Most often the delegate producer seems to provide its co-producing

partners with a draft of a co-production agreement. However, there have

been some exceptions where the Finnish co-producing partner, as minority

co-producing partner, has provided the delegate producer with a draft

agreement. In one case, the film shooting was about to begin and there was

no co-production agreement entered into, so the Finnish producer as the

minority co-producing partner had an interest in signing a co-production

123

agreement to avoid unnecessary responsibilities and therefore provided the

draft agreement. This may also happen if the making of a co-production

agreement is delayed and the delegate producer does not possibly know

what is wanted, as experienced by one interviewee. From the legal

perspective, it is also recommended by the author of this study that there

should always be an agreement on at least who is responsible for what

before the principal photography commences. In some cases the minority

co-producing partner has preferred to use its own agreement draft, which

has been accepted by the delegate producer. Further, as argued by one

interviewee, the Finnish production company as the delegate producer has

also used a co-production agreement draft provided by a minority co-

producing partner, which has been experienced to be suitable when the

minority co-producing partner has been more experienced regarding

international film co-productions and professional co-production

agreements. Unfortunately, the interviewees have also experienced that the

smaller the contribution of a co-producing partner, the less influence such

co-producing partner may have on a co-production agreement. In the case

of a minority co-producing partner, it may even be the case of ‘take it or

leave it’.

One critical aspect is presented by one interviewee who was faced by a

situation where a co-production agreement was negotiated and drafted with

a producer representing the co-producing partner company and having the

right to sign on behalf of the company, but another person in said company

actually had the final decision-making right. This is something to pay

attention to at the beginning of the contracting phase, in order to ensure

that the person negotiating can make the decisions which he/she actually

agrees upon during the negotiation. In Finland, based on the work

experience of the author of this study, the production companies have

mainly been represented by those producers who actually have the final

decision-making right.

4.2.2.4. Key Content

In order to study further the key content of international film co-production

and co-production agreements, the interviewees were asked, first, to

identify the most important elements relating to international film co-

productions and second, to identify the key contractual provisions of co-

production agreements.

124

Key Elements of International Film Co-Productions

With regard to the most important elements of international film co-

production alliances, the interviewees pointed out several different issues.

When analyzing the interviews, there seems to be elements relating to

international film co-productions as alliances as well as elements strongly

relating to alliance partners. Therefore, the key elements are presented

hereunder as alliance-related and partner-related elements.

Alliance-Related Elements

First, as agreed by several interviewees, and as an example and stated by

one interviewee:

“Co-producing partners should have a clear understanding of the structure of

an international film co-production i.e. how an international film co-production

is to be carried out.”

One interviewee referred to the same issue by arguing that it is important to

find out the roles of each co-producing partner for an international film co-

production, e.g. how to share different tasks. At the worst, these may never

be found, since e.g. there is simply a need for financing and co-producing

partners have no particular interest in international cooperation, which

makes the international cooperation artificial between the co-producing

partners and easily leads to a situation of compulsive and constrained

international cooperation. As argued by one interviewee, there is a

difference between artistic and financial responsibilities and it is important

to find suitable roles for the co-producing partners, either more on the

artistic or financial side, or on both sides.

Second, many interviewees pointed out that the cooperation between the

co-producing partners should be easy and functional. For example, as

argued by one interviewee:

“The most successful international film co-productions have been based on the

cooperation of partners getting along really well and enjoying what they are

doing and being committed to their cooperation honestly, not just cooperating

because something has to be done.”

The interviewees further pointed out that since international film co-

production is a long-term relationship, co-producing partners need to work

and be able to work with each other for such a long period of time, which

125

further leads to the fact that people also play a critical role and may affect

the fluency of the international cooperation. The significance of people is

further referred to below as a partner-related element.

Third, several interviewees argued trust to play an important role in

international film co-production alliances. The interviewees strongly

believe that each international film co-production should be based on trust.

Fourth, the interviewees also emphasized the meaning of communication.

In case of the lack of communication, international cooperation in

international film co-productions may be very difficult. Communication

between the co-producing partners, e.g. getting the necessary information

from other co-producing partners and especially from the delegate

producer, should be a self-evident and natural basis for international

cooperation. If the co-producing partner is not available and

communication is interrupted, this may have a crucial influence on the

cooperation. However, on the other hand, as pointed by one interviewee,

remembering some sort of reasonableness is also recommended, since an

obligation to share all the information with others, which often is an

enormous amount of data, may also complicate the practice of managing

international film co-productions.

Finally, as pointed out by a small number of interviewees, one further

element considered to be critical is an actual and real interest of a co-

producing partner in the story of a film, and/or the talent involved in the

international film co-production. In the opinion of the author of this study,

surprisingly little attention was allocated to this particular issue, which,

however, may partly be explained by the fact that it is considered by the

interviewees to be too obvious and self-evident to report.

Partner-Related Elements

First, it is highly recommended by several interviewees that co-producing

partners having experience on international film co-productions are sought.

The desire, knowledge and skills of a co-producing partner have been

mentioned to be critical. As supported by one interviewee, the co-producing

partner should have some sort of ‘track record’ that reflects the capability of

acting as a co-producing partner. Some of the interviewees even considered

that experience of international film co-productions and the management

of large projects should be an implicit precondition for entering into

international film co-productions with any potential co-producing partner.

However, one interviewee pointed out the question, how much it is possible

126

to find out about the potential co-producing partner in order to be able to

make the decision of whether it is worthwhile entering into international

film co-production with that partner or not. As experienced by one

interviewee, during one international film co-production the Finnish

producer as a minority co-producing partner was aware of the

unprofessional management of the co-production issues by the delegate

producer in its home country, but was unable to have any influence over

such management of issues.

Second, partly relating to the above, some interviewees argued that a co-

producing partner should have a professional position at a certain level in

its home country, which also increases trust. Finally, as referred to above,

based on the experience of the interviewees, international cooperation is

often personal. For example, if a producer has known someone for a long

period of time, this often leads to cooperation with that person. On the

other hand, if such person stops working for a company which is a co-

production partner and that individual is the only person familiar with the

cooperation, it may be very challenging to continue cooperation with a new

person who does not know any of the background and probably has

insufficient documentation to introduce himself/herself to international

film co-production.

The Key Contractual Provisions of Co-Production Agreements

After examining the key elements relating to international film co-

productions, further notice is taken of the key content of co-production

agreements. The key contractual provisions of co-production agreements

previously identified in the literature review (Chapter 2.2.2.2) are also

supported to be the key ones by the interviewees. Further, based on the

interviews, there seems to be some variety in the most important elements

of co-production agreements identified and listed by the interviewees. One

interviewee specified them to be responsibilities, obligations, and timetable.

Another emphasized ownership, sharing of financing, sharing of revenues,

obligations in practice, and distribution and sales of the film. The same

interviewee further reminded that rights and responsibilities should always

be agreed upon very clearly. A further interviewee particularly argued the

most important elements to be sharing of financing and the type of

financing, the roles and contributions of each co-producing partner,

territories, decision-making, and responsibilities. Finally, one interviewee

argued the most critical elements to be shares/contributions, rights and

127

responsibilities, financing, budget overages, and decision-making (both

content and business).

In a more detailed sense, the interviewees particularly identified the

following: One argued the awareness of the positions of all the financiers

involved in an international film co-production to be important and their

rules for financing to be taken into account, which should be noted as a

rather critical element affecting a co-production agreement and its content.

Furthermore, a small number of interviewees pointed out the budget as the

most important element involving e.g. the agreement on the amount of

producer’s fee for each co-producing partner. One more critical element

specified to be important by one interviewee, and to be clearly agreed upon

in a co-production agreement is how to deal with any possible changes of

time schedules, delays, or even cancellations, and further the expenses

caused by such changes.

In a more common sense, the interviewees pointed out the following: As

particularly argued by a small number of interviewees, it is very critical that

all the elements included in a co-production agreement are understood by

each contracting partner i.e. each partner acknowledges and understands

what has been agreed upon in each contractual element. Further, one

interviewee argued that some sort of commensurability is important;

meaning that the position of each co-producing partner should be in fair

and equal relation to the others. It seems that regardless of whether all the

co-producing partners are included in the same co-production agreement

or whether the delegate producer has a separate co-production agreement

with each of the other co-producing partners, the terms and conditions

should be drafted on the same and equal basis for each co-producing

partner.

In order to identify the differences of the significance of the different

contractual elements of co-production agreements, all the interviewees

were asked to put different contractual elements involved in a co-

production agreement in order of importance. Each interviewee was asked

to approach the priority listing in what order the different contractual

elements are agreed upon when contracting an international film co-

production. Table 4 presents the priority lists made by the interviewees (10

interviewees in random order marked from A to J) of the different

contractual elements. The ranking is as follows: 1 = the most important

contractual element, 2 = the second important contractual element, … , 16 =

the least important contractual element. A highly interesting aspect is to

128

study the differences between the most important and the least important

contractual elements. In order to point out such differences, in Table 4 the

five most important contractual elements identified by the interviewees are

marked as bold and the five least important contractual elements identified

by the interviewees are marked in italics.

The interviewed Finnish producers

Key contractual elements A B C D E F G H I J

Film/production specifications 8 6 12 12 12 5 14 8 7 9 Contributions of the co-producing partners 2 2 1 2 13 2 4 5 2 5 Production schedule 9 4 6 11 10 4 13 11 6 4 Budget 5 5 3 4 5 3 6 9 4 1 Financing plan & cash flow 3 1 4 3 1 1 5 6 5 2 Rights clearance (script, music, etc.) 1 10 11 7 7 6 10 1 1 3 Copyright of the film & secondary rights 6 13 7 6 4 14 3 2 8 6 Commercial exploitation & distribution of the film 7 8 8 5 14 9 2 3 12 7 Materials & the delivery 10 12 16 8 15 8 12 10 9 10 Profit participation/sharing, recoupment & collection of revenues 4 3 2 1 2 7 1 4 10 8 Insurances 13 11 15 15 6 15 15 16 11 11 Credits (on screen) 12 7 9 9 16 10 8 12 14 13 Confidentiality 15 14 10 16 3 16 16 15 15 14 Termination 14 9 13 13 8 11 7 13 3 12 Assignment of the agreement 11 15 14 14 11 13 11 14 16 15 Applicable law & dispute resolution 16 16 5 10 9 12 9 7 13 16

Table 4. The most and the least important elements of co-production agreements based on the empirical data.

When analyzing Table 4, first, two elements, ‘contributions of the co-

producing partners’ as well as ‘financing plan and cash flow’, have been

considered by the interviewees to be among the most important contractual

elements according to all of the interviewees, there being only one

exception. ‘Budget’ has also been strongly considered to be among the most

important contractual elements supported by eight interviewees, and the

contractual element of ‘profit participation/sharing, recoupment and

collection of revenues’ named as the next important contractual element.

Finally, ‘rights clearance’ is a further concern considered to be among the

first five most important contractual elements.

Second, regarding the least important contractual elements relating to co-

production agreements, the interviewees did not unanimously identify any

contractual element as such. However, based on the empirical data,

‘confidentiality’ has been most often considered as the least important

contractual element by the interviewees. ‘The assignment of the agreement’

has been named as the second least important contractual element, and

129

‘insurances’ as the third. Finally, ‘credits’, ‘termination’, and ‘applicable law

and dispute resolution’ are all considered as the least important contractual

element by five interviewees. In order to summarize, based on the empirical

data, six different contractual elements can be named as the least important

contractual elements.

Third, as a rather interesting finding, while all the other interviewees

named ‘the contributions of the co-producing partners’ as one of the most

important elements, one interviewee named it as one of the least important.

A similar interesting finding is that one interviewee considered

‘confidentiality’ to be one of the most important contractual elements, while

the other interviewees named ‘confidentiality’ as one of the least important

contractual elements. Furthermore, there is also much variance regarding

the contractual elements of ‘copyright of the film and secondary rights’, and

‘commercial exploitation and distribution of the film’, since some of the

interviewees considered them as the most important contractual elements

while some of the interviewees considered them to be the least important

contractual elements.

Fourth, as a further interesting key difference, while carrying out the

interviews, some interviewees considered the business issues to be most

critical, while others considered the legal issues to be more critical at the

beginning, when entering into an alliance. For the former group, the co-

producing partners negotiate how they carry out their international film co-

production in the first place, while for the latter, the co-producing partners

are more concerned about legal issues and regulation and how such issues

and regulation affect their international film co-production.

Fifth, the interviewees experienced the assignment of priority listing

rather difficult, since the argument was that all the different contractual

elements are important and must be included in each co-production

agreement, therefore, it is difficult to consider some to be more critical than

the others. This is understandable and is the reason why here the attention

is paid to the most and least important contractual elements and the aim

has not been to try to make some kind of ‘final/official’ ranking of the

contractual elements. This is also supported by the fact that international

film co-productions may vary case by case as well as by the experiences of

the interviewees on international film co-productions. This may also

explain the variety of the priority listings. However, while collecting the

empirical data, an interesting finding was that those interviewees who

found the priority listing less difficult, were those who had a more

130

structured perspective about how to approach international film co-

productions. Therefore, in the opinion of the author of this study, the most

interesting value of the priority listing of the contractual elements is to

reflect upon which elements create the primary structure for an

international film co-production.

4.2.2.5. Challenging Elements, Uncertainties and Risks

The interviewees experienced many different challenges relating to co-

production agreements. In a more detailed sense, the interviewees

identified the following challenges: First, several interviewees argued that

one of the most difficult elements to be agreed upon in a co-production

agreement is profit participation i.e. the sharing of revenues, since co-

producing partners represent countries (or territories, as defined in co-

production agreements) that are highly different from each other

particularly regarding size. It is usual that each co-producing partner may

manage the exploitation and distribution of a film in its home country, and

it could be easily agreed that each co-producing partner may also have the

right to collect revenues from its home country. However, for example, in

the case that the co-producing partners represent Finland (ca. 5 M

inhabitants), Sweden (ca. 8 M inhabitants) and Germany (ca. 80 M

inhabitants), the revenues arising from these territories may naturally vary

greatly, and the co-producing partners may need to agree on the sharing of

the revenues and also find a fair and equal solution in relation to the

financing of each co-producing partner.

Second, according to one interviewee, it is challenging to agree on the use

of financing money in each co-producing country. Financiers often regulate

the use of the financing money and require that such money need to be

spent in the country of its origin. Therefore, co-producing partners need to

make specific plans how to use the financing money in each country

involved. Third, according to another interviewee, it is challenging to agree

precisely on the sharing of tasks and responsibilities between co-producing

partners in concrete terms. The objective is that all the tasks and

responsibilities are clearly defined and not open to interpretations. As

further pointed out by one interviewee, this also relates to the decision-

making right. Different issues may arise and need to be decided during the

international film co-production process, and it is critical which co-

producing partner have the decision-making right and on what issues.

131

Fourth, a further challenge relating to co-production agreements argued

by one interviewee is the applicable law and jurisdiction. For example, this

has proved to be challenging when co-producing with a Russian co-

producing partner. Fifth, according to one interviewee, the right of ‘final

cut’ (i.e. the right to accept the final version of a film) is always problematic

and it is difficult to find a solution that would satisfy all the co-producing

partners. The same interviewee further argued that it is common that a

delegate producer has the right of ‘final cut’, but how much minority co-

producing partners may affect the final version of the film depends a lot

case by case. Sixth, festival participation has also been experienced as a

challenging element to be agreed upon between the co-producing partners.

Further, as the seventh element, credits may cause difficulties between the

co-producing partners. There are differences between countries and clearly

agreeing on credits is recommended. However, it is not unusual for the co-

producing partners to also agree that credits vary between the co-producing

partners’ countries.

Finally, as argued by some of the interviewees, cash flow planning as well

as recoupment scheduling has proved to be challenging. Regarding cash

flow planning, each co-producing partner should be able to plan the cash

flow for its own financial contribution and the delegate producer is usually

responsible for gathering overall cash flow schedule. If the cash flow plan is

not worked out properly, i.e. there are gaps between the financing money

spent for film production expenses and financing coming into the

production, this may cause enormous problems for international film co-

production. Regarding recoupment scheduling, it seems that there is much

confusion and uncertainty regarding all the different financing schemes and

practices of financiers in each co-producing country, and it is challenging to

know when financial money should be recouped. In Finland, there is so

called free money granted by the Finnish Film Foundation meaning that the

granted money need not be repaid. This is, however, very exceptional, and

therefore, it is important to understand all the repayment obligations and

other regulations relating to the financing in order to avoid later surprises

and further to understand better how the revenues are to be shared. As the

recoupment schedule sets out the order of priority in which investors,

financiers and co-producers are repaid for their loans and investments, the

drafting of a recoupment schedule and taking into account each and every

financier and/or other cooperating partner has proved to be a great

challenge many times.

132

In a more common sense, according to one interviewee, the most

challenging situations relating to co-production agreements have been

identified to be those where one co-producing partner has demands that are

not fair and equal to the other co-producing partners. As pointed out by

another interviewee, fairness between co-producing partners should always

be fulfilled. Moreover, one interviewee argued the biggest challenge to be

managing a co-production agreement as an entirety. This perspective is also

supported by another interviewee, since the whole content of a co-

production agreement should be managed in order to identify clearly the

entirety of the agreement and own responsibilities to avoid, or at least to be

prepared/acknowledge, possible risks.

The interviewees were also asked to identify uncertainties and risks

relating to co-production agreements. One interviewee argued the

following:

“The objective of the co-producing partners should always be that everything is

covered and agreed upon in a co-production agreement to eliminate

uncertainties in the future as well as possible.”

Based on the experiences of the interviewees, it is recommendable that all

the issues relating to international film co-production are discussed and

dealt with as openly as possible, as argued above. One interviewee further

supported the view that all the different scenarios should be imagined in

order to avoid uncertainties and haziness later on during international film

co-production. Furthermore, as pointed out by another interviewee, it is

highly recommended that particularly in the case of a minority co-

producing partner, the obligations and responsibilities are clearly agreed

upon in the co-production agreement. There are always uncertainties and

risks that cannot be covered and prepared for, and therefore, by clearly

specifying the responsibilities this may help to avoid unpleasant surprises,

difficulties and unreasonable risks, if any, in the future.

Based on the interviews, the uncertainties and risks most strongly

identified by the interviewees seem to relate to money and financial issues.

First, as pointed out by several interviewees, the biggest factor of

uncertainty has been argued to be the uncertainty of receiving the planned

financing, since normally a co-production agreement must be entered into

before all the financing is secured for international film co-production. One

interviewee strongly emphasized that this leads to the fact that it is highly

recommended to plan a mechanism how an international film co-

133

production is terminated in case of the lack of financing. It is not unusual

that if one financier decides not to provide the planned financing, other

financiers may follow the same and the whole international film co-

production may be in threat of being cancelled.

Second, risks relate to the use of money. Based on the experience of one

interviewee, in one case the delegate producer exceeded its budget and

covered the extra costs by the extra money received from a financier that,

however, naturally required the share of revenues as a compensation for the

financing. This may easily lead to a situation where the percentages of

revenue shares are re-divided in case the co-production agreement does not

prohibit this. Since this kind of situation may easily happen, it is highly

recommended that in the case of a minority co-producing partner, each

producer should agree in the co-production agreement that where there is

an exceeded budget by the delegate producer, this must not have any

influence on the shares of copyright and revenues of the minority co-

producing partner.

Finally, a co-producing partner may have financial difficulties relating to

other film co-productions or other business operations of the firm. As

pointed out by a small number of interviewees, it may be the case that the

co-producing partner may get into crisis of their own, or the co-producing

partner may go into bankruptcy. As stated by one more interviewee, the

economical stability of a co-producing partner is always a risk, whether

such partner can or cannot meet the responsibilities and duties. Therefore,

as recommended by one interviewee, the co-producing partners should

always remember to agree in the co-production agreement that the

responsibilities and duties of the other co-producing partners must remain

valid although one co-producing partner may be bankrupt or otherwise in

financial difficulties and unable to meet its responsibilities.

One more particular risk identified by one interviewee is that each co-

producing partner should take into account any contract to be made later

on e.g. on distribution and sales of a film. Such other contracts must be

consistent with the co-production agreement. Therefore, if possible, each

co-producing partner should pay attention to what is required by e.g. any

distributor of its home country in case said co-producing partner enters

into an agreement with such distributor, in order to ensure that the co-

production agreement does not exclude any business opportunities of the

co-producing partner. On the other hand, each co-producing partner must

134

not enter into a distribution agreement or any other agreement that is

breaching a co-production agreement already valid and existing.

4.2.3. Influence of Legal Regulation

The most of the interviewees considered that they know and are aware of

the basics of the legal regulation relating to international film co-

productions. The remaining part is lawyers’ responsibility. The other

interviewees considered that they do not have much knowledge on legal

regulation. Nevertheless, the interviewees experienced the legal regulation

to have both positive and negative influences on their international film co-

productions. Based on the experiences of the interviewees, legal regulation

has been identified as having an influence on the ownership shares and

responsibilities/obligations. An official European co-production sets some

requirements for the sharing of financing and ownership of the film

according to the European Convention on Cinematographic Co-production.

Further, financiers have their own requirements for the usage of financing

in each country involved. Such requirements may affect international film

co-productions at the very fundamental level; whether it is worth of

cooperating or not.

The interviewees have considered e.g. the Eurimages regulation as given

and they strongly feel that it simply must be followed. The interviewees

have further experienced that after once getting to know such regulation, it

is then easier in the future to plan international film co-productions under

the regulation. In other words, the regulation is considered to be a general

rule that cannot be criticized. On the other hand, without the regulation,

there may not be cooperation with some European countries that require

the application of the multilateral treaties such as the European

Convention. This results from the fact that national funds and film

foundations require the application of international treaties.

In general, it seems that several interviewees experienced the European

Convention as a means to create a suitable basis for international film co-

productions in Europe. It may be even helpful, since based on the

experience of one interviewee the European Convention has also provided a

helpful basis for international film co-production with Russia. Other

interviewees also found the European Convention to be a standardizing

element for European film co-productions. However, as experienced by one

interviewee, the influence has also been the opposite. For some co-

producing partners the application of the European Convention may be a

135

condition for providing their financing and being involved in international

film co-production while others may prefer that the structure of the co-

production is not consistent with the European Convention.

The most difficult experiences of the interviewees relate to the restrictions

set by financiers. Their unfortunate experience is that co-production

agreements have been drafted and international film co-productions been

structured on the basis of the requirements set by the financiers and often

there is not much negotiation involved. Especially the bigger countries in

Europe, such as Germany, France and the UK, regulate much, and restrict

the usage of financing, although in these countries there is also more

financing money involved in international film co-productions. In addition

to the above-mentioned positive experiences, there are also difficult

experiences that relate to Eurimages as well as international legal

regulation. First, it is considered that Eurimages restricts the compatible

co-producing partners. For example, in case a producer might have

cooperation with a media house, this is not possible under the Eurimages

regulation. Second, in case the producer would want to establish a project

company, Eurimages requires the fulfillment of certain conditions, which

makes it impossible to carry out international film co-production through

such a project company although such an arrangement could be

advantageous for the film co-production. Third, according to one

interviewee, the idea of legal regulation seems to exist to simplify issues

relating to international film co-productions, but since national practices

vary, the international legal regulation may complicate things instead. The

same interviewee further argued that national practices should be

consistent with each other and until this takes place properly, it is perceived

that legal regulation complicates more than benefits.

Finally, in order to manage all the contracting of international film co-

production, one interviewee has found a valuable solution of using a so-

called joint lawyer. At the beginning of an international film co-production

each co-producing partner negotiates its co-production agreement by

consulting their own lawyers, and thereafter, one lawyer is hired to manage

the contracting of the international film co-production in accordance with

the co-production agreement(s). This may save a lot of time and money.

136

4.3. Key Findings and Conclusions of the Study

The conceptual framework on international film co-production alliance

presented in Chapter 2.4. was prepared based on the research questions

presented in Chapter 1.3. The purpose of this sub-chapter is to draw the key

findings and conclusions of the empirical part of this case study of the

Finnish film industry together in order to answer the three research

questions.

The first research question for this study was: “How does a co-production

agreement function as a basis for and regulating an international film co-

production alliance?”

Based on the empirical research, Finnish producers have experienced

international film co-productions as international alliances and the use of a

co-production agreement in international film co-production as a rather

suitable way of creating such international cooperation. The use of a co-

production agreement has also been experienced as a rather standard way

of managing international film co-productions among Finnish producers

and is considered to be a universal mechanism. Based on the empirical

data, without any exception, international film co-productions have been

based on co-production agreements. Since Finnish producers considered a

clear understanding of the structure of each international film co-

production and the roles of the co-producing partners to be important, a co-

production agreement is considered to provide the co-producing partners

with a suitable as well as important way of structuring each international

film co-production. This is achieved through the design of the co-

production agreement in order to take into consideration the relevant

elements of each international film co-production in question.

This also supports the argument of Ariño and Reuer (2004) that contract

design is an essential part of alliance structuring. Moreover, as argued by

Neumann and Appelgren (2002), since every film is unique and every co-

production agreement is a singular creation this also supports the

significance of the design of a co-production agreement. On the other hand,

such uniqueness may also be the reason why the use of a co-production

agreement is experienced as functioning so well as a basis for international

film co-production. Consequently, this certainly puts pressure on co-

producing partners to manage the use of a co-production agreement in

order to understand that everything is thought through and covered, which

further increases the significance of the skills and knowledge of each co-

137

producing partner entering into a co-production agreement. Finnish

producers emphasized the significance of the experience of international

film co-productions by strongly arguing that they tend to look for co-

producing partners having such experience in order to make sure that

international film co-productions are properly structured, co-production

agreements are properly made, and the co-producing partners share a joint

understanding of how to carry out each international film co-production.

Moreover, this study has shown that the co-production agreement

includes a great variety of issues that need to be dealt with and agreed

upon, which leads to the fact that designing such an agreement may be a

long and heavy process. This is easily considered to be an argument against

the use of one comprehensive agreement as a basis for an entire

international film co-production. However, at least the following three

different reasons supporting the contrary view can be identified: First, in

cases where the co-producing partners are obliged to enter into an

agreement prior to when all the different issues are negotiated due to e.g.

financial pressures, it seems to be highly recommendable for the co-

producing partners to use a deal memo to cover at least the primary

elements (i.e. the rough basis for an international film co-production) and

to include a statement that the contracting parties will enter into a proper

agreement later on. This may make the contracting process more

manageable. Second, there is often a case that different contractual

provisions relate to each other, and therefore, it is more recommendable

from the beginning to agree on all the different relevant issues at the same

time as much as possible in order to form a proper and complete structure

for the entire international film co-production. Finally, since it may be

necessary to enter into international film co-production very promptly, this

supports the suitability of using a co-production agreement as a basis for an

international film co-production alliance rather than project companies or

other operation forms that may be considered as representing a more

steady way of doing international business, but instead may represent even

longer and heavier processes.

Especially from the legal perspective, a co-production agreement as a

basis for and regulating an international film co-production can be

supported by the fact that when using such an agreement the applicable law

may be decided by the contracting parties while project companies would

be strictly linked to their country of the origin. This may not make any

difference, but it may give some freedom to the contracting parties to

influence their international cooperation.

138

The second research question for this study was: “What are the business

and legal issues relating to, and having influence upon, the use of co-

production agreements in international film co-productions from the

Finnish film industry perspective?”. This research question was further

divided into three more specific sub-questions: (a) “What are the key

contractual elements of the international film co-productions?”, (b) “What

is the legal regulation affecting the international film co-productions?”,

and (c) “How does the legal regulation support or restrict international

film co-productions?”.

Based on the empirical data, in general, Finnish producers aim to agree

upon the content of a co-production agreement in as detailed a manner as

possible. Before specifying the key contractual elements of international

film co-productions, it is noteworthy that one essential general element

emphasized by Finnish producers and considered to be of importance is the

consistent understanding of each contractual element between the co-

producing partners.

Since a co-production agreement is considered to cover all the different

issues relating to an international film co-production, such agreement

includes a great number of issues that need to be agreed upon. At least

based on the empirical data of the Finnish film industry, the notion that all

the possible issues relating to an international film co-production are

covered and agreed upon in a co-production agreement and the objective is

to agree on the content of the co-production agreement as detailed as

possible is strongly supported. More specifically, this study has shown that

16 key contractual elements/provisions can be identified to be characteristic

of the co-production agreements. Based on the empirical data, these key

contractual elements may be categorized in terms of the most important

ones, and those that are important but not to the extent of the most critical

ones. The five most important contractual elements have been identified to

be (1) contributions of the co-producing partners, (2) financing plan and

cash flow, (3) budget, (4) profit participation/sharing, recoupment and

collection of revenues, and (5) rights clearance. On the other hand, the least

important contractual elements are considered to be (1) confidentiality, (2)

the assignment of the agreement, (3) insurances, (4) credits, (5)

termination, and (6) applicable law and dispute resolution. However, based

on the empirical data, a priority listing was found to be rather difficult,

since all the different contractual elements were considered to be important

and critical and required to be included in each co-production agreement.

139

As an interesting finding, primarily, it was considered more important

and critical either how to carry out an international film co-production in

business terms or what the legal regulation and legal issues are affecting

such international film co-production. This strongly supports the

importance of combining business and legal perspectives both being

important in order to properly understand the use of co-production

agreements in international film co-production alliances.

Regarding the legal regulation affecting international film co-productions,

as this study has shown there are international law, national laws and

different rules and regulations of financiers and other cooperating partners

each having influence on international film co-productions. Table 2

presented in Chapter 2.3.2.4. summarizes all the legal regulation that needs

to be taken into consideration when entering into international film co-

productions from the Finnish film industry perspective, where Finnish law

as applicable. Based on the empirical data, the legal regulation relating to

international film co-productions has been experienced both positively and

negatively by Finnish producers. Legal regulation has been considered as

supportive by creating specific ruling for international film co-productions

as some kind of standardizing element. Meanwhile, legal regulation has also

been experienced as complicating opportunities to operate internationally

and carry out international film co-productions.

In order to argue the compatibility of the legal regulation and

international film co-productions, the use of a co-production agreement is

supported by the international legal regulation and international financing

organizations, since international film co-productions are mostly regulated

in such a way as to involve two or more production companies representing

different countries. An option for the use of a co-production agreement

could be to use a project company for international film co-production, but

it is not recommended in the international regulation, since, as previously

discussed in Chapter 2.3.2.3., in order to apply international financing

support e.g. from Eurimages, the co-producing partners must represent

different countries, and if they are represented by a joint project company,

they are not eligible for such funding.

Legal regulation has also had an influence especially on ownership shares

and responsibilities/obligations. An official European co-production

requires certain sharing of financing and ownership of a film according to

the European Convention on Cinematographic Co-production. Moreover,

140

the financiers have their own requirements for usage of the financing in

each country involved. This may affect international film co-productions at

the very fundamental level, whether it is worth of cooperating or not.

However, in general, Finnish producers have experienced international

legal regulation, e.g. the European Convention, as a means to create a

suitable basis for international film co-productions in Europe. Finnish

producers also experience the European Convention to be a standardizing

element for the European film co-productions. However, based on

empirical research, international legal regulation has also restricted

international film co-productions through eligibility criteria and

international legal regulation has also been considered rather inflexible.

Nevertheless, the most difficult experiences of Finnish producers relate to

the restrictions set by the financiers. Their unfortunate experience is that

international film co-productions have been structured and co-production

agreements drafted on the basis of the requirements set by the financiers

without much of negotiation involved, which mainly relates to the power

position of such financiers and the necessity of their financing.

The third research question presented in this study was: “What kind of

model/framework could be presented in order to increase understanding

of the Finnish film industry with regard to both business and legal

management of international film co-productions and the use of co-

production agreements?”.

The empirical data presented above support the validity of the conceptual

framework of this study (see Chapter 2.4.) and it’s applicability to the film

industry, at least from the Finnish film industry perspective. It seems that

not just in theory but also in the real world the said framework illustrates

the legal and business environment of co-production agreements used in

international film co-production alliances. In other words, from the

empirical perspective, the framework can also be considered as a tool for

understanding the complex business and legal environment of international

film co-production alliances where each co-producing alliance partner

operates and enters into one or several co-production agreements.

However, the challenge of understanding and managing such

environment seems to relate most closely to the design of co-production

agreements, and therefore, based on the overall research, the following

figure, Figure 7, is presented as an attempt to illustrate how production

company management could approach international film co-productions

and the use of co-production agreements in order to be able to manage both

141

business and legal issues relating to such international cooperation. When

contracting and designing a co-production agreement, in order to take into

consideration both business and legal issues, it is suggested here that the

production company management follows up the three different phases

found in the process model, as illustrated in Figure 7.

Phase 1 Formulating the basic structure

Business Identifying & decisions on the most relevant contractual elements in order to create a basis for an international film co-production

Legal Identifying the applicable national & international legal regulation,

especially the mandatory legal regulation; Identifying the rules & regulations of potential financiers & other cooperating partners, especially the mandatory regulation

Phase 2 Specifying the (overall) structure

Business Identifying & decisions on the next relevant contractual elements in order to create an overall business structure for the international film co-production

Legal Choice of the applicable law, identifying the dispositive national &

international legal regulation & making the deviating decisions (if applicable)

Phase 3 Finalizing the complete structure Business Identifying & decisions on the remaining contractual elements (more

standard ones) in order to finalize the structure for the international film co-production

Legal Identifying the other agreements relating to the international film co-

production & ensuring the absence of any inconsistencies, completing the co-production agreement

Figure 7. Process model on the design and management of a co-production agreement combining the business and legal perspectives.

Figure 7 suggests three different phases for the production company

management to go forward from the phase 1 to the phase 3 as a co-

producing partner, whether acting as a delegate producer or as a minority

co-producing partner, in order to manage different business and legal

issues involved in an international film co-production and its co-production

agreements.

142

In order to clarify more specifically the suggested model, during phase 1,

co-producing partners are to formulate a basic structure for their

international film co-production. This means that (a) from the business

perspective, the co-producing partners identify and decide upon the most

relevant contractual elements in order to create a basis for their

international film co-production, and (b) from the legal perspective, the co-

producing partners identify the applicable national and international legal

regulation and especially the existence of any mandatory legal regulation.

In other words, during phase 1, the co-producing partners aim to decide a

core frame and structure for their international film co-production, from

both business and legal perspectives.

During phase 2, a so-called overall structure is to be specified for the

international film co-production. This means that (a) from the business

perspective, the co-producing partners identify and decide upon the next

relevant contractual elements to create an overall business structure for

their international film co-production, and (b) from the legal perspective,

the co-producing partners need to choose the law to be applied to their

international film co-production, and while already aware of all the

mandatory legal regulation the co-producing partners need to identify any

dispositive national and international legal regulation relating to their

international film co-production in order to make any deviating decisions, if

applicable. In other words, during phase 2, the co-producing partners aim

to decide how the international film co-production is carried out from both

business and legal perspectives. From the legal perspective, as strongly

suggested by the author of this study, it is recommended that the applicable

law be decided at the beginning of phase 2, since such applicable law

determines which legal regulation is to be applied, and therefore, may affect

the content of the co-production agreement, especially through mandatory

legal regulation.

Finally, during phase 3, the complete structure for the international film

co-production is to be finalized. This means that (a) from the business

perspective, the co-producing partners identify and decide on the

remaining contractual elements (i.e. more standard ones) for the

international film co-production in order to finalize the business structure,

and (b) from the legal perspective, the co-producing partners identify all the

other agreements relating to the international film co-production in order

to ensure that there are no inconsistencies, and further complete and sign

the final co-production agreement. In other words, during phase 3, the co-

143

producing partners aim to make sure that all the contractual elements have

been agreed upon and covered by the co-production agreement.

An interesting finding is that Finnish producers start drafting a written

co-production agreement during each of the different phases depending on

the producer in question; a few already during phase 1, some during phase

2, and the remainder during phase 3. The author of this study recommends

producers to start drafting a written co-production agreement at the end of

phase 2 in order to first look for and negotiate a basic structure and to find

out if mutual understanding between the potential co-producing partners

on the basic terms can be achieved, and in case not, there is naturally no

point in proceeding with concrete contracting. At the beginning of phase 2,

there may still be conflicting interests and the potential co-producing

partners may not find a mutual understanding on the overall structure, but

before long while planning the international film co-production in phase 2,

it is recommended that a start is made to drafting a written co-production

agreement, when such drafting may also help to remind the co-producing

partners of the different relevant issues to be agreed upon. Phase 3 is

recommended in order to complete the co-production agreement and to

make sure that all the relevant issues relating to the international film co-

production are covered and included in such agreement.

As an interesting point, it is further noteworthy that the process model of

different phases presented above could be applied not only to the Finnish

film industry, but to the international film co-productions in general. By

means of the suggested model, film production company management

could better understand the management of international film co-

productions and co-production agreements from both business and legal

perspectives, regardless of the nationality of the production company.

Moreover, another interesting point is whether this process model could be

applied to international alliances and alliance contracts in any other

business fields and industries, representing an approach tool for the

management of alliance contracts in general.

Nevertheless, since this study is carried out from the Finnish film industry

perspective and the empirical data provide this research with the

experiences of the Finnish film producers, the model of different phases

presented above may also be applied in more detail to the Finnish film

industry. Any detailed use of the suggested model (referring to the

significance of different contractual elements and the applicable legal

regulation) relates the model to specific countries, as in this study to

144

Finland. The following figure, Figure 8, illustrates the different phases of

the design of a co-production agreement from the business and legal

perspectives as applied to the Finnish film industry.

In order to clarify more specifically the suggested model (Figure 8)

applied to the Finnish film industry, during phase 1, from the business

perspective, the most relevant contractual elements have been identified to

be ‘contributions of the co-producing partners’, ‘budget’, ‘financing plan

and cash flow’, ‘rights clearance’ and ‘profit participation/sharing,

recoupment and collection of revenues’ based on the empirical data of this

study. In general, it seems that all these contractual elements strongly

relate to the use of money, except the contractual provision relating to

‘rights clearance’. Consequently, in general terms, an international film co-

production seems to be created strongly based on an agreement on the use

of money, contributions (financial or any other) of the co-producing

partners, and the clearance of rights in order to make it possible to co-

produce a film. From the legal perspective, the co-producing partners need

to identify the applicable national and international legal regulation,

especially the mandatory legal regulation, e.g. Finnish law as presented in

Chapters 2.3.2.1. and 2.3.2.2., as well as the rules and regulations of

potential financiers, especially the mandatory regulation, e.g. in case of the

Finnish film industry, the relevant rules and regulations presented in

Chapter 2.3.2.3.

Based on the empirical data of this study, during phase 2, from the

business perspective, the next relevant contractual elements have been

identified to be ‘film/production specifications’, ‘production schedule’,

‘copyright of the film and secondary rights’, ‘commercial exploitation and

distribution of the film’ and ‘materials and the delivery’. Consequently, in

general terms, an overall business structure for an international film co-

production seems to be created strongly based on an agreement on how

such co-production is carried out in practice, in concrete terms, as well as

how the rights in and to the film are shared between the co-producing

partners. From the legal perspective, it is recommended that the co-

producing partners make the choice of applicable law as well as deviating

decisions on dispositive national and international law (if any).

145

Phase 1 Formulating the basic structure

Business Identifying & decisions on the most relevant contractual elements in order to create a basis for an international film co-production - Contributions of the co-producing partners

- Budget - Financing plan & cash flow - Rights clearance - Profit participation/sharing, recoupment & collection of revenues

Legal Identifying the applicable national & international legal regulation,

especially the mandatory legal regulation - Finnish law as applicable: Legal regulation presented in Chapters 2.3.2.1. & 2.3.2.2. - Any other country’s law: Identifying the applicable legal regulation

Identifying the rules & regulations of potential financiers & other cooperating partners, especially the mandatory regulation

- The Finnish film industry perspective: Relevant rules & regulations presented in Chapter 2.3.2.3.

Phase 2 Specifying the (overall) structure

Business Identifying & decisions on the next relevant contractual elements in order to create an overall business structure for the international film co-production

- Film/production specifications - Production schedule - Copyright of the film & secondary rights - Commercial exploitation & distribution of the film - Materials & the delivery

Legal Choice of the applicable law, identifying the dispositive national &

international legal regulation & making the deviating decisions (if applicable)

- Recommendation of choosing the law best known as applicable (e.g. Finnish law) - Making the deviating decisions (if any) on dispositive national & international law

Phase 3 Finalizing the complete structure Business Identifying & decisions on the remaining contractual elements (more

standard ones) in order to finalize the structure for the international film co-production

- Insurances - Credits (on screen) - Confidentiality - Termination - Assignment of the agreement - Applicable law & dispute resolution

Legal Identifying the other agreements relating to the international film co-

production & ensuring the absence of any inconsistencies, completing the co-production agreement

- Identifying the other co-production agreements & agreements with financiers & other cooperating partners to be consistent with each other - Finalizing the agreement & identifying the duly authorized signatories

Figure 8. Process model on the design and management of a co-production agreement combining the business and legal perspectives applied to the Finnish film industry.

146

During phase 3, from the business perspective, the remaining contractual

elements have been identified as ‘insurances’, ‘credits’, ‘confidentiality’,

‘termination’, ‘assignment of the agreement’ and ‘applicable law and

dispute resolution’. Consequently, in general terms, a complete structure

for an international film co-production seems to be finalized by agreeing on

more standard contractual elements that are important but not that

essential to determining the way each international film co-production is

carried out. From the legal perspective, the co-producing partners need to

make sure that there are no inconsistencies between different agreements

relating to the international film co-production, including any other co-

production agreements and any agreements with financiers and other

cooperating partners in order to finalize and sign the co-production

agreement.

As the final point, albeit a very interesting one, based on the empirical

data, the contractual element relating to ‘applicable law and dispute

resolution’ has been identified to be among the least important contractual

elements, although, as this study has shown, applicable law and jurisdiction

play rather critical role from the legal perspective. This also supports the

value of combining business and legal studies in order to increase

understanding of international alliances and contracting in such alliances.

147

5. CONTRIBUTIONS AND IMPLICATIONS OF THE STUDY

This final chapter of the doctoral thesis aims to conclude the overall

research by beginning with the presentation of the theoretical contributions

of the study. Further, the managerial implications of the study are

presented, followed by suggestions for further studies.

5.1. Theoretical Contributions

The theoretical contributions of this study are presented as follows.

First and as a particularly valuable contribution, this study represents a

multidisciplinary study by providing a combination of business and legal

perspectives to the research area. Studying international film co-production

alliances and co-production agreements used in such alliances influenced

by the international legal environment provides together a valuable basis

for the study. The business and legal academic degrees of the author of this

study have enabled a combination of a business and legal approach to

studying the subject area, and further enabled a more profound

examination of collaborative agreements used in alliances from both

business and legal perspectives; as applied to international film co-

productions and the Finnish film industry. In order to emphasize the

significance of multidisciplinary studies, the value of such studies has been

recognized, e.g. by Argyres and Mayer (2007) who have pointed out the

challenge of combining legal and business perspectives as business and

legal scholars often study contracting issues extensively, but separately.

Business and legal studies have not been combined to increase

understanding of collaborative agreements used in alliances and

furthermore applied to international film co-productions, which makes this

study unique.

Carrying out a multidisciplinary study is certainly challenging, since

defining clearly its scope, including many limitations and exclusions, is

essential to ensure the integrity and consistency of the research. This study

has been an attempt to explore the research area from an extensive

perspective, although a rather purposeful one. Based on the literature

review and the legal structure discussed in Chapter 2, a conceptual

framework has been first proposed to support the understanding of

international film co-production alliances that are based on co-production

148

agreements and influenced by different legal regulation. Further, based on

the empirical findings, a model has been proposed in order to identify

different phases of the design of a co-production agreement combining the

business and legal perspectives, one to be applied to the international film

co-productions in general and another to be applied to the Finnish film

industry. Hopefully, this study has been able to indicate the relevance of

and need for multidisciplinary studies combining the business and legal

perspectives at least in the area of alliance contracting.

Second, this research represents a study within the field of international

alliances and alliance contracting, and contributes to the literature and

empirical research on the use of collaborative agreements in international

alliances. Although studies have been carried out dealing with contracting

and alliance contracts, as previously illustrated in the literature review, only

recently has more focus been directed to particular contractual features and

the design of alliance contracts (see e.g. Reuer & Ariño, 2007; Ariño &

Reuer, 2004; Mayer, 2006). As argued by Ariño and Reuer (2004:37),

“contract design is an essential part of alliance structuring”.

Moreover, regarding the actual content of each alliance contract,

contractual provisions of each business contract are essentially a matter of

express agreement between the contracting parties and which provisions

are included in each contract is critical. As argued by Ariño and Reuer

(2004), little attention has been paid to the alliance structuring aspects,

such as the choice of the contractual provisions regulating the alliance

relationship. This is further supported by Reuer et al. (2006:307) who state

that “little is known about the contents of alliance contracts”. However, this

study contributes to the body of research on the design of alliance contracts

by studying co-production agreement as an alliance contract used in

international film co-production alliances as well as the contractual

provisions characteristic to and important for such co-production

agreement. As argued in this study, since much depends on the alliance

contract in question, what should be included therein, only by looking more

closely at each business transaction can more specific information be given.

Particularly different from the previous research, this study focuses on the

use of co-production agreements specifically in the film industry, and

therefore, extends the recent research on particular contractual features of

alliance contracts by studying the key contractual provisions of co-

production agreements. Regardless of the diverse research on alliance

contracts, there has not been any prior study on how one specific

international alliance is structured based on and managed by an alliance

149

contract, an examination of which contractual provisions are included in

such contract, and how the design of such contract could be approached

and carried out by including the film industry as the case, international film

co-production as the international alliance, and co-production agreement

as the alliance contract.

As the third contribution, this research represents not just a study within

the field of alliances and alliance contracting but is explicitly applied and

contributes to the film industry: the Finnish film industry in this case. To

date research on international co-productions within the film industry has

been very modest and small in number. Unfortunately, as pointed out by

Morawetz et al. (2007), despite the increasing global prominence of

international film co-productions, thus far the literature has taken little

account of the phenomenon and what has been undertaken remains largely

focused on national industries, and in particular on the US majors.

However, this study has redressed this criticism by providing a

multidisciplinary research approach to international film co-productions

within the film industry. Based on the empirical data, there has also been

strong support for the need of research on international film co-

productions. The production companies enter into international film co-

productions with an objective to cooperate internationally on a long-term

basis. This study has shown that there is a clear need for an understanding

of the co-producing partners on the structure of the international film co-

productions from both business and legal perspectives.

This study has further shown that a co-production agreement plays a

critical role determining the basis and guidelines for an international film

co-production and this study has particularly emphasized how

comprehensive and diversified co-production agreements really are.

Although this study is carried out by employing the Finnish film industry as

the case, some key findings may also be applied to international film co-

productions in general. International film co-productions worldwide are an

enormous area of international business, and this study has put one more

effort to create doctoral level research focused on the film industry.

Fourth, this research also represents a study within the field of law and

contributes to legal studies by examining the legal regulation relating and

applicable to international film co-productions from the Finnish film

industry perspective. Accordingly, the study has explored, from the Finnish

film industry perspective, international law including international treaties

and conventions, Finnish law as national law on contracts, copyrights and

150

applicable law and jurisdiction, as well as the rules and regulations set by

various financiers, in order to create a coherent vision and understanding of

the legal environment of international film co-productions that influence

co-production agreements.

Finally, this study has shown the research subject to be a many-sided

environment in which to manage, and a challenge for a single doctoral

thesis. In the opinion of the author, this can be especially evaluated on the

basis of the following:

In order to critically analyze this study, detailed analysis of each

contractual element of a co-production agreement has not been carried out.

It has been acknowledged by the author that more specific research on each

contractual element could provide additional valuable knowledge of the

research area. However, several contractual elements that are characteristic

of co-production agreements could provide a researcher with an extensive

area for doctoral studies, copyrights as one good example. Therefore, a

conscious limitation has been accepted as part of the research undertaking.

Another noteworthy aspect regarding contractual elements of co-

production agreements is the fact that this study has not examined any

concrete real-life co-production agreements and the actual contractual

elements included in such agreements made by Finnish production

companies involved in international film co-productions. This choice was

made due to the fact that the Finnish producers refused to provide the

author with their confidential data including co-production agreements,

and therefore, and as discussed above, it was decided to carry out a single-

case study. However, it is worth noting that this does not mean that a single

case study setting would make this research any less important. A more in-

depth case study of international film co-productions including an

examination and analysis of co-production agreements would create a

different approach to the research area. Interviewing as many Finnish

producers as possible that have experience of and been involved with one or

many international film co-productions provides more comprehensive

empirical data on different international film co-productions than multiple

cases with thinner data.

Furthermore, since the empirical data are limited to the Finnish film

industry, interviews from abroad could have provided valuable results. This

is acknowledged by the author, since there are many production companies,

e.g. in the Nordic countries, active in international film co-productions that

certainly would be able to provide valuable information. However, as

151

previously argued, the multidisciplinary approach and the legal perspective

of this study required limitation in order to enable the proper analysis of

the applicable legal regulation, and therefore, limiting the research to the

Finnish film industry was a conscious decision.

A further relevant critical aspect is that this research cannot be compared

with any specific previous studies of the research area, and therefore; in this

respect it cannot provide any particular supportive or critical arguments for

any previous studies. However, hopefully the study inspires other

researchers in the research area to develop comparable studies in order to

explore whether such studies provide support for the findings of this study

or challenge them.

5.2. Managerial Implications

The combination of business and legal perspectives specifically makes the

research area of this study interesting and worthy of study as the empirical

study has shown. Based on the empirical data, a co-production agreement

seems to play more than just a role of a standard business contract, since

the design of a co-production agreement pushes the contracting parties to

go into and agree on the variety of different issues relating to their

international film co-production. Production companies should take into

consideration both business and legal issues which both strongly determine

international film co-productions and co-production agreements as well as

relate to each other. Since a co-production agreement forms the frame and

rules for an international film co-production alliance, the content of the co-

production agreement should not be overlooked. Moreover, since

international film co-productions, and consequently also co-production

agreements, vary case by case, it is a challenging task for production

company management to design a co-production agreement for each case.

How well each co-producing partner is aware of all different issues

involved seems to depend on the skills and knowledge of each partner. This

study has strongly emphasized the importance of understanding and

agreeing upon all the different elements relating to international film co-

productions. The co-producing partners should always share a clear joint

understanding of how to carry out each international film co-production.

Where co-producing partners are not familiar with all the different

elements relating to their international film co-productions, this may easily

lead to a situation wherein the co-producing partners fail to agree on some

152

even highly critical issues when forming a co-production agreement and

international film co-production alliance. In such case, the co-producing

partners are forced to agree upon the missing elements later during the

international film co-production, which may cause difficulties and

unnecessary risks to the co-producing partners. It cannot be emphasized

enough how important it is that all the relevant issues are agreed upon and

covered, and that the content of each co-production agreement is consistent

with what has been agreed upon, and does not include anything open to

interpretations.

Based on this study, the author of this study recommends highly that

production company management takes the time to carefully agree on the

different issues relating to their international film co-productions as well as

carefully design their co-production agreements. Supported by the study,

although each co-production agreement may vary a lot, it is very helpful to

manage such agreements if the production company management is

familiar with the key contractual elements relating to international film co-

productions, which elements seem to be highly characteristic ones based on

this study. Although there is still variety relating to how to agree on each

contractual element, recognizing the different elements and knowing the

basics is recommended in order to be able understand and manage the

formation of an international film co-production as well as the design of a

co-production agreement. When the production company management is

familiar with at least the basic structure of a co-production agreement and

its key contractual elements and understands the legal challenges relating

to international film co-productions, it is a great advantage for the

management in order to be able to understand international film co-

productions as more or less complicated cases.

Based on the research findings, Figure 7 depicted in Chapter 4.3. presents

a tool for production companies for the overall management of a co-

production agreement in terms of an international film co-production

alliance. By means of the suggested model, film producers could better

understand the management of international film co-productions from both

business and legal perspectives. This applies not only to the Finnish film

industry, but also in general. Any detailed use of the suggested model

relates the model to specific countries, and Figure 8, also presented in

Chapter 4.3., illustrates the model of the different phases of the design of a

co-production agreement applied to the Finnish film industry.

153

One specific issue relating to the suggested model referred to above that is

especially worth pointing out is the cognition of all the other agreements

relating to international film co-production when designing a co-production

agreement. Based particularly on the work experience of the author,

unfortunately this may often be forgotten. In the author’s opinion,

production company management should always remember to pay special

attention to ensuring the absence of any inconsistencies between all the

collaborative agreements (co-production agreements, financing

agreements, etc.) involved in international film co-production when

designing any co-production agreement for such film co-production.

From the legal perspective in particularly, this study has shown that the

importance of the choice of the applicable law cannot be emphasized

enough. The applicable law has received surprisingly little attention and

Finnish producers have not considered the choice of applicable law to be

very important compared to other contractual elements relating to

international film co-productions. Only one interviewee considered the

contractual element of applicable law and dispute resolution to be among

the five most important contractual elements of a co-production agreement.

It is worth remembering that the choice of the applicable law may play a

very critical role, since the law that is decided to be applicable may have

influence on international film co-production, and therefore, it should be

known very thoroughly.

5.3. Suggestions for Further Research

Some suggestions for further research have already been referred to above

when relating to the different aspects of the study. The following

suggestions for further studies are made to point some issues very closely

related to the research:

First, geographically, this study focuses on the Finnish film industry. This

is especially due to the limitation necessary to be made relating to the study

on applicable legal regulation, and in this study the legal regulation relating

to the Finnish film industry is examined. However, it would be interesting

to know how the findings would differ between countries. Furthermore, as

previously discussed above, it would be interesting to compare the findings

of this study, especially the suggested process model (see Figure 7), to those

relating to any other business field or industry concerned with the

management of international alliances and alliance contracts. Second, as

154

previously presented in Chapter 3.1., the case study setting of this study was

changed from a multiple-case study to a single-case study. In order to

increase the understanding of international film co-productions and the use

of co-production agreements, findings from a multiple-case study, would be

interesting and would provide different kinds of contributions. Third, each

key contractual provision could also be examined in more detail i.e. how co-

producing partners agree on such provisions in co-production agreements.

This study has focused on identifying the key contractual provisions dealt

with in co-production agreements, but does not study e.g. how such key

elements are agreed upon in such agreements.

Fourth, from a process perspective of alliances, this study focuses on the

contracting part of the alliance process, and attention is not directed e.g. to

the reasons, motives and/or rationales leading to international cooperation

in the film industry and international film co-productions. Further, the

study has not focused on studying how the most appropriate alliance

partner is chosen, i.e. partner selection is not studied herein, since this

study focuses on the use of co-production agreements between co-

producing alliance partners. However, studies of the areas of alliance

research in relation to international film co-productions mentioned above

could also provide the film industry with valuable information. Fifth, nor

does the study pay attention to language and other issues and whether they

have a positive or negative influence on international cooperation in the

film industry. However, such a research area could also be a valuable theme

of study. Finally, relating to the research on contracting, the meaning of

trust in international film co-productions would also be worthy of study, as

would negotiations and the contracting process itself from a cross-cultural

perspective.

155

REFERENCES Alberstat, P. (2000): Independent Producer’s Guide to Film & TV

Contracts. Oxford, Focal Press. Alvarez, J.L., Mazza, C., Strandgaard Pedersen, J. & Svejenova, S. (2005):

Shielding Idiosyncrasy from Isomorphic Pressures: Towards Optimal Distinctiveness in European Filmmaking. Organization, Vol. 12, No. 6, pp. 863-888.

Argyres, N. & Mayer, K.J. (2007): Contract design as a firm capability: an

integration of learning and transaction cost perspectives. Academy of Management Review, Vol. 32, No. 4, pp. 1060-1077.

Ariño, A. & Reuer, J.J. (2004): Designing and renegotiating strategic

alliance contracts. Academy of Management Executive, Vol. 18, No. 3, pp. 37-48.

Ariño, A., de la Torre, J. & Ring, P.S. (2001): Relational quality: Managing

trust in corporate alliances. California Management Review, Vol. 44, No. 1, pp. 109-131.

Atkinson, P. & Silverman, D. (1997): Kundera’s Immortality: The interview

society and the invention of the self. Qualitative Inquiry, Vol. 3, Issue 3, pp. 304-326.

Baker, R. (1995): Media Law: A user’s guide for film and programme

makers. London, Routledge. Ball, D.A. & McCulloch, W.H. (Jr.) (1996): International Business, the

Challenge of Global Competition. Chicago, Irwin. Bartlett, C.A. & Ghoshal, S. (1996): Transnational Management (2nd

edition). Boston, Irwin. Baumgarten, P.A., Farber, D.C. & Fleischer, M. (1992): Producing,

Financing and Distributing Film. New York, Limelight Editions. Borys, B. & Jemison, D.B. (1989): Hybrid Arrangements as Strategic

Alliances: Theoretical Issues in Organizational Combinations. Academy of Management Review, Vol. 14, No. 2, pp. 234-249.

Brouthers, K.D., Brouthers, L.E. & Wilkinson, T.J. (1995): Strategic

Alliances: Choose Your Partners. Long Range Planning, Vol. 28, No. 3, pp. 18-25.

Buckley, P.J. & Casson, M. (1988): A Theory of Cooperation in

International Business. Article in F.J. Contractor & P. Lorange (editors): Cooperative Strategies in International Business. Lexington/Massachusetts, Lexington Books.

Campbell, É. & Reuer, J.J. (2001): International Alliance Negotiations:

Legal Issues for General Managers. Business Horizons, Vol. 44, Issue 1, pp. 19-26.

156

Chisholm, D.C. (1993): Asset specificity and long-term contracts: The case of the motion-pictures industry. Eastern Economic Journal, Vol. 19, Issue 2, pp. 143-155.

Coffey, A. & Atkinson, P. (1996): Making Sense of Qualitative Data,

Complementary Research Strategies. Thousand Oaks/CA, Sage Publications.

Cones, J.W. (1992): Film Finance & Distribution, a dictionary of terms.

CA, Silman-James Press. Contractor, F.J. & Lorange, P. (editors) (2002): Cooperative Strategies and

Alliances in International Business, Joint Ventures and Technology Partnerships between Firms. Oxford/UK, Elsevier Science Ltd.

Contractor, F.J. & Kundu, S.K. (1998): Modal Choice in a World of

Alliances: Analyzing Organizational Forms in the International Hotel Sector. Journal of International Business Studies, Vol. 29, No. 2, pp. 325-358.

Contractor, F.J. & Lorange, P. (1988): Why Should Firms Cooperate? The

Strategy and Economics Basis for Cooperative Ventures. Article in J.J. Reuer (editor): Strategic Alliances: Theory and Evidence (2004). New York, Oxford University Press.

Converse, J.M. & Schuman, H. (1974): Conversations at Random: Survey

Research as Interviewers See It. New York, Wiley. Dally, P., Durández, Á., Jiménez, L., Pasquale, A. & Vidal, C. (2002): The

Audiovisual Management Handbook. Madrid, A Media Business School Publication.

Daniels, J.D. & Cannice, M.V. (2004): Interview Studies in International

Business Research. Article in R. Marschan-Piekkari & C. Welch (editors): Handbook of Qualitative Research Methods for International Business. Cheltenham/UK, Edward Elgar.

Das, T.K. & Teng, B.-S. (1998): Between trust and control: developing

confidence in partner cooperation in alliances. Academy of Management Review, Vol. 23, No. 3, pp. 491-512.

De Jong, G. & Klein Woolthuis, R.J.A. (2009): The content and role of

formal contracts in high-tech alliances. Innovation: management, policy & practice, Vol. 11, Issue 1, pp. 44-59.

Deeds, D.L. & Hill, C.W.L. (1998): An examination of opportunistic action

within research alliances: evidence from the biotechnology industry. Journal of Business Venturing, Vol. 14, Issue 2, pp. 141-163.

Dey, I. (1993): Qualitative Data Analysis, A User-Friendly Guide for Social

Scientists. London, Routledge. Douglas, J.D. (1985): Creative Interviewing. Beverly Hills/CA, Sage

Publications.

157

Doz, Y.L. & Hamel, G. (1998): Alliance Advantage, The Art of Creating Value through Partnering. Boston/Massachusetts, Harvard Business School Press.

Doz, Y.L. (1996): The Evolution of Cooperation in Strategic Alliances: Initial

Conditions or Learning Processes? Strategic Management Journal, Vol. 17, Special issue, Summer 1996, pp. 55-83.

Eisenhardt, K.M. & Schoonhoven, C.B. (1996): Resource-based View of

Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms. Organization Science, Vol. 7, No. 2, pp. 136-150.

Enrich, E. (2005): Legal Aspects of International Film Co-Production.

Translation by the European Audiovisual Observatory with a view to presenting it at the 19th Conference on International Audiovisual Law, 12-13 May 2005, Cannes.

Ernst, D. (2003): Envisioning Collaboration. Article in J.D. Bamford, B.

Gomes-Casseres & M.S. Robinson: Mastering Alliance Strategy, A Comprehensive Guide to Design, Management, and Organization. San Francisco, Jossey-Bass.

Eskola, J. & Suoranta, J. (1998): Johdatus laadulliseen tutkimukseen.

Jyväskylä, Gummerus Kirjapaino Oy. Faems, D., Janssens, M., Madhok, A. & Van Looy, B. (2008): Toward an

Integrative Perspective on Alliance Governance: Connecting Contract Design, Trust Dynamics, and Contract Application. Academy of Management Journal, Vol. 51, No. 6, pp. 1053-1078.

Firestone, W.A (1993): Alternative arguments for generalizing from data as

applied to qualitative research. Educational Researcher, Vol. 22, No. 4, pp. 16-23.

Frankel, R., Whipple, J.S. & Frayer, D.J. (1996): Formal versus informal

contracts: achieving alliance success. International Journal of Physical Distribution & Logistics Management, Vol. 26, No. 3, pp. 47-63.

García-Canal, E. (1996): Contractual Form in Domestic and International

Strategic Alliances. Organization Studies, Vol. 17, No. 5, pp. 773-794. Ghauri, P. & Gronhaug, K. (2005): Research Methods in Business Studies:

A Practical Guide (3rd edition). Harlow/UK, Prentice-Hall. Ghauri, P. (2004): Designing and Conducting Case Studies in

International Business Research. Article in R. Marschan-Piekkari and C. Welch (editors): Handbook of Qualitative Research Methods for International Business. Cheltenham/UK, Edward Elgar.

Ghauri, P.N. & Usunier, J.-C. (2003): Some General Guidelines for

Negotiating International Business. Article in P.N. Ghauri and J.-C. (editors): International Business Negotiations (2nd edition). Amsterdam, Pergamon/An Imprint of Elsevier.

158

Glaister, K.W. & Buckley, P.J. (1999): Performance Relationships in UK International Alliances. Management International Review, Vol. 39, No.2, pp. 123-147.

Gulati, R. (1998): Alliances and Networks. Strategic Management Journal,

Vol. 19, pp. 293-317. Gulati, R. (1995): Does familiarity breed trust? The implications of repeated

ties for contractual choice in alliances. Academy of Management Journal, Vol. 38, No. 1, pp. 85-112.

Györy, M. (1995): Cinema and Television – International Coproduction

Contracts: Legal Problems and Information Needed. Online publication of the European Audiovisual Observatory, Brussels.

Haarmann, P-L. (2005): Tekijänoikeus ja lähioikeudet. Helsinki, Talentum. Hagedoorn, J. & Hesen, G. (2007): Contract Law and the Governance of

Inter-Firm Technology Partnerships – An Analysis of Different Modes of Partnering and Their Contractual Implications. Journal of Management Studies, Vol. 44, Issue 3, pp. 342-366.

Hamel, G. (1991): Competition for Competence and Interpartner Learning

within International Strategic Alliances. Strategic Management Journal, Vol. 12, pp. 83-103.

Hamel, G., Doz, Y.L. & Prahalad, C.K. (1989): Collaborate with your

competitors - and win. Harvard Business Review, 67, pp. 133-139. Hanssen, F.A. (2000): The Block Booking of Films Reexamined. Journal of

Law & Economics, Vol. 43, No. 2, pp. 395-426. Harbison, J.R. & Pekar, P. Jr. (1998): Smart Alliances, A Practical Guide to

Repeatable Success. San Francisco, Booz-Allen & Hamilton. Harrigan, K.R. (2002): Strategic Alliances and Partner Asymmetries.

Article in F.J. Contractor & P. Lorange (editors): Cooperative Strategies and Alliances in International Business, Joint Ventures and Technology Partnerships between Firms. Oxford/UK, Elsevier Science Ltd.

Hemmo, M. (2005): Sopimusoikeus III. Helsinki, Talentum. Hemmo, M. (2003): Sopimusoikeus I. Helsinki, Kauppakaari. Hergert, M. & Morris, D. (1988): Trends in International Collaborative

Agreements. Article in F.J. Contractor & P. Lorange (editors): Cooperative Strategies in International Business. Lexington/Massachusetts, Lexington Books.

Hoetker, G. & Mellewigt, T. (2009): Choice and Performance of Governance

Mechanisms: Matching Alliance Governance to Asset Type. Strategic Management Journal, Vol. 30, Issue 10, pp. 1025-1044.

Holstein, J.A. & Gubrium, J.F. (1997): Active Interviewing. Article in D.

Silverman (editor): Qualitative Research; Theory, Method and Practice. London, Sage Publications.

159

Inkpen, A.C. (2001): Strategic Alliances. Article in A.M. Rugman & T.L.

Brewer (editors): The Oxford Handbook of International Business. Oxford/New York, University Press.

Inkpen, A.C. (1998): Learning, Knowledge Acquisition and Strategic

Alliances. European Management Journal, Vol. 16, No. 2, pp. 223-229. Jensen, K. & Unt, I. (2002): Negotiating partnerships; Increase profits

and reduce risks. London, Prentice Hall. Joutsamo, K, Aalto, P, Kaila, H. & Maunu, A. (1996): Eurooppaoikeus.

Helsinki, Lakimiesliiton kustannus. Kallio, J. (editor) (2001): Sisältötuotannon kilpailukyky - vertaileva

tutkimus Suomesta, Ruotsista ja Irlannista. Helsinki, LTT-Tutkimus Oy.

Keenan, D. & Riches, S. (1995): Business Law. London, Pitman Publishing. Kennedy, M. (1979): Generalizing from single case studies. Evaluation

Quarterly 3, pp.661-678. Kenney, R.W. & Klein, B. (2000): How Block Booking Facilitated Self-

Enforcing Film Contracts. Journal of Law & Economics, Vol. 43, No. 2, pp. 427-435.

Khanna, T., Gulati, R. & Nohria, N. (1998): The Dynamics of Learning

Alliances: Competition, Cooperation, and Relative Scope. Strategic Management Journal, Vol. 19, No. 3, pp. 193-210.

Killing, J.P. (1988): Understanding Alliances: The Role of Task and

Organizational Complexity. Article in F.J. Contractor and P. Lorange (editors): Cooperative Strategies in International Business. Lexington/Massachusetts, Lexington Books.

Kirk, J. & Miller, M.L. (1986): Reliability and Validity in Qualitative

Research. Beverly Hills/CA, Sage Publications. Klein Woolthuis, R., Hillebrand, B. & Nooteboom, B. (2005): Trust,

Contract and Relationship Development. Organization Studies, Vol. 26, Issue 6, pp. 813-840.

Kogut, B. (1988): Joint ventures: Theoretical and Empirical Perspectives.

Strategic Management Journal, Vol. 9, No. 4, pp. 319-332. Kohvakka, R. & Huttunen, M. (1997): Audio-visual production and

international co-productions in Finland. Helsinki, Statistics Finland. Koza, M.P. & Lewin, A.Y. (1998): The Co-evolution of Strategic Alliances.

Organization Science, Vol. 9, Issue 3, pp. 255-264. Lane, P. & Lubatkin, M. (1998): Relative absorptive capacity and

interorganizational learning. Strategic Management Journal, Vol. 19, Issue 5, pp. 461-477.

160

Larsson, R., Bengtsson, L., Henriksson, K. & Sparks, J. (1998): The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances. Organization Science, Vol. 9, Issue 3, pp. 285-305.

Lee, J.J. Jr. (2000): The Producer’s Business Handbook. Boston, Focal

Press. Lewis, J.D. (1990): Partnerships for Profit, Structuring and Managing

Strategic Alliances. New York, The Free Press. Li, J.J., Poppo, L. & Zhou, K.Z. (2010): Relational Mechanisms, Formal

Contracts, and Local Knowledge Acquisition by International Subsidiaries. Strategic Management Journal, Vol. 31, Issue 4, pp. 349-370.

Lincoln, Y.S. & Guba, E.G. (2000): Paradigmatic Controversies,

Contradictions, and Emerging Confluences. Article in N.K. Denzin and Y.S. Lincoln (editors): Handbook of Qualitative Research (second edition). Thousand Oaks/CA, Sage Publications.

Litwak, M. (2004): Risky Business: Financing & Distributing Independent

Films. Los Angeles, Silman-James Press. Lorange, P. & Roos, J. (1992): Strategic Alliances: Formation,

Implementation, and Evolution. Cambridge/Massachusetts, Blackwell. Lorange, P., Roos, J. & Bronn, P.S. (1992): Building Successful Strategic

Alliances. Long Range Planning, Vol. 25, No. 6, pp. 10-17. Lorange, P. & Roos, J. (1991): Why Some Strategic Alliances Succeed and

Others Fail. Journal of Business Strategy, January/February 1991, pp. 25-30.

Lorenzen, M. (2007): Internationalization vs. Globalization of the Film

Industry. Industry and Innovation, Vol. 14, No. 4, pp. 349-357. Lui, S.S. & Ngo, H. (2004): The Role of Trust and Contractual Safeguards

on Cooperation in Non-equity Alliances. Journal of Management, Vol. 30, No. 4, pp. 471-485.

Luo, Y. (2002): Contract, cooperation, and performance in international

joint ventures. Strategic Management Journal, Vol. 23, Issue 10, pp. 903-919.

Luo, Y. (1997): Partner Selection and Venturing Success: The Case of Joint

Ventures with Firms in the People’s Republic of China. Organization Science, Vol. 8, No. 6, pp. 648-662.

Luostarinen, R. & Welch, L. (1997): International Business Operations.

Helsinki, Helsinki School of Economics and Business Administration. Lyons, B. & Mehta, J. (1997): Contracts, opportunism and trust: Self-

interest and social orientation. Cambridge Journal of Economics, Vol. 21, Issue 2, pp. 239-257.

161

Malanczuk, P. (1997): Akehurst's Modern Introduction to International Law. London, Routledge.

Marschan-Piekkari, R., Macdonald, S. & Assimakopoulos, D. (2001): In bed

with a stranger: finding partners for collaboration in the European information technology programme. Science and Public Policy, Vol. 28, No. 1, pp. 68-78.

Mayer, K.J (2006): Designing Interorganizational Contracts: the Role of

Detailed Task Descriptions. Article in A. Arino & J.J. Reuer (editors): Strategic Alliances, Governance and Contracts. Houndmills/UK, Palgrave Macmillan.

Mayer, K.J. & Argyres, N.S. (2004): Learning to Contract: Evidence from

the Personal Computer Industry. Organization Science, Vol. 15, No. 4, pp. 394-410.

Mead, R. (1998): International Management, Cross-Cultural Dimensions.

Cambridge/Massachusetts, Blackwell Publishers. Mead, R. (1990): Cross-Cultural Management Communication. West

Sussex/England, John Wiley & Sons. Mendenhall, M., Punnett, B.J. & Ricks, D. (1995): Global Management.

Cambridge/Massachusetts, Blackwell Publishers. Miles, M.B. & Huberman, A.M. (1994): Qualitative Data Analysis, An

Expanded Sourcebook (second edition). London, Sage Publications. Mitchell, W., Dussauge, P. & Garrette, B. (2002): Alliances With

Competitors: How to Combine and Protect Key Resources? Journal of International Business Studies, Vol. 11, No. 3, pp. 203-223.

Mohr, J. & Spekman, R. (1994): Characteristics of Partnership Success:

Partnership Attributes, Communication Behavior, and Conflict Resolution Techniques. Strategic Management Journal, Vol. 15, No.2, pp. 135-152.

Moore, S. (2000): The Biz: the basic business, legal and financial aspects

of the film industry. Los Angeles, Silman-James Press. Morawetz, N., Hardy, J., Haslam, C. & Randle, K. (2007): Finance, Policy

and Industrial Dynamics – The Rise of Co-productions in the Film Industry. Industry and Innovation, Vol. 14, No. 4, pp. 421-443.

Mowery, D., Oxley, J. & Silverman, B. (1996): Strategic alliances and

interfirm knowledge transfer. Strategic Management Journal, Vol. 17 (Winter Special Issue), pp. 77-91.

Naarajärvi, P. & Koivisto, J.V. (2002): Which Law, Which Forum?

Jurisdiction and Applicable Law in International Electronic Commerce. Helsinki, WSOY.

Neumann, P. & Appelgren, C. (2002): The Fine Art of Co-Producing.

Madrid, A Media Business School Publication.

162

Ohmae, K. (1989): The Global Logic of Strategic Alliances. Harvard Business Review, March/April 1989, pp. 143-154.

Osborn, R.N. & Hagedoorn, J. (1997): The Institutionalization and

Evolutionary Dynamics of Interorganizational Alliances and Networks. Academy of Management Journal, Vol. 40, No. 2, pp. 261-278.

Osborn, R.N. & Baughn, C.C. (1990): Forms of Interorganizational

Governance for Multinational Alliances. Academy of Management Journal, Vol. 33, No. 3, pp. 503-519.

Parkhe, A. (1993a): Partner Nationality and the Structure-Performance

Relationship in Strategic Alliances. Organization Science, Vol. 4, No. 2, pp. 301-324.

Parkhe, A. (1993b): Strategic Alliance Structuring: A Game Theoretic and

Transaction Cost Examination of Interfirm Cooperation. Academy of Management Journal, Vol. 36, No. 4, pp. 794-829.

Patton, M.Q. (2002): Qualitative Research & Evaluation Methods (third

edition). Thousands Oaks/CA, Sage Publications. Pekar, P. Jr. & Allio, R. (1994): Making Alliances Work – Guidelines for

Success. Long Range Planning, Vol. 27, No. 4, pp. 54-65. Poppo, L. & Zenger, T. (2002): Do formal contracts and relational

governance function as substitutes or complements? Strategic Management Journal, Vol. 23, No. 8, pp. 707-725.

Punnett, B.J. & Ricks, D.A. (1992): International Business. Boston, PWS-

KENT Publishing Company. Pöyhönen, J. (editor) (2002): An Introduction to Finnish Law. Helsinki,

Kauppakaari. Reuer, J.J. & Ariño, A. (2007): Strategic alliance contracts: Dimensions and

determinants of contractual complexity. Strategic Management Journal, Vol. 28, No. 3, pp. 313-330.

Reuer, J.J., Ariño, A. & Mellewigt, T. (2006): Entrepreneurial alliances as

contractual forms. Journal of Business Venturing, Vol. 21, Issue 3, pp. 306-325.

Reuer, J.J. & Ariño, A. (2002): Contractual renegotiations in strategic

alliances. Journal of Management, Vol. 28, No. 1, pp. 47-68. Reuer, J.J., Zollo, M. & Singh, H. (2002): Post-formation dynamics in

strategic alliances. Strategic Management Journal, Vol. 23, No. 2, pp. 135-151.

Richardson, L. (2000): Writing, A Method of Inquiry. Article in N.K.

Denzin and Y.S. Lincoln (editors): Handbook of Qualitative Research (second edition). Thousand Oaks/CA, Sage Publications.

Ring, P.S. & Van de Ven, A.H. (1994): Developmental Processes of

Cooperative Interorganizational Relationships. Academy of Management Review, Vol. 19, No.1, pp. 90-118.

163

Robins, J.A. (1993): Organization as strategy: Restructuring production in

the film industry. Strategic Management Journal, Summer93 Special Issue, Vol. 14, pp. 103-118.

Ryall, M.D. & Sampson, R.C. (2006): Do prior alliances influence contract

structure? Evidence from technology alliance contracts. Article in A. Ariño and J.J. Reuer (editors): Strategic Alliances, Governance and Contracts. Houndmills/UK, Palgrave Macmillan.

Saarnilehto, A., Hemmo, M. & Kartio, L. (2001): Varallisuusoikeus.

Helsinki, WSOY Lakitieto. Salokannel, M. (1997): Ownership of Rights in Audiovisual Productions. A

Comparative Study. The Hague, Kluwer Law International. Savage, N. & Bradgate, R. (1993): Business Law. London, Butterworths. Saxton, T. (1997): The Effects of Partner and Relationship Characteristics

on Alliance Outcomes. Academy of Management Journal, Vol. 40, No.2, pp. 443-461.

Schermerhorn, J.R. jr. (2001): Determinants of Interorganizational

Cooperation. Academy of Management Journal, Vol. 18, No. 4, pp. 846-856.

Schwandt, T.A. (2000): Three Epistemological Stances for Qualitative

Inquiry, Interpretivism, Hermeneutics, and Social Constructionism. Article in N.K. Denzin and Y.S. Lincoln (editors): Handbook of Qualitative Research (second edition). Thousand Oaks/CA, Sage Publications.

Segil, L. (1998): Strategic Alliances for the 21st Century. Strategy and

Leadership, Sep/Oct 1998, Vol. 26, No. 4, pp. 12-16. Seristö, H. & Vaara, E. (1999): A Sensemaking Perspective on International

Alliances. Article in U. Lehtinen & H. Seristö (editors): Perspective on Internationalization. Helsinki, Helsinki School of Economics and Business Administration.

Shenkar, O. & Reuer, J.J. (editors) (2006): Handbook of Strategic

Alliances. Thousand Oaks/California, Sage Publications. Silverman, D. (2006): Interpreting Qualitative Data, Methods for

Analyzing Talk, Text and Interaction (3rd edition). London, Sage Publications.

Taoka, G.M. & Beeman, D.R. (1991): International Business,

Environments, Institutions, and Operations. New York, HarperCollins Publishers.

Vogel, H.L. (2007): Entertainment Industry Economics: a guide for

financial analysis. Cambridge, University Press. Yin, R.K. (2009): Case Study Research, Design and Methods (fourth

edition). Applied social research methods series, Vol. 5. Thousand Oaks/CA, Sage Publications.

164

Zollo, M., Reuer, J.J. & Singh, H. (2002): Interorganizational routines and

performance in strategic alliances. Organization Science, Vol. 13, No. 6, pp. 701-713.

APPENDIX 1

165

THE INTERVIEW QUESTIONS (Please note that the interviews were carried out in Finnish language.) I Background (Tausta)

Producer & production company

(Tuottaja, tuotantoyhtiö) How many international film co-productions have you been involved in

(films, premieres, countries involved)? (Kuinka monessa kansainvälisessä yhteistuotannossa olette olleet mukana (elokuvat, ensi-illat, mukana olleet maat)?)

II International Film Co-Production as an Alliance (Kansainvälinen elokuvayhteistuotanto yhteistyökumppanuutena) Do you consider international film co-productions as alliances?

(Koetteko elokuvien kansainväliset yhteistuotannot yhteistyökumppa-nuuksina?)

How do you experience temporally an international film co-

production/co-production alliance? An estimate of the duration. (Miten koette kansainvälisen yhteistuotannon/yhteistyökumppanuuden aikajänteenä? Arvio kestosta.)

What are the most important/critical elements relating to an

international film co-production in your opinion? What are the challenges relating to international film co-productions in your opinion? (Mitkä ovat mielestänne merkittävimmät/kriittisimmät tekijät kansainvälisessä yhteistuotantokumppanuudessa? Mitkä ovat mielestänne kansainvälisten yhteistuotantokumppanuuksien haasteet?)

How important is the contracting phase of an international film co-

production? Are there any cultural differences? (Kuinka tärkeä sopimusvaihe on kansainvälisessä yhteistuotannossa? Onko mahdollisia kulttuurillisia eroja?)

III Co-Production Agreements (Yhteistuotantosopimukset) How many of your international film co-productions are based on a co-

production agreement? How about the others? (Kuinka monta kansainvälistä yhteistuotantoanne perustuu yhteistuotanto-sopimukseen? Miten muut?)

How does a co-production agreement function as a basis for an

international film co-production? Pros and cons? (Kuinka yhteistuotantosopimus toimii kansainvälisen yhteistyökumppa-nuuden perustana? Myötä- ja vasta-argumentit?)

In what phase does international cooperation start vs. the co-producing

partners draft and enter into a co-production agreement? What is the time used for the development of an international film co-production vs.

166

the time used for drafting a co-production agreement? Overlapping vs. successive? (Missä vaiheessa kansainvälinen yhteistyö alkaa vs. yhteistuotantosopimus laaditaan? Mikä on kansainvälisen yhteistyön kehittelyyn vs. sopimuksen laadintaan käytetty aika? Päällekkäistä vs. perättäistä?)

Who/which co-producing partner drafts a co-production agreement?

Who participate in contracting/negotiations? (Kuka laatii yhteistuotantosopimuksen? Ketkä osallistuvat sopimuksen tekemiseen/neuvotteluihin?)

What are the most important/critical elements relating to co-

production agreements? Why? (Mitkä ovat merkittävimmät/kriittisimmät elementit yhteistuotanto-sopimuksissa? Miksi?)

Put the key elements of a co-production agreement in order of

importance. See the list. (Mikä on mielestänne yhteistuotantosopimusten elementtien/sopimusehtojen tärkeysjärjestys? Ks. lista.)

What are, why and how the most challenging elements relating to co-

production agreements? On what elements the co-producing partners disagree the most? (Mitkä ovat, miksi ja miten haastavimmat/hankalimmat elementit yhteistuotantosopimuksissa? Mistä on eniten erimielisyyttä?)

What kind of uncertainties relate to co-production agreements? How

the uncertainties influence such co-production agreements? (Mitä epävarmuustekijöitä liittyy yhteistuotantosopimuksiin? Miten ne vaikuttavat yhteistuotantosopimuksiin?)

What kind of risks relate to international film co-productions to be paid

special attention to regarding co-production agreements? (Mitä riskejä liittyy yhteistuotantoihin, jotka tulisi erityisesti huomioida yhteistuotantosopimuksissa?)

How pleased have you been with the final content of the co-production

agreements? How well/poorly the content of the co-production agreements has been agreed upon? How well the content of the co-production agreement has been consistent with what has been agreed upon? (Kuinka tyytyväinen olette olleet yhteistuotantosopimusten lopulliseen sisältöön? Kuinka hyvin/huonosti sopimusten sisältö on saatu sovittua? Kuinka sopimuksen sisältö vastaa sovittua?)

What is the value of a co-production agreement? What is the meaning of

the content of a co-production agreement after the co-production agreement has been entered into? (Millainen on yhteistuotantosopimuksen merkitys? Mikä on yhteis-tuotantosopimuksen sopimussisällön merkitys sopimuksenteon jälkeen?)

When the content of co-production agreements is agreed upon at more

detailed level and when at more general level? What factors affect? (Milloin yhteistuotantosopimusten sisältö sovitaan tarkemmin/kattavammin, milloin yleisemmin? Mitkä seikat vaikuttavat?)

167

IV Legal Regulation (Juridinen sääntely) How well do you know the legal regulation relating to your international

film co-productions? (Miten hyvin tunnette kansainvälisten yhteistuotantojenne osalta juridisen sääntelyn?)

How legal regulation has influenced international film co-productions

and/or co-production agreements? (Miten juridinen sääntely on vaikuttanut kansainvälisiin yhteistuotantoihin ja/tai yhteistuotantosopimuksiin?)

Has legal regulation caused any challenges/difficulties for your

international film co-productions? If so, what kind of? (Onko juridinen sääntely aiheuttanut kansainvälisille yhteistuotannoillenne haasteita/hankaluuksia? Jos on, millaisia?)

Has there been any benefits/help for your international film co-

productions resulting from legal regulation? (Onko juridisesta sääntelystä ollut hyötyä/apua kansainvälisissä yhteis-tuotannoissanne?)

A list of elements/contractual provisions of co-production agreements (Lista yhteistuotantosopimuksen elementeistä/sopimusehdoista)

Please put the elements of co-production agreements in order of importance (the most important is number 1 and the least important is number 16): (Järjestä elementit tärkeysjärjestykseen 1-16 (tärkein 1, vähiten tärkein 16))

___ Film/production specifications ___ Contributions of the co-producing partners ___ Production schedule ___ Budget ___ Financing plan & cash flow ___ Rights clearance (script, music, etc.) ___ Copyright of the film & secondary rights ___ Commercial exploitation & distribution of the film ___ Materials & the delivery ___ Profit participation/sharing, recoupment & collection of

revenues ___ Insurances ___ Credits (on screen) ___ Confidentiality ___ Termination ___ Assignment of the agreement ___ Applicable law & dispute resolution ___ __________________________________ ___ __________________________________

168

APPENDIX 2

169

QU

AL

ITA

TIV

E I

NT

ER

VIE

WS

OF

TH

E F

INN

ISH

FIL

M I

ND

US

TR

Y

Pro

du

ctio

n c

om

pa

ny

Inte

rvie

we

es

Da

tes

of

Inte

rna

tio

na

l co

-pro

du

ctio

ns

Co

un

trie

sS

tatu

s o

f th

e F

inn

ish

inte

rvie

w(t

he

year

of

pre

mie

re)

(20

00

-20

08

)in

vo

lve

dp

rod

uct

ion

co

mp

an

y

Bli

nd

Sp

ot

Pic

ture

s O

yT

ero

Kau

kom

aa30

.11.

200

6Ja

de

War

rior

(20

06

)F

I, N

L, C

N, E

Ed

eleg

ate

pro

du

cer

30.1

0.2

00

8P

rod

uci

ng

Ad

ult

s (2

00

4)F

I, S

Ed

eleg

ate

pro

du

cer

Th

e T

hir

d W

ave

(20

03)

SE, F

Im

inor

ity

co-p

rod

uce

r

Th

e G

eogr

aph

y of

Fea

r (2

00

0)

FI,

DK

, DE

del

egat

e p

rod

uce

r

Dan

cer

in t

he

Dar

k (2

00

0)

DK

, DE

, NL

, IT

,m

inor

ity

co-p

rod

uce

r

US,

GB

, FR

, SE

,

FI,

IS,

NO

Cin

em

ak

er

Oy

Han

nu

Tu

omai

nen

19.8

.20

08

Nik

o &

Th

e W

ay t

o th

e St

ars

(20

08

)F

I, D

E, D

K, I

Ed

eleg

ate

pro

du

cer

DO

Fil

ms

Oy

An

na

Hei

skan

en19

.1.2

00

6M

y F

rien

d H

enry

(20

04)

FI,

DE

del

egat

e p

rod

uce

r

Ed

ith

fil

m O

yL

iisa

Pen

ttil

ä29

.11.

200

6M

and

erla

y (2

00

5)D

K, S

E, N

L, F

R,

min

orit

y co

-pro

du

cer

24.6

.20

08

DE

, GB

, NO

, FI

Dog

vill

e (2

00

3)D

K, S

E, N

L, F

R,

min

orit

y co

-pro

du

cer

DE

, GB

, NO

, FI

He

lsin

ki-

film

i O

yA

leks

i Bar

dy

3.7.

200

8Su

nst

orm

(20

08

)SE

, FI

min

orit

y co

-pro

du

cer

Tea

rs o

f A

pri

l (20

08

)F

I, D

E, G

Rd

eleg

ate

pro

du

cer

Seve

n M

illi

onai

res

(20

06

)SE

, FI

min

orit

y co

-pro

du

cer

Ju

on

ifil

mi

Oy

Jark

ko H

entu

la21

.11.

200

8A

rn-T

he

Kn

igh

t T

emp

lar

(20

07)

SE, G

B, D

K, N

O,

min

orit

y co

-pro

du

cer

FI,

DE

Th

at S

pec

ial S

um

mer

(20

07)

SE, F

Im

inor

ity

co-p

rod

uce

r

Bo

rde

r P

rod

uct

ion

s O

yT

he

Bor

der

19

18 (

200

7)F

I, R

Ud

eleg

ate

pro

du

cer

170

Kin

op

rod

uct

ion

Oy

Cla

es O

lsso

n2.

4.20

09

Mys

tery

of

the

Wol

f (2

00

6)

FI,

GB

del

egat

e p

rod

uce

r

Eli

na-

As

If I

Was

n't

Th

ere

(20

03)

SE, F

Im

inor

ity

co-p

rod

uce

r

Th

e H

and

cuff

Kin

g (2

00

2)F

I, S

Ed

eleg

ate

pro

du

cer

Kit

es o

ver

Hel

sin

ki (

200

1)F

I, S

Ed

eleg

ate

pro

du

cer

Ma

kin

g M

ov

ies

Oy

Kaa

rle

Ah

o1.

7.20

08

Cro

ssin

g D

ates

(20

08

)R

O, F

Im

inor

ity

co-p

rod

uce

r

Bla

ck I

ce (

200

7)F

I, D

Ed

eleg

ate

pro

du

cer

Ma

tila

Rö

hr

No

rdis

k O

yM

arko

Röh

r3.

2.20

09

Qu

est

for

a H

eart

(20

07)

FI,

DE

, GB

, RU

del

egat

e p

rod

uce

r

Geo

rg (

200

7)E

E, F

I, R

Um

inor

ity

co-p

rod

uce

r

Mot

her

of

Min

e (2

00

5)F

I, S

Ed

eleg

ate

pro

du

cer

9th

Leg

ion

(20

05)

FI,

RU

, UA

del

egat

e p

rod

uce

r

Nam

es in

Mar

ble

(20

02)

EE

, FI

min

orit

y co

-pro

du

cer

So

lar

Fil

ms

Oy

Mar

kus

Seli

n &

2.7.

200

8D

ark

Flo

ors

(20

08

)F

I, I

Sd

eleg

ate

pro

du

cer

Jukk

a H

elle

Ast

róp

ía (

200

7)IS

, GB

, FI

min

orit

y co

-pro

du

cer

Ele

ven

Men

Ou

t (2

00

5)IS

, FI,

GB

min

orit

y co

-pro

du

cer

Pop

ula

r M

usi

c (2

00

4)SE

, FI

min

orit

y co

-pro

du

cer

101

Rey

kjav

ík (

200

0)

IS, D

K, F

R, N

O,

min

orit

y co

-pro

du

cer

DE

, FI

Mar

ian

na

Fil

ms

Oy

not

ava

ilab

le f

or a

n in

terv

iew

Spu

tnik

Oy

refu

sed

to

give

an

inte

rvie

w

Cou

ntr

y co

des

:C

hin

a =

CN

, Den

mar

k =

DK

, Est

onia

= E

E, F

inla

nd

= F

I, F

ran

ce =

FR

, Ger

man

y =

DE

, Gre

ece

= G

R, I

cela

nd

= I

S, I

rela

nd

= I

E, I

taly

= I

T

Net

her

lan

ds

= N

L, N

orw

ay =

NO

, Rom

ania

= R

O, R

uss

ia =

RU

, Sw

eden

= S

E, U

krai

ne

= U

A, U

nit

ed K

ingd

om =

GB

, Un

ited

Sta

tes

= U

S

171

172

APPENDIX 3

173

KEY WEB PAGES AND WEB DATABASES

The European Audiovisual Observatory

http://www.obs.coe.int

The Finnish legislation

http://www.finlex.fi

The European Union law

http://eur-lex.europa.eu

United Nations Treaty Series

http://treaties.un.org

Eurimages

http://www.coe.int/eurimages

The MEDIA Programme

http://ec.europa.eu/media

Nordisk Film & TV Fond

http://www.nordiskfilmogtvfond.com

The Finnish Film Foundation

http://www.ses.fi

POEM Foundation

http://www.poem.fi

Ministry of Education and Culture

http://www.minedu.fi

174

APPENDIX 4

175

Eu

rope

an T

reat

y Se

ries -

No.

147

EUR

OPE

AN

CO

NV

ENTI

ON

ON

C

INEM

ATO

GR

APH

IC C

O-P

RO

DU

CTI

ON

St

rasb

ourg

, 2.X

.199

2

2 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

Prea

mbl

e

Th

e m

embe

r St

ates

of

the

Cou

ncil

of E

urop

e an

d th

e ot

her

Stat

es p

arty

to

the

Euro

pean

C

ultu

ral C

onve

ntio

n, si

gnat

ory

here

to,

Con

side

ring

that

the

aim

of

the

Cou

ncil

of E

urop

e is

to

achi

eve

a gr

eate

r un

ity b

etw

een

its

mem

bers

in

orde

r, in

par

ticul

ar, t

o sa

fegu

ard

and

prom

ote

the

idea

ls a

nd p

rinci

ples

whi

ch

form

thei

r com

mon

her

itage

;

C

onsi

derin

g th

at f

reed

om o

f cr

eatio

n an

d fr

eedo

m o

f ex

pres

sion

con

stitu

te f

unda

men

tal

elem

ents

of t

hese

prin

cipl

es;

Con

side

ring

that

the

defe

nce

of c

ultu

ral d

iver

sity

of t

he v

ario

us E

urop

ean

coun

trie

s is

one

of

the

aim

s of t

he E

urop

ean

Cul

tura

l Con

vent

ion;

C

onsi

derin

g th

at c

inem

atog

raph

ic c

o-pr

oduc

tion,

an

inst

rum

ent o

f cre

atio

n an

d ex

pres

sion

of

cultu

ral d

iver

sity

on

a Eu

rope

an sc

ale,

shou

ld b

e re

info

rced

;

D

eter

min

ed to

dev

elop

thes

e pr

inci

ples

and

rec

allin

g th

e re

com

men

datio

ns o

f the

Com

mitt

ee

of M

inis

ters

on

the

cine

ma

and

the

audi

ovis

ual

field

, an

d pa

rtic

ular

ly R

ecom

men

datio

n N

o. R

(86)

3 o

n th

e pr

omot

ion

of a

udio

visu

al p

rodu

ctio

n in

Eur

ope;

A

ckno

wle

dgin

g th

at th

e cr

eatio

n of

the

Euro

pean

Fun

d fo

r th

e Su

ppor

t of C

o-pr

oduc

tion

and

Dis

trib

utio

n of

Cre

ativ

e C

inem

atog

raph

ic a

nd A

udio

visu

al W

orks

, Eu

rimag

es,

mee

ts t

he

conc

ern

enco

urag

ing

Euro

pean

cin

emat

ogra

phic

co-

prod

uctio

n an

d th

at a

new

driv

ing

forc

e ha

s thu

s bee

n gi

ven

to th

e de

velo

pmen

t of c

inem

atog

raph

ic c

o-pr

oduc

tions

in E

urop

e;

Reso

lved

to

achi

eve

this

cul

tura

l obj

ectiv

e th

anks

to

a co

mm

on e

ffort

to

incr

ease

pro

duct

ion

and

defin

e th

e ru

les

whi

ch a

dapt

the

mse

lves

to

Euro

pean

mul

tilat

eral

cin

emat

ogra

phic

co-

prod

uctio

ns a

s a w

hole

;

C

onsi

derin

g th

at th

e ad

optio

n of

com

mon

rul

es te

nds

to d

ecre

ase

rest

rictio

ns a

nd e

ncou

rage

Eu

rope

an c

o-op

erat

ion

in th

e fie

ld o

f cin

emat

ogra

phic

co-

prod

uctio

n,

Hav

e ag

reed

as f

ollo

ws:

Cha

pter

I –

Gen

eral

pro

visi

ons

Art

icle

1 –

Aim

of t

he C

onve

ntio

n

Th

e Pa

rtie

s to

th

is

Con

vent

ion

unde

rtak

e to

pr

omot

e th

e de

velo

pmen

t of

Eu

rope

an

cine

mat

ogra

phic

co-

prod

uctio

n in

acc

orda

nce

with

the

follo

win

g pr

ovis

ions

.

A

rtic

le 2

– S

cope

1 Th

is C

onve

ntio

n sh

all

gove

rn r

elat

ions

bet

wee

n th

e Pa

rtie

s in

the

fie

ld o

f m

ultil

ater

al

co-p

rodu

ctio

ns o

rigin

atin

g in

the

terr

itory

of t

he P

artie

s.

2 Th

is C

onve

ntio

n sh

all a

pply

:

a

to c

o-pr

oduc

tions

inv

olvi

ng a

t le

ast

thre

e co

-pro

duce

rs,

esta

blis

hed

in t

hree

diff

eren

t Pa

rtie

s to

the

Con

vent

ion;

and

176

3 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

b to

co-

prod

uctio

ns i

nvol

ving

at

leas

t th

ree

co-p

rodu

cers

est

ablis

hed

in t

hree

diff

eren

t Pa

rtie

s to

the

Con

vent

ion

and

one

or m

ore

co-p

rodu

cers

who

are

not

est

ablis

hed

in s

uch

Part

ies.

The

tota

l con

trib

utio

n of

the

co-p

rodu

cers

who

are

not

est

ablis

hed

in th

e Pa

rtie

s to

the

Con

vent

ion

may

not

, how

ever

, exc

eed

30%

of t

he to

tal c

ost o

f the

pro

duct

ion.

In

all

case

s, th

is C

onve

ntio

n sh

all o

nly

appl

y on

con

ditio

n th

at th

e co

-pro

duce

d w

ork

mee

ts th

e de

finiti

on o

f a E

urop

ean

cine

mat

ogra

phic

wor

k as

def

ined

in A

rtic

le 3

, par

agra

ph 3

, bel

ow.

3

The

prov

isio

ns o

f bila

tera

l agr

eem

ents

con

clud

ed b

etw

een

the

Part

ies

to th

is C

onve

ntio

n sh

all

cont

inue

to a

pply

to b

ilate

ral c

o-pr

oduc

tions

.

In

the

case

of m

ultil

ater

al c

o-pr

oduc

tions

, the

pro

visi

ons o

f thi

s Con

vent

ion

shal

l ove

rrid

e th

ose

of b

ilate

ral a

gree

men

ts b

etw

een

Part

ies

to th

e C

onve

ntio

n. T

he p

rovi

sion

s co

ncer

ning

bila

tera

l co

-pro

duct

ions

sha

ll re

mai

n in

for

ce i

f th

ey d

o no

t co

ntra

vene

the

pro

visi

ons

of t

his

Con

vent

ion.

4 In

the

abs

ence

of

any

agre

emen

t go

vern

ing

bila

tera

l co

-pro

duct

ion

rela

tions

bet

wee

n tw

o Pa

rtie

s to

this

Con

vent

ion,

the

Con

vent

ion

shal

l als

o ap

ply

to b

ilate

ral c

o-pr

oduc

tions

, unl

ess

a re

serv

atio

n ha

s bee

n m

ade

by o

ne o

f the

Par

ties i

nvol

ved

unde

r the

term

s of A

rtic

le 2

0.

Art

icle

3 –

Def

initi

ons

For t

he p

urpo

ses o

f thi

s Con

vent

ion:

a

the

term

“ci

nem

atog

raph

ic w

ork”

sha

ll m

ean

a w

ork

of a

ny l

engt

h or

med

ium

, in

pa

rtic

ular

cin

emat

ogra

phic

wor

ks o

f fic

tion,

car

toon

s an

d do

cum

enta

ries,

whi

ch c

ompl

ies

with

the

prov

isio

ns g

over

ning

the

film

indu

stry

in fo

rce

in e

ach

of th

e Pa

rtie

s co

ncer

ned

and

is in

tend

ed to

be

show

n in

cin

emas

;

b

the

term

“co

-pro

duce

rs”

shal

l mea

n ci

nem

atog

raph

ic p

rodu

ctio

n co

mpa

nies

or p

rodu

cers

es

tabl

ishe

d in

the

Part

ies t

o th

is C

onve

ntio

n an

d bo

und

by a

co-

prod

uctio

n co

ntra

ct;

c th

e te

rm “

Euro

pean

cin

emat

ogra

phic

wor

k” s

hall

mea

n a

cine

mat

ogra

phic

wor

k w

hich

m

eets

the

con

ditio

ns l

aid

dow

n in

App

endi

x II,

whi

ch i

s an

int

egra

l pa

rt o

f th

is

Con

vent

ion;

d

the

term

“m

ultil

ater

al c

o-pr

oduc

tion”

sha

ll m

ean

a ci

nem

atog

raph

ic w

ork

prod

uced

by

at

leas

t thr

ee c

o-pr

oduc

ers a

s def

ined

in A

rtic

le 2

, par

agra

ph 2

, abo

ve.

Cha

pter

II –

Rul

es a

pplic

able

to co

-pro

duct

ions

A

rtic

le 4

– A

ssim

ilatio

n to

nat

iona

l film

s

1 Eu

rope

an c

inem

atog

raph

ic w

orks

mad

e as

mul

tilat

eral

co-

prod

uctio

ns a

nd f

allin

g w

ithin

the

scop

e of

thi

s C

onve

ntio

n sh

all

be e

ntitl

ed t

o th

e be

nefit

s gr

ante

d to

nat

iona

l fil

ms

by t

he

legi

slat

ive

and

regu

lato

ry p

rovi

sion

s in

for

ce i

n ea

ch o

f th

e Pa

rtie

s to

thi

s C

onve

ntio

n pa

rtic

ipat

ing

in th

e co

-pro

duct

ion

conc

erne

d.

4 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

2

The

bene

fits

shal

l be

gra

nted

to

each

co-

prod

ucer

by

the

Part

y in

whi

ch t

he c

o-pr

oduc

er i

s es

tabl

ishe

d, u

nder

the

con

ditio

ns a

nd l

imits

pro

vide

d fo

r by

the

leg

isla

tive

and

regu

lato

ry

prov

isio

ns in

forc

e in

that

Par

ty a

nd in

acc

orda

nce

with

the

prov

isio

ns o

f thi

s Con

vent

ion.

A

rtic

le 5

– C

ondi

tions

for o

btai

ning

co-p

rodu

ctio

n st

atus

1 A

ny c

o-pr

oduc

tion

of c

inem

atog

raph

ic w

orks

sha

ll be

sub

ject

to th

e ap

prov

al o

f the

com

pete

nt

auth

oriti

es o

f the

Par

ties

in w

hich

the

co-p

rodu

cers

are

est

ablis

hed,

afte

r co

nsul

tatio

n be

twee

n th

e co

mpe

tent

aut

horit

ies

and

in a

ccor

danc

e w

ith t

he p

roce

dure

s la

id d

own

in A

ppen

dix

I. Th

is a

ppen

dix

shal

l for

m a

n in

tegr

al p

art o

f thi

s Con

vent

ion.

2 A

pplic

atio

ns f

or c

o-pr

oduc

tion

stat

us s

hall

be s

ubm

itted

for

app

rova

l to

the

com

pete

nt

auth

oriti

es a

ccor

ding

to

the

appl

icat

ion

proc

edur

e la

id d

own

in A

ppen

dix

I. Th

is a

ppro

val

shal

l be

final

exc

ept

in t

he c

ase

of f

ailu

re t

o co

mpl

y w

ith th

e in

itial

und

erta

king

s co

ncer

ning

ar

tistic

, fin

anci

al a

nd te

chni

cal m

atte

rs.

3

Proj

ects

of

a bl

atan

tly p

orno

grap

hic

natu

re o

r th

ose

that

adv

ocat

e vi

olen

ce o

r op

enly

offe

nd

hum

an d

igni

ty c

anno

t be

acco

rded

co-

prod

uctio

n st

atus

.

4 Th

e be

nefit

s pr

ovid

ed b

y co

-pro

duct

ion

stat

us s

hall

be g

rant

ed t

o co

-pro

duce

rs w

ho a

re

deem

ed t

o po

sses

s ad

equa

te t

echn

ical

and

fin

anci

al m

eans

, an

d su

ffici

ent

prof

essi

onal

qu

alifi

catio

ns.

5

Each

Con

trac

ting

Stat

e sh

all

desi

gnat

e th

e co

mpe

tent

aut

horit

ies

men

tione

d in

par

agra

ph 2

ab

ove

by m

eans

of

a de

clar

atio

n m

ade

at t

he t

ime

of s

igna

ture

or

whe

n de

posi

ting

its

inst

rum

ent o

f rat

ifica

tion,

acc

epta

nce,

app

rova

l or a

cces

sion

. Thi

s de

clar

atio

n m

ay b

e m

odifi

ed

at a

ny la

ter d

ate.

A

rtic

le 6

– P

ropo

rtio

ns o

f con

trib

utio

ns fr

om e

ach

co-p

rodu

cer

1

In th

e ca

se o

f mul

tilat

eral

co-

prod

uctio

n, th

e m

inim

um c

ontr

ibut

ion

may

not

be

less

than

10%

an

d th

e m

axim

um c

ontr

ibut

ion

may

not

exc

eed

70%

of

the

tota

l pr

oduc

tion

cost

of

the

cine

mat

ogra

phic

wor

k. W

hen

the

min

imum

con

trib

utio

n is

less

than

20%

, the

Par

ty c

once

rned

m

ay ta

ke st

eps t

o re

duce

or b

ar a

cces

s to

natio

nal p

rodu

ctio

n su

ppor

t sch

emes

.

2 W

hen

this

Con

vent

ion

take

s th

e pl

ace

of a

bila

tera

l agr

eem

ent b

etw

een

two

Part

ies

unde

r th

e pr

ovis

ions

of A

rtic

le 2

, par

agra

ph 4

, the

min

imum

con

trib

utio

n m

ay n

ot b

e le

ss th

an 2

0% a

nd

the

larg

est c

ontr

ibut

ion

may

not

exc

eed

80%

of t

he to

tal p

rodu

ctio

n co

st o

f the

cin

emat

ogra

phic

w

ork.

A

rtic

le 7

– R

ight

s of c

o-pr

oduc

ers

1

The

co-p

rodu

ctio

n co

ntra

ct m

ust g

uara

ntee

to e

ach

co-p

rodu

cer j

oint

ow

ners

hip

of th

e or

igin

al

pict

ure

and

soun

d ne

gativ

e. T

he c

ontr

act s

hall

incl

ude

the

prov

isio

n th

at th

is n

egat

ive

shal

l be

kept

in a

pla

ce m

utua

lly a

gree

d by

the

co-p

rodu

cers

, and

shal

l gua

rant

ee th

em fr

ee a

cces

s to

it.

2

The

co-p

rodu

ctio

n co

ntra

ct

mus

t al

so

guar

ante

e to

ea

ch

co-p

rodu

cer

the

right

to

an

in

tern

egat

ive

or to

any

oth

er m

ediu

m o

f dup

licat

ion.

177

5 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

Art

icle

8 –

Tec

hnic

al a

nd a

rtis

tic p

artic

ipat

ion

1

The

cont

ribut

ion

of e

ach

of t

he c

o-pr

oduc

ers

shal

l in

clud

e ef

fect

ive

tech

nica

l an

d ar

tistic

pa

rtic

ipat

ion.

In p

rinci

ple,

and

in a

ccor

danc

e w

ith in

tern

atio

nal o

blig

atio

ns b

indi

ng th

e Pa

rtie

s, th

e co

ntrib

utio

n of

the

co-p

rodu

cers

rel

atin

g to

cre

ativ

e, te

chni

cal a

nd a

rtis

tic p

erso

nnel

, cas

t an

d fa

cilit

ies,

mus

t be

prop

ortio

nal t

o th

eir i

nves

tmen

t.

2 Su

bjec

t to

the

int

erna

tiona

l ob

ligat

ions

bin

ding

the

Par

ties

and

to t

he d

eman

ds o

f th

e sc

reen

play

, the

tec

hnic

al a

nd c

raft

team

inv

olve

d in

film

ing

the

wor

k m

ust

be m

ade

up o

f na

tiona

ls o

f th

e St

ates

whi

ch a

re p

artn

ers

in t

he c

o-pr

oduc

tion,

and

pos

t-pro

duct

ion

shal

l no

rmal

ly b

e ca

rrie

d ou

t in

thos

e St

ates

.

A

rtic

le 9

– F

inan

cial

co-p

rodu

ctio

ns

1

Not

with

stan

ding

the

pro

visi

ons

of A

rtic

le 8

, and

sub

ject

to

the

spec

ific

cond

ition

s an

d lim

its

laid

dow

n in

the

law

s and

regu

latio

ns in

forc

e in

the

Part

ies,

co-p

rodu

ctio

ns m

ay b

e gr

ante

d co

-pr

oduc

tion

stat

us u

nder

the

pro

visi

ons

of t

his

Con

vent

ion

if th

ey m

eet

the

follo

win

g co

nditi

ons:

a in

clud

e on

e or

mor

e m

inor

ity c

ontr

ibut

ions

whi

ch m

ay b

e fin

anci

al o

nly,

in a

ccor

danc

e w

ith th

e co

-pro

duct

ion

cont

ract

, pro

vide

d th

at e

ach

natio

nal s

hare

is n

eith

er le

ss th

an 1

0%

nor m

ore

than

25%

of t

he p

rodu

ctio

n co

sts;

b in

clud

e a

maj

ority

co-

prod

ucer

who

mak

es a

n ef

fect

ive

tech

nica

l and

art

istic

con

trib

utio

n an

d sa

tisfie

s th

e co

nditi

ons

for

the

cine

mat

ogra

phic

wor

k to

be

reco

gnis

ed a

s a

natio

nal

wor

k in

his

cou

ntry

;

c

help

to p

rom

ote

a Eu

rope

an id

entit

y; a

nd

d ar

e em

bodi

ed in

co-

prod

uctio

n co

ntra

cts

whi

ch in

clud

e pr

ovis

ions

for

the

dist

ribut

ion

of

rece

ipts

.

2 Fi

nanc

ial

co-p

rodu

ctio

ns s

hall

only

qua

lify

for

co-p

rodu

ctio

n st

atus

onc

e th

e co

mpe

tent

au

thor

ities

hav

e gi

ven

thei

r ap

prov

al in

eac

h in

divi

dual

cas

e, in

par

ticul

ar ta

king

into

acc

ount

th

e pr

ovis

ions

of A

rtic

le 1

0 be

low

.

A

rtic

le 1

0 –

Gen

eral

bal

ance

1 A

gen

eral

bal

ance

mus

t be

mai

ntai

ned

in t

he c

inem

atog

raph

ic r

elat

ions

of

the

Part

ies,

with

re

gard

bot

h to

the

tot

al a

mou

nt i

nves

ted

and

the

artis

tic a

nd t

echn

ical

par

ticip

atio

n in

co-

prod

uctio

n ci

nem

atog

raph

ic w

orks

.

2 A

Par

ty w

hich

, ove

r a

reas

onab

le p

erio

d, o

bser

ves

a de

ficit

in it

s co

-pro

duct

ion

rela

tions

with

on

e or

mor

e ot

her

Part

ies

may

, with

a v

iew

to

mai

ntai

ning

its

cultu

ral i

dent

ity, w

ithho

ld it

s ap

prov

al o

f a s

ubse

quen

t co-

prod

uctio

n un

til b

alan

ced

cine

mat

ogra

phic

rel

atio

ns w

ith th

at o

r th

ose

Part

ies h

ave

been

rest

ored

.

A

rtic

le 1

1 –

Entr

y an

d re

side

nce

In a

ccor

danc

e w

ith th

e la

ws

and

regu

latio

ns a

nd in

tern

atio

nal o

blig

atio

ns in

forc

e, e

ach

Part

y sh

all f

acili

tate

ent

ry a

nd r

esid

ence

, as

wel

l as

the

gran

ting

of w

ork

perm

its in

its

terr

itory

, of

tech

nica

l and

art

istic

per

sonn

el f

rom

oth

er P

artie

s pa

rtic

ipat

ing

in a

co-

prod

uctio

n. S

imila

rly,

each

Par

ty s

hall

perm

it th

e te

mpo

rary

im

port

and

re-

expo

rt o

f eq

uipm

ent

nece

ssar

y to

the

pr

oduc

tion

and

dist

ribut

ion

of c

inem

atog

raph

ic w

orks

fal

ling

with

in t

he s

cope

of

this

C

onve

ntio

n.

6 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

Art

icle

12

– C

redi

ts o

f co-

prod

ucin

g co

untr

ies

1

Co-

prod

ucin

g co

untr

ies s

hall

be c

redi

ted

in c

o-pr

oduc

ed c

inem

atog

raph

ic w

orks

.

2 Th

e na

mes

of t

hese

cou

ntrie

s sh

all b

e cl

early

men

tione

d in

the

cred

it tit

les,

in a

ll pu

blic

ity a

nd

prom

otio

n m

ater

ial a

nd w

hen

the

cine

mat

ogra

phic

wor

ks a

re b

eing

show

n.

Art

icle

13

– Ex

port

W

hen

a co

-pro

duce

d ci

nem

atog

raph

ic w

ork

is e

xpor

ted

to a

cou

ntry

whe

re i

mpo

rts

of

cine

mat

ogra

phic

wor

ks a

re s

ubje

ct t

o qu

otas

, and

one

of

the

co-p

rodu

cing

Par

ties

does

not

ha

ve th

e rig

ht o

f fre

e en

try

for h

is ci

nem

atog

raph

ic w

orks

to th

e im

port

ing

coun

try:

a

the

cine

mat

ogra

phic

wor

k sh

all n

orm

ally

be

adde

d to

the

quot

a of

the

coun

try

whi

ch h

as

the

maj

ority

par

ticip

atio

n;

b in

the

cas

e of

a c

inem

atog

raph

ic w

ork

whi

ch c

ompr

ises

an

equa

l pa

rtic

ipat

ion

from

di

ffere

nt c

ount

ries,

the

cine

mat

ogra

phic

wor

k sh

all b

e ad

ded

to th

e qu

ota

of th

e co

untr

y w

hich

has

the

best

opp

ortu

nitie

s for

exp

ortin

g to

the

impo

rtin

g co

untr

y;

c w

hen

the

prov

isio

ns

of

sub-

para

grap

hs

a an

d b

abov

e ca

nnot

be

ap

plie

d,

the

cine

mat

ogra

phic

wor

k sh

all

be e

nter

ed i

n th

e qu

ota

of t

he P

arty

whi

ch p

rovi

des

the

dire

ctor

.

A

rtic

le 1

4 –

Lang

uage

s

W

hen

acco

rdin

g co

-pro

duct

ion

stat

us, t

he c

ompe

tent

aut

horit

y of

a P

arty

may

dem

and

from

th

e co

-pro

duce

r es

tabl

ishe

d th

erei

n a

final

ver

sion

of t

he c

inem

atog

raph

ic w

ork

in o

ne o

f the

la

ngua

ges o

f tha

t Par

ty.

Art

icle

15

– Fe

stiv

als

Unl

ess

the

co-p

rodu

cers

dec

ide

othe

rwis

e, c

o-pr

oduc

ed c

inem

atog

raph

ic w

orks

shal

l be

show

n at

inte

rnat

iona

l fes

tival

s by

the

Part

y w

here

the

maj

ority

co-

prod

ucer

is e

stab

lishe

d, o

r, in

the

case

of e

qual

fina

ncia

l par

ticip

atio

n, b

y th

e Pa

rty

whi

ch p

rovi

des t

he d

irect

or.

Cha

pter

III –

Fin

al p

rovi

sion

s

A

rtic

le 1

6 –

Sign

atur

e, ra

tific

atio

n, a

ccep

tanc

e, a

ppro

val

1

This

Con

vent

ion

shal

l be

open

for s

igna

ture

by

the

mem

ber S

tate

s of t

he C

ounc

il of

Eur

ope

and

the

othe

r Sta

tes

part

y to

the

Euro

pean

Cul

tura

l Con

vent

ion

whi

ch m

ay e

xpre

ss th

eir c

onse

nt to

be

bou

nd b

y:

a si

gnat

ure

with

out r

eser

vatio

n as

to ra

tific

atio

n, a

ccep

tanc

e or

app

rova

l; or

178

7 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

b si

gnat

ure

subj

ect

to

ratif

icat

ion,

ac

cept

ance

or

ap

prov

al,

follo

wed

by

ra

tific

atio

n,

acce

ptan

ce o

r app

rova

l.

2 In

stru

men

ts o

f ra

tific

atio

n, a

ccep

tanc

e or

app

rova

l sh

all

be d

epos

ited

with

the

Sec

reta

ry

Gen

eral

of t

he C

ounc

il of

Eur

ope.

A

rtic

le 1

7 –

Entr

y in

to fo

rce

1

The

Con

vent

ion

shal

l ent

er in

to fo

rce

on th

e fir

st d

ay o

f the

mon

th fo

llow

ing

the

expi

ratio

n of

a

perio

d of

thr

ee m

onth

s af

ter

the

date

on

whi

ch f

ive

Stat

es, i

nclu

ding

at

leas

t fo

ur m

embe

r St

ates

of t

he C

ounc

il of

Eur

ope,

hav

e ex

pres

sed

thei

r con

sent

to b

e bo

und

by th

e C

onve

ntio

n in

ac

cord

ance

with

the

prov

isio

ns o

f Art

icle

16.

2 In

resp

ect o

f any

sign

ator

y St

ate

whi

ch su

bseq

uent

ly e

xpre

sses

its c

onse

nt to

be

boun

d by

it, t

he

Con

vent

ion

shal

l ent

er in

to f

orce

on

the

first

day

of

the

mon

th f

ollo

win

g th

e ex

pira

tion

of a

pe

riod

of t

hree

mon

ths

afte

r th

e da

te o

f si

gnat

ure

or o

f th

e de

posi

t of

the

ins

trum

ent

of

ratif

icat

ion,

acc

epta

nce

or a

ppro

val.

Art

icle

18

– A

cces

sion

of n

on-m

embe

r Sta

tes

1

Afte

r th

e en

try

into

for

ce o

f th

is C

onve

ntio

n, t

he C

omm

ittee

of

Min

iste

rs o

f th

e C

ounc

il of

Eu

rope

may

invi

te a

ny E

urop

ean

Stat

e no

t a m

embe

r of

the

Cou

ncil

of E

urop

e as

wel

l as

the

Euro

pean

Eco

nom

ic C

omm

unity

to

acce

de t

o th

is C

onve

ntio

n, b

y a

deci

sion

tak

en b

y th

e m

ajor

ity p

rovi

ded

for

in A

rtic

le 2

0.d

of t

he S

tatu

te o

f th

e C

ounc

il of

Eur

ope,

and

by

the

unan

imou

s vot

e of

the

repr

esen

tativ

es o

f the

Con

trac

ting

Stat

es e

ntitl

ed to

sit o

n th

e C

omm

ittee

of

Min

iste

rs.

2

In r

espe

ct o

f any

acc

edin

g St

ate

or o

f the

Eur

opea

n Ec

onom

ic C

omm

unity

, in

the

even

t of i

ts

acce

ssio

n, t

he C

onve

ntio

n sh

all

ente

r in

to f

orce

on

the

first

day

of

the

mon

th f

ollo

win

g th

e ex

pira

tion

of a

per

iod

of th

ree

mon

ths

afte

r th

e da

te o

f dep

osit

of th

e in

stru

men

t of a

cces

sion

w

ith th

e Se

cret

ary

Gen

eral

of t

he C

ounc

il of

Eur

ope.

A

rtic

le 1

9 –

Terr

itori

al cl

ause

1 A

ny S

tate

may

, at

the

tim

e of

sig

natu

re o

r w

hen

depo

sitin

g its

ins

trum

ent

of r

atifi

catio

n,

acce

ptan

ce, a

ppro

val o

r ac

cess

ion,

spe

cify

the

terr

itory

or

terr

itorie

s to

whi

ch th

is C

onve

ntio

n sh

all a

pply

.

2 A

ny P

arty

may

, at

any

late

r da

te, b

y a

decl

arat

ion

addr

esse

d to

the

Secr

etar

y G

ener

al o

f th

e C

ounc

il of

Eur

ope,

ext

end

the

appl

icat

ion

of th

is C

onve

ntio

n to

any

oth

er te

rrito

ry s

peci

fied

in

the

decl

arat

ion.

In

resp

ect

of s

uch

terr

itory

, the

Con

vent

ion

shal

l ent

er in

to f

orce

on

the

first

da

y of

the

mon

th fo

llow

ing

the

expi

ratio

n of

a p

erio

d of

thre

e m

onth

s af

ter

the

date

of r

ecei

pt

of su

ch d

ecla

ratio

n by

the

Secr

etar

y G

ener

al.

3

Any

dec

lara

tion

mad

e un

der

the

two

prec

edin

g pa

ragr

aphs

may

, in

resp

ect

of a

ny t

errit

ory

spec

ified

in

such

dec

lara

tion,

be

with

draw

n by

a n

otifi

catio

n ad

dres

sed

to t

he S

ecre

tary

G

ener

al. T

he w

ithdr

awal

sha

ll be

com

e ef

fect

ive

on t

he f

irst

day

of t

he m

onth

fol

low

ing

the

expi

ratio

n of

a p

erio

d of

thr

ee m

onth

s af

ter

the

date

of

rece

ipt

of s

uch

notif

icat

ion

by t

he

Secr

etar

y G

ener

al.

8 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

Art

icle

20

– R

eser

vatio

ns

1

Any

Sta

te m

ay,

at t

he t

ime

of s

igna

ture

or

whe

n de

posi

ting

its i

nstr

umen

t of

rat

ifica

tion,

ac

cept

ance

, ap

prov

al o

r ac

cess

ion,

dec

lare

tha

t A

rtic

le 2

, pa

ragr

aph

4, d

oes

not

appl

y to

its

bi

late

ral c

o-pr

oduc

tion

rela

tions

with

one

or m

ore

Part

ies.

Mor

eove

r, it

may

rese

rve

the

right

to

fix a

max

imum

par

ticip

atio

n sh

are

diffe

rent

from

that

laid

dow

n in

Art

icle

9, p

arag

raph

1.a

. No

othe

r res

erva

tion

may

be

mad

e.

2

Any

Par

ty w

hich

has

mad

e a

rese

rvat

ion

unde

r the

pre

cedi

ng p

arag

raph

may

who

lly o

r par

tly

with

draw

it b

y m

eans

of

a no

tific

atio

n ad

dres

sed

to t

he S

ecre

tary

Gen

eral

of

the

Cou

ncil

of

Euro

pe.

The

with

draw

al s

hall

take

effe

ct o

n th

e da

te o

f re

ceip

t of

suc

h no

tific

atio

n by

the

Se

cret

ary

Gen

eral

.

A

rtic

le 2

1 –

Den

unci

atio

n

1 A

ny P

arty

may

, at a

ny ti

me,

den

ounc

e th

is C

onve

ntio

n by

mea

ns o

f a n

otifi

catio

n ad

dres

sed

to

the

Secr

etar

y G

ener

al o

f the

Cou

ncil

of E

urop

e.

2

Such

den

unci

atio

n sh

all b

ecom

e ef

fect

ive

on th

e fir

st d

ay o

f the

mon

th fo

llow

ing

the

expi

ratio

n of

a p

erio

d of

six

mon

ths a

fter t

he d

ate

of re

ceip

t of t

he n

otifi

catio

n by

the

Secr

etar

y G

ener

al.

Art

icle

22

– N

otif

icat

ions

The

Secr

etar

y G

ener

al o

f the

Cou

ncil

of E

urop

e sh

all n

otify

the

mem

ber S

tate

s of t

he C

ounc

il, a

s wel

l as

any

Sta

te a

nd th

e Eu

rope

an E

cono

mic

Com

mun

ity w

hich

may

acc

ede

to th

is C

onve

ntio

n or

may

be

invi

ted

to d

o so

, of:

a an

y si

gnat

ure;

b

the

depo

sit o

f any

inst

rum

ent o

f rat

ifica

tion,

acc

epta

nce,

app

rova

l or a

cces

sion

;

c

any

date

of e

ntry

into

forc

e of

this

Con

vent

ion

in a

ccor

danc

e w

ith A

rtic

les 1

7, 1

8 an

d 19

;

d

any

decl

arat

ion

mad

e in

acc

orda

nce

with

Art

icle

5, p

arag

raph

5;

e an

y de

nunc

iatio

n no

tifie

d in

acc

orda

nce

with

Art

icle

21;

f

any

othe

r act

, not

ifica

tion

or c

omm

unic

atio

n re

latin

g to

this

Con

vent

ion.

In

w

itnes

s w

here

of

the

unde

rsig

ned,

be

ing

duly

au

thor

ised

th

eret

o,

have

si

gned

th

is

Con

vent

ion.

D

one

at S

tras

bour

g, t

his

2nd

day

of O

ctob

er 1

992,

in

Engl

ish

and

Fren

ch, b

oth

text

s be

ing

equa

lly a

uthe

ntic

, in

a si

ngle

cop

y w

hich

sha

ll be

dep

osite

d in

the

arch

ives

of

the

Cou

ncil

of

Euro

pe. T

he S

ecre

tary

Gen

eral

of

the

Cou

ncil

of E

urop

e sh

all t

rans

mit

cert

ified

cop

ies

to th

e St

ates

men

tione

d in

Art

icle

16,

par

agra

ph 1

, as

wel

l as

to

any

Stat

e an

d to

the

Eur

opea

n Ec

onom

ic C

omm

unity

whi

ch m

ay b

e in

vite

d to

acc

ede

to th

is C

onve

ntio

n.

179

9 ET

S 14

7 –

Cine

mat

ogra

phic

Co-p

rodu

ctio

n, 2

.X.1

992

App

endi

x I –

App

licat

ion

proc

edur

e

In

ord

er to

ben

efit

from

the

prov

isio

ns o

f thi

s C

onve

ntio

n, th

e co

-pro

duce

rs e

stab

lishe

d in

the

Part

ies

mus

t, tw

o m

onth

s be

fore

sho

otin

g co

mm

ence

s, su

bmit

an a

pplic

atio

n fo

r co-

prod

uctio

n st

atus

and

atta

ch t

he d

ocum

ents

lis

ted

belo

w.

Thes

e do

cum

ents

mus

t re

ach

the

com

pete

nt

auth

oriti

es in

suf

ficie

nt n

umbe

r fo

r th

em t

o be

com

mun

icat

ed t

o th

e au

thor

ities

of

the

othe

r Pa

rtie

s at t

he la

test

one

mon

th b

efor

e sh

ootin

g co

mm

ence

s:

–

a co

py o

f the

con

trac

t for

the

purc

hase

of t

he c

opyr

ight

or

any

othe

r pr

oof o

f pur

chas

e of

th

e co

pyrig

ht fo

r the

com

mer

cial

exp

loita

tion

of th

e w

ork;

–

a de

taile

d sc

ript;

– a

list o

f the

tech

nica

l and

art

istic

con

trib

utio

ns fr

om e

ach

of th

e co

untr

ies i

nvol

ved;

–

an e

stim

ate

and

a de

taile

d fin

anci

ng p

lan;

–

a pr

oduc

tion

sche

dule

of t

he c

inem

atog

raph

ic w

ork;

–

the

co-p

rodu

ctio

n co

ntra

ct m

ade

betw

een

the

co-p

rodu

cers

. Thi

s co

ntra

ct m

ust

incl

ude

clau

ses p

rovi

ding

for t

he d

istr

ibut

ion

of re

ceip

ts o

r ter

ritor

ies b

etw

een

the

co-p

rodu

cers

.

Th

e ap

plic

atio

n an

d ot

her

docu

men

ts s

hall

be p

rese

nted

, if

poss

ible

, in

the

lang

uage

of

the

com

pete

nt a

utho

ritie

s to

whi

ch th

ey a

re su

bmitt

ed.

The

com

pete

nt n

atio

nal

auth

oriti

es s

hall

send

eac

h ot

her

the

appl

icat

ion

and

atta

ched

do

cum

enta

tion

once

the

y ha

ve b

een

rece

ived

. The

com

pete

nt a

utho

rity

of t

he P

arty

with

the

min

ority

fin

anci

al p

artic

ipat

ion

shal

l not

giv

e its

app

rova

l unt

il th

e op

inio

n of

the

Part

y w

ith

the

maj

ority

fina

ncia

l par

ticip

atio

n ha

s bee

n re

ceiv

ed.

10

ETS

147

– Ci

nem

atog

raph

ic Co

-pro

duct

ion,

2.X

.199

2 A

ppen

dix

II

1

A c

inem

atog

raph

ic w

ork

qual

ifies

as

Euro

pean

in

the

sens

e of

Art

icle

3,

para

grap

h 3,

if

it ac

hiev

es a

t lea

st 1

5 po

ints

out

of a

pos

sibl

e to

tal o

f 19,

acc

ordi

ng to

the

sche

dule

of E

urop

ean

elem

ents

set o

ut b

elow

.

2 H

avin

g re

gard

to

the

dem

ands

of

the

scre

enpl

ay,

the

com

pete

nt a

utho

ritie

s m

ay,

afte

r co

nsul

ting

toge

ther

, and

if th

ey c

onsi

der t

hat t

he w

ork

none

thel

ess r

efle

cts a

Eur

opea

n id

entit

y,

gran

t co-

prod

uctio

n st

atus

to th

e w

ork

with

a n

umbe

r of p

oint

s les

s tha

n th

e no

rmal

ly re

quire

d 15

poi

nts.

Eu

rope

an e

lem

ents

C

reat

ive

grou

p

Dire

ctor

Sc

riptw

riter

C

ompo

ser

Perf

orm

ing

grou

p Fi

rst r

ole

Seco

nd ro

le

Third

role

Tech

nica

l cra

ft gr

oup

Cam

eram

an

Soun

d re

cord

ist

Edito

r A

rt d

irect

or

Stud

io o

r sho

otin

g lo

catio

n Po

st-p

rodu

ctio

n lo

catio

n

W

eigh

ting

Poin

ts

3

3

1

__

___

7

3

2

1

__

___

6

1

1

1

1

1

1

__

___

6

N

.B.

a Fi

rst,

seco

nd a

nd th

ird ro

les a

re d

eter

min

ed b

y nu

mbe

r of d

ays w

orke

d.

b So

far

as

Art

icle

8 is

con

cern

ed, “

artis

tic”

refe

rs t

o th

e cr

eativ

e an

d pe

rfor

min

g gr

oups

, “t

echn

ical

” re

fers

to th

e te

chni

cal a

nd cr

aft g

roup

.

____

____

__

180

Euro

pean

Con

vent

ion

on C

inem

atog

raph

ic C

o-Pr

oduc

tion

(ETS

no.

147

)

Expl

anat

ory

Repo

rt

Euro

pean

cul

tura

l co-

oper

atio

n in

the

cine

ma

field

take

s pl

ace

prim

arily

thro

ugh

co-p

rodu

ctio

ns. I

nth

ese

join

t ef

forts

to s

uppo

rt c

reat

ion

(for

a lo

ng ti

me

exc

lusi

vely

bila

tera

l, a

lthou

ghno

win

crea

sing

ly m

ultil

ater

al),

the

rule

s go

vern

ing

stat

e su

ppor

t for

film

pro

duct

ion

are

not a

lway

s th

esa

me.

The

mai

n ob

ject

ives

of t

his

conv

entio

n ar

e to

, min

imis

e th

ese

diffe

renc

es a

nd to

har

mon

ise

mul

tilat

eral

rela

tions

bet

wee

n st

ates

whe

n th

ey d

ecid

e to

co-

prod

uce

a fil

m.

Des

igne

d to

enc

oura

ge th

e de

velo

pmen

t of f

ilm c

o-pr

oduc

tions

in E

urop

e, th

e co

nven

tion

tries

tosi

mpl

ify p

roce

dure

s an

d pr

oduc

tion

on th

e ba

sis

of c

riter

ia e

stab

lishe

d by

the

Eurim

ages

fund

(aEu

rope

an fu

nd s

et u

p w

ithin

the

fram

ewor

k of

the

Cou

ncil

of E

urop

e in

198

8 in

ord

er to

sup

port

co-p

rodu

ctio

ns a

nd th

e di

strib

utio

n of

film

and

aud

iovi

sual

pro

duct

ions

). It

als

o co

nstit

utes

a s

tep

forw

ard

in lo

wer

ing

the

thre

shol

d of

fina

ncia

l par

ticip

atio

n in

co-

prod

uctio

ns a

nd a

lso,

in p

erm

ittin

gfin

anci

al c

o-pr

oduc

tions

, pro

vide

d th

ese

prom

ote

Euro

pean

iden

tity.

Thi

s re

quire

men

t con

cern

ing

iden

tity

is in

som

e re

spec

ts th

e gu

idin

g pr

inci

ple

of th

e co

nven

tion,

whi

ch is

insp

ired

by a

ver

satil

ebu

t uni

fied

visi

on o

f Eur

opea

n fil

m p

rodu

ctio

n.

Introduction

Cin

emat

ogra

phic

pro

duct

ion

in E

urop

e is

ess

entia

lly a

n a

ctiv

ity c

arrie

d o

ut o

n a

nat

iona

l bas

is.

Ling

uist

ic a

nd c

ultu

ral d

iffer

ence

s ha

ve re

sulte

d in

eac

h na

tion

crea

ting

its o

wn

cine

ma,

eac

h w

ithits

ow

n c

lear

ly d

efin

ed c

hara

cter

istic

s. T

he d

iffer

ing

trad

ition

s ty

pify

ing

Ital

ian,

Brit

ish

or

Fren

chci

nem

a, fo

r exa

mpl

e, a

re re

adily

iden

tifia

ble.

This

situ

atio

n ha

s le

d to

the

conc

eptio

n of

film

s ta

rget

ed fi

rst a

nd fo

rem

ost a

t nat

iona

l mar

kets

.Of

cour

se,

the

qua

lity

and

val

ue o

f so

me

pro

duct

ions

has

resu

lted

in th

eir

bein

g m

ore

wid

ely

dist

ribut

ed. N

eo-re

alis

m, t

he g

reat

Ital

ian

com

edie

s, N

ouve

lle V

ague

and

the

Briti

sh F

ree

Cin

ema,

to c

ite b

ut a

few

exa

mpl

es, h

ave

been

hai

led

far

beyo

nd th

e fro

ntie

rs o

f the

ir co

untri

es o

f orig

in.

They

wer

e, h

owev

er, p

rodu

ced

with

fina

ncin

g th

at to

ok a

ccou

nt p

rinci

pally

of n

atio

nal m

arke

ts.

The

deve

lopm

ent o

f tel

evis

ion

caus

ed a

mar

ked

drop

in c

inem

a at

tend

ance

dur

ing

the

1960

s an

d19

70s.

The

nat

ural

sou

rce

of

film

fina

ncin

g, fr

om b

ox-o

ffice

taki

ngs,

bec

ame

less

and

less

relia

ble.

A c

onsi

dera

ble

incr

ease

in p

rodu

ctio

n c

osts

furth

er in

crea

sed

the

diff

icul

ties.

With

natio

nal

mar

kets

ofte

n n

o lo

nger

suf

ficie

nt to

fina

nce

pro

duct

ions

- u

nlik

e th

e U

nite

d S

tate

sdo

mes

tic m

arke

t, w

hich

has

a p

opul

atio

n o

f 25

0 m

illion

, th

e g

reat

maj

ority

of

who

m s

peak

the

sam

e la

ngua

ge -

Eur

opea

n fi

lm p

rodu

cers

turn

ed to

co-

prod

uctio

ns.

Thes

e re

quire

apr

ior

agre

emen

t be

twee

n s

tate

s, e

ach

of

whi

ch a

ccor

ds it

s n

atio

nalit

y to

film

s p

rodu

ced

by

bot

hco

untri

es. I

n th

is w

ay, a

pro

duct

ion

can

take

adv

anta

ge o

f the

ben

efits

gra

nted

to n

atio

nal w

orks

and

attra

ct p

rivat

e or

pub

lic fi

nanc

ing

in b

oth

coun

tries

. The

firs

t agr

eem

ent o

f thi

s ty

pe, w

hich

set

the

patte

rn, w

as s

igne

d be

twee

n Ita

ly a

nd F

ranc

e. S

ince

then

a la

rge

num

ber o

f agr

eem

ents

hav

ebe

en d

raw

n up

bet

wee

n Eu

rope

an fi

lm-p

rodu

cing

cou

ntrie

s.

In it

s cl

assi

c fo

rm,

co-p

rodu

ctio

n h

as u

ndou

bted

ly h

elpe

d E

urop

ean

cin

ema

to s

urvi

ve. I

t do

es,

how

ever

, hav

e its

lim

itatio

ns, a

nd m

ay le

ad to

und

esira

ble

side

-effe

cts.

Sin

ce it

cal

ls fo

r tec

hnic

al

1 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

and

arti

stic

par

ticip

atio

n c

omm

ensu

rate

with

fina

ncin

g, it

has

led

to th

e c

reat

ion

of

artif

icia

llyco

ncei

ved

wor

ks in

whi

ch a

ctor

s a

nd te

chni

cian

s a

re s

ome-

tim

es c

hose

n m

ore

for

thei

rna

tiona

lity

than

for r

easo

ns c

onne

cted

with

the

cohe

renc

e of

the

film

.

Whi

le a

ppro

pria

te fo

r bila

tera

l rel

atio

ns, c

o-pr

oduc

tion

agre

emen

ts h

ave

also

bee

n us

ed to

set

up

co-p

rodu

ctio

ns in

volv

ing

mor

e th

an tw

o c

ount

ries.

In fa

ct,

mos

t su

ch a

gree

men

ts e

xpre

ssly

prov

ide

for

that

pos

sibi

lity.

How

ever

, bila

tera

l agr

eem

ents

are

not

sta

ndar

dise

d, a

nd le

ave

room

for d

ispa

ritie

s, w

ith th

e da

nger

that

one

of t

he c

o-pr

oduc

ers

may

be

offe

red

less

favo

urab

le te

rms

than

the

othe

rs.

With

the

setti

ng u

p of

the

Cou

ncil

of E

urop

e Eu

rimag

es s

uppo

rt fu

nd, t

he n

eed

for h

arm

onis

atio

nha

s b

ecom

e u

rgen

t. In

tend

ed to

sup

port

cin

emat

ogra

phic

wor

ks c

o-pr

oduc

ed b

y p

artn

ers

esta

blis

hed

in a

t le

ast

thre

e c

ount

ries,

the

Eur

imag

es fu

nd h

as le

d to

a s

ubst

antia

l inc

reas

e in

mul

tilat

eral

co-

prod

uctio

n, w

hile

est

ablis

hing

con

ditio

ns d

iffer

ent

from

thos

e c

onta

ined

inco

-pro

duct

ion

agr

eem

ents

. Fo

r ex

ampl

e, E

urim

ages

requ

ires

onl

y 1

0% fu

ndin

g b

y o

ne o

f th

epa

rtner

s, w

here

as m

ost c

o-pr

oduc

tion

agre

emen

ts re

quire

20%

or e

ven

30%

par

ticip

atio

n.

It ha

s th

us b

ecom

e ne

cess

ary

to a

dopt

rule

s ad

apte

d to

the

who

le ra

nge

of E

urop

ean

mul

tilat

eral

co-p

rodu

ctio

ns,

whi

le n

ot o

f co

urse

cal

ling

into

que

stio

n th

e e

xist

ing

bila

tera

l re

latio

ns.

Aco

nven

tion

seem

s to

be

the

mos

t app

ropr

iate

form

of l

egal

inst

rum

ent f

or th

is p

urpo

se.

In fa

ct, a

Eur

opea

n co

nven

tion

has

the

adva

ntag

e of

pro

vidi

ng a

com

mon

lega

l bas

is, g

over

ning

the

mul

tilat

eral

cin

emat

ogra

phic

rela

tions

of a

ll th

e St

ates

Par

ties

to th

e co

nven

tion.

In s

ettin

g ou

tco

nditi

ons

for

obta

inin

g c

o-pr

oduc

tion

sta

tus

app

licab

le to

all

Stat

e P

artie

s, s

uch

a E

urop

ean

conv

entio

n e

nabl

es th

e d

raw

back

s w

hich

wou

ld re

sult

from

man

y d

iffer

ent

mul

tilat

eral

inte

rgov

ernm

enta

l agr

eem

ents

to b

e de

alt w

ith, d

raw

back

s de

rivin

g as

muc

h fro

m th

e di

spar

ityof

the

stip

ulat

ions

laid

dow

n b

y th

ese

agr

eem

ents

, as

from

the

com

plex

ity o

f th

e le

gal

rela

tions

whi

ch w

ould

ens

ue,

in p

artic

ular

, w

ith re

gard

to S

tate

s P

artie

s to

sev

eral

bila

tera

l agr

eem

ents

setti

ng o

ut d

iffer

ent

co-p

rodu

ctio

n c

ondi

tions

. A

sin

gle

con

tract

ual

inst

rum

ent

cons

titut

es;

anim

porta

nt m

eans

of d

evel

opm

ent

and

pro

mot

ion

of

co-p

rodu

ctio

ns in

Eur

ope

and

sim

plifi

es c

inem

atog

raph

icre

latio

ns b

etw

een

the

pro

duci

ng S

tate

s. In

this

resp

ect,

it s

houl

d b

e n

oted

that

the

Eur

opea

nC

onve

ntio

n on

Cin

emat

ogra

phic

Co-

prod

uctio

n ha

s an

ext

ensi

ve g

eogr

aphi

c fie

ld o

f app

licat

ion,

bein

g o

pen

to s

igna

ture

by

the

mem

ber

stat

es o

f th

e C

ounc

il of

Eur

ope

and

the

oth

er S

tate

sw

hich

are

Par

ties

to th

e Eu

rope

an C

ultu

ral C

onen

tion,

as

wel

l as

to th

e ac

cess

ion

of E

urop

ean

non-

mem

ber S

tate

s.

Furth

erm

ore,

the

poss

ibilit

y of

ass

ocia

tion

with

cou

ntrie

s su

ch a

s C

anad

a, w

hich

hav

eob

serv

erst

atus

to th

e P

arlia

men

tary

Ass

embl

y o

f th

e C

ounc

il o

f Eu

rope

, an

d w

hich

hav

e e

stab

lishe

dnu

mer

ous

cin

emat

ogra

phic

agr

eem

ents

with

Eur

opea

n c

ount

ries,

with

who

m th

ey h

ave

clo

secu

ltura

l lin

ks, i

s un

der c

onsi

dera

tion.

A n

umbe

r of

Eur

opea

n S

tate

s ha

ve n

ot a

s ye

t co

nclu

ded

mut

ual c

o-pr

oduc

tion

agr

eem

ents

. It

was

con

side

red

a g

ood

idea

to a

llow

for

bila

tera

l app

licat

ion

of

the

term

s of

the

con

vent

ion

by

thos

e S

tate

s w

ishi

ng to

do

so.

In a

cced

ing

to th

e C

onve

ntio

n, th

ose

Sta

tes

thus

ena

ble

thei

rpr

oduc

ers

to e

ngag

e in

co-

prod

uctio

ns w

ith p

artn

ers

from

any

oth

er S

tate

that

has

ratif

ied

the

Con

vent

ion.

Fina

lly, b

y au

thor

isin

g pu

rely

fina

ncia

l co-

prod

uctio

ns, t

hat i

s, c

o-pr

oduc

tions

with

out a

rtist

ic a

ndte

chni

cal

parti

cipa

tion

by

the

min

ority

co-

prod

ucer

s, th

e C

onve

ntio

n p

rovi

des

a re

spon

se to

tradi

tiona

l c

o-pr

oduc

tions

, in

whi

ch th

e p

ropo

rtion

s o

f c

ontri

butio

ns b

y d

iffer

ent

par

tner

sso

met

imes

lead

to w

hat h

ave

been

cal

led

"Eur

opud

ding

s". B

y le

avin

g th

e m

ajor

ity p

artn

er fr

ee to

reta

in fu

ll te

chni

cal

and

arti

stic

con

trol

over

the

wor

k, th

is ty

pe o

f co

-pro

duct

ion

fost

ers

the

defe

nce

of

the

var

ious

Eur

opea

n c

ount

ries'

indi

vidu

al c

ultu

ral i

dent

ities

, th

ereb

y fu

lfillin

g o

neof

the

aim

s se

t for

th in

the

Cou

ncil

of E

urop

e C

ultu

ral C

onve

ntio

n.

2 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

181

Com

mentaries

Artic

le 1

- Ai

m o

f the

Con

vent

ion

The

pur

pose

of

this

arti

cle

is to

def

ine

the

aim

of

the

Con

vent

ion,

nam

ely,

the

pro

mot

ion

ofEu

rope

an c

inem

atog

raph

ic c

o-pr

oduc

tions

.

The

Par

ties

did

not

wis

h to

ext

end

the

sco

pe o

f th

e C

onve

ntio

n to

aud

iovi

sual

wor

ks b

ecau

seth

ese

are

not n

orm

ally

gov

erne

d by

co-

prod

uctio

n ag

reem

ents

con

clud

ed b

etw

een

Stat

es. T

here

is th

us n

o ne

ed to

har

mon

ise

the

inte

rnat

iona

l rul

es c

once

rnin

g th

em.

Artic

le 2

- Sc

ope

1. T

he C

onve

ntio

n re

fers

to th

e fa

ct th

at th

e c

onve

ntio

n in

stitu

tes

rule

s o

f in

tern

atio

nal

law

inte

nded

to g

over

n re

latio

ns b

etw

een

Sta

tes

with

rega

rd to

cin

emat

ogra

phic

co-

prod

uctio

nar

rang

emen

ts in

volv

ing

prod

ucer

s fro

m a

t lea

st tw

o St

ates

. The

Con

vent

ion

may

als

o se

rve

as a

bila

tera

l agr

eem

ent b

etw

een

two

coun

tries

whe

n no

bila

tera

l co-

prod

uctio

n ag

reem

ent h

as b

een

conc

lude

d b

etw

een

them

and

whe

n th

ey h

ave

not

dec

ided

aga

inst

mak

ing

a re

serv

atio

nun

der

Artic

le 2

0.

It h

as b

een

agr

eed

that

the

wor

ds "m

ultil

ater

al c

o-pr

oduc

tions

orig

inat

ing

in th

e te

rrito

ry o

f th

ePa

rties

" do

not

impl

y th

at th

ere

exi

sts

one

sin

gle

cer

tific

ate

of

orig

in,

but

one

per

co-

prod

ucin

gSt

ate.

The

Parti

es a

re th

ose

that

are

Par

ties

to th

e C

onve

ntio

n. T

he C

onve

ntio

n m

ay b

e in

voke

d on

ly b

ypr

oduc

ers

who

are

nat

iona

ls o

f St

ates

whi

ch a

re P

artie

s to

the

Con

vent

ion.

The

se p

rodu

cers

mus

t fur

nish

pro

of o

f the

ir or

igin

, tha

t is,

of t

heir

esta

blis

hmen

t in

one

of th

e St

ates

Par

ties

to th

eC

onve

ntio

n.

2. W

hen

the

Con

vent

ion

appl

ies

to a

mul

tilat

eral

co-

prod

uctio

n, it

may

als

o in

clud

e co

-pro

duce

rsw

ho a

re e

stab

lishe

d in

cou

ntrie

s no

t Pa

rties

to th

e C

onve

ntio

n, p

rovi

ded

that

the

co-p

rodu

ctio

nin

volv

es a

t le

ast

thre

e c

o-pr

oduc

ers

est

ablis

hed

in S

tate

s P

artie

s to

the

Con

vent

ion

and

that

thos

e co

-pro

duce

rs c

ontri

bute

at l

east

70%

of t

he fi

nanc

ing

of th

e pr

oduc

tion.

In o

rder

to c

ompl

yw

ith th

e ai

ms

set f

orth

in A

rticl

e 1

of th

e te

xt, n

amel

y, th

e pr

omot

ion

of E

urop

ean

co-p

rodu

ctio

ns,

it se

emed

nec

essa

ry to

est

ablis

h a

gen

eral

elig

ibilit

y co

nditi

on re

gard

ing

the

Euro

pean

orig

inof

the

wor

k. T

he c

riter

ia u

sed

to d

efin

e th

at o

rigin

are

set

forth

in A

rticl

e 3

and

in A

ppen

dix

11, w

hich

is a

n in

tegr

al p

art o

f the

Con

vent

ion.

3. In

the

cas

e o

f a

bila

tera

l co-

prod

uctio

n, th

e p

rovi

sion

s of

the

bila

tera

l agr

eem

ents

are

fully

appl

icab

le. I

n th

e ca

se o

f mul

tilat

eral

co-

pro

duct

ions

, the

pro

visi

ons

of th

e bi

late

ral a

gree

men

tsbe

twee

n S

tate

s P

artie

s to

the

con

vent

ion

are

app

licab

le o

nly

if th

ey d

o n

ot c

ontra

dict

the

prov

isio

ns o

f th

e C

onve

ntio

n. If

ther

e is

a d

iscr

epan

cy,

the

pro

visi

ons

of

the

Con

vent

ion

are

dire

ctly

app

licab

le a

nd o

verri

de th

e co

nflic

ting

prov

isio

ns o

f the

bila

tera

l agr

eem

ents

.

Artic

le 3

- D

efin

ition

s

a. T

he d

efin

ition

of

a "c

inem

atog

raph

ic w

ork"

repr

oduc

es th

e d

efin

ition

gen

eral

ly a

dopt

ed in

exis

ting

co-

prod

uctio

n a

gree

men

ts.

Giv

en th

e d

istri

butio

n d

iffic

ultie

s in

Eur

ope,

the

fact

that

aci

nem

atog

raph

ic c

o-pr

oduc

tion

is n

ot s

cree

ned

in a

cin

ema

doe

s n

ot c

ause

it to

lose

its

co-p

rodu

ctio

n st

atus

.

b. It

is fo

r eac

h Pa

rty to

def

ine

the

stat

us o

f a p

rodu

cer i

n ac

cord

ance

with

the

rule

s la

id d

own

for

the

pur

pose

by

that

Par

ty.

As a

gen

eral

rule

, th

e p

rodu

ctio

n e

nter

pris

e m

ust

be s

peci

fical

lyen

gage

d in

the

pro

duct

ion

of

cine

mat

ogra

phic

wor

ks,

whi

ch e

xclu

des,

int

er a

lia,

finan

cial

inst

itutio

ns.

Artic

le 4

- As

sim

ilatio

n to

nat

iona

l film

s

3 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

1. T

he c

hief

aim

of a

co-

prod

uctio

n ag

reem

ent i

s to

con

fer o

n ci

nem

atog

raph

ic w

orks

that

can

lay

clai

m to

it th

e n

atio

nalit

y of

eac

h o

f th

e p

artn

ers

in th

e c

o-pr

oduc

tion.

Wor

ks m

ay th

us b

enef

itfro

m n

atio

nal a

ids

acco

rded

to th

e ci

nem

atog

raph

ic in

dust

ry a

nd th

e ex

hibi

tion

of fi

lms.

The

y m

ayal

so b

enef

it fr

om n

atio

nal

rule

s re

gard

ing

orig

in w

here

tele

visi

on b

road

cast

ing

is c

once

rned

.C

o-pr

oduc

tion

agre

emen

ts a

lso

mak

e it

poss

ible

to e

xten

d th

e be

nefit

of t

ax e

xem

ptio

ns g

rant

edto

thes

e w

orks

in c

erta

in c

ount

ries.

Co-

prod

uctio

n w

orks

are

thus

pla

ced

on a

n eq

ual f

ootin

g w

ithna

tiona

l wor

ks w

ith re

gard

to a

cces

s to

the

adva

ntag

es a

vaila

ble

to th

e la

tter.

2. C

o-pr

oduc

tion

wor

ks a

re,

how

ever

, su

bjec

t to

the

nat

iona

l ru

les

gov

erni

ng c

inem

atog

raph

icpr

oduc

tion

and

acc

ess

to a

ids

in th

e v

ario

us c

ount

ries

that

are

par

tner

s in

the

pro

duct

ion.

By

virtu

e of

the

non-

disc

rimin

atio

n ru

le, a

co-

prod

uctio

n, e

ven

whe

re it

is a

min

ority

co-

pro

duct

ion,

cann

ot e

njoy

a s

tatu

s di

ffere

nt fr

om a

maj

ority

co-

prod

uctio

n.

How

ever

, th

e a

pplic

atio

n o

f th

e a

bove

-men

tione

d n

atio

nal

rule

s im

plie

s p

rior

pro

of o

f th

eco

nfor

mity

with

the

prov

isio

ns o

f the

con

vent

ion

(see

Arti

cle

5) o

f tho

se c

o-pr

oduc

tions

cla

imin

gth

e b

enef

its th

ereo

f. T

his

sta

tem

ent

is a

ctua

lly th

e re

sult

of

the

con

vent

ion

sys

tem

, w

hich

spec

ifies

the

cond

ition

s in

whi

ch th

e co

-pro

duct

ions

con

cern

ed a

re a

ssim

ilate

d w

ith n

atio

nal f

ilms

in o

rder

that

they

may

ben

efit

from

the

adv

anta

ges

prov

ided

by

the

dom

estic

legi

slat

ion

of

the

vario

us p

artn

er c

ount

ries

invo

lved

in th

e co

-pro

duct

ion.

Artic

le 5

- C

ondi

tions

for o

btai

ning

Co-

prod

uctio

n st

atus

1,2

and

5.

In a

ccor

danc

e w

ith th

e ru

le la

id d

own

in b

ilate

ral

co-p

rodu

ctio

n a

gree

men

ts,

reco

gniti

on o

f th

e s

tatu

s o

f co

-pro

duct

ion

requ

ires

con

sulta

tion

bet

wee

n a

nd a

ppro

val

by th

eco

mpe

tent

aut

horit

ies

of e

ach

cou

ntry

. Th

e p

urpo

se o

f th

ese

form

aliti

es is

to e

stab

lish

that

the

co-p

rodu

ctio

n c

onfo

rms

to th

e ru

les

set

forth

in th

e C

onve

ntio

n. E

ach

par

ty d

esig

nate

s th

eco

mpe

tent

aut

horit

y to

be

resp

onsi

ble

for

appl

icat

ion

of th

e C

onve

ntio

n. A

list

of s

uch

auth

oriti

esw

ill be

tran

smitt

ed to

the

Secr

etar

y G

ener

al o

f the

Cou

ncil

of E

urop

e an

d be

regu

larly

up-

date

d by

the

Parti

es.

4. A

s re

gard

s re

cogn

ition

of

the

pro

duce

rs q

ualif

icat

ions

, it

shou

ld b

e b

orne

in m

ind

that

thes

em

ay b

e o

ffici

ally

reco

gnis

ed in

som

e c

ount

ries

(by

mea

ns o

f a

sys

tem

of

prof

essi

onal

iden

tity

card

s or

list

s), b

ut th

at th

is is

not

usu

ally

the

case

. The

pur

pose

of t

he p

rovi

sion

is a

bove

ail

topr

even

t pr

oduc

ers

who

se p

rofe

ssio

nal

inco

mpe

tenc

e is

com

mon

ly a

ckno

wle

dged

and

amat

eur

prod

ucer

s fro

m m

akin

g co

-pro

duct

ions

. Com

pani

es e

xist

ing

in n

ame

only

("le

tterb

ox" c

ompa

nies

),an

d se

t up

mer

ely

to h

elp

with

the

finan

cial

bac

king

of a

giv

en m

ultil

ater

al p

roje

ct, s

houl

d al

so b

eex

clud

ed.

Artic

le 6

- Pr

opor

tions

of c

ontri

butio

ns fr

om e

ach

co-p

rodu

cer

1 .T

he a

gree

men

ts c

urre

ntly

in fo

rce

pro

vide

for

leve

ls o

f pa

rtici

patio

n b

y m

inor

ity c

ount

ries

rang

ing

from

20%

to 3

0%. T

he E

urim

ages

fund

, on

the

oth

er h

and,

pro

vide

s fo

r a

par

ticip

atio

nle

vel a

s lo

w a

s 10

%. H

owev

er, t

his

poss

ibilit

y do

es n

ot e

ntitl

e th

e co

-pro

duct

ion

to b

e ac

cord

edna

tiona

l st

atus

if th

e th

resh

old

ado

pted

for

Eurim

ages

is lo

wer

than

that

est

ablis

hed

in th

eag

reem

ents

. In

view

of t

he la

rger

num

ber o

f par

tner

s in

volv

ed in

mul

tilat

eral

co-

prod

uctio

ns, w

hich

nece

ssar

ily e

ntai

ls a

con

com

itant

low

erin

g of

par

ticip

atio

n by

the

co-p

rodu

cers

, it w

as c

onsi

dere

dap

prop

riate

to a

dopt

a m

inim

um th

resh

old

of

10%

, whi

ch w

ill a

lso

mak

e it

pos

sibl

e to

brin

g th

ere

gula

tions

into

line

with

the

pra

ctic

e a

dopt

ed a

t Eu

rimag

es.

On

the

oth

er h

and,

a p

artic

ipat

ion

low

er th

an 1

0% c

anno

t be

desc

ribed

as

a co

-pro

duct

ion,

usu

ally

mer

ely

deno

ting

a pr

e-pu

rcha

se.

With

a v

iew

to p

rese

rvin

g th

e s

tatu

s of

co-

prod

uctio

n, w

hich

gen

uine

ly b

rings

toge

ther

sev

eral

partn

ers

in a

join

t w

ork,

it w

as p

ropo

sed

that

the

maj

ority

sha

re s

houl

d b

e li

mite

d to

70%

.Be

twee

n 7

0% a

nd 8

0%,

the

maj

ority

par

ticip

atio

n th

resh

old

con

tinue

s to

be

acc

epta

ble

in th

eca

se o

f a b

ilate

ral c

o-pr

oduc

tion,

but

rule

s ou

t the

invo

lvem

ent o

f a th

ird c

o-pr

oduc

er.

How

ever

, in

the

case

of a

min

ority

par

ticip

atio

n lo

wer

than

the

tradi

tiona

l thr

esho

ld o

f 20%

, with

avi

ew to

reso

lvin

g th

e pr

oble

ms

that

aris

e pa

rticu

larly

in c

ount

ries

whe

re a

utom

atic

aid

is g

rant

ed to

4 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

182

the

co-p

rodu

cer

in fu

ll, ir

resp

ectiv

e of

the

natio

nal s

hare

in th

e co

-pro

duct

ion,

it is

pro

vide

d th

atth

e s

tate

of

orig

in o

f th

e m

inor

ity c

o-pr

oduc

er m

ay ta

ke s

teps

to li

mit

acc

ess

to n

atio

nal

mec

hani

sms

for a

id to

co-

prod

uctio

n.

2. W

here

bila

tera

l co-

prod

uctio

ns a

re c

once

rned

, 20%

and

80%

are

the

perc

enta

ges

mos

t usu

ally

reco

gnis

ed in

the

agre

emen

ts c

urre

ntly

in fo

rce.

Artic

le 7

- R

ight

s of

co-

prod

ucer

s

1 .

Sin

ce th

e o

bjec

t of

the

co-

prod

uctio

n is

to s

hare

the

righ

ts o

ver

the

orig

inal

neg

ativ

e, th

ene

gativ

e m

ust b

elon

g to

eac

h of

the

co-p

rodu

cers

. In

orde

r to

pres

erve

the

right

s of

co-

owne

rshi

pim

plie

d by

co-

prod

uctio

n, e

ach

co-p

rodu

cer m

ust b

e ab

le to

hav

e fre

e ac

cess

to th

e ne

gativ

e, s

oas

to b

e ab

le to

mak

e th

e co

pies

nec

essa

ry fo

r the

exp

loita

tion

of th

e w

ork.

2. In

ord

er to

faci

litat

e di

strib

utio

n, it

is o

ften

nece

ssar

y fo

r th

e co

-pro

duce

r to

hav

e, fo

r hi

s ow

nus

e, a

n in

tern

egat

ive

or a

ny o

ther

med

ium

whi

ch e

nabl

es th

e w

ork

to b

e re

prod

uced

. Tha

t rig

ht is

som

etim

es re

linqu

ishe

d fo

r fin

anci

al re

ason

s. In

that

cas

e, a

gree

men

t mus

t be

reac

hed

betw

een

the

vario

us c

o-pr

oduc

ers

rega

rdin

g th

e pl

ace

whe

re th

e or

igin

al n

egat

ive

is to

be

kept

.

Artic

le 8

- Te

chni

cal a

nd a

rtist

ic p

artic

ipat

ion

1. G

iven

that

the

Con

vent

ion

gra

nts

the

co-

prod

uced

wor

k th

e n

atio

nalit

ies

of

the

var

ious

coun

tries

that

are

par

tner

s in

the

co-p

rodu

ctio

n, th

at re

cogn

ition

of n

atio

nalit

y m

ust b

e re

flect

ed in

a ge

nuin

e pa

rtici

patio

n by

tech

nica

l and

arti

stic

sta

ff of

thos

e co

untri

es in

the

mak

ing

of th

e fil

m.

Such

par

ticip

atio

n m

akes

it p

ossi

ble

to c

reat

e a

link

bet

wee

n th

e c

o-pr

oduc

ed w

ork

and

the

coun

tries

who

se n

atio

nalit

y it

will

acq

uire

. Tha

t Par

ticip

atio

n m

ust l

ogic

ally

be

com

men

sura

te w

ithth

e si

ze o

f eac

h pa

rtner

cou

ntrie

s sh

are

of th

e co

-pro

duct

ion.

It is

cle

ar th

at w

here

the

finan

cial

parti

cipa

tion

fails

to b

e p

ropo

rtion

al to

the

arti

stic

and

tech

nica

l pa

rtici

patio

n th

e c

ompe

tent

auth

oriti

es m

ay e

ither

refu

se to

gra

nt c

o-pr

oduc

tion

sta

tus

to th

e p

roje

ct o

r w

ithdr

awth

eir

prov

isio

nal a

gree

men

t. T

hat

rule

is to

be

und

erst

ood

in th

e li

ght o

f th

e in

tern

atio

nal o

blig

atio

nsas

sum

ed b

y th

e v

ario

us S

tate

s Pa

rties

to th

e C

onve

ntio

n, a

nd in

par

ticul

ar, t

he ru

les

rega

rdin

gfre

e m

ovem

ent o

f wor

kers

set

forth

in th

e Tr

eaty

of R

ome.

The

con

tent

of t

he te

rms,

bot

h ar

tistic

and

tech

nica

l, is

def

ined

in A

ppen

dix

Il.

2. T

he o

blig

atio

n, e

xcep

t as

oth

erw

ise

pro

vide

d, to

use

tech

nici

ans

and

tech

nica

l in

dust

ries

esta

blis

hed

in th

e c

ount

ries

that

are

par

tner

s in

the

co-

prod

uctio

n e

nsur

es th

at it

will

not

be

poss

ible

to u

se w

orke

rs o

r tec

hnic

al in

dust

ries

enjo

ying

a le

sser

deg

ree

of p

rote

ctio

n, o

utsi

de th

efra

mew

ork

of a

co-

prod

uctio

n. T

echn

icia

ns le

gally

est

ablis

hed

in th

e co

untri

es th

at a

re p

artn

ers

inth

e co

-pro

duct

ion

are

cons

ider

ed to

be

natio

nals

of t

hese

Sta

tes.

As fa

r as

pos

t-pro

duct

ion

is c

once

rned

, th

is m

ay n

ot b

e c

arrie

d o

ut in

a c

ount

ry w

hich

is n

ot a

partn

er in

the

co-

prod

uctio

n e

xcep

t in

the

abs

ence

of

adeq

uate

tech

nica

l fa

cilit

ies

in th

ose

coun

tries

.

A St

ate

may

ass

imila

te to

its

resi

dent

s th

e re

side

nts

of c

ount

ries

belo

ngin

g to

its

cultu

ral s

pher

e.

Artic

le 9

- Fi

nanc

ial c

o-pr

oduc

tions

1 .

Whi

le th

e p

rinci

ple,

refe

rred

to in

Arti

cle

8,

of

a te

chni

cal

and

arti

stic

con

tribu

tion

com

men

sura

te w

ith th

e fi

nanc

ial i

nves

tmen

t re

mai

ns le

gitim

ate,

con

cern

s as

to th

e id

entit

y an

dfin

anci

ng o

f na

tiona

l wor

ks h

ave

led

to th

e re

tent

ion

of

an a

ltern

ativ

e m

etho

d o

f ed

iting

. Q

uite

frequ

ently

the

prin

cipl

e o

f an

arti

stic

and

tech

nica

l con

tribu

tion

com

men

sura

te w

ith th

e sh

are

infin

anci

ng m

ay le

ad to

cho

ices

that

take

gre

ater

acc

ount

of t

he re

quire

men

ts; o

f the

co-

prod

uctio

nag

reem

ent t

han

of th

e ne

ed fo

r ar

tistic

coh

eren

ce. F

urth

erm

ore,

the

grow

ing

finan

cing

nee

dsof

Euro

pean

pro

duct

ions

mea

n th

at c

o-pr

oduc

tion

is b

ecom

ing

a m

odel

gen

eral

ly a

dopt

ed e

ven

inth

e ca

se o

f pro

ject

s w

hose

insp

iratio

n de

rives

from

just

one

cou

ntry

. In

orde

r to

take

acc

ount

ofth

e ne

ed to

resp

ect t

he c

ultu

ral i

dent

ity o

f ea

ch o

f th

e St

ates

Par

ties

and

the

cohe

renc

e o

f th

e

5 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

prod

ucer

s' a

rtist

ic c

hoic

es, i

t has

bee

n pr

opos

ed th

at th

e fin

anci

al c

o-pr

oduc

tion

mod

el, w

hich

at

pres

ent

is re

cogn

ised

onl

y by

a v

ery

smal

l num

ber

of b

ilate

ral a

gree

men

ts,

shou

ld b

ecom

e th

ege

nera

l m

odel

. R

ecou

rse

to th

e p

rovi

sion

s go

vern

ing

fina

ncia

l co

-pro

duct

ions

doe

s n

otco

nfer

exem

ptio

n fr

om th

e c

ondi

tions

set

forth

in A

rticl

e 5,

par

agra

ph 4

con

cern

ing

the

invo

lvem

ent

ofbo

na fi

de c

o-pr

oduc

ers.

Fur

ther

mor

e, a

nd p

artic

ular

ly w

here

the

finan

cial

co-

prod

uctio

n gi

ves

full

entit

lem

ent

to th

e a

ids

to tr

aditi

onal

co-

prod

uctio

ns a

vaila

ble

at

natio

nal

leve

l, th

e c

ondi

tions

rega

rdin

g an

ove

rall

bala

nce

set f

orth

in A

rticl

e 10

bel

ow ta

ke o

n pa

rticu

lar i

mpo

rtanc

e.

a. W

ith re

gard

to th

e p

artic

ular

requ

irem

ents

for

fina

ncia

l co

-pro

duct

ions

, it

isco

nsid

ered

that

the

max

imum

fina

ncia

l par

ticip

atio

n s

houl

d n

ot e

xcee

d 25

%,

sinc

e it

can

be

arg

ued

that

bey

ond

that

thre

shol

d th

e fi

nanc

ial

cont

ribut

ion

of

the

min

ority

prod

ucer

is s

uch

that

tech

nica

l and

arti

stic

pro

duct

ion

will

follo

w a

s a

mat

ter o

f cou

rse.

A p

arty

is fr

ee, h

owev

er, t

o de

roga

te fr

om th

is ru

le u

nder

the

cond

ition

s la

id d

own

inAr

ticle

20.

1.

b. It

als

o fo

llow

s fr

om th

e te

xt th

at o

nly

min

ority

par

ticip

atio

ns m

ay b

e g

rant

edex

empt

ion

from

the

rule

set

forth

in A

rticl

e 8

con

cern

ing

arti

stic

and

tech

nica

lpa

rtici

patio

n. A

s th

e p

urpo

se o

f fin

anci

al c

o-pr

oduc

tions

is to

ens

ure

resp

ect

for

cultu

ral i

dent

ities

, the

arti

stic

and

tech

nica

l par

ticip

atio

n by

maj

ority

pro

duce

rs is

in fa

ctlo

gica

lly la

rger

than

the

co- p

rodu

cers

' sha

res

in th

e co

-pro

duct

ion.

d. F

urth

erm

ore,

any

fina

ncia

l co

-pro

duct

ion

mus

t be

abl

e to

pre

sent

co-

prod

uctio

nco

ntra

cts,

pro

vidi

ng fo

r th

e s

harin

g o

f in

com

e b

etw

een

all

the

co-

prod

ucer

s. T

his

self-

evid

ent

prov

isio

n is

par

ticul

arly

nec

essa

ry in

the

cas

e o

f fin

anci

al c

o-pr

oduc

tion,

so a

s to

avo

id p

artic

ipat

ion

by p

urel

y fin

anci

al in

stitu

tions

that

do

not p

artic

ipat

e in

the

risks

and

pro

fits

of

the

pro

duct

ion.

Whe

re th

ese

con

ditio

ns a

re fu

lfille

d, fi

nanc

ial

co-p

rodu

ctio

ns m

ay p

rove

a p

artic

ular

ly a

ppro

pria

te in

stru

men

t for

the

deve

lopm

ent o

fEu

rope

an c

ultu

ral i

dent

ities

. In

fact

, by

mob

ilisin

g su

bsta

ntia

l fin

anci

al re

sour

ces

from

seve

ral

Euro

pean

cou

ntrie

s w

hile

resp

ectin

g th

e n

atio

nal

iden

tity

of

the

maj

ority

prod

ucer

, w

ho is

the

real

arti

stic

driv

ing

forc

e b

ehin

d th

e w

ork,

they

will

mak

e a

real

cont

ribut

ion

to a

n ex

pres

sion

of n

atio

nal c

ultu

res

that

are

aut

hent

ic.

2. T

he c

ondi

tions

for a

utho

risat

ion

for f

inan

cial

Co-

prod

uctio

ns (w

hich

var

y ac

cord

ing

to th

e ca

se)

may

giv

e ris

e to

indi

vidu

al a

gree

men

ts b

etw

een

Stat

es.

Artic

le 1

0 - G

ener

al b

alan

ce b

etw

een

Parti

es

1 - T

he o

bjec

tive

of th

e C

onve

ntio

n is

the

deve

lopm

ent o

f the

cin

emat

ogra

phic

indu

stry

in e

ach

ofits

Sta

tes

Parti

es. T

he d

evel

opm

ent o

f co-

prod

uctio

ns is

one

of t

he m

ost e

ffect

ive

and

appr

opria

tein

stru

men

ts fo

r th

at p

urpo

se. H

owev

er, t

he d

evel

opm

ent o

f tra

ditio

nal o

r fin

anci

al c

o-pr

oduc

tions

may

in s

ome

case

s le

ad to

a la

ck o

f bal

ance

bet

wee

n a

coun

try a

nd o

ne o

r mor

e of

its

partn

ers

over

a g

iven

per

iod

of

time.

Sin

ce in

mos

t co

untri

es o

f Eu

rope

the

cin

emat

ogra

phic

indu

stry

rece

ives

sub

stan

tial

finan

cing

from

pub

lic fu

nds,

the

con

cern

of

stat

es to

pre

serv

e th

eir

own

cultu

re is

a le

gitim

ate

one.

Tha

t is

why

it w

as c

onsi

dere

d ne

cess

ary

to in

trodu

ce in

to th

e te

xt th

eco

ncep

t o

f a

n o

vera

ll b

alan

ce b

etw

een

Par

ties,

whi

ch m

ust

be

app

licab

le to

trad

ition

alco

-pro

duct

ions

and

fina

ncia

l co

-pro

duct

ions

alik

e. It

can

not

be p

art

of th

e in

tent

ion

of

the

Con

vent

ion

that

a n

atio

nal f

und

sho

uld

be

use

d to

con

tribu

te to

oth

er S

tate

s' c

inem

atog

raph

icun

derta

king

s w

here

insu

ffici

ent

reci

proc

ity

exi

sts.

Sta

tes

mus

t ne

cess

arily

be

allo

wed

som

ela

titud

e in

inte

rpre

tatio

n o

f th

e c

once

pt o

f re

cipr

ocity

whi

le b

earin

g in

min

d th

at th

e s

pirit

of

the

Con

vent

ion

calls

for a

flex

ible

and

ope

n as

sess

men

t of t

hat p

rinci

ple.

2. W

here

a P

arty

obs

erve

s a

defic

it in

its

co-p

rodu

ctio

n re

latio

ns w

ith o

ne o

r m

ore

othe

r Pa

rties

,th

at d

efic

it m

ay ta

ke s

ever

al fo

rms:

- a

Stat

e m

ay o

bser

ve a

man

ifest

imba

lanc

e be

twee

n th

e flo

w o

f nat

iona

l inv

estm

ent

to fi

nanc

e fo

reig

n fi

lms

and

the

flow

of

fore

ign

inve

stm

ent

to fi

nanc

e it

s o

wn

film

indu

stry

;

6 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

183

- it

may

als

o o

bser

ve a

n im

bala

nce

ove

r a

giv

en p

erio

d b

etw

een

the

num

ber

ofm

ajor

ity c

o-pr

oduc

tions

and

the

num

ber

of m

inor

ity c

o-pr

oduc

tions

with

one

or

mor

epa

rtner

cou

ntrie

s;

- fin

ally

, th

e im

bala

nce

may

take

the

form

of

a J

ack

of

corre

latio

n b

etw

een

use

of

dire

ctor

s an

d ar

tistic

and

tech

nica

l sta

ff on

the

one

hand

, and

the

num

ber

of m

ajor

ityan

d m

inor

ity c

o-pr

oduc

tions

on

the

othe

r.

How

ever

, the

com

pete

nt a

utho

rity

shou

ld re

fuse

to g

rant

the

stat

us o

f co-

prod

uctio

n on

ly a

s a

last

reso

rt, a

fter

the

usu

al c

hann

els

of

cons

ulta

tion

bet

wee

n th

e P

artie

s c

once

rned

hav

e b

een

exha

uste

d.

Artic

le 1

4 - L

angu

ages

With

rega

rd to

the

lang

uage

of t

he o

rigin

al v

ersi

on, i

t is

obvi

ous

that

the

spiri

t of t

he C

onve

ntio

n,w

hose

aim

is to

pro

mot

e th

e em

erge

nce

of c

o-pr

oduc

tions

refle

ctin

g th

e Eu

rope

an id

entit

y, w

hich

depe

nds

on th

e ex

pres

sion

of a

n au

then

tic n

atio

nal i

dent

ity, i

s cl

early

in fa

vour

of t

he u

se o

f the

lang

uage

cul

tura

lly s

uite

d to

the

wor

k.

Cho

osin

g to

sho

ot th

e fil

m in

a la

ngua

ge u

nrel

ated

to th

e de

man

ds o

f the

scr

eenp

lay

for

pure

lyco

mm

erci

al re

ason

s in

the

hope

- fre

quen

tly b

elie

d by

the

fact

s - o

f pen

etra

ting

the

"wor

ld m

arke

t"is

pat

ently

con

trary

to th

e re

al a

im o

f the

Con

vent

ion.

How

ever

, it h

as n

ot p

rove

d po

ssib

le to

cle

arly

form

alis

e th

is re

quire

men

t in

the

Con

vent

ion

in th

efo

rm o

f a le

gal r

ule.

The

reas

on fo

r thi

s is

that

the

lang

uage

dee

med

as

cultu

rally

app

ropr

iate

may

be d

efin

ed in

sev

eral

way

s. It

is g

ener

ally

def

ined

as

the

lang

uage

of

one

of

the

cou

ntrie

spa

rtici

patin

g in

the

co-p

rodu

ctio

n; b

ut in

a tr

ipar

tite

co-p

rodu

ctio

n, if

the

lang

uage

use

d is

that

of a

co-p

rodu

cer w

hose

sta

ke is

onl

y 10

% a

nd w

hich

has

pro

vide

d ne

ither

the

dire

ctor

, nor

the

acto

rs,

nor

the

stor

y-lin

e, th

is is

cle

arly

arti

ficia

l. Fo

rmal

isin

g th

e re

quire

men

t to

use

the

lang

uage

of t

heco

-pro

duci

ng c

ount

ries

may

, in

thes

e c

ircum

stan

ces,

enc

oura

ge th

e m

ount

ing

of

"ad

hoc

"co

-pro

duct

ions

.

In fa

ct, t

he m

ost s

uita

ble

orgi

nal v

ersi

on la

ngua

ge s

eem

s to

be

wha

t mig

ht b

e te

rmed

the

"nat

ural

lang

uage

of t

he n

arra

tive"

, the

lang

uage

whi

ch th

e ch

arac

ters

wou

ld n

atur

ally

spe

ak a

ccor

ding

toth

e d

eman

ds o

f th

e s

cree

npla

y. T

he la

ngua

ge o

f th

e n

arra

tive,

def

ined

in th

is w

ay,

may

be

com

plet

ely

unr

elat

ed to

the

fina

ncia

l se

t-up

ado

pted

by

the

co-

pro

duct

ion,

whi

ch m

eans

that

ther

e ca

n be

no

lega

l def

initi

on o

f tha

t lan

guag

e.

For

that

reas

on, i

t see

med

pre

fera

ble

to le

ave

the

Stat

es P

artie

s to

the

Con

vent

ion

entir

ely

free

on th

is p

oint

, so

that

they

cou

ld d

efin

e th

eir o

wn

expe

ctat

ions

in th

is m

atte

r.

Con

sequ

ently

, Arti

cle

14 m

erel

y pr

ovid

es th

at in

ord

er to

ena

ble

a fil

m to

be

dist

ribut

ed in

all

the

coun

tries

whi

ch c

o-pr

oduc

ed it

, the

cou

ntrie

s co

ncer

ned

may

requ

ire p

rese

ntat

ion

of a

fina

l cop

yin

thei

r ow

n la

ngua

ges,

eith

er d

ubbe

d or

sub

-title

d, d

epen

ding

on

each

cou

ntry

's c

ultu

ral c

usto

ms.

In a

ccor

danc

e w

ith th

e p

rovi

sion

s of

Arti

cle

4,

Artic

le 1

4 d

oes

not

exha

ust

the

pos

sibi

lity

for

aSt

ate

Party

to th

e C

onve

ntio

n to

lay

dow

n lin

guis

tic ru

les

rega

rdin

g ac

cess

to c

erta

in a

id s

yste

ms,

prov

ided

that

suc

h ar

rang

emen

ts a

re n

ot d

iscr

imin

ator

y in

rela

tion

to th

e na

tiona

lity

of th

e fil

m.

Artic

les

16 to

22

The

fina

l pro

visi

ons

of th

e C

onve

ntio

n d

raw

upo

n th

e m

odel

fina

l cla

uses

for

Con

vent

ions

and

Agre

emen

ts c

oncl

uded

with

in th

e C

ounc

il of

Eur

ope,

as

adop

ted

by th

e C

omm

ittee

of M

inis

ters

.

In a

ccor

danc

e w

ith A

rticl

es 1

6 an

d 18

, the

Con

vent

ion

is o

pen

for s

igna

ture

by

mem

ber S

tate

sof

the

Cou

ncil

of E

urop

e an

d th

e ot

her

Stat

es P

artie

s to

the

Euro

pean

Cul

tura

l Con

vent

ion,

as

wel

las

for

acce

ssio

n b

y no

n-m

embe

r Eu

rope

an S

tate

s. T

he g

eogr

aphi

cal s

cope

of

the

Con

vent

ion

7 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

thus

refle

cts

the

latte

r's p

urpo

se, n

amel

y th

e de

velo

pmen

t of E

urop

ean

cine

mat

ic c

o-pr

oduc

tions

.

Onl

y tw

o re

serv

atio

ns a

re p

erm

itted

by

Artic

le 2

0, o

ne w

ith a

vie

w to

non

-app

licat

ion

of A

rticl

e 4,

para

grap

h 2

, of

the

Con

vent

ion

to th

e b

ilate

ral c

o-pr

oduc

tion

rela

tions

of

the

Sta

te m

akin

g th

ere

serv

atio

n w

ith o

ne o

r m

ore

Par

ties,

the

oth

er a

llow

ing

a S

tate

to fi

x th

e m

axim

um li

mit

ofm

inor

ity p

artic

ipat

ion

rest

ricte

d to

the

fina

ncia

l co

ntrib

utio

n in

a m

anne

r ot

her

than

the

one

fore

seen

in A

rticl

e 9,

par

agra

ph 1

.a.

Appe

ndix

1

Appe

ndix

1 d

etai

ls th

ose

pra

ctic

es,

aris

ing

from

the

pro

visi

ons

of th

e b

ilate

ral a

gree

men

ts,

that

have

giv

en p

ract

ical

pro

of th

at th

ey a

re p

artic

ular

ly w

ell-s

uite

d to

thei

r obj

ectiv

e.

Appe

ndix

II

Giv

en th

at th

e ai

m o

f thi

s C

onve

ntio

n is

the

crea

tion

of E

urop

ean

cine

mat

ogra

phic

wor

ks, i

t was

cons

ider

ed n

eces

sary

to d

efin

e th

at c

once

pt a

s ob

ject

ivel

y as

pos

sibl

e, a

dopt

ing

as th

e cr

iterio

nth

e Eu

rope

an o

rigin

of t

he p

artic

ipan

ts in

the

co-p

rodu

ctio

n. T

his

is in

terp

rete

d in

the

broa

d se

nse

as re

ferri

ng to

the

est

ablis

hmen

t of

the

col

labo

rato

rs in

the

wor

k in

one

of

the

cou

ntrie

s of

the

geog

raph

ical

terri

tory

of E

urop

e, w

ithou

t dis

crim

inat

ing

betw

een

coun

tries

that

are

sig

nato

ries

toth

e co

nven

tion

and

the

othe

r Eur

opea

n co

untri

es.

The

tabl

e of

poi

nts

cont

aine

d in

App

endi

x II

is n

ot in

tend

ed to

exe

mpt

the

co-p

rodu

ced

wor

k fro

mth

e pr

ovis

ions

of A

rticl

e 8

rega

rdin

g th

e te

chni

cal a

nd a

rtist

ic p

artic

ipat

ion

of th

e va

rious

par

tner

sin

the

co-p

rodu

ctio

n. It

mer

ely

cons

titut

es a

nec

essa

ry, b

ut n

ot a

suf

ficie

nt, c

ondi

tion

for e

ligib

ility

for t

he s

tatu

s of

co-

prod

uctio

n.

The

appe

ndix

is d

ivid

ed in

to th

ree

grou

ps o

f mor

e or

less

equ

al im

porta

nce,

thou

gh p

rodu

cers

are

not

men

tione

d, s

ince

, un

der

the

pro

visi

ons

of

Artic

le 2

of

the

Con

vent

ion,

the

Eur

opea

nco

-pro

duce

d w

ork

is o

f nec

essi

ty c

ontro

lled

by c

o-pr

oduc

ers

esta

blis

hed

in o

ne o

f the

Par

ties

toth

e C

onve

ntio

n. T

he ta

ble

of p

oint

s br

eaks

dow

n th

e co

llabo

rato

rs in

the

wor

k in

to th

ree

units

: the

crea

tive

uni

t, th

e p

erfo

rmin

g u

nit

and

the

tech

nica

l un

it. In

the

firs

t un

it, e

qual

impo

rtanc

e is

acco

rded

to s

crip

t-writ

ing

and

dire

ctio

n. A

s re

gard

s th

e sc

ript,

it go

es w

ithou

t say

ing

that

the

thre

epo

ints

may

be

dis

tribu

ted,

on

the

bas

is o

f th

e n

atio

nalit

y o

f ea

ch,

betw

een

the

cre

ator

of

the

orig

inal

idea

, th

e a

dapt

or,

the

scr

iptw

riter

and

the

writ

er o

f th

e d

ialo

gues

. As

rega

rds

the

perfo

rmin

g u

nit,

cal

cula

tion

of

the

num

ber

of p

oint

s is

bas

ed o

n a

ctua

l day

s pr

esen

t du

ring

the

shoo

ting.

Fin

ally

, as

rega

rds

the

tech

nica

l cr

aft

grou

p, th

e p

oint

is a

lloca

ted

to th

e s

tudi

o, th

elo

catio

n be

ing

take

n in

to c

onsi

dera

tion

only

whe

re a

stu

dio

is n

ot u

sed.

8 of

831

.01.

2002

11:

42

Cou

ncil

of E

urop

e - E

xpla

nato

ry R

epor

t t...

emat

ogra

phic

Co-

Prod

uctio

n (E

TS n

o. 1

47)

http

://co

nven

tions

.coe

.int/T

reat

y/EN

/Rep

orts

/Htm

l/147

.htm

184

APPENDIX 5

185

186

187

188

189

190

191

192

APPENDIX 6

193

194

195

196

197

No.

219

35

FIN

LA

ND

and

FRA

NC

E

Agr

eem

ent c

once

rnin

g cin

emat

ogra

phy

(with

ann

ex).

Sign

ed

at P

aris

on 2

Feb

ruar

y 19

83

Auth

entic

texts

: Fin

nish

and

Fre

nch.

Re

giste

red

by F

inla

nd o

n 10

Jun

e 19

83.

FIN

LA

ND

Eet

FR

AN

CE

Acc

ord

ciné

mat

ogra

phiq

ue (

avec

ann

exe)

. Si

gné

à Pa

ris

le

2 fé

vrie

r 19

83

Text

es a

uthe

ntiq

ues :

finn

ois

et fr

ança

is.

Enre

gistr

é par

la F

inla

nde

le 10

juin

198

3.

Vol

. 13

17,1

-219

35

62

Uni

ted

Nat

ions

—

Trea

ty S

eries

•

Nat

ions

Uni

es —

R

ecue

il de

s Tr

aité

s 19

83

[TRA

NSLA

TION

T

RADU

CTIO

N]

AG

RE

EM

EN

T1

BE

TW

EE

N F

INL

AN

D A

ND

FR

AN

CE

CO

NC

ER

NIN

G

CIN

EM

AT

OG

RA

PHY

The

Gov

ernm

ent

of th

e R

epub

lic o

f Fi

nlan

d,T

he G

over

nmen

t of

the

Fren

ch R

epub

lic,

Bei

ng a

nxio

us t

o fa

cilit

ate

the

co-p

rodu

ctio

n of

film

s w

hich

, by

vir

tue

of th

eir

artis

tic a

nd t

echn

ical

mer

its,

are

likel

y to

enh

ance

the

pre

stig

e of

the

two

coun

trie

s,

and

to d

evel

op e

xcha

nges

of

film

s be

twee

n th

em,

Hav

e ag

reed

as

follo

ws:

I. CO

-PRO

DUCT

ION

Artic

le 1

. C

o-pr

oduc

tion

film

s co

vere

d by

this

Agr

eem

ent

shal

l be

trea

ted

as

film

s of

nat

iona

l ori

gin

by th

e au

thor

ities

of t

he tw

o co

untr

ies

in a

ccor

danc

e w

ith th

e le

gisl

ativ

e pr

ovis

ions

and

reg

ulat

ions

app

licab

le i

n th

eir

coun

try.

Such

film

s sh

all e

njoy

as

of ri

ght t

he p

rivi

lege

s ac

cord

ed to

nat

iona

l film

s un

der

text

s w

hich

are

in f

orce

or

whi

ch m

ay h

erea

fter

be

prom

ulga

ted,

whe

reby

eac

h of

the

two

Stat

es a

ccor

ds t

he f

inan

cial

pri

vile

ges

whi

ch i

t gra

nts

to th

e co

-pro

duce

r w

ho is

its

nat

iona

l.T

he m

akin

g of

co-

prod

uctio

n fil

ms

by t

he t

wo

coun

trie

s sh

all

requ

ire

the

ap

prov

al, a

fter

mut

ual c

onsu

ltatio

n, o

f the

com

pete

nt a

utho

ritie

s of

the

two

coun

trie

s:In

Fin

land

: th

e Fi

nnis

h C

inem

a Fo

unda

tion;

In F

ranc

e: t

he C

entr

e na

tiona

l de

la

cine

mat

ogra

phic

.

Artic

le 2

. In

ord

er t

o en

joy

co-p

rodu

ctio

n pr

ivile

ges,

film

s m

ust b

e m

ade

by

co-p

rodu

cers

who

hav

e an

org

aniz

atio

n an

d ex

peri

ence

rec

ogni

zed

by t

he n

atio

nal

auth

ority

.

Artic

le 3

. A

pplic

atio

ns f

or c

o-pr

oduc

tion

priv

ilege

s by

the

prod

ucer

s of

eac

h of

the

two

coun

trie

s sh

all

be d

raw

n up

with

a v

iew

to

thei

r ap

prov

al in

acc

orda

nce

with

the

pro

visi

ons

of t

he i

mpl

emen

tatio

n pr

oced

ure

set

fort

h in

the

ann

ex t

o th

is

Agr

eem

ent,

whi

ch is

an

inte

gral

par

t of

the

said

Agr

eem

ent.

App

rova

l of t

he c

o-pr

oduc

tion

of a

spe

cific

film

by

the

com

pete

nt a

utho

ritie

s of

ea

ch o

f th

e tw

o co

untr

ies

may

not

be

mad

e co

ntin

gent

upo

n th

e pr

esen

tatio

n of

seg

men

ts r

epro

duce

d fr

om s

uch

a fil

m.

Whe

n th

e co

mpe

tent

aut

hori

ties

of th

e tw

o co

untr

ies

have

giv

en th

eir

cons

ent t

o th

e co

-pro

duct

ion

of a

spe

cific

film

, tha

t con

sent

may

not

be

subs

eque

ntly

with

draw

n ex

cept

by

agre

emen

t be

twee

n th

e sa

id c

ompe

tent

aut

hori

ties.

Artic

le 4

. T

he e

cono

mic

, tec

hnic

al a

nd a

rtis

tic c

ontr

ibut

ions

of t

he p

rodu

cers

of

the

two

coun

trie

s to

a c

o-pr

oduc

tion

film

may

var

y be

twee

n 30

and

70

per

cent

.Fi

lms

mus

t be

mad

e in

the

natio

nal

lang

uage

of

one

of th

e tw

o St

ates

or

in th

e tw

o la

ngua

ges

by d

irec

tors

and

with

tech

nici

ans

and

perf

orm

ers

who

hav

e th

e st

atus

1 C

ame

into

for

ce o

n 4

Mar

ch 1

983,

i.e

., 30

day

s af

ter

the

date

of

sign

atur

e, i

n ac

cord

ance

with

art

icle

17.

Vol

. 131

7,1-

2193

5

198

1983

U

nite

d N

atio

ns —

Tr

eaty

Ser

ies •

N

atio

ns U

nies

—

Rec

ueil

des

Trai

tés

63

of F

inni

sh n

atio

nals

or

of fo

reig

ners

nor

mal

ly re

sidi

ng a

nd e

mpl

oyed

in F

inla

nd, o

r of

Fre

nch

natio

nals

or

resi

dent

s of

Fra

nce.

The

part

icip

atio

n of

a p

erfo

rmer

who

is n

ot a

nat

iona

l of o

ne o

f the

two

Stat

es

refe

rred

to in

the

prec

edin

g pa

ragr

aph

may

be

perm

itted

, in

view

of t

he fi

lm's

requ

ire

men

ts,

afte

r co

nsul

tatio

n be

twee

n th

e co

mpe

tent

aut

hori

ties

of th

e tw

o co

untr

ies.

The

com

pete

nt a

utho

ritie

s of

the

two

coun

trie

s sh

all d

eter

min

e by

mut

ual a

gree

m

ent

the

cond

ition

s fo

r pa

rtic

ipat

ion

in c

o-pr

oduc

tion

film

s by

nat

iona

ls o

f th

ird

Stat

es w

ith w

hich

ther

e ar

e ag

reem

ents

or

conv

entio

ns c

once

rnin

g fr

eedo

m o

f mov

e m

ent o

f pe

rson

s or

fre

edom

of

resi

denc

e.

Artic

le 5

. St

udio

sce

nes

mus

t be

shot

and

film

s m

ust b

e sc

ored

and

dev

elop

ed

in a

ccor

danc

e w

ith t

he f

ollo

win

g pr

ovis

ions

.St

udio

sce

nes

shal

l be

shot

pre

fera

bly

in th

e co

untr

y of

the

maj

ority

co-

prod

ucer

.In

any

cas

e, e

ach

co-p

rodu

cer

shal

l be

co-

prop

riet

or o

f th

e or

igin

al n

egat

ive

(pic

ture

and

sou

nd),

irres

pect

ive

of w

here

the

nega

tive

is ke

pt.

Eac

h co

-pro

duce

r sh

all

be e

ntitl

ed,

in a

ny c

ase,

to

an in

ter-

nega

tive

in h

is o

wn

lang

uage

. If

one

of t

he c

o-pr

oduc

ers

wai

ves

this

rig

ht, t

he n

egat

ive

shal

l be

kept

in a

pl

ace

chos

en b

y m

utua

l ag

reem

ent

by th

e co

-pro

duce

rs.

In p

rinc

iple

, th

e ne

gativ

e sh

all

be d

evel

oped

at

a la

bora

tory

in

the

maj

ority

co

untr

y w

here

the

prin

ts in

tend

ed f

or u

se in

that

cou

ntry

sha

ll al

so b

e m

ade,

and

the

prin

ts i

nten

ded

for

use

in th

e m

inor

ity c

ount

ry s

hall

be m

ade

at a

labo

rato

ry in

the

min

ority

cou

ntry

.

Artic

le 6

. T

he c

ompe

tent

aut

hori

ties

of t

he t

wo

coun

trie

s sh

all

perio

dica

lly

verif

y w

heth

er t

he b

alan

ce b

etw

een

the

two

coun

trie

s' co

ntri

butio

ns i

n th

e ar

tistic

an

d te

chni

cal f

ield

s la

id d

own

in th

e pr

ovis

ions

of t

his

Agr

eem

ent

has

been

ens

ured

an

d, i

f th

at is

not

the

case

, th

ey s

hall

take

suc

h m

easu

res

as a

re d

eem

ed n

eces

sary

.

Artic

le 7

. In

pri

ncip

le,

rece

ipts

sha

ll be

div

ided

in

prop

ortio

n to

the

tot

al

cont

ribu

tion

of e

ach

co-p

rodu

cer.

The

finan

cial

pro

visi

ons

adop

ted

by t

he c

o-

prod

ucer

s an

d th

e zo

nes

for

shar

ing

rece

ipts

sha

ll be

sub

ject

to th

e ap

prov

al o

f th

e co

mpe

tent

aut

hori

ties

of th

e tw

o co

untr

ies.

Artic

le 8

. U

nles

s th

ere

are

prov

isio

ns t

o th

e co

ntra

ry i

n th

e co

-pro

duct

ion

cont

ract

, exp

ort a

rran

gem

ents

for

co-

prod

uctio

n fil

ms

shal

l be

mad

e by

the

maj

ority

co

-pro

duce

r w

ith t

he a

gree

men

t of

the

min

ority

co-

prod

ucer

.In

the

cas

e of

film

s in

whi

ch b

oth

side

s pa

rtic

ipat

ed e

qual

ly,

expo

rt a

rran

ge

men

ts s

hall

be m

ade,

unl

ess

othe

rwis

e ag

reed

by

the

Part

ies,

by

the

co-p

rodu

cer h

av

ing

the

natio

nalit

y of

the

dire

ctor

. In

the

case

of e

xpor

t arr

ange

men

ts w

ith a

cou

ntry

w

hich

im

pose

s im

port

res

tric

tions

, th

e fil

m s

hall

be c

harg

ed,

to th

e ex

tent

pos

sibl

e,

agai

nst t

he q

uota

of t

hat o

f the

two

coun

trie

s en

gage

d in

co-

prod

uctio

n w

hich

enj

oys

the

mor

e fa

vour

able

r g

ime.

Artic

le 9

. C

redi

ts,

trai

lers

and

adv

ertis

ing

mat

eria

l fo

r co

-pro

duct

ion

film

s sh

all i

ndic

ate

that

the

film

is a

Fin

nish

-Fre

nch

co-p

rodu

ctio

n.

Artic

le 1

0. A

t fe

stiv

als

and

in c

ompe

titio

ns,

co-p

rodu

ced

film

s sh

all

be

pres

ente

d as

ori

gina

ting

from

the

Stat

e of

the

maj

ority

co-

prod

ucer

, unl

ess

ther

e is

a di

ffer

ent

arra

ngem

ent

mad

e by

the

co-

prod

ucer

s an

d ap

prov

ed b

y th

e co

mpe

tent

au

thor

ities

of

the

two

coun

trie

s.

Vol.

1317

,1-21

935

64

Unite

d Na

tions

—

Trea

ty S

eries

• N

atio

ns U

nies

—

Recu

eil d

es T

raité

s 19

83

Artic

le 1

1. In

the

co-p

rodu

ctio

n of

sho

rt fi

lms,

car

e m

ust b

e ta

ken

in p

rodu

c in

g ea

ch f

ilm t

o ac

hiev

e an

ove

rall

bala

nce

artis

tical

ly,

tech

nica

lly a

nd f

inan

cial

ly.

Artic

le 1

2. T

he c

ompe

tent

aut

hori

ties

of th

e tw

o co

untr

ies

shal

l giv

e fa

vour

ab

le c

onsi

dera

tion

on a

cas

e-by

-cas

e ba

sis

to t

he m

akin

g of

co-

prod

uctio

n fil

ms

by

Finl

and

and

Fran

ce a

nd c

ount

ries

with

whi

ch e

ither

of

them

has

co-

prod

uctio

n ag

reem

ents

.

Artic

le 1

3. Su

bjec

t to

the

law

s an

d re

gula

tions

in f

orce

, ev

ery

faci

lity

shal

l be

affo

rded

for

the

tra

vel

and

tem

pora

ry r

esid

ence

of

artis

tic a

nd t

echn

ical

per

sonn

el

wor

king

on

co-p

rodu

ctio

n fil

ms

and

for

the

impo

rt a

nd e

xpor

t to

and

fro

m e

ach

coun

try

of m

ater

ial n

eede

d fo

r th

e m

akin

g an

d ex

ploi

tatio

n of

suc

h fil

ms

(raw

film

, te

chni

cal

mat

eria

l, co

stum

es,

sets

, ad

vert

isin

g m

ater

ial,

etc.

).

II.

EXCH

ANGE

OF

FILM

S

Artic

le 1

4. Su

bjec

t to

the

law

s an

d re

gula

tions

in f

orce

, no

rest

rict

ion

shal

l be

plac

ed in

eith

er c

ount

ry o

n th

e sa

le, i

mpo

rt e

xplo

itatio

n an

d, in

gen

eral

, the

dis

sem

i na

tion

of fi

lm p

rint

s of

nat

iona

l or

igin

.R

ecei

pts

from

the

sale

and

exp

loita

tion

of fi

lms

impo

rted

und

er th

is A

gree

men

t sh

all

be t

rans

ferr

ed i

n im

plem

enta

tion

of t

he c

ontr

acts

con

clud

ed b

etw

een

the

prod

ucer

s in

acc

orda

nce

with

the

law

s an

d re

gula

tions

in

forc

e in

eac

h of

the

two

coun

trie

s.

III.

GE

NERA

L PR

OVIS

IONS

Artic

le 1

5. T

he c

ompe

tent

aut

hori

ties

of th

e tw

o co

untr

ies

shal

l com

mun

icat

e to

eac

h ot

her

full

info

rmat

ion

on f

inan

cial

and

tec

hnic

al q

uest

ions

con

cern

ing

co-

prod

uctio

ns a

nd e

xcha

nges

of

film

s an

d, i

n ge

nera

l, al

l pa

rtic

ular

s co

ncer

ning

rel

a tio

ns b

etw

een

the

two

coun

trie

s in

res

pect

of

film

s or

cha

nges

in

law

s or

reg

ulat

ions

w

hich

may

aff

ect

them

.

Artic

le 1

6. T

he c

ompe

tent

aut

hori

ties

of th

e tw

o co

untr

ies

shal

l co

nsid

er,

if

nece

ssar

y, m

etho

ds o

f im

plem

entin

g th

is A

gree

men

t in

orde

r to

res

olve

any

diff

icul

tie

s w

hich

ari

se in

car

ryin

g ou

t its

pro

visi

ons.

The

y sh

all s

tudy

suc

h am

endm

ents

as

may

be

desi

rabl

e w

ith a

vie

w t

o de

velo

ping

co-

oper

atio

n in

res

pect

of

film

s in

the

co

mm

on i

nter

est

of th

e tw

o co

untr

ies.

The

y sh

all m

eet,

with

in th

e fr

amew

ork

of a

mix

ed c

omm

issi

on o

n fi

lm-m

akin

g,

at t

he r

eque

st o

f ei

ther

of

them

, es

peci

ally

in

the

even

t of

any

sub

stan

tial

amen

d m

ents

to

eith

er t

he l

aws

or t

he r

egul

atio

ns a

pplic

able

to

the

film

ind

ustr

y.

Artic

le 1

7. T

his

Agr

eem

ent

shal

l en

ter

into

for

ce 3

0 da

ys a

fter

its

sign

atur

e.It

is c

oncl

uded

for

a p

erio

d of

two

year

s fr

om th

e da

te o

f its

ent

ry in

to f

orce

; it

shal

l be

auto

mat

ical

ly re

new

ed f

or id

entic

al p

erio

ds, u

nles

s de

noun

ced

by o

ne o

f the

C

ontr

actin

g Pa

rtie

s th

ree

mon

ths

befo

re t

he d

ate

of it

s ex

piry

.

Vol

. 13

17,1

-219

35

199

1983

U

nite

d N

atio

ns —

Tr

eaty

Ser

ies •

N

atio

ns U

nies

—

Rec

ueil

des

Tra

ités

____

__65

IN W

ITNE

SS W

HERE

OF t

he u

nder

sign

ed,

bein

g du

ly a

utho

rize

d by

thei

r G

over

n m

ents

, ha

ve s

igne

d th

is A

gree

men

t.DO

NE a

t Pa

ris

on 2

Feb

ruar

y 19

83 i

n du

plic

ate,

in

the

Finn

ish

and

Fren

ch

lang

uage

s, b

oth

text

s be

ing

equa

lly a

uthe

ntic

.

For

the

Gov

ernm

ent

of th

e R

epub

lic o

f Fi

nlan

d:

PAR

STEN

B CK

For

the

Gov

ernm

ent

of th

e Fr

ench

Rep

ublic

:

CLAU

DE C

HEYS

SON

AN

NE

X

IMPL

EM

EN

TA

TIO

N P

RO

CE

DU

RE

S

In o

rder

to b

enef

it fr

om th

e pr

ovis

ions

of t

he A

gree

men

t, pr

oduc

ers

of e

ach

coun

try

mus

t at

tach

to th

eir c

o-pr

oduc

tion

appl

icat

ions

, sub

mitt

ed to

thei

r res

pect

ive

auth

oriti

es, o

ne m

onth

be

fore

the

sho

otin

g of

the

film

is t

o be

gin,

a s

et o

f do

cum

ents

inc

ludi

ng:

A

doc

umen

t con

cern

ing

the

acqu

isiti

on o

f fil

m r

ight

s fo

r th

e ec

onom

ic u

se o

f th

e w

ork;

A

det

aile

d sc

enar

io;

A

list

of

the

tech

nica

l and

art

istic

per

sonn

el o

f th

e tw

o co

untr

ies;

A

det

aile

d co

st e

stim

ate

and

fina

ncin

g pl

an;

A

pro

duct

ion

sche

dule

; T

he c

o-pr

oduc

tion

cont

ract

bet

wee

n th

e co

-pro

duci

ng c

ompa

nies

.T

he c

ompe

tent

aut

hori

ties

of th

e tw

o co

untr

ies

shal

l tra

nsm

it to

eac

h ot

her

such

set

s of

do

cum

ents

as

soon

as

they

hav

e be

en fi

led.

The

com

pete

nt a

utho

ritie

s of

the

coun

try

havi

ng th

e m

inor

ity f

inan

cial

par

ticip

atio

n sh

all

give

the

ir c

onse

nt o

nly

afte

r re

ceiv

ing

the

view

s of

the

au

thor

ities

of

the

coun

try

havi

ng t

he m

ajor

ity f

inan

cial

par

ticip

atio

n.

Vol.

1317

,1-2

1935

200

APPENDIX 7

201

NB

: U

nof

fici

al t

ransl

atio

n©

Min

istr

y o

f Just

ice,

Fin

lan

d Contr

acts

Act

(228/1

929;

amen

dm

ents

up t

o 449/1

999 in

clu

ded

)

Ch

apte

r 1 —

Con

clusi

on o

f co

ntr

acts

Sec

tion

1

(1)

An

off

er t

o co

ncl

ude

a co

ntr

act

and t

he

acce

pta

nce

of

such

an

off

er s

hal

l bin

dth

e of

fero

r an

d t

he

acce

pto

r as

pro

vided

for

bel

ow i

n t

his

ch

apte

r.

(2)

Th

e pro

visi

ons

in t

his

ch

apte

r sh

all

not

apply

to

con

trac

ts o

f st

andar

d f

orm

or

to c

ontr

acts

wh

ich

req

uir

e per

form

ance

in

ord

er t

o bec

ome

effe

ctiv

e, n

or s

hal

lth

ey a

pply

wh

ere

the

con

trar

y is

exp

ress

ly o

r im

plici

tly

stip

ula

ted i

n t

he

offe

ror

th

e ac

cepta

nce

or

follow

s fr

om t

rade

usa

ge o

r ot

her

pra

ctic

e.

Sec

tion

2

(1)

If t

he

offe

ror

has

fix

ed a

spec

ifie

d p

erio

d o

f ti

me

for

acce

pta

nce

, h

e/sh

e sh

all

be

dee

med

to

hav

e st

ipu

late

d t

hat

th

e ac

cepta

nce

has

to

reac

h h

im/h

erw

ith

in t

he

said

per

iod o

f ti

me.

(2)

If a

spec

ifie

d p

erio

d o

f ti

me

for

acce

pta

nce

has

bee

n f

ixed

in

th

e le

tter

or

tele

gram

in

wh

ich

th

e of

fer

is m

ade,

th

e p

erio

d s

hal

l ru

n f

rom

th

e d

ate

give

non

th

e le

tter

, n

ot in

clu

din

g th

at day

, or

fr

om th

e ti

me

of day

w

hen

th

ete

legr

am w

as h

anded

to

th

e te

legr

aph

of

fice

at

th

e pla

ce of

dis

pat

ch fo

rtr

ansm

issi

on t

o th

e of

fere

e. I

f th

e le

tter

is

not

dat

ed,

it s

hal

l b

e d

eem

eddat

ed o

n t

he

dat

e st

amped

on

th

e en

velo

pe.

Sec

tion

3

(1)

An

off

er m

ade

oral

ly w

ith

out

gran

tin

g re

spit

e fo

r ac

cepta

nce

sh

all

be

acce

pte

dim

med

iate

ly;

un

less

an

im

med

iate

acc

epta

nce

is

give

n,

the

offe

r sh

all

be

dee

med

rej

ecte

d.

(2)

If a

n o

ffer

is

mad

e in

a l

ette

r or

tel

egra

m o

r ot

her

wis

e in

a m

ann

er t

hat

mak

es a

n i

mm

edia

te a

ccep

tan

ce i

mpos

sible

an

d n

o sp

ecif

ic p

erio

d o

f ti

me

has

bee

n f

ixed

for

acc

epta

nce

, th

e ac

cep

tan

ce s

hal

l re

ach

th

e of

fero

r w

ith

in a

per

iod o

f ti

me

that

cou

ld r

easo

nab

ly b

e co

nte

mpla

ted b

y h

im/h

er a

t th

e ti

me

of m

akin

g th

e of

fer.

In

det

erm

inin

g th

is p

erio

d o

f ti

me,

th

e of

fero

r sh

all,

un

less

th

e ci

rcu

mst

ance

s in

dic

ate

oth

erw

ise,

be

enti

tled

to

pre

sum

e th

at t

he

offe

r re

ach

es

the

offe

ree

wit

hin

d

ue

tim

e an

d

that

th

e ac

cep

tan

ce

isdis

pat

ched

wit

hou

t del

ay a

fter

th

e of

fere

e h

as h

ad a

rea

son

able

per

iod o

fre

flec

tion

an

d

is

not

del

ayed

in

tr

ansm

issi

on;

if

the

offe

r is

m

ade

in

ate

legr

am o

r ot

her

man

ner

in

dic

atin

g th

e of

fero

r’s

wis

h f

or a

pro

mpt

reply

, th

eof

fero

r sh

all

lik

ewis

e b

e en

titl

ed

to

pre

sum

e th

at

the

acce

pta

nce

is

dis

pat

ched

in

th

e sa

me

man

ner

or

ot

her

wis

e re

ach

es

him

/h

er

equ

ally

quic

kly

.

Sec

tion

4

(1)

An

acc

epta

nce

th

at r

each

es t

he

offe

ror

too

late

sh

all

be

dee

med

to

con

stit

ute

a n

ew o

ffer

mad

e by

the

orig

inal

acc

epto

r.

2

(2)

How

ever

, th

e pro

visi

on i

n p

arag

raph

(1)

shal

l n

ot a

pply

if

the

acce

pto

r h

asas

sum

ed t

hat

th

e ac

cep

tan

ce h

as r

each

ed t

he

offe

ror

wit

hin

du

e ti

me

and

the

offe

ror

mu

st h

ave

un

der

stoo

d t

he

sam

e. I

f th

e of

fero

r in

th

at c

ase

doe

sn

ot w

ish

to

acce

pt

the

acce

pta

nce

, h

e/sh

e sh

all,

wit

hou

t u

ndu

e del

ay,

not

ify

the

acce

pto

r th

ereo

f; o

ther

wis

e a

con

trac

t sh

all

be

dee

med

con

clu

ded

by

way

of t

he

acce

pta

nce

.

Sec

tion

5

If a

n o

ffer

is

reje

cted

, it

sh

all

expir

e ev

en i

f it

s per

iod o

f va

lidit

y h

as n

ot y

etla

pse

d.

Sec

tion

6

(1)

A r

eply

th

at p

urp

orts

to

be

an a

ccep

tan

ce b

ut

wh

ich

, du

e to

an

addit

ion

,re

stri

ctio

n o

r co

ndit

ion

, doe

s n

ot c

orre

spon

d t

o th

e of

fer,

sh

all

be

dee

med

are

ject

ion

con

stit

uti

ng

a n

ew o

ffer

.

(2)

How

ever

, th

e pro

visi

on i

n p

arag

raph

(1)

shal

l n

ot a

pply

if

the

offe

ree

has

con

sider

ed t

he

reply

to

corr

espon

d t

o th

e of

fer

and t

he

offe

ror

mu

st h

ave

un

der

stoo

d t

he

sam

e. I

f th

e of

fero

r in

th

at c

ase

doe

s n

ot w

ish

to

acce

pt

the

reply

, h

e/sh

e sh

all,

w

ith

out

un

du

e del

ay,

not

ify

the

offe

ree

ther

eof;

oth

erw

ise

a co

ntr

act

shal

l be

dee

med

con

clu

ded

on

th

e te

rms

con

tain

ed i

nth

e re

ply

.

Sec

tion

7

An

of

fer

or

an

acce

pta

nce

th

at

is

revo

ked

sh

all

not

be

bin

din

g,

if

the

revo

cati

on r

each

es t

he

per

son

to

wh

om i

t is

addre

ssed

bef

ore,

or

at t

he

sam

eti

me

as,

the

offe

r or

acc

epta

nce

com

es t

o h

is/h

er a

tten

tion

.

Sec

tion

8

If t

he

offe

ror

has

sta

ted t

hat

an

exp

ress

acc

epta

nce

is

not

req

uir

ed o

r if

th

eci

rcu

mst

ance

s in

dic

ate

that

he/

she

doe

s n

ot e

xpec

t on

e, t

he

offe

ree

shal

l,n

ever

thel

ess,

up

on r

equ

est,

let

th

e of

fero

r kn

ow w

het

her

he/

she

acce

pts

th

eof

fer;

oth

erw

ise

the

offe

r sh

all

be

dee

med

to

hav

e ex

pir

ed.

Sec

tion

9

(1)

A b

id m

ade

at a

n a

uct

ion

sh

all

bin

d t

he

bid

der

un

til

the

bid

din

g h

as b

een

clos

ed w

ith

reg

ard t

o th

e it

em i

n q

ues

tion

or

un

til

a h

igh

er b

id i

s m

ade,

pro

vid

ed t

hat

it

is n

ot i

mm

edia

tely

rej

ecte

d.

Un

less

th

e se

ller

has

res

erve

dh

imse

lf/h

erse

lf t

ime

to c

onsi

der

th

e b

id,

the

hig

hes

t b

idd

er s

hal

l b

e en

titl

edto

im

med

iate

ly k

now

wh

eth

er h

is/h

er b

id i

s ac

cepte

d o

r n

ot.

If i

t h

as b

een

ann

oun

ced t

hat

th

e it

em i

s in

an

y ev

ent

to b

e so

ld a

nd i

f th

e h

igh

est

bid

der

is

som

eon

e ot

her

th

an t

he

sell

er,

the

sale

sh

all

be

con

clu

ded

wit

h t

he

hig

hes

tbid

der

; if

tw

o or

mor

e per

son

s h

ave

mad

e th

e sa

me

hig

hes

t bid

, th

e se

ller

shal

l be

enti

tled

to

choo

se w

hic

h o

f th

e bid

s to

acc

ept.

(2)

In a

reve

rse

auct

ion

, th

e pro

visi

ons

in par

agra

ph

(1

) on

a

hig

her

or

th

eh

igh

est

bid

sh

all

apply

cor

resp

ondin

gly

to a

low

er o

r th

e lo

wes

t bid

.

202

3

Ch

apte

r 2 —

Auth

ori

sati

on

Sec

tion

10

(1)

A p

erso

n w

ho

has

au

thor

ised

an

oth

er t

o co

ncl

ude

con

trac

ts o

r to

en

ter

into

oth

er t

ran

sact

ion

s sh

all,

dir

ectl

y in

rel

atio

n t

o a

thir

d p

erso

n,

acqu

ire

righ

tsan

d bec

ome

bou

nd by

way

of

th

e tr

ansa

ctio

ns

ente

red in

to by

the

agen

tw

ith

in t

he

scop

e of

his

/her

au

thor

ity

and i

n t

he

nam

e of

th

e pri

nci

pal

.

(2)

Wh

ere

a per

son

, by

virt

ue

of e

mplo

ymen

t or

oth

erw

ise

by

way

of

a co

ntr

act

con

clu

ded

wit

h a

not

her

, h

olds

a pos

itio

n w

hic

h,

acco

rdin

g to

law

or

cust

om,

esta

blish

es a

cer

tain

au

thor

ity

to a

ct o

n b

ehal

f of

th

e ot

her

, h

e/sh

e sh

all

be

dee

med

, w

ith

in t

he

scop

e of

th

at a

uth

orit

y, e

mpow

ered

to

con

clu

de

con

trac

tsor

to

ente

r in

to o

ther

tra

nsa

ctio

ns.

Sec

tion

11

(1)

Wh

ere

an a

gen

t h

as e

nte

red

in

to a

tra

nsa

ctio

n a

gain

st t

he

inst

ruct

ion

s of

th

epri

nci

pal

, th

e tr

ansa

ctio

n s

hal

l n

ot b

ind t

he

pri

nci

pal

if

the

thir

d p

erso

n k

new

or s

hou

ld h

ave

kn

own

th

at t

he

agen

t w

as e

xcee

din

g th

e sc

ope

of h

is/h

erau

thor

ity.

(2)

Wh

ere

an a

uth

oris

atio

n i

s bas

ed s

olel

y on

a c

omm

un

icat

ion

by

the

pri

nci

pal

to

the

agen

t,

tran

sact

ion

s by

the

agen

t ex

ceed

ing

the

scop

e of

h

is/h

erau

thor

ity

shal

l n

ot b

ind t

he

pri

nci

pal

eve

n i

f th

e th

ird p

erso

n w

as i

n g

ood

fait

h.

Sec

tion

12

An

au

thor

isat

ion

exp

ress

ly c

omm

un

icat

ed b

y th

e pri

nci

pal

to

a th

ird p

erso

nsh

all

be

revo

ked

wh

en a

n e

xpre

ss c

omm

un

icat

ion

by

the

pri

nci

pal

rev

okin

gth

e au

thor

isat

ion

rea

ches

th

e th

ird p

erso

n.

Sec

tion

13

(1)

An

au

thor

isat

ion

pu

blish

ed b

y th

e pri

nci

pal

in

a n

ewsp

aper

sh

all

be

revo

ked

by

ann

oun

cem

ent

in

the

sam

e n

ewsp

aper

. A

n

auth

oris

atio

n

oth

erw

ise

pu

blicl

y an

nou

nce

d

shal

l be

revo

ked

by

a si

milar

an

nou

nce

men

t of

th

ere

voca

tion

.

(2)

If a

n a

uth

oris

atio

n c

ann

ot b

e re

voked

in

acc

ordan

ce w

ith

th

e pro

visi

ons

inpar

agra

ph

(1

),

the

revo

cati

on

shal

l be

com

mu

nic

ated

in

an

oth

er

equ

ally

effe

ctiv

e m

ann

er.

In t

hat

cas

e th

e pri

nci

pal

sh

all,

upon

req

ues

t, b

e en

titl

ed t

ore

ceiv

e in

stru

ctio

ns

as t

o th

e m

easu

res

he/

she

shou

ld t

ake

from

th

e pu

blic

auth

orit

y re

ferr

ed t

o in

sec

tion

17.

Sec

tion

14

An

au

thor

isat

ion

ref

erre

d t

o in

sec

tion

10(2

) sh

all

be

revo

ked

by

rem

ovin

g th

eag

ent

from

th

e em

plo

ymen

t or

oth

er p

osit

ion

upon

wh

ich

his

/her

au

thor

ity

was

bas

ed.

Sec

tion

15

(1)

An

au

thor

isat

ion

bas

ed o

n a

doc

um

ent

that

is

give

n t

o th

e ag

ent

in o

rder

to

be

pre

sen

ted t

o a

thir

d p

erso

n s

hal

l be

revo

ked

by

the

pri

nci

pal

rec

laim

ing

the

said

doc

um

ent

of a

uth

oris

atio

n o

r by

hav

ing

it d

estr

oyed

.

(2)

Upon

th

e pri

nci

pal

’s r

equ

est,

th

e ag

ent

shal

l re

turn

th

e sa

id d

ocu

men

t of

auth

oris

atio

n.

4

Sec

tion

16

Wh

ere

mor

e th

an

one

of

the

pro

visi

ons

in

sect

ion

s 12—

15

appl

y to

an

auth

oris

atio

n,

all

such

pro

visi

ons

shal

l be

com

plied

wit

h.

A t

hir

d p

erso

n w

ho

has

bee

n n

otif

ied o

f th

e re

voca

tion

of

an a

uth

oris

atio

n i

n a

ccor

dan

ce w

ith

sect

ion

12 s

hal

l, h

owev

er,

not

be

enti

tled

to

invo

ke

a fa

ilu

re o

f th

e pri

nci

pal

to

revo

ke

the

auth

oris

atio

n i

n a

not

her

man

ner

.

Sec

tion

17

(1)

If a

pri

nci

pal

sh

ows

pro

bab

le c

ause

th

at a

doc

um

ent

of a

uth

oris

atio

n h

as b

een

lost

or

that

oth

er r

easo

ns

pre

ven

t h

im/h

er f

rom

reg

ain

ing

pos

sess

ion

th

ereo

fw

ith

out

del

ay,

the

doc

um

ent

may

be

dec

lare

d v

oid.

(2)

Th

e pet

itio

n t

o h

ave

a doc

um

ent

of a

uth

oris

atio

n d

ecla

red v

oid s

hal

l be

file

dw

ith

th

e D

istr

ict

Cou

rt o

f th

e re

sid

ence

of

the

pet

itio

ner

. If

th

e p

etit

ion

er i

sn

ot r

esid

ent

in F

inla

nd,

the

pet

itio

n m

ay b

e fi

led w

ith

th

e D

istr

ict

Cou

rt i

nw

hos

e ju

risd

icti

on t

he

pet

itio

ner

is

stay

ing,

or

wit

h t

he

Dis

tric

t C

ourt

of

Hel

sin

ki.

If

th

e pet

itio

n

is

adm

itte

d,

the

Dis

tric

t C

ourt

sh

all

pu

blish

an

ann

oun

cem

ent

in t

he

Offi

cial

Gaz

ette

to

the

effe

ct t

hat

th

e d

ocu

men

t sh

all

bec

ome

void

at

the

expir

atio

n o

f a

give

n p

erio

d o

f ti

me.

Th

is p

erio

d s

hal

l n

otbe

shor

ter

than

fou

rtee

n d

ays

from

th

e pu

blica

tion

of

the

ann

oun

cem

ent

inth

e G

azet

te.

Th

e D

istr

ict

Cou

rt s

hal

l dec

lare

th

e doc

um

ent

void

im

med

iate

lyat

th

e ex

pir

atio

n o

f th

e per

iod,

un

less

th

ere

is a

n i

mped

imen

t to

th

e sa

me.

Wh

ere

nec

essa

ry,

the

Dis

tric

t C

ourt

may

als

o pu

blish

th

e an

nou

nce

men

t in

one

or

mor

e n

ewsp

aper

s,

at

the

expen

se

of

the

pet

itio

ner

, bef

ore

it

ispu

blis

hed

in

th

e O

ffici

al G

azet

te.

(810

/199

6)

Sec

tion

18

An

au

thor

isat

ion

bas

ed o

nly

on

a c

omm

un

icat

ion

by

the

pri

nci

pal

to

the

agen

tsh

all

be

revo

ked

wh

en a

com

mu

nic

atio

n r

evok

ing

the

auth

oris

atio

n r

each

esth

e ag

ent.

Sec

tion

19

If t

he

pri

nci

pal

has

a s

pec

ial

reas

on t

o bel

ieve

th

at,

rega

rdle

ss o

f th

e fa

ct t

hat

the

auth

oris

atio

n h

as b

een

rev

oked

or

that

th

e doc

um

ent

of a

uth

oris

atio

n h

asb

een

dec

lare

d v

oid

, th

e ag

ent

wil

l, o

n t

he

stre

ngt

h o

f th

e au

thor

isat

ion

, en

ter

into

a t

ran

sact

ion

wit

h a

th

ird p

erso

n w

ho

can

not

be

pre

sum

ed t

o be

awar

e of

the

revo

cati

on,

the

pri

nci

pal

sh

all, i

f pos

sible

, in

form

th

e sa

id t

hir

d p

erso

n o

fth

e re

voca

tion

of

the

auth

oris

atio

n.

If h

e/sh

e fa

ils

to d

o so

an

d t

he

per

son

wit

h w

hom

tr

ansa

ctio

n w

as en

tere

d in

to w

as in

go

od fa

ith

, th

e pri

nci

pal

can

not

in

voke

the

revo

cati

on o

f th

e au

thor

isat

ion

aga

inst

th

e sa

id p

erso

n.

Sec

tion

20

If t

he

pri

nci

pal

, w

ith

out

revo

kin

g an

au

thor

isat

ion

in

acc

ordan

ce w

ith

th

epro

visi

ons

in

sect

ion

s 12—

18,

has

fo

rbid

den

th

e ag

ent

to

exer

cise

th

eau

thor

ity

or o

ther

wis

e in

dic

ated

th

at t

he

auth

oris

atio

n i

s n

o lo

nge

r va

lid,

atr

ansa

ctio

n e

nte

red i

nto

by

the

agen

t sh

all

not

bin

d t

he

pri

nci

pal

if

the

thir

dpar

ty k

new

or

shou

ld h

ave

kn

own

of

the

said

fac

t.

Sec

tion

21

(1)

If t

he

pri

nci

pal

die

s, a

n a

uth

oris

atio

n s

hal

l n

onet

hel

ess

rem

ain

val

id,

un

less

spec

ial

circ

um

stan

ces

requ

ire

its

revo

cati

on.

Eve

n

un

der

su

chci

rcu

mst

ance

s,

a tr

ansa

ctio

n

ente

red

into

by

the

agen

t sh

all

bin

d

the

203

5

dec

eden

t’s

esta

te i

f th

e th

ird p

erso

n n

eith

er k

new

nor

sh

ould

hav

e kn

own

of

the

pri

nci

pal

’s

dea

th

and

its

rele

van

ce

to

the

agen

t’s

auth

orit

y;

if

the

auth

oris

atio

n i

s of

th

e kin

d r

efer

red t

o in

sec

tion

18,

the

tran

sact

ion

sh

all

be

bin

din

g on

ly i

f al

so t

he

agen

t, w

hen

en

teri

ng

into

th

e tr

ansa

ctio

n,

nei

ther

kn

ew n

or s

hou

ld h

ave

kn

own

of

the

dea

th a

nd i

ts r

elev

ance

.

(2)

If a

dec

eden

t’s

esta

te is

su

rren

der

ed in

to ban

kru

ptc

y, a

tran

sact

ion

th

atbin

ds

the

esta

te a

ccor

din

g to

par

agra

ph

(1)

shal

l, a

gain

st t

he

cred

itor

s of

th

ees

tate

, h

ave

the

sam

e ef

fect

as

it w

ould

hav

e if

it

had

bee

n e

nte

red i

nto

by

the

par

ties

to

the

esta

te.

Sec

tion

22 (449/1

999)

If t

he

com

pet

ency

of

the

pri

nci

pal

is

rest

rict

ed,

a tr

ansa

ctio

n e

nte

red i

nto

by

the

agen

t sh

all

hav

e on

ly s

uch

leg

al e

ffec

ts t

hat

it

wou

ld h

ave,

had

th

ep

rin

cip

al h

imse

lf/h

erse

lf e

nte

red

in

to i

t.

Sec

tion

23

If t

he

pro

per

ty o

f th

e pri

nci

pal

is

surr

ender

ed i

nto

ban

kru

ptc

y, a

tra

nsa

ctio

nth

erea

fter

en

tere

d i

nto

by

the

agen

t sh

all

not

bin

d t

he

ban

kru

ptc

y es

tate

.

Sec

tion

24 (449/1

999)

If

the

com

pet

ency

of

th

e pri

nci

pal

is

re

stri

cted

or

if

h

is/h

er

pro

per

ty

issu

rren

der

ed i

nto

ban

kru

ptc

y, t

he

agen

t sh

all

be

enti

tled

, bef

ore

the

guar

dia

nor

th

e tr

ust

ee o

f th

e ban

kru

ptc

y es

tate

can

un

der

take

mea

sure

s, t

o en

ter,

by

virt

ue

of t

he

auth

oris

atio

n,

into

su

ch t

ran

sact

ion

s th

at a

re n

eces

sary

in

ord

erto

saf

egu

ard t

he

pri

nci

pal

or

the

esta

te a

gain

st l

oss.

Sec

tion

25

(1)

A p

erso

n p

urp

orti

ng

to b

e an

age

nt

of a

not

her

, w

ith

out

bei

ng

able

to

pro

ve t

hat

he/

she

has

act

ed i

n a

ccor

dan

ce w

ith

an

au

thor

isat

ion

or

that

th

e al

lege

dpri

nci

pal

has

rat

ifie

d t

he

tran

sact

ion

or

is o

ther

wis

e bou

nd t

her

eby,

sh

all

com

pen

sate

a t

hir

d p

erso

n f

or a

ny

loss

su

ffer

ed b

ecau

se t

he

tran

sact

ion

doe

sn

ot b

ind t

he

alle

ged p

rin

cipal

.

(2)

How

ever

, th

e pro

visi

ons

in p

arag

raph

(1)

shal

l n

ot a

pply

if

the

thir

d p

erso

nkn

ew

or

shou

ld

hav

e kn

own

th

at

the

auth

oris

atio

n

did

n

ot

exis

t or

w

asex

ceed

ed o

r th

at t

he

auth

oris

atio

n o

f th

e per

son

pu

rpor

tin

g to

be

an a

gen

tw

as i

nva

lid d

ue

to a

spec

ial

reas

on t

hat

was

un

kn

own

to

the

agen

t an

d t

hat

the

thir

d p

erso

n c

ould

not

rea

son

ably

exp

ect

the

agen

t to

hav

e kn

own

of.

Sec

tion

26

Th

e pro

visi

ons

in t

his

ch

apte

r on

au

thor

isat

ion

sh

all

apply

cor

resp

ondin

gly

toan

au

thor

isat

ion

to

repre

sen

t a

pri

nci

pal

wit

h r

egar

d t

o tr

ansa

ctio

ns

dir

ecte

dat

him

/h

er.

Sec

tion

27

(1)

Th

e pro

visi

ons

in s

ecti

on 8

of

the

Pro

cura

tion

Act

(130/1

979)

shal

l ap

ply

to

the

revo

cati

on o

f a

pro

cura

tion

en

tere

d i

n t

he

trad

e re

gist

er.

If t

he

revo

cati

onh

as b

een

en

tere

d i

n t

he

trad

e re

gist

er a

nd

an

nou

nce

d i

n d

ue

man

ner

, th

eow

ner

of

the

trad

e n

ame

nee

d n

ot r

evok

e th

e pro

cura

tion

in

an

y ot

her

way

.

(2)

Th

e pro

visi

ons

in c

hap

ter

2,

sect

ion

3,

of t

he

Cod

e of

Rea

l E

stat

e (5

40/1

995)

shal

l ap

ply

to

the

form

of

an a

uth

oris

atio

n t

o co

nve

y, e

xch

ange

or

mor

tgag

ere

al p

roper

ty.

If s

uch

an

au

thor

isat

ion

has

bee

n r

evok

ed o

r dec

lare

d v

oid i

n

6

acco

rdan

ce w

ith

th

e pro

visi

ons

in s

ecti

ons

15 a

nd 1

7,

the

auth

oris

atio

n s

hal

lbe

wit

hou

t ef

fect

.

(3)

Th

e pro

visi

ons

in t

his

ch

apte

r ac

cord

ing

to w

hic

h a

tra

nsa

ctio

n e

nte

red

in

toby

the

agen

t doe

s n

ot,

in g

iven

sit

uat

ion

s, b

ind t

he

pri

nci

pal

sh

all

be

wit

hou

tpre

judic

e to

th

e pro

visi

ons

in c

hap

ter

18,

sect

ion

3 o

f th

e C

ode

of C

omm

erce

on t

he

effe

ct o

f an

y ben

efit

rec

eive

d b

y th

e pri

nci

pal

fro

m s

uch

a t

ran

sact

ion

.1

Ch

apte

r 3 —

Inva

lidit

y an

d a

dju

stm

ent

of c

ontr

acts

(956/1

982)

Sec

tion

28

(1)

A t

ran

sact

ion

in

to w

hic

h a

per

son

has

bee

n c

oerc

ed s

hal

l n

ot b

ind h

im/h

er i

fth

e co

erci

on c

onsi

sted

of

ph

ysic

al v

iole

nce

or

a th

reat

in

volv

ing

imm

inen

td

ange

r to

lif

e or

hea

lth

(gr

ave

dur

ess )

.

(2)

How

ever

, if

th

e co

erci

on w

as e

xerc

ised

by

a th

ird p

erso

n a

nd t

he

per

son

to

wh

om t

he

tran

sact

ion

was

dir

ecte

d w

as i

n g

ood f

aith

, th

e co

erce

d p

arty

sh

all,

if h

e/sh

e w

ants

to

invo

ke

the

said

coe

rcio

n i

n r

elat

ion

to

the

oth

er p

arty

,w

ith

out

un

du

e del

ay a

fter

th

e co

erci

on h

as c

ease

d n

otif

y th

at p

arty

th

ereo

f at

the

risk

of

the

tran

sact

ion

oth

erw

ise

bec

omin

g bin

din

g.

Sec

tion

29

A t

ran

sact

ion

en

tere

d i

nto

un

der

coe

rcio

n n

ot c

onst

itu

tin

g gr

ave

du

ress

, as

refe

rred

to

in s

ecti

on 2

8,

shal

l n

ot b

ind t

he

coer

ced p

arty

if

the

coer

cion

was

exer

cise

d b

y th

e per

son

to

wh

om t

he

tran

sact

ion

was

dir

ecte

d o

r if

th

is p

arty

kn

ew

or

shou

ld

hav

e kn

own

th

at

the

oth

er

par

ty

was

co

erce

d

into

th

etr

ansa

ctio

n.

Sec

tion

30

A t

ran

sact

ion

in

to w

hic

h a

per

son

has

be

en f

rau

du

len

tly

indu

ced s

hal

l n

otbin

d

him

/her

if

th

e per

son

to

w

hom

th

e tr

ansa

ctio

n

was

dir

ecte

d

was

him

self

/her

self

gu

ilty

of

such

in

du

cem

ent

or i

f h

e/sh

e kn

ew o

r ou

ght

to h

ave

kn

own

th

at t

he

oth

er p

arty

was

so

indu

ced.

Sec

tion

31

(1)

If

anyo

ne,

ta

kin

g ad

van

tage

of

an

oth

er’s

dis

tres

s,

lack

of

u

nder

stan

din

g,im

pru

den

ce o

r pos

itio

n o

f dep

enden

ce o

n h

im/h

er,

has

acq

uir

ed o

r ex

acte

d a

ben

efit

w

hic

h

is

obvi

ousl

y dis

pro

por

tion

ate

to

wh

at

he/

she

has

gi

ven

or

pro

mis

ed o

r fo

r w

hic

h t

her

e is

to

be

no

con

sider

atio

n,

the

tran

sact

ion

th

us

effe

cted

sh

all

not

bin

d t

he

par

ty s

o ab

use

d.

(2)

Th

e sa

me

shal

l ap

ply

if

a th

ird p

erso

n w

as g

uilty

of

con

du

ct r

efer

red t

o in

par

agra

ph

(1)

and t

he

per

son

to

wh

om t

he

tran

sact

ion

was

dir

ecte

d k

new

or

shou

ld h

ave

kn

own

th

ereo

f.

(3)

Th

e pro

visi

ons

in c

hap

ter

16 o

f th

e M

arit

ime

Act

(167/1

939)

shal

l ap

ply

to

salv

age

agre

emen

ts.

1A

ccor

ding

to

chap

ter

18,

sect

ion

3 of

the

Cod

e of

Com

mer

ce t

he p

rinc

ipal

sha

ll no

t be

bou

nd b

y or

lia

ble

for

his/

her

agen

t’s

acts

fal

ling

outs

ide

the

scop

e of

the

agen

t’s

auth

ority

unl

ess

it is

est

ablis

hed

that

thos

e ac

ts w

ere

to th

e pr

inci

pal’

s be

nefi

t.

204

7

Sec

tion

32

(1)

Wh

ere

a m

essa

ge

con

tain

ing

an

expre

ssio

n

of

a per

son

’s

will,

du

e to

a

mis

pri

nt

or o

ther

err

or o

n h

is/h

er p

art,

dif

fers

fro

m w

hat

he/

she

inte

nded

,th

e m

essa

ge s

hal

l n

ot b

ind h

im/h

er i

f th

e re

cipie

nt

kn

ew o

r sh

ould

hav

ekn

own

of

the

mis

pri

nt

or e

rror

.

(2)

Wh

ere

a m

essa

ge c

onta

inin

g an

exp

ress

ion

of

a per

son

’s w

ill

is t

ran

smit

ted b

yte

legr

am o

r or

ally

th

rou

gh a

mes

sen

ger

and i

t ch

ange

s du

e to

an

err

or i

ntr

ansm

issi

on

or

a m

ista

ke

mad

e in

it

s del

iver

y by

the

mes

sen

ger,

th

em

essa

ge s

hal

l n

ot b

ind

th

e se

nd

er i

n t

he

form

in

wh

ich

it

reac

hed

th

e ot

her

par

ty e

ven

if

the

reci

pie

nt

was

in

goo

d f

aith

. A

fter

lea

rnin

g of

th

e ch

ange

th

ese

nder

sh

all,

how

ever

, in

form

th

e re

cipie

nt

wit

hou

t u

ndu

e del

ay t

hat

he/

she

doe

s n

ot w

ant

to b

e bou

nd b

y th

e ch

ange

d m

essa

ge;

oth

erw

ise,

an

d p

rovi

ded

that

th

e re

cipie

nt

was

in

goo

d f

aith

, th

e m

essa

ge s

hal

l be

bin

din

g in

th

e fo

rmit

rea

ched

th

e re

cip

ien

t.

Sec

tion

33

A t

ran

sact

ion

th

at w

ould

oth

erw

ise

be

bin

din

g sh

all

not

be

enfo

rcea

ble

if

itw

as e

nte

red i

nto

un

der

cir

cum

stan

ces

that

wou

ld m

ake

it i

nco

mpat

ible

wit

hh

onou

r an

d g

ood f

aith

for

an

yon

e kn

owin

g of

th

ose

circ

um

stan

ces

to i

nvo

ke

the

tran

sact

ion

an

d t

he

per

son

to

wh

om t

he

tran

sact

ion

was

dir

ecte

d m

ust

be

pre

sum

ed t

o h

ave

kn

own

of

the

circ

um

stan

ces.

Sec

tion

34

Wh

ere

a si

mu

late

d d

ocu

men

t h

as b

een

dra

wn

up a

nd t

he

hol

der

un

der

th

edoc

um

ent

of a

cla

im o

r ot

her

rig

ht

has

ass

ign

ed t

he

said

rig

ht,

th

e as

sign

eesh

all

be

enti

tled

to

enfo

rce

the

righ

t if

he/

she

acqu

ired

it

in g

ood f

aith

.

Sec

tion

35

(1)

Wh

ere

a bea

rer

inst

rum

ent

or

oth

er

neg

otia

ble

in

stru

men

t h

as,

thro

ugh

neg

otia

tion

, bee

n a

cqu

ired

by

som

eon

e in

goo

d f

aith

, th

e per

son

wh

o h

assi

gned

th

e in

stru

men

t sh

all

be

bou

nd b

y it

eve

n i

f h

e/sh

e h

as l

ost

pos

sess

ion

ther

eof

agai

nst

his

/h

er w

ill.

(2)

Eve

n i

f a

cred

itor

has

, ag

ain

st h

is/h

er w

ill,

los

t pos

sess

ion

of

a re

ceip

t fo

rm

oney

, pay

men

t m

ade

by

the

deb

tor

agai

nst

th

e re

ceip

t an

d i

n g

ood f

aith

afte

r th

e m

atu

rity

of

the

deb

t sh

all,

non

eth

eles

s, b

e va

lid a

s ag

ain

st t

he

cred

itor

.

Sec

tion

36 (956/1

982)

(1)

If a

con

trac

t te

rm i

s u

nfa

ir o

r it

s ap

plica

tion

wou

ld l

ead t

o an

un

fair

res

ult

,th

e te

rm m

ay b

e ad

just

ed o

r se

t as

ide.

In

det

erm

inin

g w

hat

is

un

fair

, re

gard

shal

l be

had

to

th

e en

tire

co

nte

nts

of

th

e co

ntr

act,

th

e pos

itio

ns

of th

epar

ties

, th

e ci

rcu

mst

ance

s pre

vailin

g at

an

d

afte

r th

e co

ncl

usi

on

of

the

con

trac

t, a

nd t

o ot

her

fac

tors

.

(2)

If a

ter

m r

efer

red t

o in

par

agra

ph

(1)

is s

uch

th

at i

t w

ould

be

un

fair

to

enfo

rce

the

rest

of

the

con

trac

t af

ter

the

adju

stm

ent

of t

he

term

, th

e re

st o

f th

eco

ntr

act

may

als

o be

adju

sted

or

dec

lare

d t

erm

inat

ed.

(3)

A p

rovi

sion

rel

atin

g to

th

e am

oun

t of

con

sider

atio

n s

hal

l al

so b

e dee

med

aco

ntr

act

term

.

8

(4)

Th

e pro

visi

ons

of

the

Con

sum

er

Pro

tect

ion

A

ct

(38/1

978)

apply

to

th

ead

just

men

t of

con

sum

er c

ontr

acts

. (1

260/1

994)

Sec

tion

37

(956

/198

2)

A t

erm

un

der

wh

ich

pro

per

ty p

ledge

d a

s se

curi

ty f

or a

n o

bliga

tion

is

forf

eite

dif t

he

obliga

tion

is

not

dis

char

ged s

hal

l be

void

.

Sec

tion

38

(956

/198

2)

A c

ontr

act

un

der

wh

ich

a p

erso

n,

in o

rder

to

pre

ven

t or

res

tric

t co

mpet

itio

n,

has

un

der

taken

not

to

enga

ge i

n a

cer

tain

act

ivit

y or

not

to

con

clu

de

anem

plo

ymen

t co

ntr

act

wit

h a

not

her

per

son

en

gagi

ng

in s

uch

act

ivit

y sh

all

not

bin

d

the

par

ty

wh

o h

as

mad

e su

ch

a pro

mis

e to

th

e ex

ten

t th

at

itu

nre

ason

ably

res

tric

ts h

is/h

er f

reed

om.

Ch

apte

r 4 —

Mis

cell

aneo

us

pro

visi

on

s

Sec

tion

39

If,

acco

rdin

g to

th

is

Act

, th

e va

lidit

y of

a

con

trac

t or

ot

her

tr

ansa

ctio

ndep

ends

on t

he

fact

th

at t

he

per

son

to

wh

om t

he

tran

sact

ion

was

dir

ecte

dn

eith

er

kn

ew

nor

sh

ould

h

ave

kn

own

of

a

circ

um

stan

ce

or

that

h

e/sh

eot

her

wis

e w

as i

n g

ood f

aith

, re

gard

sh

all

be

had

to

wh

at h

e/sh

e kn

ew o

rsh

ould

h

ave

kn

own

w

hen

h

e/sh

e le

arn

ed of

th

e tr

ansa

ctio

n.

How

ever

, if

spec

ial

circ

um

stan

ces

call f

or i

t, r

egar

d m

ay a

lso

be

had

to

wh

at t

he

per

son

kn

ew o

r sh

ould

hav

e kn

own

aft

er t

he

said

tim

e bu

t bef

ore

he/

she

relied

on

the

con

trac

t or

tra

nsa

ctio

n.

Sec

tion

40

(1)

If a

per

son

, ac

cord

ing

to t

his

Act

, sh

all

com

mu

nic

ate

som

eth

ing

to a

not

her

at

the

risk

th

at a

con

trac

t sh

all

oth

erw

ise

be

dee

med

con

clu

ded

or

an o

ffer

acce

pte

d o

r th

at a

tra

nsa

ctio

n e

nte

red i

nto

by

or o

n b

ehal

f of

him

/her

sh

all

bin

d h

im/h

er a

nd i

f th

e sa

id c

omm

un

icat

ion

has

bee

n h

anded

in

for

dis

pat

chby

mai

l or

tel

egra

ph

or

dis

pat

ched

in

an

oth

er a

ppro

pri

ate

man

ner

, a

del

ay o

rth

e n

on-d

eliv

ery

of t

he

said

com

mu

nic

atio

n s

hal

l n

ot b

e dee

med

to

con

stit

ute

a fa

ilu

re b

y th

e sa

id p

erso

n t

o fu

lfil h

is/h

er d

uty

of

com

mu

nic

atio

n.

(2)

Th

e pro

visi

ons

in s

ecti

ons

7,

12 a

nd 1

8 s

hal

l ap

ply

to

the

revo

cati

on o

f an

offe

r, r

eply

or

auth

oris

atio

n.

Sec

tion

41

Th

is A

ct s

hal

l re

pea

l ch

apte

r 1,

sect

ion

1 o

f th

e C

ode

of C

omm

erce

an

dam

end a

ny

pre

viou

s pro

visi

ons

that

are

con

trar

y to

th

e pro

visi

ons

in t

his

Act

.

Sec

tion

42

Th

is A

ct s

hal

l en

ter

into

for

ce o

n 1

Ju

ly 1

929.

205

206

APPENDIX 8

207

Min

istr

y of

Edu

catio

n an

d C

ultu

re

Finl

and

FI

NL

AN

D

C

OPY

RIG

HT

LE

GIS

LA

TIO

N

20

10

U

noff

icia

l Tra

nsla

tions

in E

nglis

h –

Onl

y st

atut

es p

ublis

hed

in S

tatu

tes o

f Fin

land

(Sää

dösk

okoe

lma)

in

Fin

nish

and

Sw

edis

h ar

e le

gally

bin

ding

____

____

___

C

onte

nts:

C

OPY

RIG

HT

AC

T (

Act

No.

404

, of J

uly

8, 1

961)

T

HE

PE

NA

L C

OD

E O

F FI

NL

AN

D: C

HA

PTE

R 4

9 V

iola

tion

of c

erta

in

inte

llect

ual p

rope

rty

righ

ts (

Act

No.

578

, of A

pril

21, 1

995)

C

OPY

RIG

HT

DE

CR

EE

(D

ecre

e N

o. 5

74, o

f Apr

il 21

, 199

5)

DE

CR

EE

on

the

appl

icat

ion

of th

e C

opyr

ight

Act

in c

erta

in c

ases

to p

rote

cted

ite

ms o

rigi

natin

g in

Sta

tes b

elon

ging

to th

e E

urop

ean

Eco

nom

ic A

rea

(D

ecre

e N

o. 5

75, o

f Apr

il 21

, 199

5)

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

2

CO

PYR

IGH

T A

CT

8.7

.196

1/40

4

A

men

dmen

ts u

p to

31.

10.2

008/

663

incl

uded

C

HA

PTE

R 1

Su

bjec

t mat

ter

and

scop

e Se

ctio

n 1

(1)

A p

erso

n w

ho h

as c

reat

ed a

lite

rary

or

artis

tic w

ork

shal

l ha

ve c

opyr

ight

the

rein

, w

heth

er it

be

a fic

tiona

l or

desc

riptiv

e re

pres

enta

tion

in w

ritin

g or

spe

ech,

a m

usic

al o

r dr

amat

ic w

ork,

a c

inem

atog

raph

ic w

ork,

a p

hoto

grap

hic

wor

k or

oth

er w

ork

of fi

ne a

rt, a

pr

oduc

t of

arc

hite

ctur

e, a

rtist

ic h

andi

craf

t, in

dust

rial

art,

or e

xpre

ssed

in

som

e ot

her

man

ner.

(24.

3.19

95/4

46)

(2)

Map

s an

d ot

her

desc

riptiv

e dr

awin

gs o

r gr

aphi

cally

or

thre

e-di

men

sion

ally

exe

cute

d w

orks

and

com

pute

r pro

gram

s sha

ll al

so b

e co

nsid

ered

lite

rary

wor

ks. (

11.1

.199

1/34

) E

cono

mic

righ

ts (1

4.10

.200

5/82

1)

Sect

ion

2 (1

4.10

.200

5/82

1)

(1) W

ithin

the

limita

tions

impo

sed

here

inaf

ter,

copy

right

sha

ll pr

ovid

e th

e ex

clus

ive

right

to

con

trol a

wor

k by

repr

oduc

ing

it an

d by

mak

ing

it av

aila

ble

to th

e pu

blic

, in

the

orig

inal

fo

rm o

r in

an

alte

red

form

, in

trans

latio

n or

in

adap

tatio

n, i

n an

othe

r lit

erar

y or

arti

stic

fo

rm, o

r by

any

othe

r tec

hniq

ue.

(2)

The

repr

oduc

tion

of a

wor

k sh

all c

ompr

ise

mak

ing

copi

es o

f th

e w

ork

in w

hole

or

in

part,

dire

ctly

or

indi

rect

ly, t

empo

raril

y or

per

man

ently

and

by

any

mea

ns o

r in

any

for

m

wha

tsoe

ver.

The

repr

oduc

tion

of a

wor

k sh

all a

lso

com

pris

e th

e tra

nsfe

r of t

he w

ork

on to

an

othe

r dev

ice,

by

whi

ch it

can

be

repr

oduc

ed o

r com

mun

icat

ed.

(3) A

wor

k is

mad

e av

aila

ble

to th

e pu

blic

whe

n:

1.

it is

co

mm

unic

ated

to

th

e pu

blic

by

w

ire

or

wire

less

m

eans

, in

clud

ing

com

mun

icat

ion

in a

way

whi

ch e

nabl

es m

embe

rs o

f th

e pu

blic

to

acce

ss t

he w

ork

from

a p

lace

and

at a

tim

e in

divi

dual

ly c

hose

n by

them

; 2.

it is

pub

licly

per

form

ed to

an

audi

ence

pre

sent

at a

per

form

ance

; 3.

a c

opy

ther

eof i

s of

fere

d fo

r sal

e, re

ntal

or l

endi

ng o

r it i

s ot

herw

ise

dist

ribut

ed to

th

e pu

blic

; or

4. it

is p

ublic

ly d

ispl

ayed

with

out t

he a

id o

f a te

chni

cal d

evic

e.

(4) A

per

form

ance

and

com

mun

icat

ion

to th

e pu

blic

sha

ll al

so c

ompr

ise

perf

orm

ance

and

co

mm

unic

atio

n to

a c

ompa

rativ

ely

larg

e cl

osed

circ

le fo

r pur

pose

s of g

ain.

Se

ctio

n 3

(1) W

hen

copi

es o

f a w

ork

are

mad

e or

whe

n th

e w

ork

is m

ade

avai

labl

e to

the

publ

ic in

w

hole

or

in p

art,

the

nam

e of

the

auth

or s

hall

be s

tate

d in

a m

anne

r re

quire

d by

pro

per

usag

e.

(2) A

wor

k m

ay n

ot b

e al

tere

d in

a m

anne

r whi

ch is

pre

judi

cial

to th

e au

thor

's lit

erar

y or

ar

tistic

rep

utat

ion,

or

to h

is i

ndiv

idua

lity;

nor

may

it b

e m

ade

avai

labl

e to

the

publ

ic in

su

ch a

form

or c

onte

xt a

s to

prej

udic

e th

e au

thor

in th

e m

anne

r sta

ted.

(3

) Th

e rig

ht c

onfe

rred

to th

e au

thor

by

this

sec

tion

may

be

wai

ved

by h

im w

ith b

indi

ng

effe

ct o

nly

in re

gard

of u

se li

mite

d in

cha

ract

er a

nd e

xten

t. Se

ctio

n 4

(1)

A p

erso

n w

ho t

rans

late

s or

ada

pts

a w

ork

or c

onve

rts i

t in

to s

ome

othe

r lit

erar

y or

ar

tistic

form

sha

ll ha

ve c

opyr

ight

in th

e w

ork

in th

e ne

w fo

rm, b

ut s

hall

not h

ave

the

right

to

con

trol i

t in

a m

anne

r whi

ch in

frin

ges t

he c

opyr

ight

in th

e or

igin

al w

ork.

(2

) If a

per

son,

in fr

ee c

onne

ctio

n w

ith a

wor

k, h

as c

reat

ed a

new

and

inde

pend

ent w

ork,

hi

s cop

yrig

ht sh

all n

ot b

e su

bjec

t to

the

right

in th

e or

igin

al w

ork.

208

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

3

Sect

ion

5 A

per

son

who

, by

com

bini

ng w

orks

or p

arts

of w

orks

, cre

ates

a li

tera

ry o

r arti

stic

wor

k of

co

mpi

latio

n sh

all

have

cop

yrig

ht t

here

in, b

ut h

is r

ight

sha

ll be

with

out

prej

udic

e to

the

rig

hts i

n th

e in

divi

dual

wor

ks.

Sect

ion

6 If

a w

ork

has

two

or m

ore

auth

ors

who

se c

ontri

butio

ns d

o no

t co

nstit

ute

inde

pend

ent

wor

ks, t

he c

opyr

ight

sha

ll be

long

to th

e au

thor

s jo

intly

. How

ever

, eac

h of

them

is e

ntitl

ed

to b

ring

an a

ctio

n fo

r inf

ringe

men

t. Se

ctio

n 7

(1)

The

pers

on w

hose

nam

e or

gen

eral

ly k

now

n ps

eudo

nym

or

pen

nam

e is

indi

cate

d in

th

e us

ual m

anne

r on

the

copi

es o

f a w

ork

or w

hen

the

wor

k is

mad

e av

aila

ble

to th

e pu

blic

, sh

all b

e de

emed

to b

e th

e au

thor

, unl

ess o

ther

wis

e de

mon

stra

ted.

(2

) If

a w

ork

is p

ublis

hed

with

out t

he n

ame

of th

e au

thor

bei

ng in

dica

ted

in th

e m

anne

r de

scrib

ed i

n su

bsec

tion

1, t

he e

dito

r, if

he i

s na

med

, and

oth

erw

ise

the

publ

ishe

r, sh

all

repr

esen

t the

aut

hor u

ntil

his

nam

e is

indi

cate

d in

a n

ew e

ditio

n of

the

wor

k or

not

ified

to

the

com

pete

nt M

inis

try.

Sect

ion

8 (1

) A w

ork

shal

l be

cons

ider

ed to

hav

e be

en m

ade

publ

ic w

hen

it ha

s la

wfu

lly b

een

mad

e av

aila

ble

to th

e pu

blic

. (2

) A

wor

k sh

all b

e re

gard

ed a

s pu

blis

hed

whe

n co

pies

ther

eof

have

, with

the

cons

ent o

f th

e au

thor

, bee

n pl

aced

on

sale

or o

ther

wis

e di

strib

uted

to th

e pu

blic

. (31

.7.1

974/

648)

F

ree

wor

ks (1

4.10

.200

5/82

1)

Sect

ion

9 (1

4.10

.200

5/82

1)

(1) T

here

shal

l be

no c

opyr

ight

: 1.

in la

ws a

nd d

ecre

es;

2. in

reso

lutio

ns, s

tipul

atio

ns a

nd o

ther

doc

umen

ts w

hich

are

pub

lishe

d un

der t

he A

ct

on th

e St

atut

es o

f Fi

nlan

d (1

88/2

000)

and

the

Act

on

the

Reg

ulat

ions

of

Min

istri

es

and

othe

r Gov

ernm

ent A

utho

ritie

s (18

8/20

00);

3. tr

eatie

s, co

nven

tions

and

oth

er c

orre

spon

ding

doc

umen

ts c

onta

inin

g in

tern

atio

nal

oblig

atio

ns;

4. d

ecis

ions

and

stat

emen

ts is

sued

by

publ

ic a

utho

ritie

s or o

ther

pub

lic b

odie

s;

5. tr

ansl

atio

ns o

f doc

umen

ts re

ferr

ed to

in p

arag

raph

s 1−

4 m

ade

by o

r com

mis

sion

ed

by p

ublic

aut

horit

ies o

r oth

er p

ublic

bod

ies.

(2)

The

prov

isio

ns o

f su

bsec

tion

1 sh

all n

ot a

pply

to in

depe

nden

t wor

ks c

onta

ined

in th

e do

cum

ents

refe

rred

to in

the

subs

ectio

n.

Oth

er im

mat

eria

l rig

hts (

14.1

0.20

05/8

21)

Sect

ion

10 (2

3.8.

1971

/669

) (1

) Not

with

stan

ding

the

regi

stra

tion

of a

wor

k as

a d

esig

n un

der o

ther

app

licab

le s

tatu

tes,

its a

utho

r may

hav

e co

pyrig

ht th

erei

n by

virt

ue o

f thi

s Act

. (2

) R

ight

s in

a p

hoto

grap

hic

pict

ure

shal

l add

ition

ally

be

gove

rned

by

the

prov

isio

ns o

f se

ctio

n 49

a. L

egal

pro

tect

ion

of r

ight

s in

lay

out-d

esig

ns o

f in

tegr

ated

circ

uits

has

bee

n pr

ovid

ed se

para

tely

. (24

.3.1

995/

446)

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

4

CH

APT

ER

2

Lim

itatio

ns o

n co

pyri

ght

and

prov

isio

ns c

once

rnin

g ex

tend

ed c

olle

ctiv

e lic

ence

(1

4.10

.200

5/82

1)

Gen

eral

pro

visi

ons (

14.1

0.20

05/8

21)

Sect

ion

11 (1

4.10

.200

5/82

1)

(1) T

he p

rovi

sion

s of t

his C

hapt

er d

o no

t lim

it th

e rig

hts c

onfe

rred

to th

e au

thor

by

sect

ion

3 to

a la

rger

deg

ree

than

as p

rovi

ded

in se

ctio

n 25

e.

(2)

If a

wor

k is

rep

rodu

ced

or m

ade

avai

labl

e to

the

publ

ic u

nder

the

prov

isio

ns o

f th

is

Cha

pter

, the

aut

hor's

nam

e an

d th

e so

urce

mus

t be

indi

cate

d to

the

exte

nt a

nd in

a m

anne

r re

quire

d by

pro

per u

sage

. The

wor

k m

ay n

ot b

e al

tere

d w

ithou

t the

aut

hor's

con

sent

mor

e th

an n

eces

sita

ted

by th

e pe

rmitt

ed u

se.

(3)

A c

opy

of a

wor

k m

ade

by v

irtue

of

a lim

itatio

n on

cop

yrig

ht a

s pr

ovid

ed i

n th

is

Cha

pter

may

be,

for t

he p

urpo

se d

eter

min

ed in

the

limita

tion,

dis

tribu

ted

to th

e pu

blic

and

us

ed in

a p

ublic

per

form

ance

. (4

) Th

e pr

ovis

ions

of

subs

ectio

n 3

shal

l co

rres

pond

ingl

y ap

ply

to u

se b

y vi

rtue

of

exte

nded

col

lect

ive

licen

ce.

(5) A

lim

itatio

n on

cop

yrig

ht a

s pr

ovid

ed in

this

Cha

pter

doe

s no

t per

mit

the

repr

oduc

tion

of a

cop

y of

a w

ork

whi

ch h

as b

een

mad

e or

mad

e av

aila

ble

to t

he p

ublic

con

trary

to

sect

ion

2 or

who

se te

chno

logi

cal m

easu

res

have

bee

n ci

rcum

vent

ed in

vio

latio

n of

sec

tion

50a(

1). T

he p

rovi

sion

s of

this

sub

sect

ion

shal

l not

, how

ever

, per

tain

to th

e us

e of

wor

ks

unde

r sec

tions

11a

, 16,

16a−1

6c o

r 22

or u

nder

sect

ion

25d(

2) o

r (5)

. Te

mpo

rary

repr

oduc

tion

(14.

10.2

005/

821)

Se

ctio

n 11

a (1

4.10

.200

5/82

1)

(1)

The

prov

isio

ns o

f se

ctio

n 2

in r

egar

d to

the

right

to m

ake

copi

es o

f a

wor

k sh

all n

ot

appl

y to

tem

pora

ry re

prod

uctio

n:

1. w

hich

is tr

ansi

ent o

r inc

iden

tal;

2. w

hich

is a

n in

tegr

al a

nd e

ssen

tial p

art o

f a te

chno

logi

cal p

roce

ss;

3. t

he s

ole

purp

ose

of w

hich

is

to e

nabl

e a

trans

mis

sion

of

a w

ork

in a

net

wor

k be

twee

n th

ird p

artie

s by

an in

term

edia

ry o

r a la

wfu

l use

of a

wor

k; a

nd

4. w

hich

has

no

inde

pend

ent e

cono

mic

sign

ifica

nce.

(2

) The

pro

visi

ons o

f sub

sect

ion

1 sh

all n

ot a

pply

to a

com

pute

r pro

gram

or t

o a

data

base

. R

epro

duct

ion

for p

riva

te u

se (2

4.3.

1995

/446

) Se

ctio

n 12

(24.

3.19

95/4

46)

(1)

Any

one

may

mak

e si

ngle

cop

ies

for

his

priv

ate

use

of a

wor

k th

at h

as b

een

mad

e pu

blic

. The

cop

ies t

hus m

ade

may

not

be

used

for o

ther

pur

pose

s. (2

) It i

s al

so p

erm

itted

to h

ave

copi

es m

ade

by a

third

par

ty fo

r the

priv

ate

use

of th

e pa

rty

orde

ring

the

copi

es.

(3)

The

prov

isio

ns o

f su

bsec

tion

2 sh

all n

ot a

pply

to th

e re

prod

uctio

n of

mus

ical

wor

ks,

cine

mat

ogra

phic

wor

ks, u

tility

arti

cles

or s

culp

ture

s, or

the

repr

oduc

tion

of a

ny o

ther

wor

k of

art

by a

rtist

ic m

eans

. (4

) Th

e pr

ovis

ions

of

this

sec

tion

shal

l no

t ap

ply

to a

com

pute

r-re

adab

le c

ompu

ter

prog

ram

, to

the

mak

ing

of a

com

pute

r-re

adab

le c

opy

of a

com

pute

r-re

adab

le d

atab

ase,

or

to th

e co

nstru

ctio

n of

a w

ork

of a

rchi

tect

ure.

(3.4

.199

8/25

0)

209

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

5

Phot

ocop

ying

(14.

10.2

005/

821)

Se

ctio

n 13

(14.

10.2

005/

821)

A

pub

lishe

d w

ork

may

be

repr

oduc

ed b

y ph

otoc

opyi

ng o

r by

cor

resp

ondi

ng m

eans

by

virtu

e of

ext

ende

d co

llect

ive

licen

ce a

s pro

vide

d in

sect

ion

26.

Use

for i

nter

nal c

omm

unic

atio

n (1

4.10

.200

5/82

1)

Sect

ion

13a

(14.

10.2

005/

821)

(1

) A

pie

ce o

f w

ritin

g pu

blis

hed

in a

prin

ted

or b

y co

rres

pond

ing

mea

ns r

epro

duce

d ne

wsp

aper

or p

erio

dica

l, an

d an

illu

stra

tion

acco

mpa

nyin

g th

e te

xt, m

ay b

e re

prod

uced

by

virtu

e of

ext

ende

d co

llect

ive

licen

ce,

as p

rovi

ded

in s

ectio

n 26

, fo

r us

e in

the

int

erna

l co

mm

unic

atio

n of

an

auth

ority

, a b

usin

ess

ente

rpris

e an

d an

org

anis

atio

n, a

nd th

e co

pies

th

us m

ade

may

be

used

for c

omm

unic

atio

n to

the

publ

ic fo

r sai

d pu

rpos

e by

mea

ns o

ther

th

an tr

ansm

ittin

g on

rad

io o

r te

levi

sion

. The

pro

visi

ons

of th

is s

ubse

ctio

n sh

all n

ot a

pply

to

repr

oduc

tion

by p

hoto

copy

ing

or b

y co

rres

pond

ing

mea

ns.

(2)

A w

ork

incl

uded

in

a cu

rren

t af

fairs

or

new

s pr

ogra

mm

e tra

nsm

itted

on

radi

o or

te

levi

sion

may

be

repr

oduc

ed in

sin

gle

copi

es f

or u

se w

ithin

a s

hort

perio

d of

tim

e af

ter

the

repr

oduc

tion

for i

nter

nal i

nfor

mat

ion

by a

n au

thor

ity a

nd a

bus

ines

s en

terp

rise,

as

wel

l as

by

anot

her p

erso

n an

d or

gani

satio

n.

(3) T

he p

rovi

sion

s of

sub

sect

ion

1 sh

all n

ot a

pply

to a

wor

k w

hose

aut

hor h

as p

rohi

bite

d th

e re

prod

uctio

n or

com

mun

icat

ion

of th

e w

ork.

U

se o

f wor

ks fo

r edu

catio

nal a

ctiv

ities

and

scie

ntifi

c re

sear

ch (1

4.10

.200

5/82

1)

Sect

ion

14 (1

4.10

.200

5/82

1)

(1)

A w

ork

mad

e pu

blic

may

, by

virt

ue o

f ex

tend

ed c

olle

ctiv

e lic

ence

, as

pro

vide

d in

se

ctio

n 26

, be

repr

oduc

ed fo

r use

in e

duca

tiona

l act

iviti

es o

r in

scie

ntifi

c re

sear

ch a

nd b

e us

ed in

this

pur

pose

for c

omm

unic

atio

n to

the

publ

ic b

y m

eans

oth

er th

an tr

ansm

ittin

g on

ra

dio

or te

levi

sion

. The

pro

visi

ons

of th

is s

ubse

ctio

n sh

all

not

appl

y to

rep

rodu

ctio

n by

ph

otoc

opyi

ng o

r by

corr

espo

ndin

g m

eans

. (2

) In

educ

atio

nal a

ctiv

ities

, a w

ork

mad

e pu

blic

, per

form

ed b

y a

teac

her o

r a st

uden

t, m

ay

be r

epro

duce

d by

dire

ct r

ecor

ding

of

soun

d or

im

age

for

tem

pora

ry u

se i

n ed

ucat

iona

l ac

tiviti

es. A

cop

y th

us m

ade

may

not

be

used

for o

ther

pur

pose

s. (3

) Par

ts o

f a li

tera

ry w

ork

that

has

bee

n m

ade

publ

ic o

r, w

hen

the

wor

k is

not

ext

ensi

ve,

the

who

le w

ork,

may

be

inco

rpor

ated

int

o a

test

con

stitu

ting

part

of t

he m

atric

ulat

ion

exam

inat

ion

or in

to a

ny o

ther

cor

resp

ondi

ng te

st.

(4)

The

prov

isio

ns o

f su

bsec

tion

1 co

ncer

ning

wor

ks o

ther

tha

n tra

nsm

itted

on

radi

o or

te

levi

sion

sha

ll no

t ap

ply

to a

wor

k w

hose

aut

hor

has

proh

ibite

d th

e re

prod

uctio

n or

co

mm

unic

atio

n of

the

wor

k.

Rep

rodu

ctio

n in

cer

tain

inst

itutio

ns (2

4.3.

1995

/446

) Se

ctio

n 15

(24.

3.19

95/4

46)

In h

ospi

tals

, sen

ior c

itize

ns' h

omes

, pris

ons

and

othe

r sim

ilar i

nstit

utio

ns, c

opie

s of

wor

ks

mad

e pu

blic

, inc

lude

d in

rad

io a

nd te

levi

sion

tran

smis

sion

s, m

ay b

e m

ade

by a

udio

and

vi

deo

reco

rdin

g fo

r te

mpo

rary

use

in

the

inst

itutio

n w

ithin

a s

hort

perio

d fr

om t

he

reco

rdin

g.

Rep

rodu

ctio

n in

arc

hive

s, lib

rari

es a

nd m

useu

ms (

24.3

.199

5/44

6)

Sect

ion

16 (1

4.10

.200

5/82

1)

An

arch

ive,

and

a l

ibra

ry o

r a

mus

eum

ope

n to

the

pub

lic,

to b

e de

term

ined

in

a G

over

nmen

t D

ecre

e, m

ay,

unle

ss t

he p

urpo

se i

s to

pro

duce

dire

ct o

r in

dire

ct f

inan

cial

ga

in, m

ake

copi

es o

f a w

ork

in it

s ow

n co

llect

ions

:

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

6

1. fo

r the

pur

pose

of p

rese

rvin

g m

ater

ial a

nd sa

fegu

ardi

ng it

s pre

serv

atio

n;

2. fo

r the

pur

pose

of t

echn

ical

ly re

stor

ing

and

repa

iring

mat

eria

l; 3.

for

the

purp

ose

of a

dmin

iste

ring

and

orga

nisi

ng c

olle

ctio

ns a

nd f

or o

ther

inte

rnal

pu

rpos

es re

quire

d by

the

mai

nten

ance

of t

he c

olle

ctio

n;

4. fo

r the

pur

pose

of s

uppl

emen

ting

a de

ficie

nt it

em o

r com

plet

ing

a w

ork

publ

ishe

d in

sev

eral

par

ts i

f th

e ne

cess

ary

com

plem

ent

is n

ot a

vaila

ble

thro

ugh

com

mer

cial

di

strib

utio

n or

com

mun

icat

ion.

Rep

rodu

ctio

n of

wor

ks f

or t

he p

ublic

and

com

mun

icat

ion

of w

orks

to

the

publ

ic

(14.

10.2

005/

821)

Se

ctio

n 16

a (1

4.10

.200

5/82

1)

(1) A

n ar

chiv

e, a

nd a

libr

ary

open

to th

e pu

blic

, to

be d

eter

min

ed in

a G

over

nmen

t Dec

ree,

m

ay, u

nles

s the

pur

pose

is to

pro

duce

dire

ct o

r ind

irect

fina

ncia

l gai

n:

1. m

ake

copi

es o

f a

wor

k in

its

col

lect

ions

whi

ch i

s su

scep

tible

to

dam

age

by

phot

ocop

ying

or

by c

orre

spon

ding

mea

ns a

nd m

ake

them

ava

ilabl

e to

the

pub

lic

thro

ugh

lend

ing

if th

e w

ork

is n

ot a

vaila

ble

thro

ugh

com

mer

cial

dis

tribu

tion

or

com

mun

icat

ion;

2.

whe

re s

een

appr

opria

te, m

ake

copi

es b

y ph

otoc

opyi

ng o

r by

corr

espo

ndin

g m

eans

of

ind

ivid

ual

artic

les

in l

itera

ry o

r ar

tistic

wor

ks o

f co

mpi

latio

n, n

ewsp

aper

s or

pe

riodi

cals

and

of

shor

t pa

ssag

es i

n ot

her

publ

ishe

d w

orks

in

its c

olle

ctio

ns t

o be

ha

nded

ove

r to

the

borr

ower

s fo

r the

ir pr

ivat

e us

e in

lieu

of t

he v

olum

es a

nd b

ookl

ets

whe

rein

they

are

con

tain

ed.

(2)

An

arch

ive,

and

a l

ibra

ry o

r a

mus

eum

ope

n to

the

pub

lic,

to b

e de

term

ined

in

a G

over

nmen

t D

ecre

e, m

ay,

unle

ss t

he p

urpo

se i

s to

pro

duce

dire

ct o

r in

dire

ct f

inan

cial

ga

in, c

omm

unic

ate

a w

ork

mad

e pu

blic

that

it h

as in

its

colle

ctio

ns, t

o a

mem

ber

of th

e pu

blic

for p

urpo

ses o

f res

earc

h or

priv

ate

stud

y on

a d

evic

e re

serv

ed fo

r com

mun

icat

ion

to

the

publ

ic o

n th

e pr

emis

es o

f the

inst

itutio

n. T

his

shal

l be

subj

ect t

o th

e pr

ovis

ion

that

the

com

mun

icat

ion

can

take

pla

ce w

ithou

t pr

ejud

ice

to t

he p

urch

asin

g, l

icen

sing

and

oth

er

term

s go

vern

ing

the

use

of th

e w

ork

and

that

the

digi

tal r

epro

duct

ion

of th

e w

ork

othe

r th

an re

prod

uctio

n re

quire

d fo

r use

refe

rred

to in

this

sub

sect

ion

is p

reve

nted

, and

pro

vide

d th

at th

e fu

rther

com

mun

icat

ion

of th

e w

ork

is p

reve

nted

. U

se o

f wor

ks in

libr

arie

s pre

serv

ing

cultu

ral m

ater

ial (

28.1

2.20

07/1

436)

Se

ctio

n 16

b (2

8.12

.200

7/14

36)

(1) A

libr

ary

entit

led

to a

lega

l dep

osit

of a

cop

y of

a w

ork

unde

r the

Act

on

Dep

osit

and

Pres

erva

tion

of C

ultu

ral M

ater

ial (

1433

/200

7) m

ay:

1. u

se th

e co

py it

has

in it

s co

llect

ions

in th

e m

anne

r re

ferr

ed to

in s

ectio

ns 1

6 an

d 16

a an

d su

bjec

t to

the

term

s lai

d do

wn

in th

ese

sect

ions

; 2.

com

mun

icat

e a

wor

k m

ade

publ

ic th

at it

has

in it

s co

llect

ions

to a

mem

ber o

f the

pu

blic

fo

r pu

rpos

es

of

rese

arch

or

pr

ivat

e st

udy

on

a de

vice

re

serv

ed

for

com

mun

icat

ion

to t

he p

ublic

, if

the

digi

tal

repr

oduc

tion

of t

he w

ork

othe

r th

an

repr

oduc

tion

requ

ired

for

use

refe

rred

to

in t

his

para

grap

h is

pre

vent

ed a

nd i

f th

e fu

rther

com

mun

icat

ion

of t

he w

ork

is p

reve

nted

, on

the

pre

mis

es o

f a

libra

ry i

n w

hose

co

llect

ions

th

e m

ater

ial

is

depo

site

d un

der

the

Act

on

D

epos

it an

d Pr

eser

vatio

n of

Cul

tura

l M

ater

ial,

and

in t

he L

ibra

ry o

f Pa

rliam

ent

and

in t

he

Nat

iona

l Aud

iovi

sual

Arc

hive

; 3.

mak

e co

pies

of

wor

ks m

ade

avai

labl

e to

the

pub

lic i

n in

form

atio

n ne

twor

ks f

or

incl

usio

n in

its c

olle

ctio

ns;

4. m

ake

a co

py fo

r inc

lusi

on in

its

colle

ctio

ns o

f a p

ublis

hed

wor

k w

hich

it n

eeds

to

acqu

ire a

s par

t of t

he li

brar

y co

llect

ion

but w

hich

is n

ot a

vaila

ble

thro

ugh

com

mer

cial

di

strib

utio

n or

com

mun

icat

ion.

(2

) Th

e pr

ovis

ions

of

para

grap

hs 1

and

4 o

f su

bsec

tion

1, s

hall

also

app

ly to

libr

arie

s in

w

hose

col

lect

ions

the

libr

ary

refe

rred

to i

n su

bsec

tion

1 de

posi

ts t

he m

ater

ial

unde

r th

e

210

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

7

Act

on

Dep

osit

and

Pres

erva

tion

of C

ultu

ral M

ater

ial.

Use

of w

orks

in th

e N

atio

nal A

udio

visu

al A

rchi

ve (2

8.12

.200

7/14

36)

Sect

ion

16c

(28.

12.2

007/

1436

) (1

) The

Nat

iona

l Aud

iovi

sual

Arc

hive

may

: 1.

use

a w

ork

in it

s co

llect

ions

in th

e m

anne

r re

ferr

ed to

in s

ectio

ns 1

6 an

d 16

a an

d su

bjec

t to

the

term

s lai

d do

wn

in th

ese

sect

ions

; 2.

com

mun

icat

e a

wor

k in

its

colle

ctio

ns to

a m

embe

r of

the

publ

ic f

or p

urpo

ses

of

rese

arch

or

priv

ate

stud

y by

mea

ns o

f a

devi

ce r

eser

ved

for

com

mun

icat

ion

to t

he

publ

ic o

n de

vice

s lo

cate

d on

the

prem

ises

of

a lib

rary

ref

erre

d to

in s

ectio

n 16

b, in

th

e Li

brar

y of

Pa

rliam

ent,

and

in

the

Dep

artm

ent

of

Jour

nalis

m

and

Mas

s C

omm

unic

atio

n of

the

Uni

vers

ity o

f Tam

pere

, if t

he d

igita

l rep

rodu

ctio

n of

the

wor

k ot

her

than

rep

rodu

ctio

n re

quire

d fo

r th

e us

e is

pre

vent

ed a

nd i

f th

e fu

rther

co

mm

unic

atio

n of

the

wor

k is

pre

vent

ed;

3. m

ake

copi

es o

f w

orks

mad

e av

aila

ble

to t

he p

ublic

by

trans

mis

sion

on

radi

o or

te

levi

sion

for i

nclu

sion

in it

s col

lect

ions

. (2

) Th

e pr

ovis

ions

of

para

grap

hs 1

and

2 o

f su

bsec

tion

1 sh

all

not

appl

y to

a

cine

mat

ogra

phic

wor

k de

posi

ted

by a

fore

ign

prod

ucer

. (3

) A w

ork

in th

e co

llect

ions

of t

he N

atio

nal A

udio

visu

al A

rchi

ve, w

ith th

e ex

cept

ion

of a

ci

nem

atog

raph

ic w

ork

depo

site

d by

a f

orei

gn p

rodu

cer,

may

be

used

for

pur

pose

s of

re

sear

ch a

nd h

ighe

r edu

catio

n in

cin

emat

ogra

phy.

(4

) The

pro

visi

ons

of s

ubse

ctio

ns 1−3

sha

ll al

so a

pply

to m

ater

ial s

ubje

ct to

lega

l dep

osit,

st

ored

in

stor

age

faci

litie

s ap

prov

ed i

n ac

cord

ance

with

the

Act

on

Dep

osit

and

Pres

erva

tion

of C

ultu

ral M

ater

ial.

Use

of w

orks

in a

rchi

ves,

libra

ries

and

mus

eum

s by

virt

ue o

f ext

ende

d co

llect

ive

licen

ce

(14.

10.2

005/

821)

Se

ctio

n 16

d (1

4.10

.200

5/82

1)

(1)

An

arch

ive,

and

a l

ibra

ry o

r a

mus

eum

ope

n to

the

pub

lic,

to b

e de

term

ined

in

a G

over

nmen

t Dec

ree,

may

, by

virtu

e of

ext

ende

d co

llect

ive

licen

ce, a

s pr

ovid

ed in

sec

tion

26:

1. m

ake

a co

py o

f a

wor

k in

its

colle

ctio

ns in

cas

es o

ther

than

thos

e re

ferr

ed to

in

sect

ions

16

and

16a−

16c;

2.

com

mun

icat

e a

wor

k in

its

col

lect

ions

to

the

publ

ic i

n ca

ses

othe

r th

an t

hose

re

ferr

ed to

in se

ctio

ns 1

6a−1

6c.

(2) T

he p

rovi

sion

s of

sub

sect

ion

1 sh

all n

ot a

pply

to a

wor

k w

hose

aut

hor h

as p

rohi

bite

d th

e re

prod

uctio

n or

com

mun

icat

ion

of th

e w

ork.

F

urth

er p

rovi

sion

s co

ncer

ning

the

use

of

wor

ks i

n ar

chiv

es,

libra

ries

and

mus

eum

s (1

4.10

.200

5/82

1)

Sect

ion

16e

(14.

10.2

005/

821)

(1

) In

cas

es r

efer

red

to i

n se

ctio

ns 1

6, 1

6a a

nd 1

6d,

prov

isio

ns m

ay b

e is

sued

by

Gov

ernm

ent

Dec

ree

rega

rdin

g th

e ar

chiv

es a

nd t

he l

ibra

ries

and

mus

eum

s op

en t

o th

e pu

blic

whi

ch a

re a

utho

rised

und

er t

hese

sec

tions

to

use

wor

ks,

or w

ho m

ay a

pply

the

pr

ovis

ions

on

exte

nded

col

lect

ive

licen

se, i

f 1.

the

activ

ities

or m

issi

on o

f the

inst

itutio

n ha

s bee

n en

acte

d by

an

Act

; 2.

the

ins

titut

ion

has

been

ass

igne

d a

spec

ific

arch

ival

, pr

eser

vatio

n or

ser

vice

fu

nctio

n in

legi

slat

ion;

3.

the

activ

ities

of t

he in

stitu

tion

serv

e sc

ient

ific

rese

arch

to a

sign

ifica

nt d

egre

e; o

r 4.

the

inst

itutio

n is

ow

ned

by th

e St

ate.

(2

) Fu

rther

pro

visi

ons

may

be

enac

ted

by G

over

nmen

t D

ecre

e co

ncer

ning

rep

rodu

ctio

n un

der s

ectio

n 16

and

sect

ions

16a−1

6c a

nd th

e us

e of

the

copi

es th

us m

ade.

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

8

(3)

Furth

er

prov

isio

ns

may

be

en

acte

d by

G

over

nmen

t D

ecre

e co

ncer

ning

th

e co

mm

unic

atio

n of

a w

ork

to a

mem

ber o

f the

pub

lic u

nder

sect

ions

16a−1

6c.

Mak

ing

wor

ks a

vaila

ble

to p

erso

ns w

ith d

isab

ilitie

s (14

.10.

2005

/821

) Se

ctio

n 17

(14.

10.2

005/

821)

(1

) Cop

ies

of a

pub

lishe

d lit

erar

y w

ork,

a p

ublis

hed

mus

ical

wor

k or

a p

ublis

hed

wor

k of

fin

e ar

t may

be

mad

e by

mea

ns o

ther

than

rec

ordi

ng s

ound

or m

ovin

g im

ages

for

use

by

peop

le w

ith v

isua

l im

pairm

ents

and

oth

ers w

ho, o

win

g to

a d

isab

ility

or i

llnes

s, ca

nnot

use

th

e w

orks

in th

e or

dina

ry m

anne

r. Th

e co

pies

thus

mad

e m

ay b

e us

ed fo

r com

mun

icat

ion

to p

erso

ns re

ferr

ed to

abo

ve b

y m

eans

oth

er th

an tr

ansm

issi

on o

n ra

dio

or te

levi

sion

. (2

) A

Gov

ernm

ent

Dec

ree

shal

l be

iss

ued

conc

erni

ng t

he i

nstit

utio

ns e

ntitl

ed t

o m

ake

copi

es o

f a

publ

ishe

d lit

erar

y w

ork

by s

ound

rec

ordi

ng f

or u

se b

y vi

sual

ly i

mpa

ired

pers

ons

and

othe

rs w

ho,

owin

g to

a d

isab

ility

or

illne

ss,

cann

ot u

se t

he w

orks

in

the

ordi

nary

man

ner,

to b

e le

nt, s

old

or u

sed

in c

omm

unic

atio

n by

mea

ns o

ther

than

radi

o or

te

levi

sion

tran

smis

sion

. (3

) A

Gov

ernm

ent

Dec

ree

shal

l be

iss

ued

conc

erni

ng t

he i

nstit

utio

ns e

ntitl

ed t

o m

ake

copi

es o

f a

publ

ishe

d w

ork

in s

ign

lang

uage

for

the

dea

f an

d pe

rson

s w

ith a

udito

ry

impa

irmen

ts w

ho c

anno

t use

the

wor

ks in

the

ordi

nary

man

ner,

to b

e le

nt, s

old

or u

sed

in

com

mun

icat

ion

by m

eans

oth

er th

an ra

dio

or te

levi

sion

tran

smis

sion

. (4

) Th

e au

thor

sha

ll ha

ve a

rig

ht to

rem

uner

atio

n fo

r th

e m

akin

g of

cop

ies

for

sale

und

er

subs

ectio

ns 2

and

3 o

r the

com

mun

icat

ion

of a

wor

k to

a d

isab

led

or o

ther

per

son

so th

at

the

pers

on w

ill p

erm

anen

tly h

ave

a co

py o

f the

wor

k.

(5)

The

prov

isio

ns o

f su

bsec

tions

1−4

sha

ll no

t app

ly to

rep

rodu

ctio

n or

com

mun

icat

ion

for c

omm

erci

al p

urpo

ses.

(6) T

he p

rere

quis

ite in

rega

rd o

f an

inst

itutio

n re

ferr

ed to

in s

ubse

ctio

ns 2

and

3 is

that

the

inst

itutio

n, to

be

dete

rmin

ed b

y D

ecre

e, d

oes

not s

eek

com

mer

cial

or e

cono

mic

gai

n, th

at

the

mis

sion

of

the

inst

itutio

n in

clud

es s

ervi

ces

to p

erso

ns w

ith d

isab

ilitie

s an

d th

at t

he

inst

itutio

n ha

s th

e fin

anci

al a

nd o

pera

tiona

l fa

cilit

ies

to p

ursu

e su

ch a

ctiv

ity.

Furth

er

prov

isio

ns m

ay b

e en

acte

d by

Gov

ernm

ent D

ecre

e co

ncer

ning

the

tech

nica

l pro

perti

es a

nd

labe

lling

of

the

copi

es o

f w

orks

mad

e an

d w

orks

com

mun

icat

ed t

o th

e pu

blic

und

er

subs

ectio

ns 2

and

3.

Lite

rary

or a

rtis

tic w

orks

of c

ompi

latio

n us

ed in

edu

catio

n (2

4.3.

1995

/446

) Se

ctio

n 18

(14.

10.2

005/

821)

(1

) M

inor

par

ts o

f lit

erar

y or

mus

ical

wor

ks o

r, if

not e

xten

sive

, the

ent

ire w

ork

may

be

inco

rpor

ated

into

a li

tera

ry o

r arti

stic

wor

k of

com

pila

tion

cons

istin

g of

wor

ks b

y se

vera

l au

thor

s w

hich

is

prin

ted

or p

rodu

ced

by c

orre

spon

ding

mea

ns a

nd i

nten

ded

for

use

in

educ

atio

n, a

fter f

ive

year

s ha

ve e

laps

ed fr

om th

e ye

ar o

f pub

licat

ion.

A w

ork

of a

rt m

ade

publ

ic m

ay b

e re

prod

uced

in p

icto

rial f

orm

in c

onne

ctio

n w

ith th

e te

xt. T

he p

rovi

sion

s of

th

is su

bsec

tion

shal

l not

app

ly to

a w

ork

crea

ted

for u

se in

edu

catio

n.

(2)

The

auth

or s

hall

have

a r

ight

to

rem

uner

atio

n fo

r in

corp

orat

ion

refe

rred

to

in

subs

ectio

n 1.

D

istr

ibut

ion

of c

opie

s of a

wor

k (2

4.3.

1995

/446

) Se

ctio

n 19

(24.

3.19

95/4

46)

(1)

Whe

n a

copy

of

a w

ork

has

been

sol

d or

oth

erw

ise

perm

anen

tly tr

ansf

erre

d w

ith th

e co

nsen

t of

the

aut

hor

with

in t

he E

urop

ean

Econ

omic

Are

a, t

he c

opy

may

be

furth

er

dist

ribut

ed. (

14.1

0.20

05/8

21)

(2) T

he p

rovi

sion

s of

sub

sect

ion

1 sh

all n

ot a

pply

to m

akin

g a

copy

of a

wor

k av

aila

ble

to

the

publ

ic b

y re

ntal

or

by a

com

para

ble

lega

l tra

nsac

tion.

How

ever

, a

prod

uct

of

arch

itect

ure,

arti

stic

han

dicr

aft o

r ind

ustri

al a

rt m

ay b

e re

nted

to th

e pu

blic

. (3

) The

pro

visi

ons

of s

ubse

ctio

n 1

shal

l not

app

ly to

mak

ing

a co

py o

f a c

inem

atog

raph

ic

211

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

9

wor

k or

of c

ompu

ter-

read

able

com

pute

r pro

gram

ava

ilabl

e to

the

publ

ic b

y le

ndin

g.

(4) T

he a

utho

r sha

ll ha

ve a

righ

t to

rem

uner

atio

n fo

r the

lend

ing

of c

opie

s of

a w

ork

to th

e pu

blic

, with

the

exce

ptio

n of

pro

duct

s of

arc

hite

ctur

e, a

rtist

ic h

andi

craf

t and

indu

stria

l art.

R

emun

erat

ion

may

be

clai

med

onl

y fo

r len

ding

whi

ch h

as ta

ken

plac

e w

ithin

the

last

thre

e ca

lend

ar y

ears

. How

ever

, the

rig

ht to

rem

uner

atio

n sh

all n

ot s

ubsi

st if

the

lend

ing

take

s pl

ace

in a

libr

ary

serv

ing

rese

arch

or

educ

atio

nal a

ctiv

ities

. The

rig

ht r

efer

red

to in

this

su

bsec

tion

shal

l be

gove

rned

by

the

prov

isio

ns o

f sec

tion

41. (

22.1

2.20

06/1

228)

(5

) A

cop

y of

a w

ork

whi

ch h

as, w

ith th

e co

nsen

t of

the

auth

or, b

een

sold

or

othe

rwis

e pe

rman

ently

tran

sfer

red

outs

ide

the

Euro

pean

Eco

nom

ic A

rea

may

in a

ccor

danc

e w

ith th

e pr

ovis

ions

of s

ubse

ctio

n 1,

und

er th

e co

nditi

ons l

aid

dow

n in

subs

ectio

n 3,

be:

1.

mad

e av

aila

ble

to th

e pu

blic

by

lend

ing;

2.

sol

d or

oth

erw

ise

perm

anen

tly t

rans

ferr

ed i

f th

e co

py t

o be

tra

nsfe

rred

is

one

acqu

ired

by a

priv

ate

indi

vidu

al fo

r priv

ate

use;

3.

sol

d or

oth

erw

ise

perm

anen

tly t

rans

ferr

ed i

f th

e co

py t

o be

tra

nsfe

rred

is

one

acqu

ired

by a

n ar

chiv

e, o

r by

a li

brar

y or

a m

useu

m o

pen

to th

e pu

blic

, for

its

own

colle

ctio

ns. (

14.1

0.20

05/8

21)

Sect

ion

19a

(22.

12.2

006/

1228

) (1

) The

rem

uner

atio

n fo

r the

lend

ing

in a

pub

lic li

brar

y re

ferr

ed to

in se

ctio

n 19

(4) s

hall

be

paid

thro

ugh

an o

rgan

isat

ion

whi

ch h

as b

een

appr

oved

by

the

Min

istry

of

Educ

atio

n an

d w

hich

repr

esen

ts a

larg

e nu

mbe

r of a

utho

rs w

hose

wor

ks a

re le

nt in

a p

ublic

libr

ary.

(2

) Th

e M

inis

try o

f Ed

ucat

ion

shal

l ap

prov

e th

e or

gani

satio

n on

app

licat

ion

for

a fix

ed

perio

d, fo

r a m

axim

um o

f fiv

e ye

ars.

The

orga

nisa

tion

to b

e ap

prov

ed s

hall

be fi

nanc

ially

so

und

and

capa

ble

of m

anag

ing

mat

ters

in

acco

rdan

ce w

ith t

he a

ppro

val

deci

sion

. Th

e or

gani

satio

n sh

all a

nnua

lly su

bmit

an a

ccou

nt to

the

Min

istry

of E

duca

tion

of th

e ac

tions

it

has

carr

ied

out

purs

uant

to

the

appr

oval

dec

isio

n. T

he o

rgan

isat

ion,

or

orga

nisa

tions

, w

here

the

rep

rese

ntat

ion

of t

he a

utho

rs c

an b

e ac

hiev

ed o

nly

thro

ugh

the

appr

oval

of

seve

ral o

rgan

isat

ions

, mus

t rep

rese

nt a

sub

stan

tial p

ropo

rtion

of

the

auth

ors

of w

orks

of

diff

eren

t fie

lds

who

se w

orks

are

lent

from

the

publ

ic li

brar

ies.

The

appr

oval

dec

isio

n m

ay

also

lay

dow

n te

rms g

uidi

ng th

e pr

actic

al o

pera

tion

of th

e or

gani

satio

n in

gen

eral

. (3

) The

dec

isio

n of

the

Min

istry

of E

duca

tion

shal

l be

com

plie

d w

ith, n

otw

ithst

andi

ng a

n ap

peal

pen

ding

, un

til t

he m

atte

r ha

s be

en r

esol

ved

by m

eans

of

a va

lid d

ecis

ion.

The

ap

prov

al m

ay b

e re

vers

ed i

f th

e or

gani

satio

n co

mm

its s

erio

us o

r es

sent

ial

brea

ches

or

dere

lictio

n of

dut

y in

bre

ach

of t

he a

ppro

val

deci

sion

and

its

ter

ms

and

if no

tices

to

com

ply

or w

arni

ngs

issu

ed t

o th

e or

gani

satio

n ha

ve n

ot l

ed t

o th

e re

ctifi

catio

n of

the

sh

ortc

omin

gs in

its o

pera

tion.

D

ispl

ay o

f a c

opy

of a

wor

k (1

4.10

.200

5/82

1)

Sect

ion

20 (1

4.10

.200

5/82

1)

Whe

n a

copy

of

a w

ork

has,

with

the

con

sent

of

the

auth

or,

been

sol

d or

oth

erw

ise

perm

anen

tly tr

ansf

erre

d, th

e co

py m

ay b

e us

ed fo

r pub

lic d

ispl

ay o

f the

wor

k.

Publ

ic p

erfo

rman

ce (2

4.3.

1995

/446

) Se

ctio

n 21

(14.

10.2

005/

821)

(1

) A

pub

lishe

d w

ork

may

be

publ

icly

per

form

ed in

con

nect

ion

with

div

ine

serv

ices

and

ed

ucat

ion.

(2

) A

pub

lishe

d w

ork

may

als

o be

pub

licly

per

form

ed a

t an

eve

nt i

n w

hich

the

pe

rfor

man

ce o

f w

orks

is n

ot th

e m

ain

feat

ure

and

for

whi

ch n

o ad

mis

sion

fee

is c

harg

ed

and

whi

ch o

ther

wis

e is

not

arr

ange

d fo

r the

pur

pose

of g

ain.

(3

) Th

e pr

ovis

ions

of

subs

ectio

ns 1

and

2 s

hall

not a

pply

to d

ram

atic

or

cine

mat

ogra

phic

w

orks

. The

pub

lic p

erfo

rman

ce o

f a

cine

mat

ogra

phic

wor

k fo

r pu

rpos

es o

f re

sear

ch a

nd

high

er e

duca

tion

on c

inem

atog

raph

y is

gov

erne

d by

sect

ion

16c.

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

10

Quo

tatio

n (2

4.3.

1995

/446

) Se

ctio

n 22

(24.

3.19

95/4

46)

A w

ork

mad

e pu

blic

may

be

quot

ed,

in a

ccor

danc

e w

ith p

rope

r us

age

to t

he e

xten

t ne

cess

ary

for t

he p

urpo

se.

An

artic

le o

n a

curr

ent t

opic

(24.

3.19

95/4

46)

Sect

ion

23

(1)

Arti

cles

in

new

spap

ers

and

perio

dica

ls o

n cu

rren

t re

ligio

us,

polit

ical

, or

eco

nom

ic

topi

cs m

ay b

e in

clud

ed i

n ot

her

new

spap

ers

and

perio

dica

ls,

unle

ss r

epro

duct

ion

is

expr

essl

y pr

ohib

ited.

(2

4.3.

1995

/446

) (2

) The

aut

hor's

nam

e an

d th

e so

urce

mus

t alw

ays b

e in

dica

ted.

(14.

10.2

005/

821)

C

once

rt p

rogr

amm

es (2

4.3.

1995

/446

) Se

ctio

n 24

(14.

10.2

005/

821)

W

hen

a m

usic

al w

ork

is p

erfo

rmed

with

tex

t, th

e te

xt m

ay b

e m

ade

avai

labl

e to

the

au

dien

ce i

n a

conc

ert

prog

ram

me

or a

cor

resp

ondi

ng l

eafle

t pr

oduc

ed b

y pr

intin

g,

phot

ocop

ying

or b

y co

rres

pond

ing

mea

ns.

Use

of w

orks

of a

rt (1

4.10

.200

5/82

1)

Sect

ion

25

(1) W

orks

of a

rt m

ade

publ

ic m

ay b

e re

prod

uced

in p

icto

rial f

orm

in m

ater

ial c

onne

ctio

n w

ith th

e te

xt:

1. in

a c

ritic

al o

r sci

entif

ic p

rese

ntat

ion;

and

2.

in a

new

spap

er o

r a p

erio

dica

l whe

n re

porti

ng o

n a

curr

ent e

vent

, pro

vide

d th

at th

e w

ork

has

not b

een

crea

ted

in o

rder

to b

e re

prod

uced

in a

new

spap

er o

r a

perio

dica

l. (2

4.3.

1995

/446

) (2

) W

hen

a co

py o

f a

wor

k of

art

has,

with

the

con

sent

of

the

auth

or,

been

sol

d or

ot

herw

ise

perm

anen

tly tr

ansf

erre

d, th

e w

ork

of a

rt m

ay b

e in

corp

orat

ed in

to a

pho

togr

aph,

a

film

, or

a t

elev

isio

n pr

ogra

mm

e if

the

repr

oduc

tion

is o

f a

subo

rdin

ate

natu

re i

n th

e ph

otog

raph

, film

or p

rogr

amm

e. (1

4.10

.200

5/82

1)

Use

of w

orks

of a

rt in

cat

alog

ues a

nd in

info

rmat

ion

and

pict

oria

l rep

rese

ntat

ion

of a

bu

ildin

g (1

4.10

.200

5/82

1)

Sect

ion

25a

(14.

10.2

005/

821)

(1

) A w

ork

of a

rt w

hich

is in

clud

ed in

a c

olle

ctio

n or

dis

play

ed o

r off

ered

for s

ale,

may

be

repr

oduc

ed i

n pi

ctor

ial

form

for

the

pur

pose

of

diss

emin

atin

g in

form

atio

n ab

out

the

exhi

bitio

n or

sal

e or

for

a c

atal

ogue

pro

duce

d by

prin

ting,

pho

toco

pyin

g or

by

othe

r co

rres

pond

ing

mea

ns.

(2)

A w

ork

of a

rt w

hich

is in

clud

ed in

a c

olle

ctio

n, d

ispl

ayed

or

offe

red

for

sale

may

be

repr

oduc

ed b

y th

e m

aint

aine

r of

the

col

lect

ion,

the

exh

ibito

r or

the

vend

or b

y vi

rtue

of

exte

nded

col

lect

ive

licen

ce, a

s pr

ovid

ed in

sec

tion

26, i

n ca

ses

othe

r tha

n th

ose

refe

rred

to

in su

bsec

tion

1, a

nd th

e co

pies

thus

mad

e m

ay b

e us

ed fo

r com

mun

icat

ion

to th

e pu

blic

by

mea

ns o

ther

tha

n tra

nsm

issi

on o

n ra

dio

or t

elev

isio

n. T

he p

rovi

sion

s of

thi

s su

bsec

tion

shal

l no

t ap

ply

to a

wor

k of

art

who

se a

utho

r ha

s pr

ohib

ited

the

repr

oduc

tion

or

com

mun

icat

ion

of th

e w

ork.

(3

) A w

ork

of a

rt m

ay b

e re

prod

uced

in p

icto

rial f

orm

in c

ases

oth

er th

an th

ose

refe

rred

to

in su

bsec

tions

1 a

nd 2

if th

e w

ork

is p

erm

anen

tly p

lace

d at

, or i

n th

e im

med

iate

vic

inity

of,

a pu

blic

pla

ce. I

f the

wor

k of

art

is th

e le

adin

g m

otiv

e of

the

pict

ure,

the

pict

ure

may

not

212

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

11

be u

sed

for

the

purp

ose

of g

ain.

A p

ictu

re h

avin

g a

mat

eria

l con

nect

ion

to th

e te

xt m

ay,

how

ever

, be

incl

uded

in a

new

spap

er o

r a p

erio

dica

l. (4

) A b

uild

ing

may

be

free

ly re

prod

uced

in p

icto

rial f

orm

. Pr

esen

tatio

n of

a c

urre

nt e

vent

(24.

3.19

95/4

46)

Sect

ion

25b

(24.

3.19

95/4

46)

Whe

n a

curr

ent e

vent

is p

rese

nted

in a

rad

io o

r te

levi

sion

bro

adca

st o

r as

a f

ilm, a

wor

k vi

sibl

e or

aud

ible

in th

e cu

rren

t eve

nt m

ay b

e in

clud

ed in

the

pres

enta

tion

to th

e ex

tent

ne

cess

ary

for t

he in

form

atio

nal p

urpo

se.

Use

of p

ublic

stat

emen

ts (2

4.3.

1995

/446

) Se

ctio

n 25

c (2

4.3.

1995

/446

) O

ral o

r writ

ten

stat

emen

ts m

ade

in a

pub

lic re

pres

enta

tiona

l bod

y, b

efor

e an

aut

horit

y or

at

a pu

blic

con

sulta

tion

on a

mat

ter o

f pub

lic in

tere

st m

ay b

e re

prod

uced

or c

omm

unic

ated

to

the

publ

ic w

ithou

t th

e au

thor

's co

nsen

t. H

owev

er,

a st

atem

ent

and

a w

ritte

n or

sim

ilar

wor

k pr

esen

ted

as e

vide

nce

in a

cas

e or

in a

mat

ter

may

be

repr

oduc

ed o

r com

mun

icat

ed

to th

e pu

blic

onl

y in

the

repo

rting

of t

he c

ase

or m

atte

r and

onl

y to

the

exte

nt n

eces

sary

for

the

purp

oses

of

such

rep

ortin

g. T

he a

utho

r sh

all

have

the

exc

lusi

ve r

ight

to

publ

ish

a co

mpi

latio

n of

his

stat

emen

ts.

Publ

ic d

ocum

ents

and

adm

inis

trat

ion

of ju

stic

e (2

4.3.

1995

/446

) Se

ctio

n 25

d (2

4.3.

1995

/446

) (1

) C

opyr

ight

sha

ll no

t lim

it th

e st

atut

ory

right

to

obta

in i

nfor

mat

ion

from

a p

ublic

do

cum

ent.

(2) A

wor

k m

ay b

e us

ed w

hen

the

adm

inis

tratio

n of

just

ice

or p

ublic

secu

rity

so re

quire

s.

(3) A

wor

k us

ed p

ursu

ant t

o su

bsec

tions

1 a

nd 2

abo

ve m

ay b

e qu

oted

in a

ccor

danc

e w

ith

sect

ion

22.

(4)

Wor

ks r

efer

red

to in

sec

tion

9(2)

of

this

Act

may

be

repr

oduc

ed o

r co

mm

unic

ated

to

the

publ

ic in

con

nect

ion

with

a d

ocum

ent r

efer

red

to in

sub

sect

ion

1 of

sai

d se

ctio

n an

d us

ed s

epar

atel

y fr

om th

e do

cum

ent f

or th

e ad

min

istra

tive

or o

ther

pur

pose

to w

hich

the

docu

men

t rel

ates

. (14

.10.

2005

/821

) (5

) Any

one

who

com

mun

icat

es a

wor

k to

the

publ

ic b

y ra

dio

or te

levi

sion

tran

smis

sion

or

by o

ther

mea

ns m

ay m

ake

a co

py o

r hav

e a

copy

mad

e or

reta

in a

cop

y of

the

trans

mitt

ed

or c

omm

unic

ated

wor

k fo

r th

e pu

rpos

e of

dis

char

ging

a s

tatu

tory

dut

y to

rec

ord

or s

tore

. (1

4.10

.200

5/82

1)

Alte

ring

of b

uild

ings

and

util

itari

an a

rtic

les (

24.3

.199

5/44

6)

Sect

ion

25e

(24.

3.19

95/4

46)

Bui

ldin

gs a

nd u

tilita

rian

artic

les

may

be

alte

red

by th

e ow

ner

with

out t

he c

onse

nt o

f th

e au

thor

, if r

equi

red

by te

chni

cal o

r pra

ctic

al re

ason

s. O

rigi

nal r

adio

and

tele

visi

on tr

ansm

issi

ons (

14.1

0.20

05/8

21)

Sect

ion

25f (

14.1

0.20

05/8

21)

(1) A

bro

adca

stin

g or

gani

satio

n m

ay tr

ansm

it a

wor

k un

der e

xten

ded

colle

ctiv

e lic

ence

, as

prov

ided

in S

ectio

n 26

. The

pro

visi

ons

of th

is s

ubse

ctio

n sh

all n

ot, h

owev

er, a

pply

to a

dr

amat

ic w

ork,

a c

inem

atog

raph

ic w

ork

and

any

othe

r w

ork

if th

e au

thor

has

pro

hibi

ted

the

trans

mis

sion

of t

he w

ork.

(2

) If a

bro

adca

stin

g or

gani

satio

n is

ent

itled

to tr

ansm

it a

wor

k, it

may

mak

e a

copy

of t

he

wor

k fo

r use

in it

s ow

n br

oadc

asts

for a

max

imum

of f

our t

imes

dur

ing

one

year

. (3

) Fo

r us

ing

a w

ork

mor

e of

ten

or o

ver

a lo

nger

per

iod

than

pro

vide

d in

sub

sect

ion

2, a

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

12

broa

dcas

ting

orga

nisa

tion

may

mak

e a

copy

or h

ave

a co

py m

ade

of th

e w

ork

by v

irtue

of

exte

nded

col

lect

ive

licen

ce, a

s pro

vide

d in

sect

ion

26.

(4)

The

prov

isio

ns o

f su

bsec

tion

1 sh

all

not

appl

y to

the

ret

rans

mis

sion

of

a w

ork

in a

ra

dio

or t

elev

isio

n tra

nsm

issi

on s

imul

tane

ousl

y w

ith t

he o

rigin

al t

rans

mis

sion

with

out

alte

ring

the

trans

mis

sion

. (5

) Th

e pr

ovis

ions

of

subs

ectio

n 1

shal

l ap

ply

to r

adio

or

tele

visi

on t

rans

mis

sion

s by

sa

telli

te o

nly

if th

e sa

telli

te tr

ansm

issi

on is

sim

ulta

neou

s w

ith a

terr

estri

al tr

ansm

issi

on b

y th

e sa

me

broa

dcas

ting

orga

nisa

tion.

A

new

tran

smis

sion

of a

tele

visi

on p

rogr

amm

e st

ored

in a

rchi

ves (

14.1

0.20

05/8

21)

Sect

ion

25g

(14.

10.2

005/

821)

(1

) A

bro

adca

stin

g or

gani

satio

n m

ay t

rans

mit

anew

wor

k m

ade

publ

ic b

y vi

rtue

of

exte

nded

col

lect

ive

licen

ce,

as p

rovi

ded

in s

ectio

n 26

, if

the

wor

k is

inc

lude

d in

a

tele

visi

on p

rogr

amm

e pr

oduc

ed b

y th

e br

oadc

astin

g or

gani

satio

n an

d tra

nsm

itted

bef

ore

the

first

of J

anua

ry 1

985.

(2

) The

pro

visi

ons

of s

ubse

ctio

n 1

shal

l not

app

ly to

a w

ork

who

se a

utho

r has

pro

hibi

ted

the

trans

mis

sion

. R

etra

nsm

issi

on o

f a ra

dio

or te

levi

sion

tran

smis

sion

(14.

10.2

005/

821)

Se

ctio

n 25

h (2

4.3.

1995

/446

) (1

) A

wor

k in

clud

ed i

n a

radi

o or

tel

evis

ion

trans

mis

sion

may

be

retra

nsm

itted

with

out

alte

ring

the

trans

mis

sion

by

virtu

e of

ext

ende

d co

llect

ive

licen

ce, a

s pr

ovid

ed in

sec

tion

26,

for

rece

ptio

n by

th

e pu

blic

si

mul

tane

ousl

y w

ith

the

orig

inal

tra

nsm

issi

on.

(14.

10.2

005/

821)

(2

) Th

e pr

ovis

ions

of

subs

ectio

n 1

shal

l no

t ap

ply

to c

able

ret

rans

mis

sion

of

a w

ork

incl

uded

in

a tra

nsm

issi

on o

rigin

atin

g in

ano

ther

Sta

te b

elon

ging

to

the

Euro

pean

Ec

onom

ic A

rea,

pro

vide

d its

aut

hor h

as a

ssig

ned

the

right

to it

s cab

le re

trans

mis

sion

to th

e br

oadc

astin

g or

gani

satio

n w

hose

tran

smis

sion

the

retra

nsm

issi

on c

once

rns.

(3

) Th

e au

thor

isat

ions

con

cern

ing

the

cabl

e re

trans

mis

sion

of

wor

ks i

nclu

ded

in a

tra

nsm

issi

on re

ferr

ed to

in su

bsec

tion

2 ab

ove,

shal

l be

gran

ted

sim

ulta

neou

sly.

(4

) Th

e pr

ovis

ions

of

subs

ectio

n 1

shal

l be

app

licab

le t

o a

radi

o an

d te

levi

sion

tra

nsm

issi

on b

y w

ire o

nly

if th

e tra

nsm

issi

on o

rigin

ates

in a

noth

er S

tate

bel

ongi

ng to

the

Euro

pean

Eco

nom

ic A

rea.

R

etra

nsm

issi

on

of

prog

ram

mes

ba

sed

on

the

mus

t ca

rry

oblig

atio

n to

tr

ansm

it pr

ogra

mm

es

(14.

10.2

005/

821)

Se

ctio

n 25

i (14

.10.

2005

/821

) A

tele

com

mun

icat

ions

ent

erpr

ise

prov

idin

g a

netw

ork

serv

ice

in a

cab

le te

levi

sion

net

wor

k w

hich

is

prim

arily

use

d to

tra

nsm

it te

levi

sion

and

rad

io p

rogr

amm

es a

nd w

hich

a

sign

ifica

nt n

umbe

r of t

he e

nd-u

sers

of t

he n

etw

ork

use

as th

eir p

rimar

y m

eans

of r

ecei

ving

te

levi

sion

and

rad

io p

rogr

amm

es m

ay r

etra

nsm

it by

wire

for

rec

eptio

n by

the

pub

lic a

w

ork

incl

uded

in

the

tele

visi

on o

r ra

dio

broa

dcas

t re

ferr

ed t

o in

sec

tion

134

of t

he

Com

mun

icat

ions

Mar

ket

Act

(39

3/20

03)

sim

ulta

neou

sly

with

the

orig

inal

tra

nsm

issi

on

with

out a

lterin

g th

e tra

nsm

issi

on.

Spec

ial p

rovi

sion

s con

cern

ing

com

pute

r pro

gram

s and

dat

abas

es (3

.4.1

998/

250)

Se

ctio

n 25

j (24

.3.1

995/

446)

(1

) W

hoev

er h

as l

egal

ly a

cqui

red

a co

mpu

ter

prog

ram

may

mak

e su

ch c

opie

s of

the

pr

ogra

m a

nd m

ake

such

alte

ratio

ns t

o th

e pr

ogra

m a

s ar

e ne

cess

ary

for

the

use

of t

he

prog

ram

for t

he in

tend

ed p

urpo

se. T

his s

hall

also

app

ly to

the

corr

ectio

n of

err

ors.

213

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

13

(2)

Who

ever

has

a r

ight

to

use

a co

mpu

ter

prog

ram

may

mak

e a

back

-up

copy

of

the

prog

ram

, if n

eces

sary

for t

he u

se o

f the

pro

gram

. (3

) W

hoev

er h

as a

rig

ht to

use

a c

ompu

ter

prog

ram

sha

ll be

ent

itled

to o

bser

ve, s

tudy

or

test

the

func

tioni

ng o

f the

com

pute

r pro

gram

in o

rder

to d

eter

min

e th

e id

eas a

nd p

rinci

ples

w

hich

und

erlie

any

ele

men

t of

the

pro

gram

if

he d

oes

so w

hile

per

form

ing

the

acts

of

load

ing,

dis

play

ing,

runn

ing,

tran

smitt

ing

or st

orin

g th

e pr

ogra

m.

(4) W

hoev

er h

as a

righ

t to

use

a da

taba

se m

ay m

ake

copi

es o

f it a

nd p

erfo

rm a

ll ot

her a

cts

nece

ssar

y fo

r acc

essi

ng th

e da

taba

se a

nd fo

r nor

mal

use

of i

ts c

onte

nts.

(3.4

.199

8/25

0)

(5)

Any

con

tract

ual

prov

isio

n lim

iting

use

in

acco

rdan

ce w

ith s

ubse

ctio

ns 2−4

sha

ll be

w

ithou

t eff

ect.

(3.4

.199

8/25

0)

Sect

ion

25k

(24.

3.19

95/4

46)

(1)

The

repr

oduc

tion

of t

he c

ode

of a

pro

gram

and

the

tra

nsla

tion

of i

ts f

orm

sha

ll be

pe

rmis

sibl

e if

thes

e ac

ts a

re in

disp

ensa

ble

for

obta

inin

g in

form

atio

n by

mea

ns o

f w

hich

th

e in

tero

pera

bilit

y of

an

inde

pend

ently

cre

ated

com

pute

r pr

ogra

m w

ith o

ther

pro

gram

s ca

n be

ach

ieve

d an

d th

at th

e fo

llow

ing

cond

ition

s are

met

: 1.

thes

e ac

ts a

re p

erfo

rmed

by

the

licen

see

or b

y an

othe

r pe

rson

hav

ing

the

right

to

use

a co

py o

f the

pro

gram

or,

on th

eir b

ehal

f, by

a p

erso

n au

thor

ised

to d

o so

; 2.

the

inf

orm

atio

n ne

cess

ary

for

achi

evin

g in

tero

pera

bilit

y ha

s no

t pr

evio

usly

bee

n re

adily

ava

ilabl

e to

the

pers

ons r

efer

red

to in

par

agra

ph 1

; and

3.

thes

e ac

ts a

re c

onfin

ed to

the

parts

of t

he o

rigin

al p

rogr

am w

hich

are

nec

essa

ry fo

r ac

hiev

ing

inte

rope

rabi

lity.

(2

) Th

e in

form

atio

n ob

tain

ed u

nder

the

prov

isio

ns o

f su

bsec

tion

1 sh

all n

ot, b

y vi

rtue

of

thes

e pr

ovis

ions

: 1.

be

used

for p

urpo

ses o

ther

than

to a

chie

ve th

e in

tero

pera

bilit

y of

the

inde

pend

ently

cr

eate

d co

mpu

ter p

rogr

am;

2. b

e gi

ven

to o

ther

s, un

less

nec

essa

ry f

or th

e in

tero

pera

bilit

y of

the

inde

pend

ently

cr

eate

d co

mpu

ter p

rogr

am; o

r 3.

be

used

for

the

dev

elop

men

t, pr

oduc

tion

or m

arke

ting

of a

com

pute

r pr

ogra

m

subs

tant

ially

sim

ilar i

n its

exp

ress

ion,

or f

or a

ny o

ther

act

whi

ch in

frin

ges c

opyr

ight

. (3

) Any

con

tract

ual p

rovi

sion

lim

iting

the

use

of a

com

pute

r pro

gram

in a

ccor

danc

e w

ith

this

sect

ion

shal

l be

with

out e

ffec

t. E

xten

ded

colle

ctiv

e lic

ence

(24.

3.19

95/4

46)

Sect

ion

26 (1

4.10

.200

5/82

1)

(1) T

he p

rovi

sion

s of

this

Act

rega

rdin

g ex

tend

ed c

olle

ctiv

e lic

ence

s sh

all a

pply

whe

n th

e us

e of

a w

ork

has

been

agr

eed

upon

bet

wee

n th

e us

er a

nd t

he o

rgan

isat

ion

whi

ch i

s ap

prov

ed b

y th

e M

inis

try o

f Ed

ucat

ion

and

whi

ch r

epre

sent

s, in

a g

iven

fie

ld, n

umer

ous

auth

ors

of w

orks

use

d in

Fin

land

. A li

cens

ee a

utho

rised

by

virtu

e of

ext

ende

d co

llect

ive

licen

ce m

ay, u

nder

term

s de

term

ined

in th

e lic

ence

, use

a w

ork

in th

e sa

me

field

who

se

auth

or th

e or

gani

satio

n do

es n

ot re

pres

ent.

(2)

The

Min

istry

of

Educ

atio

n sh

all

appr

ove

the

orga

nisa

tion

on a

pplic

atio

n fo

r a

fixed

pe

riod,

for

a m

axim

um o

f fiv

e ye

ars.

The

orga

nisa

tion

to b

e ap

prov

ed m

ust

have

the

fin

anci

al a

nd o

pera

tiona

l pre

requ

isite

s an

d ca

paci

ty to

man

age

the

affa

irs in

acc

orda

nce

with

the

app

rova

l de

cisi

on.

The

orga

nisa

tion

shal

l an

nual

ly s

ubm

it an

acc

ount

to

the

Min

istry

of E

duca

tion

of th

e m

easu

res

it ha

s ta

ken

purs

uant

to th

e ap

prov

al d

ecis

ion.

The

or

gani

satio

n, o

r or

gani

satio

ns,

whe

re t

he r

epre

sent

atio

n of

the

aut

hors

can

be

achi

eved

on

ly th

roug

h th

e ap

prov

al o

f sev

eral

org

anis

atio

ns, m

ust r

epre

sent

a s

ubst

antia

l pro

porti

on

of th

e au

thor

s of

wor

ks o

f di

ffer

ent f

ield

s w

hose

wor

ks a

re u

sed

unde

r a

give

n pr

ovis

ion

on e

xten

ded

colle

ctiv

e lic

ence

. Whe

n se

vera

l org

anis

atio

ns a

re a

ppro

ved

to g

rant

lice

nce

for a

giv

en u

se o

f wor

ks, t

he te

rms

of th

e ap

prov

al d

ecis

ions

sha

ll en

sure

, whe

re n

eede

d,

that

the

lic

ence

s ar

e gr

ante

d si

mul

tane

ousl

y an

d on

com

patib

le t

erm

s. Th

e ap

prov

al

deci

sion

m

ay a

lso

lay

dow

n te

rms

guid

ing

prac

tical

lic

ensi

ng i

n ge

nera

l fo

r th

e or

gani

satio

n.

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

14

(3) T

he d

ecis

ion

of th

e M

inis

try o

f Edu

catio

n sh

all b

e co

mpl

ied

with

, not

with

stan

ding

an

appe

al p

endi

ng u

ntil

the

mat

ter

has

been

res

olve

d by

mea

ns o

f a

valid

dec

isio

n. T

he

appr

oval

may

be

reve

rsed

if th

e or

gani

satio

n co

mm

its s

erio

us o

r su

bsta

ntia

l off

ence

s or

de

relic

tion

of d

uty

in b

reac

h of

the

app

rova

l de

cisi

on a

nd i

ts t

erm

s an

d if

notic

es t

o co

mpl

y or

war

ning

s is

sued

to

the

orga

nisa

tion

have

not

led

to

the

rect

ifica

tion

of t

he

shor

tcom

ings

in it

s ope

ratio

n.

(4)

Poss

ible

stip

ulat

ions

by

the

orga

nisa

tion

refe

rred

to

in s

ubse

ctio

n 1

conc

erni

ng t

he

dist

ribut

ion

of r

emun

erat

ions

for

the

rep

rodu

ctio

n, c

omm

unic

atio

n or

tra

nsm

issi

on o

f w

orks

am

ong

the

auth

ors

it re

pres

ents

or

the

use

of t

he r

emun

erat

ions

for

the

aut

hors

' co

mm

on p

urpo

ses s

hall

also

app

ly to

aut

hors

who

m th

e or

gani

satio

n do

es n

ot re

pres

ent.

(5)

If t

he s

tipul

atio

ns o

f th

e or

gani

satio

n re

ferr

ed t

o in

sub

sect

ion

3 do

not

pro

vide

the

rig

ht to

indi

vidu

al re

mun

erat

ion

for t

he a

utho

rs re

pres

ente

d by

the

orga

nisa

tion,

an

auth

or

not r

epre

sent

ed b

y th

e or

gani

satio

n sh

all,

how

ever

, hav

e th

e rig

ht to

cla

im a

n in

divi

dual

re

mun

erat

ion.

The

rem

uner

atio

n sh

all b

e pa

id b

y th

e or

gani

satio

n re

ferr

ed to

in s

ubse

ctio

n 1.

The

rig

ht t

o in

divi

dual

rem

uner

atio

n sh

all

expi

re i

f a

clai

m c

once

rnin

g it

has

not

verif

iabl

y be

en p

rese

nted

with

in t

hree

yea

rs f

rom

the

end

of

the

cale

ndar

yea

r du

ring

whi

ch th

e re

prod

uctio

n, c

omm

unic

atio

n or

tran

smis

sion

of t

he w

ork

took

pla

ce.

CH

APT

ER

2a

Com

pens

atio

n fo

r th

e re

prod

uctio

n of

a w

ork

for

priv

ate

use

(14.

10.2

005/

821)

Se

ctio

n 26

a (1

4.10

.200

5/82

1)

(1) W

hene

ver a

n au

dio

or v

ideo

tape

, or a

ny o

ther

dev

ice

on w

hich

sou

nd o

r im

age

can

be

reco

rded

and

whi

ch t

o a

subs

tant

ial

exte

nt i

s us

ed f

or t

he r

epro

duct

ion

of a

wor

k fo

r pr

ivat

e us

e, i

s pr

oduc

ed o

r im

porte

d in

to t

he c

ount

ry f

or d

istri

butio

n to

the

pub

lic, t

he

man

ufac

ture

r or t

he im

porte

r sha

ll pa

y a

levy

, det

erm

ined

on

the

basi

s of

the

play

ing

time

or th

e re

cord

ing

capa

city

of t

he d

evic

e, to

be

used

as

dire

ct c

ompe

nsat

ion

to th

e au

thor

s of

sa

id w

orks

and

as

indi

rect

com

pens

atio

n to

the

auth

ors

for

thei

r co

mm

on p

urpo

ses.

The

com

pens

atio

ns s

hall

be p

aid

out

to t

he a

utho

rs t

hrou

gh a

n or

gani

satio

n re

pres

entin

g nu

mer

ous

auth

ors

of w

orks

in a

cer

tain

fiel

d us

ed in

Fin

land

in a

ccor

danc

e w

ith a

pla

n fo

r th

e us

e of

the

fund

s ann

ually

app

rove

d by

the

Min

istry

of E

duca

tion.

(2

) W

hoev

er o

ffer

s fo

r re

sale

a d

evic

e so

ld b

y a

man

ufac

ture

r or

impo

rter

refe

rred

to in

su

bsec

tion

1 sh

all,

upon

the

requ

est o

f th

e or

gani

satio

n re

ferr

ed to

in s

ectio

n 26

b, p

rove

th

at th

e le

vy o

n th

e de

vice

has

bee

n pa

id. I

f the

levy

has

not

bee

n pa

id, t

he r

esel

ler

shal

l pa

y th

e le

vy. T

he re

selle

r sha

ll, h

owev

er, b

e en

title

d to

requ

est t

he le

vy h

e ha

s pa

id fr

om

the

man

ufac

ture

r or

the

im

porte

r pr

imar

ily r

espo

nsib

le f

or t

he l

evy,

or

from

ano

ther

re

selle

r fr

om w

hom

the

dev

ice

has

been

obt

aine

d fo

r re

sale

and

who

is

seco

ndar

ily

resp

onsi

ble

for t

he le

vy.

(3) P

rovi

sion

s sha

ll be

issu

ed b

y a

Gov

ernm

ent D

ecre

e, a

fter t

he M

inis

try o

f Tra

nspo

rt an

d C

omm

unic

atio

ns a

nd th

e M

inis

try o

f Tra

de a

nd In

dust

ry h

ave

give

n th

eir o

pini

ons

on th

e m

atte

r, to

det

erm

ine

the

devi

ces

subj

ect

to t

he l

evy

refe

rred

to

in s

ubse

ctio

n 1

and

the

amou

nt o

f th

e le

vy.

Bef

ore

the

issu

ing

of t

he G

over

nmen

t D

ecre

e, t

he M

inis

try o

f Ed

ucat

ion

shal

l ne

gotia

te w

ith t

he o

rgan

isat

ions

rep

rese

ntin

g th

e m

anuf

actu

rers

and

im

porte

rs,

as w

ell

as w

ith t

he o

rgan

isat

ions

rep

rese

ntin

g th

e au

thor

s re

ferr

ed t

o in

su

bsec

tion

1, a

nd th

e co

nsum

er a

utho

ritie

s. Th

e am

ount

of

the

levy

sha

ll be

set

tled

at a

le

vel

whi

ch c

an b

e co

nsid

ered

a f

air

com

pens

atio

n fo

r th

e re

prod

uctio

n of

a w

ork

for

priv

ate

use.

A m

axim

um s

hall

be d

eter

min

ed f

or a

lev

y pe

r de

vice

, w

hich

may

not

be

exce

eded

. The

det

erm

inat

ion

of th

e le

vy s

hall

be in

form

ed b

y ex

istin

g su

rvey

dat

a on

the

prev

alen

ce o

f re

prod

uctio

n fo

r pr

ivat

e us

e an

d by

the

ext

ent

to w

hich

tec

hnol

ogic

al

mea

sure

s pr

even

ting

repr

oduc

tion

for

priv

ate

use

have

bee

n us

ed to

pro

tect

wor

ks m

ade

avai

labl

e to

the

publ

ic. A

ccou

nt s

hall

also

be

take

n of

the

exte

nt to

whi

ch e

ach

type

of

devi

ce c

an b

e us

ed fo

r rep

rodu

ctio

n of

wor

ks p

rote

cted

by

tech

nolo

gica

l mea

sure

s an

d of

un

prot

ecte

d w

orks

. (31

.10.

2008

/663

)

214

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

15

Sect

ion

26b

(14.

10.2

005/

821)

(1

) Th

e le

vy s

hall

be p

aid

to t

he o

rgan

isat

ion,

rep

rese

ntin

g nu

mer

ous

auth

ors

of w

orks

us

ed in

Fin

land

, whi

ch h

as b

een

appr

oved

for t

his

task

by

the

Min

istry

of E

duca

tion

for a

fix

ed p

erio

d, f

or a

max

imum

of

five

year

s. O

nly

one

orga

nisa

tion

at a

tim

e m

ay b

e ap

prov

ed

for

the

task

. Th

e or

gani

satio

n m

ust

have

th

e fin

anci

al

and

oper

atio

nal

prer

equi

site

s an

d ca

paci

ty to

man

age

the

affa

irs in

acc

orda

nce

with

the

appr

oval

dec

isio

n.

The

orga

nisa

tion

shal

l ann

ually

sub

mit

an a

ccou

nt o

f the

mea

sure

s it

has

take

n pu

rsua

nt to

th

e ap

prov

al d

ecis

ion.

The

dec

isio

n of

the

Min

istry

of

Educ

atio

n sh

all b

e co

mpl

ied

with

, no

twith

stan

ding

an

appe

al p

endi

ng u

ntil

the

mat

ter h

as b

een

reso

lved

by

mea

ns o

f a v

alid

de

cisi

on. T

he a

ppro

val s

hall

be s

ubje

ct to

the

com

mitm

ent o

f th

e or

gani

satio

n to

usi

ng a

pa

rt of

the

pro

ceed

s, to

be

annu

ally

agr

eed

by t

he M

inis

try o

f Ed

ucat

ion

and

the

orga

nisa

tion,

as

indi

rect

com

pens

atio

n to

the

aut

hors

for

the

ir co

mm

on p

urpo

ses

in

acco

rdan

ce w

ith a

pla

n fo

r th

e us

e of

the

fun

ds a

nnua

lly a

ppro

ved

by t

he M

inis

try o

f Ed

ucat

ion.

(2

) The

adm

inis

trativ

e co

sts s

hall

be d

educ

ted

from

the

levy

pro

ceed

s. Se

ctio

n 26

c (1

4.10

.200

5/82

1)

(1) T

he M

inis

try o

f Edu

catio

n m

ay is

sue

mor

e de

taile

d or

ders

rega

rdin

g th

e m

anag

emen

t of

the

levi

es to

the

orga

nisa

tion.

The

Min

istry

sha

ll su

perv

ise

that

the

levy

is a

dmin

iste

red

in a

ccor

danc

e w

ith th

e or

ders

and

that

the

plan

for t

he u

se o

f the

fund

s is

adh

ered

to. T

he

Min

istry

of E

duca

tion

shal

l hav

e th

e rig

ht to

obt

ain

from

the

orga

nisa

tion

any

info

rmat

ion

nece

ssar

y fo

r the

pur

pose

s of t

he su

perv

isio

n.

(2)

The

Min

istry

of

Educ

atio

n m

ay w

ithdr

aw i

ts a

ppro

val

of a

n or

gani

satio

n if

the

orga

nisa

tion

does

not

com

ply

with

the

orde

rs is

sued

to it

, or

with

the

plan

for

the

use

of

the

fund

s, or

doe

s no

t pr

ovid

e th

e in

form

atio

n re

quire

d fo

r th

e su

perv

isio

n, a

nd i

f th

e or

gani

satio

n co

mm

its s

erio

us o

r sub

stan

tial o

ffen

ces

or d

erel

ictio

n of

dut

y in

bre

ach

of th

e ap

prov

al d

ecis

ion

and

its t

erm

s, an

d if

notic

es t

o co

mpl

y or

war

ning

s is

sued

to

the

orga

nisa

tion

have

not

led

to th

e re

ctifi

catio

n of

the

shor

tcom

ings

in it

s ope

ratio

n.

Sect

ion

26d

(1)

The

orga

nisa

tion

shal

l ha

ve t

he r

ight

, not

with

stan

ding

the

sec

recy

pro

visi

ons

of t

he

Cus

tom

s A

ct [

(573

/78)

], to

obt

ain

from

a c

usto

ms

auth

ority

any

inf

orm

atio

n ab

out

indi

vidu

al im

port

cons

ignm

ents

, nec

essa

ry fo

r the

pur

pose

s of c

olle

ctio

n. (8

.6.1

984/

442)

(2

) Th

e m

anuf

actu

rer

or i

mpo

rter

of a

dev

ice

and,

whe

n so

sep

arat

ely

requ

este

d by

the

or

gani

satio

n, th

e re

selle

r re

ferr

ed to

in s

ectio

n 26

a(2)

sha

ll pr

ovid

e th

e or

gani

satio

n w

ith

any

info

rmat

ion

nece

ssar

y fo

r the

pur

pose

s of

col

lect

ion

abou

t the

dev

ices

man

ufac

ture

d,

impo

rted

or o

ffer

ed fo

r sal

e by

him

. (16

.12.

1994

/125

4)

(3)

Who

ever

has

rec

eive

d in

form

atio

n un

der

subs

ectio

ns 1

, 2,

5 o

r 6

rega

rdin

g th

e bu

sine

ss

activ

ities

of

an

othe

r m

ay

not

use

it ill

egal

ly

or

reve

al

it to

ot

hers

. (1

6.12

.199

4/12

54)

(4)

A c

usto

ms

auth

ority

may

del

iver

a d

evic

e to

the

im

porte

r on

ly i

f th

e im

porte

r de

mon

stra

tes

that

he

has

paid

the

lev

y to

the

org

anis

atio

n or

has

ple

dged

to

the

orga

nisa

tion

a se

curit

y ac

cept

ed b

y it

for

the

paym

ent o

f th

e le

vy. T

he o

rgan

isat

ion

may

co

nsen

t, fo

r a fi

xed

perio

d or

unt

il fu

rther

not

ice,

to th

e de

liver

ing

of a

dev

ice

befo

re th

e pa

ymen

t of

the

lev

y or

the

ple

dgin

g of

a s

ecur

ity, i

f th

ere

is a

wel

l fo

unde

d re

ason

to

assu

me

that

the

im

porte

r w

ill d

uly

mak

e th

e pa

ymen

t. Th

e or

gani

satio

n m

ay c

ance

l the

co

nsen

t if

the

impo

rter

negl

ects

to m

ake

the

paym

ent o

r pr

ovid

e th

e in

form

atio

n re

ferr

ed

to in

subs

ectio

n 2.

(11.

1.19

91/3

4)

(5)

A s

tate

pro

vinc

ial

offic

e m

ay,

upon

app

licat

ion

by t

he o

rgan

isat

ion,

obl

ige

the

man

ufac

ture

r, im

porte

r, or

res

elle

r re

ferr

ed t

o in

sec

tion

26a(

2) t

o fu

lfil

the

oblig

atio

n re

ferr

ed to

in s

ubse

ctio

n 2,

on

pain

of

fine.

The

impo

sitio

n of

a c

ondi

tiona

l fin

e an

d th

e or

derin

g of

its

paym

ent s

hall

othe

rwis

e be

gov

erne

d by

the

prov

isio

ns o

f th

e A

ct o

n th

e C

ondi

tiona

l Im

posi

tion

of a

Fin

e (1

113/

90).

(16.

12.1

994/

1254

) (6

) The

sta

te p

rovi

ncia

l off

ice

shal

l hav

e th

e rig

ht to

con

duct

an

insp

ectio

n fo

r the

pur

pose

of

sup

ervi

sing

com

plia

nce

with

the

paym

ent o

blig

atio

n re

ferr

ed to

in s

ectio

n 26

a(1)

. The

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

16

man

ufac

ture

r, im

porte

r or r

esel

ler o

f a d

evic

e, re

ferr

ed to

in s

ectio

n 26

a(2)

sha

ll ad

mit

the

pers

on c

ondu

ctin

g th

e in

spec

tion

to a

ny b

usin

ess

and

stor

age

prem

ises

, la

nd a

reas

and

ve

hicl

es i

n hi

s po

sses

sion

and

, w

hen

requ

este

d, p

rese

nt h

is b

ookk

eepi

ng,

busi

ness

co

rres

pond

ence

, da

ta p

roce

ssin

g re

cord

s an

d an

y ot

her

docu

men

ts w

hich

may

hav

e re

leva

nce

to s

uper

visi

on.

The

pers

on c

ondu

ctin

g th

e in

spec

tion

shal

l ha

ve t

he r

ight

to

mak

e co

pies

of t

he d

ocum

ents

to b

e in

spec

ted.

The

per

son

cond

uctin

g th

e in

spec

tion

shal

l ha

ve th

e rig

ht to

use

a p

erso

n ap

poin

ted

by th

e co

llect

ing

orga

nisa

tion

as a

n ex

pert.

The

st

ate

prov

inci

al o

ffic

e sh

all h

ave

the

right

to p

rovi

de th

e or

gani

satio

n w

ith a

ny in

form

atio

n ne

cess

ary

for t

he p

urpo

ses o

f col

lect

ion.

(16.

12.1

994/

1254

) (7

) Th

e po

lice

shal

l hav

e th

e du

ty, w

here

nec

essa

ry, t

o pr

ovid

e of

ficia

l ass

ista

nce

to th

e st

ate

prov

inci

al o

ffic

e in

the

exe

cutio

n of

dut

ies

assi

gned

to

the

stat

e pr

ovin

cial

off

ice

unde

r sub

sect

ion

6. (1

6.12

.199

4/12

54)

Sect

ion

26e

(14.

10.2

005/

821)

(1

) Th

e us

er o

r ex

porte

r of

a d

evic

e sh

all

be e

ntitl

ed t

o ob

tain

fro

m t

he o

rgan

isat

ion

a re

fund

cor

resp

ondi

ng to

the

levy

pai

d, fo

r dev

ices

: 1.

whi

ch a

re e

xpor

ted;

2.

whi

ch a

re u

sed

for

prof

essi

onal

rep

rodu

ctio

n or

for

the

repr

oduc

tion

of m

ater

ial

prot

ecte

d un

der t

his A

ct fo

r edu

catio

nal o

r sci

entif

ic re

sear

ch p

urpo

ses;

3.

whi

ch a

re u

sed

for

the

prod

uctio

n of

aud

io o

r vi

deo

reco

rdin

gs i

nten

ded

for

pers

ons w

ith d

isab

ility

; 4.

whi

ch a

re u

sed

as d

ata

proc

essi

ng m

emor

y or

sto

rage

dev

ices

in

prof

essi

onal

ac

tivity

. (2

) Unl

ess s

uch

repa

ymen

t has

ver

ifiab

ly b

een

requ

este

d w

ithin

thre

e m

onth

s fro

m th

e en

d of

the

year

dur

ing

whi

ch th

e rig

ht to

the

refu

nd c

ame

abou

t, th

is ri

ght s

hall

expi

re.

(3)

The

colle

ctin

g or

gani

satio

n m

ay a

utho

rise

the

user

ent

itled

to

a re

fund

und

er

subs

ectio

n 1(

2−4)

to p

urch

ase

from

a m

anuf

actu

rer,

an im

porte

r or a

rese

ller r

efer

red

to in

se

ctio

n 26

a, o

r to

impo

rt fo

r his

ow

n us

e, a

s pr

ovid

ed in

sai

d su

bsec

tion,

a d

evic

e re

ferr

ed

to in

sect

ion

26a(

1) w

ithou

t pay

ing

the

levy

. Se

ctio

n 26

f (8.

6.19

84/4

42)

Whe

neve

r it c

an b

e de

mon

stra

ted

that

the

user

or t

he e

xpor

ter w

ould

, und

er se

ctio

n 26

e(1)

, be

ent

itled

to b

e re

fund

ed f

or a

ll th

e de

vice

s in

clud

ed in

a g

iven

bat

ch m

anuf

actu

red

or

impo

rted,

or

for

a co

nsid

erab

le p

ropo

rtion

the

reof

, th

e le

vy m

ay b

e le

ft un

colle

cted

in

resp

ect t

o it.

Se

ctio

n 26

g (r

epea

led

by 1

4.10

.200

5/82

1)

Sect

ion

26h

(14.

10.2

005/

821)

M

ore

deta

iled

prov

isio

ns re

gard

ing

the

impl

emen

tatio

n of

sect

ions

26a−2

6f sh

all b

e is

sued

by

Gov

ernm

ent D

ecre

e.

CH

APT

ER

2 b

R

esal

e re

mun

erat

ion

(24.

3.19

95/4

46)

Sect

ion

26i (

5.5.

2006

/345

) (1

) The

aut

hor o

f a w

ork

of fi

ne a

rt ha

s th

e rig

ht to

rece

ive

a re

mun

erat

ion

for a

ll ac

ts o

f re

sale

inv

olvi

ng a

n ar

t m

arke

t pr

ofes

sion

al a

s a

selle

r, a

buye

r, or

an

inte

rmed

iary

. H

owev

er, t

he ri

ght d

oes

not e

xten

d to

act

s of

resa

le b

y a

priv

ate

pers

on to

a m

useu

m o

pen

to th

e pu

blic

. (2

) The

rem

uner

atio

n fo

r the

resa

le o

f a w

ork

of fi

ne a

rt sh

all b

e:

a) 5

per

cen

t for

the

porti

on o

f the

sale

pric

e up

to E

UR

50

000;

b)

3 p

er c

ent

for

the

porti

on o

f th

e sa

le p

rice

exce

edin

g EU

R 5

0 00

0 bu

t no

t ex

ceed

ing

EUR

200

000

;

215

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

17

c) 1

per

cen

t fo

r th

e po

rtion

of

the

sale

pric

e ex

ceed

ing

EUR

200

000

but

not

ex

ceed

ing

EUR

350

000

; d)

0,5

per

cen

t fo

r th

e po

rtion

of

the

sale

pric

e ex

ceed

ing

EUR

350

000

but

not

ex

ceed

ing

EUR

500

000

; and

e)

0,2

5 pe

r cen

t for

the

porti

on o

f the

sale

pric

e ex

ceed

ing

EUR

500

000

. (3

) The

resa

le re

mun

erat

ion

shal

l be

calc

ulat

ed fr

om th

e ne

t sal

e pr

ice

of th

e w

ork

of fi

ne

art,

not i

nclu

ding

val

ue a

dded

tax.

Res

ale

rem

uner

atio

n sh

all n

ot b

e co

llect

ed f

or a

sal

e pr

ice

up t

o EU

R 2

55, n

ot i

nclu

ding

val

ue a

dded

tax

. The

tot

al a

mou

nt o

f re

mun

erat

ion

calc

ulat

ed in

acc

orda

nce

with

subs

ectio

n 2

may

not

exc

eed

EUR

12

500.

(4

) Th

e rig

ht to

rec

eive

a r

emun

erat

ion

for

the

sale

of

a w

ork

of f

ine

art s

hall

com

e in

to

effe

ct w

hen

the

auth

or o

r hi

s su

cces

sor

in t

itle

has

sold

or

othe

rwis

e pe

rman

ently

tra

nsfe

rred

a w

ork

of f

ine

art o

r co

pies

of

a w

ork

mad

e in

lim

ited

num

bers

by

the

artis

t hi

mse

lf or

und

er h

is a

utho

rity.

(5

) The

resa

le ri

ght d

oes n

ot e

xten

d to

the

resa

le o

f pro

duct

s of a

rchi

tect

ure.

(6

) The

resa

le ri

ght s

hall

subs

ist f

or th

e te

rm o

f cop

yrig

ht p

rote

ctio

n. T

he ri

ght i

s per

sona

l, an

d it

cann

ot b

e tra

nsfe

rred

to

a th

ird p

arty

or

wai

ved.

How

ever

, w

hat

is p

rovi

ded

in

sect

ion

41(1

) sha

ll be

app

lied

to th

e rig

ht. I

f the

re a

re n

o su

cces

sors

in ti

tle s

urvi

ving

the

auth

or, t

he re

mun

erat

ions

shal

l be

used

for t

he c

omm

on p

urpo

ses o

f aut

hors

. Se

ctio

n 26

j (5.

5.20

06/3

45)

(1)

The

resa

le r

emun

erat

ion

shal

l be

col

lect

ed a

nd d

istri

bute

d by

an

orga

nisa

tion

repr

esen

ting

the

auth

ors

of th

e w

orks

sol

d, a

ppro

ved

for

this

fun

ctio

n by

the

Min

istry

of

Educ

atio

n fo

r a fi

xed

perio

d, fo

r a m

axim

um o

f fiv

e ye

ars.

Onl

y on

e or

gani

satio

n at

a ti

me

can

be a

ppro

ved

for

the

func

tion.

The

app

rove

d or

gani

satio

n m

ust h

ave

the

finan

cial

and

op

erat

iona

l pr

ereq

uisi

tes

and

capa

city

to

man

age

the

affa

irs i

n ac

cord

ance

with

the

ap

prov

al d

ecis

ion.

Th

e or

gani

satio

n m

ust

give

an

annu

al r

epor

t to

the

Min

istry

of

Educ

atio

n on

the

mea

sure

s tak

en p

ursu

ant t

o th

e de

cisi

on o

f app

rova

l. (2

) The

dec

isio

n of

the

Min

istry

of E

duca

tion

shal

l be

com

plie

d w

ith, n

otw

ithst

andi

ng a

n ap

peal

pen

ding

unt

il th

e m

atte

r ha

s be

en r

esol

ved

by m

eans

of

a va

lid d

ecis

ion.

The

ap

prov

al m

ay b

e re

vers

ed if

the

orga

nisa

tion

com

mits

ser

ious

or

subs

tant

ial o

ffen

ces

or

dere

lictio

n of

dut

y in

bre

ach

of t

he a

ppro

val

deci

sion

and

its

ter

ms

and

if no

tices

to

com

ply

or w

arni

ngs

issu

ed t

o th

e or

gani

satio

n ha

ve n

ot l

ed t

o th

e re

ctifi

catio

n of

the

sh

ortc

omin

gs in

its o

pera

tion.

(3

) Th

e M

inis

try o

f Ed

ucat

ion

may

iss

ue t

o th

e or

gani

satio

n m

ore

deta

iled

orde

rs

rega

rdin

g th

e co

llect

ion

of t

he r

emun

erat

ion

and

the

dist

ribut

ion

to t

he a

utho

rs.

The

Min

istry

of E

duca

tion

shal

l hav

e th

e rig

ht to

obt

ain

from

the

orga

nisa

tion

any

info

rmat

ion

nece

ssar

y fo

r the

pur

pose

s of s

uper

visi

on.

Sect

ion

26k

(5.5

.200

6/34

5)

(1) T

he p

aym

ent o

f the

rem

uner

atio

n is

the

resp

onsi

bilit

y of

the

selle

r and

the

inte

rmed

iary

re

ferr

ed to

in S

ectio

n 26

i(1).

The

buye

r is r

espo

nsib

le fo

r the

pay

men

t of t

he re

mun

erat

ion

if th

e ac

t of r

esal

e in

volv

es n

o ot

her a

rt m

arke

t pro

fess

iona

ls b

esid

es th

e bu

yer.

(2)

The

selle

r, th

e in

term

edia

ry, a

nd th

e bu

yer

are

oblig

ed to

sub

mit

to th

e or

gani

satio

n re

ferr

ed t

o in

sec

tion

26j

an a

nnua

l ac

coun

t of

the

sal

es o

f w

orks

. Th

e se

ller,

the

inte

rmed

iary

, and

the

buye

r are

obl

iged

, at t

he re

ques

t of t

he o

rgan

isat

ion,

to s

ubm

it to

the

orga

nisa

tion

any

info

rmat

ion

nece

ssar

y fo

r th

e ve

rific

atio

n of

the

cor

rect

ness

of

the

paym

ents

for t

he y

ear o

f the

pay

men

ts a

nd fo

r the

pre

cedi

ng th

ree

cale

ndar

yea

rs.

Sect

ion

26l (

24.3

.199

5/44

6)

(1) A

sta

te p

rovi

ncia

l off

ice

may

, upo

n ap

plic

atio

n by

the

orga

nisa

tion,

obl

ige

the

selle

r to

fulfi

l th

e ob

ligat

ion

refe

rred

to

in s

ectio

n 26

k(2)

on

pain

of

fine.

The

im

posi

tion

of a

co

nditi

onal

fin

e an

d th

e or

derin

g of

its

pay

men

t sh

all

othe

rwis

e be

gov

erne

d by

the

pr

ovis

ions

of t

he A

ct o

n th

e C

ondi

tiona

l Im

posi

tion

of a

Fin

e (1

113/

90).

(2) T

he s

tate

pro

vinc

ial o

ffic

e sh

all h

ave

the

right

to c

ondu

ct a

n in

spec

tion

for t

he p

urpo

se

of s

uper

visi

ng c

ompl

ianc

e w

ith t

he o

blig

atio

n to

pro

vide

inf

orm

atio

n an

d su

bmit

an

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

18

acco

unt

refe

rred

to

in s

ectio

n 26

k(2)

. For

the

pur

pose

of

the

insp

ectio

n, t

he s

elle

r sh

all

adm

it th

e pe

rson

con

duct

ing

the

insp

ectio

n to

any

bus

ines

s pr

emis

es in

the

poss

essi

on o

f th

e se

ller

and,

whe

n so

req

uest

ed, p

rese

nt h

is b

ookk

eepi

ng, h

is b

usin

ess

corr

espo

nden

ce

and

any

docu

men

ts c

once

rnin

g th

e sa

les s

ubje

ct to

the

paym

ent o

f rem

uner

atio

n, a

s wel

l as

any

othe

r doc

umen

ts w

hich

may

hav

e re

leva

nce

to th

e su

perv

isio

n. T

he p

erso

n co

nduc

ting

the

insp

ectio

n sh

all h

ave

the

right

to m

ake

copi

es o

f the

doc

umen

ts in

spec

ted.

The

per

son

cond

uctin

g th

e in

spec

tion

shal

l hav

e th

e rig

ht to

use

a p

erso

n ap

poin

ted

by th

e co

llect

ing

orga

nisa

tion

as a

n ex

pert.

The

sta

te p

rovi

ncia

l off

ice

shal

l ha

ve th

e rig

ht t

o pr

ovid

e th

e or

gani

satio

n w

ith a

ny in

form

atio

n ne

cess

ary

for t

he p

urpo

ses o

f col

lect

ion.

(3

) Th

e po

lice

shal

l hav

e th

e du

ty, w

here

nec

essa

ry, t

o pr

ovid

e of

ficia

l ass

ista

nce

to th

e st

ate

prov

inci

al o

ffic

e in

the

exe

cutio

n of

dut

ies

assi

gned

to

the

stat

e pr

ovin

cial

off

ice

unde

r sub

sect

ion

2.

(4)

Who

ever

has

rec

eive

d in

form

atio

n un

der

sect

ion

26k(

2) o

r th

e pr

esen

t se

ctio

n re

gard

ing

the

busi

ness

act

iviti

es o

f ano

ther

may

not

use

it il

lega

lly o

r rev

eal i

t to

othe

rs.

CH

APT

ER

3

Tra

nsfe

r of

cop

yrig

ht

Gen

eral

pro

visi

ons g

over

ning

tran

sfer

of c

opyr

ight

Se

ctio

n 27

(1

) Cop

yrig

ht m

ay b

e tra

nsfe

rred

ent

irely

or p

artia

lly, s

ubje

ct to

the

limita

tions

of s

ectio

n 3.

(2

) Th

e tra

nsfe

r of

a c

opy

shal

l no

t in

clud

e th

e tra

nsfe

r of

cop

yrig

ht.

In t

he c

ase

of a

co

mm

issi

oned

por

trait,

the

auth

or m

ay n

ot, h

owev

er, e

xerc

ise

his r

ight

with

out t

he c

onse

nt

of th

e pe

rson

who

com

mis

sion

ed it

or,

afte

r his

dea

th, t

he su

rviv

ing

spou

se a

nd h

eirs

. (3

) Pr

ovis

ions

con

cern

ing

the

trans

fer

of c

opyr

ight

in c

erta

in c

ases

are

issu

ed in

sec

tions

30−4

0 an

d 40

b. T

he s

aid

prov

isio

ns s

hall,

how

ever

, ap

ply

only

whe

re n

ot o

ther

wis

e ag

reed

. (7.

5.19

93/4

18)

Sect

ion

28

Unl

ess

othe

rwis

e ag

reed

, the

per

son

to w

hom

a c

opyr

ight

has

bee

n tra

nsfe

rred

may

not

al

ter t

he w

ork

or tr

ansf

er th

e co

pyrig

ht to

oth

ers.

Whe

n co

pyrig

ht is

hel

d by

a b

usin

ess,

it m

ay b

e tra

nsfe

rred

in

con

junc

tion

with

the

bus

ines

s or

a p

art

ther

eof;

how

ever

, th

e tra

nsfe

ror s

hall

rem

ain

liabl

e fo

r the

fulfi

lmen

t of t

he a

gree

men

t. Se

ctio

n 29

(17.

12.1

982/

960)

Th

e ad

just

men

t of

an u

nrea

sona

ble

cond

ition

in a

n ag

reem

ent o

n a

trans

fer

of c

opyr

ight

sh

all b

e go

vern

ed b

y th

e pr

ovis

ions

of t

he C

ontra

cts A

ct (2

28/2

9).

Rig

ht

to

rem

uner

atio

n fo

r re

ntal

of

a

copy

of

a

film

or

a

soun

d re

cord

ing

(31.

10.1

997/

967)

Se

ctio

n 29

a (3

1.10

.199

7/96

7)

An

auth

or w

ho h

as tr

ansf

erre

d to

the

prod

ucer

of a

film

or a

sou

nd re

cord

ing

the

right

to

dist

ribut

e a

soun

d re

cord

ing

or a

film

by

rent

al s

hall

be e

ntitl

ed to

rec

eive

an

equi

tabl

e re

mun

erat

ion

for

the

rent

al f

rom

the

pro

duce

r. Th

e au

thor

may

not

wai

ve h

is r

ight

to

rem

uner

atio

n.

Con

trac

t on

publ

ic p

erfo

rman

ce

Sect

ion

30

(1)

Whe

re th

e rig

ht to

per

form

a w

ork

publ

icly

has

bee

n tra

nsfe

rred

, the

tran

sfer

sha

ll be

va

lid fo

r a p

erio

d of

thre

e ye

ars

and

shal

l not

pro

vide

exc

lusi

ve ri

ght.

If a

dur

atio

n lo

nger

216

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

19

than

thr

ee y

ears

and

an

excl

usiv

e rig

ht h

ave

been

agr

eed

upon

, th

e au

thor

may

ne

verth

eles

s pe

rfor

m th

e w

ork

him

self

or tr

ansf

er th

e pe

rfor

man

ce r

ight

to o

ther

s if

the

right

has

not

bee

n ex

erci

sed

durin

g th

e pe

riod

of th

ree

year

s. (2

) The

pro

visi

ons o

f sub

sect

ion

1 sh

all n

ot a

pply

to c

inem

atog

raph

ic w

orks

. Pu

blis

hing

con

trac

t Se

ctio

n 31

(1

) B

y a

publ

ishi

ng c

ontra

ct th

e au

thor

tran

sfer

s to

the

publ

ishe

r th

e rig

ht to

rep

rodu

ce a

lit

erar

y or

arti

stic

wor

k by

prin

ting

or a

sim

ilar p

roce

ss a

nd th

e rig

ht to

pub

lish

it.

(2)

The

man

uscr

ipt o

r ot

her

copy

fro

m w

hich

the

wor

k is

to b

e re

prod

uced

sha

ll re

mai

n th

e pr

oper

ty o

f the

aut

hor.

Sect

ion

32

(1)

The

publ

ishe

r sh

all h

ave

the

right

to p

ublis

h an

edi

tion,

whi

ch m

ay n

ot e

xcee

d 20

00

copi

es in

the

case

of a

lite

rary

wor

k, 1

000

copi

es in

the

case

of a

mus

ical

wor

k, a

nd 2

00

copi

es in

the

case

of a

wor

k of

art.

(2

) An

editi

on m

eans

the

num

ber o

f cop

ies w

hich

the

publ

ishe

r pro

duce

s at o

ne ti

me.

Se

ctio

n 33

Th

e pu

blis

her s

hall

publ

ish

the

wor

k w

ithin

a re

ason

able

tim

e, ta

ke c

are

of it

s di

strib

utio

n in

the

usua

l man

ner,

and

follo

w u

p th

e pu

blis

hing

to th

e ex

tent

det

erm

ined

by

mar

ketin

g co

nditi

ons

and

othe

r circ

umst

ance

s. In

cas

e of

def

ault,

the

auth

or m

ay re

scin

d th

e co

ntra

ct

and

keep

the

rem

uner

atio

n re

ceiv

ed; t

he a

utho

r sha

ll al

so b

e en

title

d to

com

pens

atio

n fo

r an

y da

mag

e no

t cov

ered

by

the

rem

uner

atio

n.

Sect

ion

34

If a

wor

k ha

s no

t bee

n pu

blis

hed

with

in tw

o ye

ars

or, i

f it i

s a

mus

ical

wor

k, w

ithin

four

ye

ars f

rom

the

date

on

whi

ch th

e au

thor

subm

itted

a c

ompl

ete

man

uscr

ipt o

r oth

er c

opy

for

repr

oduc

tion,

the

aut

hor

may

res

cind

the

con

tract

and

kee

p th

e re

mun

erat

ion

rece

ived

, ev

en if

ther

e is

no

dere

lictio

n on

the

part

of th

e pu

blis

her.

The

sam

e sh

all a

pply

whe

n th

e co

pies

of

the

wor

k ar

e so

ld o

ut a

nd th

e pu

blis

her,

alth

ough

he

has

the

right

to p

ublis

h a

new

edi

tion,

fails

to u

se th

e sa

id ri

ght w

ithin

one

yea

r fro

m th

e da

te o

n w

hich

the

auth

or

requ

este

d a

repr

int.

Sect

ion

35

(1) T

he p

ublis

her s

hall

prov

ide

the

auth

or w

ith a

cer

tific

atio

n fr

om th

e pr

inte

r, or

who

ever

el

se re

prod

uces

the

wor

k, c

once

rnin

g th

e nu

mbe

r of c

opie

s pro

duce

d.

(2) I

f, du

ring

a fis

cal y

ear,

sale

or r

enta

l has

take

n pl

ace

for w

hich

the

auth

or is

ent

itled

to

be r

emun

erat

ed, t

he p

ublis

her

shal

l ren

der

acco

unt t

o hi

m

with

in n

ine

mon

ths

from

the

end

of th

e ye

ar c

once

rnin

g th

e sa

les

or re

ntal

s du

ring

the

year

and

the

num

ber o

f cop

ies

in

stoc

k at

the

end

of

the

year

. Th

e au

thor

sha

ll m

oreo

ver

have

the

rig

ht t

o ob

tain

in

form

atio

n, a

t his

ow

n re

ques

t, ab

out t

he n

umbe

r of

cop

ies

in s

tock

at t

he e

nd o

f a

year

ev

en a

fter t

he e

nd o

f the

acc

ount

ing

term

. Se

ctio

n 36

If

the

prod

uctio

n of

a n

ew e

ditio

n is

com

men

ced

late

r tha

n on

e ye

ar a

fter t

he p

ublic

atio

n of

the

prev

ious

edi

tion,

the

auth

or s

hall

be g

iven

an

oppo

rtuni

ty b

efor

e th

e pr

oduc

tion

to

mak

e su

ch a

ltera

tions

in th

e w

ork

as c

an b

e m

ade

with

out u

nrea

sona

ble

cost

and

with

out

chan

ging

the

char

acte

r of t

he w

ork.

Se

ctio

n 37

(1

) The

aut

hor m

ay n

ot p

ublis

h th

e w

ork

agai

n in

the

form

and

man

ner d

eter

min

ed in

the

cont

ract

, unt

il th

e ed

ition

or e

ditio

ns w

hich

the

publ

ishe

r has

the

right

to p

ublis

h ha

ve b

een

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

20

sold

out

. (2

) A

lite

rary

wor

k m

ay n

ever

thel

ess

be in

corp

orat

ed b

y th

e au

thor

in a

n ed

ition

of

his

colle

cted

or s

elec

ted

wor

ks a

fter f

iftee

n ye

ars f

rom

the

year

dur

ing

whi

ch th

e pu

blis

hing

of

the

wor

k co

mm

ence

d.

Sect

ion

38

The

prov

isio

ns c

once

rnin

g pu

blis

hing

con

tract

s sh

all

not

appl

y to

con

tribu

tions

to

new

spap

ers

and

perio

dica

ls. S

ectio

ns 3

3 an

d 34

sha

ll no

t app

ly to

con

tribu

tions

to o

ther

lit

erar

y or

arti

stic

wor

k of

com

pila

tion.

F

ilm c

ontr

acts

Se

ctio

n 39

(1

) A

tran

sfer

of

the

right

to m

ake

a fil

m o

n th

e ba

sis

of a

lite

rary

or

artis

tic w

ork

shal

l co

mpr

ise

the

right

to

mak

e th

e w

ork

avai

labl

e to

the

pub

lic b

y sh

owin

g th

e fil

m i

n ci

nem

as,

on t

elev

isio

n or

by

any

othe

r m

eans

, an

d th

e rig

ht t

o pr

ovid

e th

e fil

m w

ith

subt

itles

and

to d

ub th

e fil

m in

ano

ther

lang

uage

. (31

.7.1

974/

648)

(2

) The

pro

visi

ons o

f sub

sect

ion

1 sh

all n

ot, h

owev

er, a

pply

to m

usic

al w

orks

. Se

ctio

n 40

(1

) Whe

n th

e rig

ht to

use

a li

tera

ry o

r mus

ical

wor

k fo

r a fi

lm in

tend

ed fo

r pub

lic s

how

ing

is t

rans

ferr

ed,

the

trans

fere

e sh

all

prod

uce

the

film

and

mak

e it

avai

labl

e to

the

pub

lic

with

in a

reas

onab

le ti

me.

If th

is is

neg

lect

ed, t

he a

utho

r may

resc

ind

the

cont

ract

and

kee

p an

y re

mun

erat

ion

rece

ived

; th

e au

thor

sha

ll al

so b

e en

title

d to

com

pens

atio

n fo

r an

y da

mag

e no

t cov

ered

by

the

rem

uner

atio

n.

(2) I

f the

film

has

not

bee

n pr

oduc

ed w

ithin

five

yea

rs fr

om th

e tim

e at

whi

ch th

e au

thor

fu

lfille

d hi

s ob

ligat

ions

, the

aut

hor

may

res

cind

the

cont

ract

and

kee

p an

y re

mun

erat

ion

rece

ived

, eve

n if

ther

e is

no

dere

lictio

n on

the

part

of th

e tra

nsfe

ree.

C

ompu

ter p

rogr

ams a

nd d

atab

ases

(3.4

.199

8/25

0)

Sect

ion

40a

(Rep

eale

d by

Act

418

/199

3)

Sect

ion

40b

(11.

1.19

91/3

4)

(1)

If a

com

pute

r pr

ogra

m a

nd a

wor

k di

rect

ly a

ssoc

iate

d w

ith it

has

bee

n cr

eate

d in

the

scop

e of

dut

ies

in a

n em

ploy

men

t rel

atio

n, th

e co

pyrig

ht in

the

com

pute

r pro

gram

and

the

wor

k sh

all

pass

to

the

empl

oyer

. Th

e sa

me

shal

l co

rres

pond

ingl

y ap

ply

to a

com

pute

r pr

ogra

m a

nd a

wor

k di

rect

ly a

ssoc

iate

d th

erew

ith,

crea

ted

with

in t

he s

cope

of

a ci

vil

serv

ice

post

. (2

) Th

e pr

ovis

ions

of

subs

ectio

n 1

abov

e sh

all n

ot a

pply

to a

com

pute

r pr

ogra

m, o

r to

a

wor

k di

rect

ly a

ssoc

iate

d th

erew

ith,

crea

ted

by a

n au

thor

ind

epen

dent

ly e

ngag

ed i

n te

achi

ng o

r res

earc

h in

an

inst

itutio

n of

hig

her e

duca

tion,

with

the

exce

ptio

n of

inst

itutio

ns

of m

ilita

ry e

duca

tion.

(7.5

.199

3/41

8)

(3) T

he p

rovi

sion

s of

sub

sect

ions

1 a

nd 2

abo

ve s

hall

corr

espo

ndin

gly

appl

y to

a d

atab

ase

whi

ch i

s cr

eate

d in

the

sco

pe o

f du

ties

in p

rivat

e an

d pu

blic

em

ploy

men

t re

latio

n.

(3.4

.199

8/25

0)

A p

ortr

ait m

ade

by p

hoto

grap

hic

mea

ns (2

4.3.

1995

/446

) Se

ctio

n 40

c (2

4.3.

1995

/446

) A

per

son

com

mis

sion

ing

a ph

otog

raph

ic p

ortra

it sh

all,

even

if

the

phot

ogra

pher

has

re

tain

ed th

e rig

ht in

the

wor

k, h

ave

the

right

to a

utho

rise

the

incl

usio

n of

the

portr

ait i

n a

new

spap

er, a

per

iodi

cal o

r a

biog

raph

ical

writ

ing,

unl

ess

the

phot

ogra

pher

has

sep

arat

ely

reta

ined

for h

imse

lf th

e rig

ht to

pro

hibi

t thi

s.

217

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

21

Tran

sfer

of c

opyr

ight

upo

n th

e au

thor

's d

eath

and

the

fore

clos

ure

of c

opyr

ight

Se

ctio

n 41

(1

) A

fter

the

auth

or's

deat

h, c

opyr

ight

sha

ll be

gov

erne

d by

pro

visi

ons

perta

inin

g to

m

arita

l rig

ht to

pro

perty

, inh

erita

nce

and

will

. (2

) Th

e au

thor

may

giv

e di

rect

ions

in h

is w

ill f

or th

e ex

erci

se o

f cop

yrig

ht, w

ith b

indi

ng

effe

ct a

lso

on t

he s

urvi

ving

spo

use

and

dire

ct d

esce

ndan

ts,

adop

ted

child

ren

and

thei

r de

scen

dant

s, or

aut

horis

e so

meo

ne e

lse

to g

ive

such

dire

ctio

ns.

Sect

ion

42

Cop

yrig

ht s

hall

not

be s

ubje

ct t

o fo

recl

osur

e as

lon

g as

the

cop

yrig

ht r

emai

ns w

ith t

he

auth

or o

r w

ith a

per

son

to w

hom

the

copy

right

has

bee

n tra

nsfe

rred

by

virtu

e of

mar

ital

right

to p

rope

rty, i

nher

itanc

e or

will

. The

sam

e sh

all a

pply

to m

anus

crip

ts a

nd w

orks

of a

rt w

hich

hav

e no

t bee

n ex

hibi

ted,

off

ered

for

sal

e, o

r ot

herw

ise

auth

oris

ed f

or b

eing

mad

e pu

blic

. C

HA

PTE

R 4

T

erm

of C

opyr

ight

Se

ctio

n 43

(22.

12.1

995/

1654

) C

opyr

ight

shal

l sub

sist

unt

il se

vent

y ye

ars h

ave

elap

sed

from

the

year

of t

he a

utho

r's d

eath

or

, in

the

cas

e of

a w

ork

refe

rred

to

in s

ectio

n 6,

fro

m t

he y

ear

of d

eath

of

the

last

su

rviv

ing

auth

or. C

opyr

ight

in

a ci

nem

atog

raph

ic w

ork

shal

l su

bsis

t un

til s

even

ty y

ears

ha

ve e

laps

ed fr

om th

e ye

ar o

f the

dea

th o

f the

last

of t

he fo

llow

ing

to su

rviv

e: th

e pr

inci

pal

dire

ctor

, th

e au

thor

of

the

scre

enpl

ay,

the

auth

or o

f th

e di

alog

ue a

nd t

he c

ompo

ser

of

mus

ic sp

ecifi

cally

cre

ated

for u

se in

the

cine

mat

ogra

phic

wor

k.

Sect

ion

44 (2

2.12

.199

5/16

54)

(1)

The

copy

right

in

a w

ork

mad

e pu

blic

with

out

men

tion

of t

he a

utho

r's n

ame

or

gene

rally

kno

wn

pseu

dony

m o

r pen

nam

e sh

all s

ubsi

st u

ntil

the

end

of th

e se

vent

ieth

yea

r af

ter t

he y

ear i

n w

hich

it w

as m

ade

publ

ic. I

f the

wor

k is

pub

lishe

d in

par

ts, t

he d

urat

ion

of

copy

right

shal

l be

calc

ulat

ed se

para

tely

for e

ach

part.

(2

) If

the

iden

tity

of th

e au

thor

is d

iscl

osed

dur

ing

the

perio

d re

ferr

ed to

in s

ubse

ctio

n 1,

th

e pr

ovis

ions

of s

ectio

n 43

shal

l app

ly.

(3) T

he c

opyr

ight

in a

wor

k no

t mad

e pu

blic

, who

se a

utho

r is

unkn

own,

sha

ll su

bsis

t unt

il se

vent

y ye

ars h

ave

elap

sed

from

the

year

in w

hich

the

wor

k w

as c

reat

ed.

Sect

ion

44a

(22.

12.1

995/

1654

) A

nyon

e w

ho fo

r the

firs

t tim

e pu

blis

hes o

r mak

es p

ublic

a p

revi

ousl

y un

publ

ishe

d w

ork

or

a w

ork

not m

ade

publ

ic, w

hich

has

bee

n pr

otec

ted

unde

r Fin

nish

law

and

the

prot

ectio

n of

w

hich

has

exp

ired,

shal

l obt

ain

a rig

ht in

the

wor

k as

pro

vide

d in

sect

ion

2 of

this

Act

. The

rig

ht s

hall

subs

ist u

ntil

twen

ty-f

ive

year

s ha

ve e

laps

ed f

rom

the

year

in w

hich

the

wor

k w

as p

ublis

hed

or m

ade

publ

ic.

CH

APT

ER

5

Rig

hts r

elat

ed to

cop

yrig

ht (1

4.10

.200

5/82

1)

Perf

orm

ing

artis

t (14

.10.

2005

/821

) Se

ctio

n 45

(14.

10.2

005/

821)

(1

) With

out t

he p

erfo

rmin

g ar

tist's

con

sent

, a p

erfo

rman

ce o

f a li

tera

ry o

r arti

stic

wor

k or

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

22

folk

lore

shal

l not

: 1.

be

reco

rded

on

a de

vice

by

mea

ns o

f whi

ch th

e pe

rfor

man

ce c

an b

e re

prod

uced

; 2.

be

mad

e av

aila

ble

to th

e pu

blic

on

radi

o or

tele

visi

on o

r by

dire

ct c

omm

unic

atio

n.

(2)

A p

erfo

rman

ce r

efer

red

to i

n su

bsec

tion

1 w

hich

has

bee

n re

cord

ed o

n a

devi

ce

refe

rred

to in

sec

tion

46 s

hall

not,

with

out t

he p

erfo

rmin

g ar

tist's

con

sent

, unt

il 50

yea

rs

have

ela

psed

from

the

year

in w

hich

the

perf

orm

ance

took

pla

ce:

1. b

e tra

nsfe

rred

on

to a

dev

ice

by m

eans

of w

hich

it c

an b

e re

prod

uced

; 2.

be

perf

orm

ed p

ublic

ly to

an

audi

ence

pre

sent

at t

he p

erfo

rman

ce;

3. b

e co

mm

unic

ated

to

the

publ

ic b

y w

ire o

r by

wire

less

mea

ns,

incl

udin

g co

mm

unic

atio

n of

the

reco

rded

per

form

ance

to th

e pu

blic

in a

man

ner w

hich

ena

bles

m

embe

rs o

f th

e pu

blic

to

acce

ss t

he w

ork

from

a p

lace

and

at

a tim

e in

divi

dual

ly

chos

en b

y th

em;

4. b

e di

strib

uted

to th

e pu

blic

. (3

) A

per

form

ance

ref

erre

d to

in

subs

ectio

n 1

whi

ch h

as b

een

reco

rded

on

a de

vice

re

ferr

ed to

in s

ectio

n 46

a sh

all n

ot, w

ithou

t the

per

form

ing

artis

t's c

onse

nt, u

ntil

50 y

ears

ha

ve e

laps

ed fr

om th

e ye

ar in

whi

ch th

e pe

rfor

man

ce to

ok p

lace

: 1.

be

trans

ferr

ed to

a d

evic

e by

mea

ns o

f whi

ch it

can

be

repr

oduc

ed;

2. b

e co

mm

unic

ated

to th

e pu

blic

in a

man

ner w

hich

ena

bles

mem

bers

of t

he p

ublic

to

acc

ess t

he w

ork

from

a p

lace

and

at a

tim

e in

divi

dual

ly c

hose

n by

them

; 3.

be

dist

ribut

ed to

the

publ

ic.

(4)

If th

e re

cord

ing

of th

e pe

rfor

man

ce is

pub

lishe

d or

mad

e pu

blic

bef

ore

50 y

ears

hav

e el

apse

d fr

om t

he y

ear

of p

erfo

rman

ce,

the

prot

ectio

n co

nfer

red

by s

ubse

ctio

ns 2

and

3

shal

l su

bsis

t un

til 5

0 ye

ars

have

ela

psed

fro

m t

he y

ear

durin

g w

hich

the

rec

orde

d pe

rfor

man

ce w

as p

ublis

hed

or m

ade

publ

ic fo

r the

firs

t tim

e.

(5)

The

proc

edur

e w

hich

und

er s

ubse

ctio

ns 1−4

req

uire

s th

e pe

rfor

min

g ar

tist's

con

sent

sh

all b

e co

rres

pond

ingl

y go

vern

ed b

y th

e pr

ovis

ions

of s

ectio

n 2(

2−4)

, sec

tions

3, 6−9

, 11

and

11a,

sec

tion

12(1−3

), se

ctio

n 13

a(2)

, se

ctio

n 14

(1,

3 an

d 4)

, se

ctio

ns 1

5, 1

6 an

d 16

a−16

e, s

ectio

n 17

(2, 3

and

5),

sect

ion

19(1

, 2 a

nd 5

), se

ctio

ns 2

1, 2

2 an

d 25

b−25

d,

sect

ion

25f(

2 an

d 3)

, sec

tions

25h

, 25i

, 26,

26a−2

6f a

nd 2

6h, s

ectio

n 27

(1−2

), an

d se

ctio

ns

28, 2

9, 2

9a, 4

1 an

d 42

. Pr

oduc

er o

f a so

und

reco

rdin

g (1

4.10

.200

5/82

1)

Sect

ion

46 (1

4.10

.200

5/82

1)

(1) A

pho

nogr

aph

reco

rd o

r any

oth

er d

evic

e on

whi

ch s

ound

has

bee

n re

cord

ed s

hall

not,

with

out

the

cons

ent

of t

he p

rodu

cer,

until

50

year

s ha

ve e

laps

ed f

rom

the

yea

r du

ring

whi

ch th

e re

cord

ing

took

pla

ce:

1. b

e tra

nsfe

rred

on

to a

dev

ice

by m

eans

of w

hich

it c

an b

e re

prod

uced

; 2.

be

perf

orm

ed p

ublic

ly to

an

audi

ence

pre

sent

at t

he p

erfo

rman

ce;

3. b

e co

mm

unic

ated

to

the

publ

ic b

y w

ire o

r by

wire

less

mea

ns,

incl

udin

g co

mm

unic

atio

n of

the

rec

orde

d m

ater

ial

to t

he p

ublic

in

a m

anne

r w

hich

ena

bles

m

embe

rs o

f th

e pu

blic

to

acce

ss t

he w

ork

from

a p

lace

and

at

a tim

e in

divi

dual

ly

chos

en b

y th

em;

4. b

e di

strib

uted

to th

e pu

blic

. (2

) If t

he re

cord

ing

is p

ublis

hed

befo

re 5

0 ye

ars

have

ela

psed

from

the

year

of r

ecor

ding

, th

e pr

otec

tion

conf

erre

d by

sub

sect

ion

1 sh

all s

ubsi

st u

ntil

50 y

ears

hav

e el

apse

d fr

om th

e ye

ar d

urin

g w

hich

the

reco

rdin

g w

as p

ublis

hed

for

the

first

tim

e. I

f th

e re

cord

ing

is n

ot

publ

ishe

d bu

t is

lega

lly m

ade

avai

labl

e to

the

publ

ic b

y m

eans

oth

er th

an th

e di

strib

utio

n of

cop

ies

of t

he r

ecor

ding

bef

ore

50 y

ears

has

ela

psed

fro

m t

he y

ear

of r

ecor

ding

, th

e pr

otec

tion

shal

l su

bsis

t un

til 5

0 ye

ars

have

ela

psed

fro

m t

he y

ear

durin

g w

hich

the

re

cord

ing

was

mad

e av

aila

ble

to th

e pu

blic

in sa

id m

anne

r for

the

first

tim

e.

(3)

The

proc

edur

e w

hich

und

er s

ubse

ctio

ns 1−2

req

uire

s th

e pr

oduc

er's

cons

ent s

hall

be

corr

espo

ndin

gly

gove

rned

by

the

prov

isio

ns o

f se

ctio

n 2(

2−4)

, se

ctio

ns 6−9

, se

ctio

n 11

(2−5

), se

ctio

n 11

a, s

ectio

n 12

(1− 3

), se

ctio

n 13

a(2)

, sec

tion

14(1

, 3 a

nd 4

), se

ctio

ns 1

5,

16 a

nd 1

6a−1

6e, s

ectio

n 19

(1, 2

and

5),

sect

ions

21,

22,

25b

and

25d

, sec

tion

25f(

2 an

d 3)

,

218

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

23

sect

ions

26,

26a−2

6f a

nd 2

6h, s

ectio

n 27

(1−2

), an

d se

ctio

n 29

. (4

) The

pro

visi

ons o

f thi

s sec

tion

shal

l not

app

ly to

a d

evic

e re

ferr

ed to

in se

ctio

n 46

a.

Prod

ucer

of a

vid

eo re

cord

ing

(14.

10.2

005/

821)

Se

ctio

n 46

a (1

4.10

.200

5/82

1)

(1)

A f

ilm o

r an

y ot

her

devi

ce o

n w

hich

mov

ing

imag

es h

ave

been

rec

orde

d sh

all

not,

with

out t

he p

rodu

cer's

con

sent

, unt

il 50

yea

rs h

ave

elap

sed

from

the

year

dur

ing

whi

ch th

e re

cord

ing

took

pla

ce:

1. b

e tra

nsfe

rred

on

to a

dev

ice

by m

eans

of w

hich

it c

an b

e re

prod

uced

; 2.

be

dist

ribut

ed to

the

publ

ic;

3. b

e co

mm

unic

ated

to th

e pu

blic

by

wire

or

by w

irele

ss m

eans

in a

man

ner

whi

ch

enab

les

mem

bers

of

the

publ

ic t

o ac

cess

the

wor

k fr

om a

pla

ce a

nd a

t a

time

indi

vidu

ally

cho

sen

by th

em.

(2) I

f the

reco

rdin

g is

pub

lishe

d or

mad

e pu

blic

bef

ore

50 y

ears

hav

e el

apse

d fr

om th

e ye

ar

of r

ecor

ding

, the

pro

tect

ion

conf

erre

d by

sub

sect

ion

1 sh

all

subs

ist

until

50

year

s ha

ve

elap

sed

from

the

year

dur

ing

whi

ch th

e re

cord

ing

was

pub

lishe

d or

mad

e pu

blic

for

the

first

tim

e.

(3)

The

proc

edur

e w

hich

und

er s

ubse

ctio

ns 1−2

req

uire

s th

e pr

oduc

er's

cons

ent s

hall

be

corr

espo

ndin

gly

gove

rned

by

the

prov

isio

ns o

f se

ctio

n 2(

2−3)

, se

ctio

ns 6−9

, se

ctio

n 11

(2−5

), se

ctio

n 11

a, s

ectio

n 12

(1−3

), se

ctio

n 13

a(2)

, sec

tion

14(1

, 3 a

nd 4

), se

ctio

ns 1

5,

16 a

nd 1

6a−1

6e,

sect

ion

19(1

, 2

and

5),

sect

ions

22,

25b

and

25d

, se

ctio

n 25

f(2−

3),

sect

ions

26,

26a−2

6f a

nd 2

6h, s

ectio

n 27

(1−2

), an

d se

ctio

n 29

. U

se o

f an

audi

o re

cord

ing

and

a m

usic

reco

rdin

g co

ntai

ning

imag

es (1

4.10

.200

5/82

1)

Sect

ion

47 (1

4.10

.200

5/82

1)

(1)

Not

with

stan

ding

the

pro

visi

ons

of s

ectio

n 45

(2 a

nd 4

) an

d se

ctio

n 46

(1−2

), a

perf

orm

ance

refe

rred

to in

sec

tion

45, w

hich

has

bee

n re

cord

ed o

n a

devi

ce re

ferr

ed to

in

sect

ion

46,

and

a de

vice

ref

erre

d to

in

said

sec

tion,

whi

ch h

as b

een

publ

ishe

d fo

r co

mm

erci

al p

urpo

ses

and

the

copi

es o

f w

hich

hav

e be

en d

istri

bute

d or

whi

ch h

as b

een

com

mun

icat

ed to

the

publ

ic, m

ay b

e us

ed:

1. d

irect

ly o

r ind

irect

ly in

a p

ublic

per

form

ance

; 2.

in

orig

inal

com

mun

icat

ion

to t

he p

ublic

in

a m

anne

r ot

her

than

one

ena

blin

g m

embe

rs o

f the

pub

lic to

acc

ess

the

reco

rded

per

form

ance

or m

ater

ial a

t a p

lace

and

tim

e ch

osen

by

them

; 3.

for s

imul

tane

ous a

nd u

nalte

red

retra

nsm

issi

on o

f a ra

dio

or te

levi

sion

bro

adca

st fo

r re

cept

ion

by th

e pu

blic

. (2

) A

rem

uner

atio

n sh

all

be p

aid

to t

he p

rodu

cer

and

the

perf

orm

ing

artis

t w

hose

pe

rfor

man

ce

is

reco

rded

on

a

devi

ce

used

in

a

perf

orm

ance

, co

mm

unic

atio

n or

re

trans

mis

sion

ref

erre

d to

in

subs

ectio

n 1.

No

rem

uner

atio

n sh

all,

how

ever

, be

paid

for

re

trans

mis

sion

refe

rred

to in

sect

ion

25i.

(3)

If a

mus

ic r

ecor

ding

con

tain

ing

imag

es,

whi

ch h

as b

een

publ

ishe

d fo

r co

mm

erci

al

purp

oses

and

cop

ies

of w

hich

hav

e be

en d

istri

bute

d or

whi

ch h

as b

een

com

mun

icat

ed to

th

e pu

blic

is u

sed

in a

man

ner

refe

rred

to in

par

agra

ph 1

or

2 of

sub

sect

ion

1 du

ring

the

perio

d de

term

ined

in

sect

ion

46a(

2),

the

perf

orm

ing

artis

t w

hose

per

form

ance

of

a co

mpo

sitio

n is

reco

rded

on

the

devi

ce s

hall

have

a ri

ght t

o re

mun

erat

ion

for t

he u

se o

f the

re

cord

ed p

erfo

rman

ce.

(4)

Cas

es r

efer

red

to in

sub

sect

ions

1−3

abo

ve s

hall

be c

orre

spon

ding

ly g

over

ned

by th

e pr

ovis

ions

of s

ectio

ns 2

1, 2

2, a

nd 2

5b, s

ectio

n 27

(1−2

) and

sec

tion

29 a

nd a

dditi

onal

ly, i

n re

gard

of a

per

form

ing

artis

t, by

the

prov

isio

ns o

f sec

tion

11(2

) and

sect

ions

28,

41

and

42.

(5) T

he p

rovi

sion

s of

sub

sect

ions

1 a

nd 2

sha

ll no

t app

ly to

a d

evic

e re

ferr

ed to

in s

ectio

n 46

a.

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

24

Rem

uner

atio

n fo

r use

(14.

10.2

005/

821)

Se

ctio

n 47

a (1

4.10

.200

5/82

1)

(1) T

he re

mun

erat

ion

for t

he u

se o

f a p

hono

grap

h re

cord

und

er p

arag

raph

s 1−

2 of

sec

tion

47(1

) sh

all b

e pa

id th

roug

h an

org

anis

atio

n w

hich

has

bee

n ap

prov

ed b

y th

e M

inis

try o

f Ed

ucat

ion

and

whi

ch

repr

esen

ts

num

erou

s pe

rfor

min

g ar

tists

an

d so

und

reco

rdin

g pr

oduc

ers

who

se p

erfo

rman

ces

reco

rded

on

a de

vice

and

who

se r

ecor

ding

s ar

e us

ed i

n Fi

nlan

d.

(2)

The

rem

uner

atio

n fo

r re

trans

mis

sion

und

er s

ectio

n 47

(1)(

3) s

hall

be p

aid

thro

ugh

the

orga

nisa

tion

refe

rred

to in

sect

ion

26(1

). (3

) Th

e re

mun

erat

ion

for

the

use

of a

mus

ic r

ecor

ding

con

tain

ing

imag

es u

nder

sec

tion

47(3

) sh

all b

e pa

id th

roug

h an

org

anis

atio

n w

hich

has

bee

n ap

prov

ed b

y th

e M

inis

try o

f Ed

ucat

ion

and

whi

ch

repr

esen

ts

num

erou

s pe

rfor

min

g ar

tists

w

hose

pe

rfor

man

ces

reco

rded

on

a de

vice

are

use

d in

Fin

land

. (4

) Th

e rig

ht to

rem

uner

atio

n of

a p

erfo

rmin

g ar

tist o

r a

prod

ucer

sha

ll ex

pire

if a

cla

im

conc

erni

ng it

has

not

ver

ifiab

ly b

een

pres

ente

d to

the

orga

nisa

tion

with

in th

ree

year

s fr

om

the

end

of th

e ca

lend

ar y

ear

durin

g w

hich

the

perf

orm

ance

rec

orde

d on

a d

evic

e an

d th

e de

vice

wer

e us

ed.

(5)

The

Min

istry

of

Educ

atio

n sh

all a

ppro

ve th

e or

gani

satio

n re

ferr

ed to

in s

ubse

ctio

ns 1

an

d 3

on a

pplic

atio

n fo

r a

fixed

per

iod,

for

a m

axim

um o

f fiv

e ye

ars.

Onl

y on

e or

gani

satio

n re

pres

entin

g th

e rig

htho

lder

s at

a ti

me

may

be

appr

oved

for

eac

h ta

sk. T

he

orga

nisa

tion

to b

e ap

prov

ed sh

all b

e fin

anci

ally

soun

d an

d be

cap

able

of m

anag

ing

mat

ters

in

acc

orda

nce

with

the

app

rova

l de

cisi

on.

The

orga

nisa

tion

shal

l an

nual

ly s

ubm

it an

ac

coun

t to

the

Min

istry

of E

duca

tion

of th

e m

easu

res

it ha

s tak

en p

ursu

ant t

o th

e ap

prov

al

deci

sion

. Th

e de

cisi

on

of

the

Min

istry

of

Ed

ucat

ion

shal

l be

co

mpl

ied

with

, no

twith

stan

ding

an

appe

al p

endi

ng u

ntil

the

mat

ter h

as b

een

reso

lved

by

mea

ns o

f a v

alid

de

cisi

on. T

he a

ppro

val m

ay b

e re

vers

ed if

the

orga

nisa

tion

com

mits

ser

ious

or s

ubst

antia

l of

fenc

es o

r de

relic

tion

of d

uty

in b

reac

h of

the

app

rova

l de

cisi

on a

nd i

ts t

erm

s an

d if

notic

es to

com

ply

or w

arni

ngs i

ssue

d to

the

orga

nisa

tion

have

not

led

to th

e re

ctifi

catio

n of

th

e sh

ortc

omin

gs in

its o

pera

tion.

(6

) If t

he u

ser o

f the

dev

ice

does

not

pay

the

rem

uner

atio

n re

ferr

ed to

in su

bsec

tions

1 o

r 3,

the

amou

nt o

f whi

ch h

e ha

s ag

reed

upo

n w

ith th

e pe

rfor

min

g ar

tists

and

, in

case

s re

ferr

ed

to in

sec

tion

47(1

), al

so w

ith th

e pr

oduc

ers,

or th

e am

ount

of w

hich

has

bee

n de

term

ined

in

a p

roce

dure

refe

rred

to in

sec

tion

54, a

cou

rt of

just

ice

may

rule

, whe

n a

clai

m is

mad

e by

a p

arty

con

cern

ed, t

hat t

he u

se m

ay c

ontin

ue o

nly

with

the

cons

ent o

f th

e pe

rfor

min

g ar

tists

or t

he p

rodu

cers

unt

il th

e re

mun

erat

ion

has b

een

paid

. R

adio

and

tele

visi

on o

rgan

isat

ion

(14.

10.2

005/

821)

Se

ctio

n 48

(14.

10.2

005/

821)

(1

) A

rad

io o

r te

levi

sion

tra

nsm

issi

on s

hall

not,

with

out

the

cons

ent

of t

he t

rans

mitt

ing

orga

nisa

tion,

be

retra

nsm

itted

or

reco

rded

on

a de

vice

by

mea

ns o

f w

hich

it

can

be

repr

oduc

ed o

r co

mm

unic

ated

to th

e pu

blic

. Nor

sha

ll a

tele

visi

on b

road

cast

, with

out t

he

cons

ent

of t

he t

rans

mitt

ing

orga

nisa

tion,

be

mad

e au

dibl

e or

vis

ible

to

the

publ

ic o

n pr

emis

es to

whi

ch th

e pu

blic

has

adm

issi

on in

retu

rn fo

r pay

men

t. (2

) A re

cord

ed tr

ansm

issi

on sh

all n

ot, w

ithou

t the

con

sent

of t

he tr

ansm

ittin

g or

gani

satio

n,

until

50

year

s hav

e el

apse

d fr

om th

e ye

ar o

f tra

nsm

issi

on:

1. b

e tra

nsfe

rred

on

to a

dev

ice

by m

eans

of

whi

ch i

t ca

n be

rep

rodu

ced

or

com

mun

icat

ed to

the

publ

ic;

2. b

e tra

nsm

itted

ane

w;

3. b

e di

strib

uted

to th

e pu

blic

; 4.

be

com

mun

icat

ed t

o th

e pu

blic

by

wire

or

wire

less

mea

ns i

n a

man

ner

whi

ch

enab

les

mem

bers

of

the

publ

ic t

o ac

cess

the

wor

k fr

om a

pla

ce a

nd a

t a

time

indi

vidu

ally

cho

sen

by th

em.

(3)

The

prov

isio

ns o

f su

bsec

tions

1 a

nd 2

sha

ll co

rres

pond

ingl

y ap

ply

to a

ny o

ther

219

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

25

prog

ram

me-

conv

eyin

g si

gnal

bes

ides

radi

o or

tele

visi

on tr

ansm

issi

ons.

(4)

Cas

es re

ferr

ed to

in s

ubse

ctio

ns 1−2

abo

ve s

hall

be c

orre

spon

ding

ly g

over

ned

by th

e pr

ovis

ions

of s

ectio

n 2(

2−3)

, sec

tions

6−8

, sec

tion

11(2−5

), se

ctio

n 11

a, s

ectio

n 12

(1−2

), se

ctio

n 13

a(2)

, se

ctio

n 14

(1,

3, a

nd 4

), se

ctio

ns 1

5, 1

6 an

d 16

a−16

e, s

ectio

n 19

(1),

sect

ions

21,

22,

25b

and

25d

, sec

tion

25f(

2−3)

, sec

tion

26, s

ectio

n 27

(1−2

) and

sect

ion

29.

In a

dditi

on th

e re

trans

mis

sion

of

a br

oadc

ast b

y ca

ble

shal

l be

corr

espo

ndin

gly

gove

rned

by

the

pro

visi

ons

of s

ectio

n 25

h(1)

and

sec

tion

25i,

unle

ss t

he b

road

cast

orig

inat

es i

n an

othe

r co

untry

in

the

Euro

pean

Eco

nom

ic A

rea,

in

whi

ch c

ase

the

prov

isio

ns t

o be

ap

plie

d ar

e se

ctio

n 25

h(3)

, ins

tead

of t

he a

bove

. Pr

oduc

er o

f a c

atal

ogue

and

a d

atab

ase

(14.

10.2

005/

821)

Se

ctio

n 49

(1

) A p

erso

n w

ho h

as m

ade

1. a

cat

alog

ue, a

tabl

e, a

pro

gram

or

any

othe

r pr

oduc

t in

whi

ch a

larg

e nu

mbe

r of

in

form

atio

n ite

ms a

re c

ompi

led,

or

2. a

dat

abas

e th

e ob

tain

ing,

ver

ifica

tion

or p

rese

ntat

ion

of w

hich

has

req

uire

d su

bsta

ntia

l inv

estm

ent,

shal

l hav

e th

e ex

clus

ive

right

to c

ontro

l the

who

le o

r, in

qua

litat

ive

or q

uant

itativ

e te

rms,

a su

bsta

ntia

l par

t the

reof

, by

mak

ing

copi

es o

f it

and

by m

akin

g it

avai

labl

e to

the

publ

ic.

(14.

10.2

005/

821)

(2

) Th

e rig

ht c

onfe

rred

by

subs

ectio

n 1

abov

e sh

all

subs

ist

until

15

year

s ha

ve e

laps

ed

from

the

year

in w

hich

the

prod

uct w

as c

ompl

eted

or,

if th

e pr

oduc

t was

mad

e av

aila

ble

to

the

publ

ic b

efor

e th

e en

d of

that

tim

e, u

ntil

15 y

ears

hav

e el

apse

d fr

om th

e ye

ar in

whi

ch

the

prod

uct w

as m

ade

avai

labl

e to

the

publ

ic fo

r the

firs

t tim

e. (3

.4.1

998/

250)

(3

) A p

rodu

ct re

ferr

ed to

in s

ubse

ctio

n 1

abov

e sh

all b

e co

rres

pond

ingl

y go

vern

ed b

y th

e pr

ovis

ions

of

sect

ion

2(2−

4),

sect

ions

7−9

, se

ctio

n 11

(2−5

), se

ctio

n 12

(1,

2 an

d 4)

, se

ctio

ns 1

3 an

d 13

a, s

ectio

n 14

(1, 3

and

4),

sect

ions

15,

16,

16a−1

6e, 1

7 an

d 18

, sec

tion

19(1

, 2

and

5),

sect

ions

22,

25b−2

5d a

nd 2

5f−2

5i,

sect

ion

25j(4−5

), se

ctio

ns 2

6 an

d 27−2

9. I

f th

e pr

oduc

t or a

par

t the

reof

is s

ubje

ct to

cop

yrig

ht, t

hat r

ight

may

be

invo

ked.

(1

4.10

.200

5/82

1)

(4)

Any

con

tract

ual p

rovi

sion

und

er w

hich

the

mak

er o

f the

pro

duct

that

has

bee

n m

ade

publ

ic, r

efer

red

to a

bove

in s

ubse

ctio

n 1,

pre

vent

s th

e la

wfu

l use

r fro

m u

sing

insu

bsta

ntia

l pa

rts o

f its

con

tent

s, ev

alua

ted

qual

itativ

ely

or q

uant

itativ

ely,

for a

ny p

urpo

se w

hats

oeve

r, or

rest

ricts

such

a u

se, s

hall

be w

ithou

t eff

ect.

(3.4

.199

8/25

0)

Phot

ogra

pher

(14.

10.2

005/

821)

Se

ctio

n 49

a (1

) A p

hoto

grap

her s

hall

have

the

excl

usiv

e rig

ht to

con

trol a

pho

togr

aphi

c pi

ctur

e, b

e it

in

an o

rigin

al fo

rm o

r in

an a

ltere

d fo

rm:

1. b

y m

akin

g co

pies

ther

eof;

2. b

y m

akin

g it

avai

labl

e to

the

publ

ic. (

14.1

0.20

05/8

21)

(2) T

he ri

ght t

o a

phot

ogra

phic

pic

ture

sha

ll be

in fo

rce

until

50

year

s ha

ve e

laps

ed fr

om

the

end

of th

e ye

ar d

urin

g w

hich

the

phot

ogra

phic

pic

ture

was

mad

e. (2

4.3.

1995

/446

) (3

) Ph

otog

raph

s re

ferr

ed t

o in

thi

s se

ctio

n sh

all

be c

orre

spon

ding

ly g

over

ned

by t

he

prov

isio

ns o

f se

ctio

n 2(

2−4)

, sec

tion

3(1−

2), s

ectio

ns 7−9

, 11

and

11a,

sec

tion

12(1− 2

), se

ctio

ns 1

3 an

d 13

a, s

ectio

n 14

(1, 3

and

4),

sect

ions

15,

16

and

16a−

16e,

sec

tion

17(1

), se

ctio

n 18

, sec

tion

19(1

, 2 a

nd 5

), se

ctio

ns 2

0, 2

2 an

d 25

, sec

tion

25a(

1−2)

, and

sec

tions

25

b, 2

5d, 2

5f−2

5i, 2

6, 2

6a−2

6f, 2

6h, 2

7−29

, 39,

40,

40c

, 41

and

42. I

f a

phot

ogra

phic

pi

ctur

e is

subj

ect t

o co

pyrig

ht, c

opyr

ight

may

be

invo

ked.

(14.

10.2

005/

821)

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

26

Pres

s rep

orts

(14

.10.

2005

/821

) Se

ctio

n 50

A

pre

ss r

epor

t whi

ch is

sup

plie

d by

a fo

reig

n pr

ess

agen

cy o

r by

a c

orre

spon

dent

abr

oad

by v

irtue

of

a co

ntra

ct,

may

not

be

mad

e av

aila

ble

to t

he p

ublic

by

the

med

ium

of

a ne

wsp

aper

or

radi

o w

ithou

t the

con

sent

of

its r

ecip

ient

, unt

il tw

elve

hou

rs h

ave

elap

sed

from

its m

akin

g pu

blic

in F

inla

nd.

Cha

pter

5a(

14.1

0.20

05/8

21)

Tec

hnol

ogic

al m

easu

res a

nd e

lect

roni

c ri

ghts

man

agem

ent i

nfor

mat

ion

Pr

ohib

ition

to c

ircu

mve

nt a

tech

nolo

gica

l mea

sure

Se

ctio

n 50

a (1

4.10

.200

5/82

1)

(1)

An

effe

ctiv

e te

chno

logi

cal m

easu

re p

rote

ctin

g a

wor

k pr

otec

ted

unde

r thi

s Act

, whi

ch

has

been

inst

alle

d as

pro

tect

ion

for t

he w

ork

by th

e au

thor

or s

ome

othe

r per

son

with

the

auth

or's

perm

issi

on in

mak

ing

the

wor

k av

aila

ble

to th

e pu

blic

, sha

ll no

t be

circ

umve

nted

. (2

) A

n ef

fect

ive

tech

nolo

gica

l m

easu

re m

eans

tec

hnol

ogy,

a d

evic

e or

a c

ompo

nent

w

hich

, in

the

nor

mal

cou

rse

of i

ts o

pera

tion,

is

desi

gned

to

prev

ent

or r

estri

ct a

cts

in

resp

ect o

f the

wor

k w

ithou

t the

aut

hor's

or o

ther

righ

thol

der's

aut

horis

atio

n an

d by

mea

ns

of w

hich

the

prot

ectio

n ob

ject

ive

is a

chie

ved.

(3

) Th

e pr

ovis

ions

of

subs

ectio

n 1

shal

l no

t ap

ply

if th

e te

chno

logi

cal

mea

sure

is

circ

umve

nted

in

cour

se o

f re

sear

ch o

r ed

ucat

ion

rela

ting

to e

ncry

ptol

ogy

or i

f a

pers

on

who

has

law

fully

obt

aine

d th

e w

ork

circ

umve

nts

the

tech

nolo

gica

l mea

sure

in o

rder

to b

e ab

le to

list

en to

or

view

the

wor

k. A

wor

k in

whi

ch th

e te

chno

logi

cal m

easu

re h

as b

een

circ

umve

nted

for t

he p

urpo

ses o

f lis

teni

ng o

r vie

win

g sh

all n

ot b

e re

prod

uced

. (4

) Th

e pr

ovis

ions

of

subs

ectio

ns 1−3

sha

ll no

t ap

ply

to a

tec

hnol

ogic

al m

easu

re

prot

ectin

g a

com

pute

r pro

gram

. Pr

ohib

ition

to p

rodu

ce a

nd d

istr

ibut

e de

vice

s for

cir

cum

vent

ing

tech

nolo

gica

l m

easu

res

Sect

ion

50b

(14.

10.2

005/

821)

(1

) D

evic

es,

prod

ucts

or

com

pone

nts

enab

ling

or f

acili

tatin

g th

e ci

rcum

vent

ion

of a

n ef

fect

ive

tech

nolo

gica

l mea

sure

sha

ll no

t be

man

ufac

ture

d or

impo

rted

for

dist

ribut

ion

to

the

publ

ic; b

roug

ht o

nto

the

terr

itory

of

Finl

and

for

the

purp

ose

of e

xpor

tatio

n to

a th

ird

coun

try;

dist

ribut

ed t

o th

e pu

blic

; so

ld;

rent

ed;

adve

rtise

d fo

r sa

le o

r re

ntal

; or

hel

d in

po

sses

sion

for

com

mer

cial

pur

pose

s. N

or s

hall

serv

ices

ena

blin

g or

fac

ilita

ting

the

circ

umve

ntio

n of

an

effe

ctiv

e te

chno

logi

cal m

easu

re b

e of

fere

d.

(2)

Dev

ices

, pro

duct

s or c

ompo

nent

s or s

ervi

ces r

efer

red

to in

subs

ectio

n 1

are

thos

e

1. w

hich

are

pro

mot

ed,

adve

rtise

d or

mar

kete

d fo

r th

e pu

rpos

e of

circ

umve

ntin

g ef

fect

ive

tech

nolo

gica

l mea

sure

s;

2. w

hose

pur

pose

or

use

othe

r th

an c

ircum

vent

ion

has

only

lim

ited

com

mer

cial

si

gnifi

canc

e; o

r 3.

whi

ch a

re p

rimar

ily d

esig

ned,

pro

duce

d, a

dapt

ed o

r pe

rfor

med

for

the

purp

ose

of

enab

ling

or

faci

litat

ing

the

circ

umve

ntio

n of

ef

fect

ive

tech

nolo

gica

l m

easu

res

prot

ectin

g w

orks

pro

tect

ed u

nder

this

Act

. (3

) Th

e pr

ovis

ions

of s

ubse

ctio

n 1

shal

l not

app

ly to

a te

chno

logi

cal m

easu

re p

rote

ctin

g a

com

pute

r pro

gram

. U

se o

f wor

ks p

rote

cted

by

tech

nolo

gica

l mea

sure

s Se

ctio

n 50

c (1

4.10

.200

5/82

1)

(1) A

nyon

e w

ho is

law

fully

in p

osse

ssio

n of

or h

as le

gal a

cces

s to

a w

ork

prot

ecte

d by

an

effe

ctiv

e te

chno

logi

cal

mea

sure

and

who

, pu

rsua

nt t

o se

ctio

n 14

(3),

sect

ions

15,

16,

220

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

27

16a−

16c

or 1

7, s

ectio

n 25

d(2)

or s

ectio

n 25

f(2)

is e

ntitl

ed to

use

the

wor

k m

ust b

e ab

le to

us

e th

e w

ork

to th

e ex

tent

nec

essa

ry to

ava

il hi

mse

lf of

the

limita

tions

of

copy

right

laid

do

wn

in sa

id p

rovi

sion

s.

(2) T

he a

utho

r sha

ll of

fer t

he u

ser r

efer

red

to in

sub

sect

ion

1 th

e m

eans

to u

se th

e w

ork

in

acco

rdan

ce w

ith th

e pr

ovis

ions

refe

rred

to in

the

subs

ectio

n, if

the

user

lack

s th

e m

eans

to

use

the

wor

k ow

ing

to th

e te

chno

logi

cal m

easu

res.

If th

e au

thor

doe

s no

t off

er th

e m

eans

re

ferr

ed to

abo

ve o

r if

the

use

of th

e w

ork

is n

ot m

ade

poss

ible

by

volu

ntar

y m

easu

res,

such

as

agre

emen

ts b

etw

een

the

auth

ors

and

user

s of

the

wor

ks o

r oth

er a

rran

gem

ents

, the

m

atte

r sha

ll be

reso

lved

by

an a

rbitr

atio

n pr

oced

ure

refe

rred

to in

sect

ion

54.

(3) T

he p

rovi

sion

s of

sub

sect

ions

1 a

nd 2

abo

ve s

hall

not a

pply

to a

wor

k co

mm

unic

ated

to

the

publ

ic o

n ag

reed

term

s so

that

mem

bers

of t

he p

ublic

may

acc

ess

the

wor

k fr

om a

pl

ace

and

at a

tim

e in

divi

dual

ly c

hose

n by

them

. (4

) Th

e pr

ovis

ions

of

subs

ectio

ns 1

and

2 c

once

rnin

g th

e au

thor

sha

ll al

so a

pply

to

a pe

rson

who

with

the

auth

or's

cons

ent m

akes

the

wor

k av

aila

ble

to th

e pu

blic

. (5

) The

pro

visi

ons o

f sub

sect

ions

1 a

nd 2

shal

l not

app

ly to

a c

ompu

ter p

rogr

am.

Ele

ctro

nic

righ

ts m

anag

emen

t inf

orm

atio

n Se

ctio

n 50

d (1

4.10

.200

5/82

1)

(1)

Elec

troni

c rig

hts

man

agem

ent

info

rmat

ion

cont

aine

d in

a c

opy

of a

wor

k pr

otec

ted

unde

r thi

s A

ct o

r ind

icat

ed in

the

com

mun

icat

ion

of th

e w

ork

to th

e pu

blic

, whi

ch id

entif

y th

e w

ork,

the

aut

hor

or s

ome

othe

r rig

htho

lder

or

whi

ch p

rovi

de i

nfor

mat

ion

abou

t th

e te

rms g

over

ning

the

use

of th

e w

ork,

shal

l not

be

rem

oved

or a

ltere

d.

(2)

A c

opy

of a

wor

k pr

otec

ted

unde

r th

is A

ct s

hall

not

be d

istri

bute

d to

the

pub

lic o

r im

porte

d fo

r dis

tribu

tion

to th

e pu

blic

or t

he w

ork

shal

l not

be

com

mun

icat

ed to

the

publ

ic

in a

for

m i

n w

hich

the

ele

ctro

nic

man

agem

ent

info

rmat

ion

has

been

rem

oved

fro

m t

he

wor

k or

hav

e be

en a

ltere

d w

ithou

t aut

horis

atio

n.

(3)

The

right

s m

anag

emen

t inf

orm

atio

n re

ferr

ed to

in th

is s

ectio

n ar

e in

form

atio

n w

hich

th

e au

thor

or a

per

son

on h

is b

ehal

f or w

ith h

is a

utho

risat

ion

has i

nsta

lled

in th

e w

ork.

A

pplic

atio

n to

the

righ

ts re

late

d to

cop

yrig

ht re

ferr

ed to

in C

hapt

er 5

Se

ctio

n 50

e (1

4.10

.200

5/82

1)

The

prov

isio

ns

of

sect

ions

50

a−50

d co

ncer

ning

th

e w

ork

and

the

auth

or

shal

l co

rres

pond

ingl

y ap

ply

to t

he p

rote

cted

sub

ject

mat

ter

refe

rred

to

in t

he p

rovi

sion

s of

C

hapt

er 5

and

to th

e ho

lder

s of r

ight

s the

rein

. C

HA

PTE

R 6

Sp

ecia

l pro

visi

ons

Sect

ion

51

A l

itera

ry o

r ar

tistic

wor

k m

ay n

ot b

e m

ade

avai

labl

e to

the

pub

lic u

nder

suc

h a

title

, ps

eudo

nym

or

pen

nam

e th

at th

e w

ork

or it

s au

thor

may

eas

ily b

e co

nfus

ed w

ith a

wor

k pr

evio

usly

mad

e pu

blic

or i

ts a

utho

r. Se

ctio

n 52

(1

) Th

e na

me

or s

igna

ture

of

the

auth

or m

ay b

e in

scrib

ed o

n a

copy

of

a w

ork

of a

rt by

an

othe

r per

son

only

whe

n so

inst

ruct

ed b

y th

e au

thor

. (2

) The

nam

e or

sign

atur

e of

the

auth

or sh

all n

ot b

e in

scrib

ed o

n a

copy

of a

wor

k of

art

in

such

a m

anne

r tha

t the

cop

y co

uld

be c

onfu

sed

with

the

orig

inal

wor

k.

(3) W

hoev

er m

akes

or d

istri

bute

s to

the

publ

ic a

cop

y of

a w

ork

of a

rt sh

all m

ark

the

copy

in

such

a m

anne

r tha

t the

cop

y ca

nnot

be

conf

used

with

the

orig

inal

wor

k. (2

4.3.

1995

/446

)

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

28

Sect

ion

52a

(24.

3.19

95/4

46)

(1)

The

auth

or o

f a

wor

k of

fin

e ar

t sha

ll ha

ve th

e rig

ht o

f ac

cess

to s

ee th

e w

ork

he h

as

trans

ferr

ed, u

nles

s th

is c

ause

s un

reas

onab

le d

etrim

ent t

o th

e ow

ner o

r hol

der o

f the

wor

k,

and

prov

ided

this

is n

eces

sary

: 1.

for t

he a

utho

r's a

rtist

ic a

ctiv

ity; o

r 2.

for t

he p

urpo

se o

f exe

rcis

ing

his e

cono

mic

righ

ts, a

s def

ined

in se

ctio

n 2.

(2

) Th

e rig

ht r

efer

red

to in

par

agra

ph 2

of

subs

ectio

n 1

abov

e sh

all b

e go

vern

ed b

y th

e pr

ovis

ions

of s

ectio

n 41

. Se

ctio

n 53

(1

) If

, af

ter

the

deat

h of

the

aut

hor,

a lit

erar

y or

arti

stic

wor

k is

pub

licly

tre

ated

in

a m

anne

r w

hich

vio

late

s cu

ltura

l in

tere

sts,

the

auth

ority

to

be d

esig

nate

d by

Dec

ree

shal

l ha

ve th

e rig

ht to

pro

hibi

t suc

h an

act

ion,

not

with

stan

ding

that

the

copy

right

ther

ein

is n

o lo

nger

in fo

rce,

or t

hat c

opyr

ight

has

nev

er e

xist

ed.

(2)

If t

he p

erso

n w

hom

the

pro

hibi

tion

conc

erns

is

diss

atis

fied

with

the

pro

hibi

tion,

he

may

subm

it th

e m

atte

r to

a co

urt o

f jus

tice

for d

ecis

ion.

A

rbitr

atio

n (1

4.10

.200

5/82

1)

Sect

ion

54 (1

4.10

.200

5/82

1)

(1)

In t

he e

vent

of

a di

sput

e, t

he m

atte

r sh

all

be s

ettle

d by

an

arbi

tratio

n pr

oced

ure

whe

neve

r the

que

stio

n co

ncer

ns:

1. r

emun

erat

ion

refe

rred

to in

sec

tion

17(4

), se

ctio

n 18

(2),

sect

ion

19(4

) or

sec

tion

47(2

or 3

); 2.

the

gran

ting

of a

n au

thor

isat

ion

refe

rred

to in

sec

tion

26 a

nd th

e te

rms

ther

eof

as

prov

ided

in

sect

ion

13,

if th

e m

atte

r re

late

s to

the

mak

ing

of c

opie

s fo

r us

e in

ed

ucat

iona

l act

iviti

es;

3. th

e gr

antin

g of

an

auth

oris

atio

n re

ferr

ed to

in s

ectio

n 26

and

the

term

s th

ereo

f, as

pr

ovid

ed i

n se

ctio

n 14

(1),

if th

e m

atte

r re

late

s to

the

mak

ing

of c

opie

s fo

r us

e in

ed

ucat

iona

l act

iviti

es;

4. th

e gr

antin

g of

an

auth

oris

atio

n re

ferr

ed to

in s

ectio

n 26

, and

the

term

s th

ereo

f, fo

r si

mul

tane

ous

and

unal

tere

d re

trans

mis

sion

of

a ra

dio

or t

elev

isio

n br

oadc

ast

in

acco

rdan

ce w

ith se

ctio

n 25

h(1)

; 5.

the

gran

ting

of a

n au

thor

isat

ion

refe

rred

to in

sec

tion

26, a

nd th

e te

rms

ther

eof,

for

sim

ulta

neou

s an

d un

alte

red

retra

nsm

issi

on o

f a ra

dio

or te

levi

sion

bro

adca

st b

y ca

ble

in a

ccor

danc

e w

ith s

ectio

n 25

h(2)

or

sect

ion

48(1

), if

the

broa

dcas

t or

igin

ates

in

a co

untry

bel

ongi

ng to

the

Euro

pean

Eco

nom

ic A

rea;

the

auth

oris

atio

n m

ay b

e gr

ante

d if

the

trans

mitt

ing

orga

nisa

tion,

with

out

a w

ell-f

ound

ed r

easo

n, p

rohi

bits

cab

le

retra

nsm

issi

on o

r set

s unr

easo

nabl

e te

rms t

here

upon

; 6.

the

set

tling

of

a m

atte

r be

twee

n th

e au

thor

and

the

use

r in

a c

ase

refe

rred

to

in

sect

ion

50c(

2).

(2)

Each

par

ty s

hall

appo

int

an a

rbitr

ator

for

the

arb

itrat

ion,

and

tho

se t

hus

appo

inte

d in

vite

a t

hird

arb

itrat

or a

s a

chai

rper

son.

If

one

of t

he p

artie

s ha

s pr

opos

ed t

he u

se o

f ar

bitra

tion

to th

e ad

vers

ary

and

appo

inte

d an

arb

itrat

or b

ut th

e ad

vers

ary

has n

ot a

ppoi

nted

an

arb

itrat

or w

ithin

one

mon

th o

f th

e no

tific

atio

n th

ereo

f, he

sha

ll be

con

side

red

to h

ave

refu

sed

the

settl

ing

of th

e m

atte

r by

arbi

tratio

n.

(3) T

he p

artie

s con

cern

ed m

ay a

lso

agre

e to

subm

it th

e m

atte

r to

arbi

trato

rs to

be

settl

ed in

ac

cord

ance

with

the

Arb

itrat

ion

Act

(967

/199

2).

(4) A

ny a

utho

risat

ion

gran

ted

purs

uant

to th

e th

is s

ectio

n sh

all h

ave

the

sam

e ef

fect

as

the

gran

ting

of a

utho

risat

ion

refe

rred

to in

sec

tion

26 in

acc

orda

nce

with

sec

tion

13, s

ectio

n 14

(1),

sect

ion

25h(

1 or

2) o

r sec

tion

48(1

). (5

) If a

par

ty c

once

rned

refu

ses

the

arbi

tratio

n of

a m

atte

r ref

erre

d to

in s

ubse

ctio

n 1,

the

mat

ter

may

, upo

n ap

plic

atio

n by

a p

arty

con

cern

ed, b

e su

bmitt

ed to

a c

ourt

of ju

stic

e fo

r se

ttlin

g. T

he c

ompe

tent

cou

rt of

just

ice

shal

l be

the

Dis

trict

Cou

rt of

Hel

sink

i. If

the

Cou

rt ha

s gr

ante

d au

thor

isat

ion

in a

mat

ter r

efer

red

to in

par

agra

phs

2−4

of s

aid

subs

ectio

n an

d

221

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

29

the

deci

sion

is a

ppea

led,

the

auth

oris

atio

n an

d its

term

s sh

all b

e in

for

ce u

ntil

the

mat

ter

has b

een

settl

ed w

ith fi

nalit

y or

unt

il a

high

er c

ourt

rule

s oth

erw

ise

in re

gard

of t

he a

ppea

l. E

duca

tion

for t

he p

urpo

se o

f gai

n (1

4.10

.200

5/82

1)

Sect

ion

54a

(19.

12.1

980/

897)

Th

e pr

ovisi

ons

of t

his

Act

reg

ardi

ng e

duca

tiona

l ac

tiviti

es s

hall

not

appl

y to

edu

catio

nal

activ

ities

con

duct

ed fo

r pur

pose

of g

ain.

R

emun

erat

ion

for

the

use

of a

sou

nd r

ecor

ding

and

a m

usic

rec

ordi

ng c

onta

inin

g im

ages

(1

4.10

.200

5/82

1)

Sect

ion

54b

(24.

3.19

95/4

46)

(1) I

f the

re is

a ri

sk th

at re

mun

erat

ion

refe

rred

to in

sect

ion

47 c

anno

t be

paid

to th

e pe

rson

en

title

d to

it, a

cou

rt of

just

ice

may

, upo

n th

e re

ques

t of

said

per

son,

pro

hibi

t the

use

r of

de

vice

s re

ferr

ed t

o in

sec

tion

46 f

rom

usi

ng s

aid

devi

ces

until

he

post

s an

acc

epta

ble

secu

rity

for t

he p

aym

ent o

f rem

uner

atio

ns o

r unt

il a

cour

t of j

ustic

e or

ders

oth

erw

ise

upon

th

e re

ques

t of

a p

arty

con

cern

ed. T

he m

atte

r sha

ll be

gov

erne

d, w

here

app

ropr

iate

, by

the

prov

isio

ns o

f sec

tions

4, 5

, 7, 8

, 11

and

14 o

f Cha

pter

7 o

f the

Cod

e of

Judi

cial

Pro

cedu

re.

(2) I

f the

rem

uner

atio

n re

ferr

ed to

in se

ctio

n 47

(2) h

as n

ot b

een

agre

ed u

pon

befo

re th

e us

e re

ferr

ed to

in s

ubse

ctio

n 1

of s

aid

sect

ion,

the

rem

uner

atio

n sh

all f

all d

ue a

fter

30 d

ays

from

the

day

on w

hich

the

devi

ce re

ferr

ed to

in se

ctio

n 46

was

use

d in

acc

orda

nce

with

the

prov

isio

ns o

f sec

tion

47(1

). (1

4.10

.200

5/82

1)

(3)

The

prov

isio

ns o

f su

bsec

tions

1 a

nd 2

sha

ll co

rres

pond

ingl

y ap

ply

to r

emun

erat

ion

refe

rred

to in

sect

ion

47(3

) and

a m

usic

reco

rdin

g co

ntai

ning

imag

es. (

14.1

0.20

05/8

21)

Cop

yrig

ht C

ounc

il (1

4.10

.200

5/82

1)

Sect

ion

55 (8

.6.1

984/

442)

(1

) The

Gov

ernm

ent s

hall

appo

int a

Cop

yrig

ht C

ounc

il to

ass

ist t

he M

inis

try o

f Edu

catio

n in

the

hand

ling

of c

opyr

ight

mat

ters

and

to is

sue

stat

emen

ts r

egar

ding

the

appl

icat

ion

of

this

Act

. (2

) Fu

rther

pro

visi

ons

rega

rdin

g th

e C

opyr

ight

Cou

ncil

shal

l be

iss

ued

by G

over

nmen

t D

ecre

e. (1

4.10

.200

5/82

1)

CH

APT

ER

7

Pena

l San

ctio

ns a

nd L

iabi

lity

Sanc

tions

in th

e Pe

nal C

ode

(14.

10.2

005/

821)

Se

ctio

n 56

(14.

10.2

005/

821)

Pe

nal s

anct

ions

for t

he c

opyr

ight

off

ence

are

laid

dow

n in

sec

tion

1 of

Cha

pter

49

of th

e Pe

nal C

ode

(39/

1889

); fo

r ci

rcum

vent

ion

of a

tech

nolo

gica

l mea

sure

in s

ectio

n 3

of th

e C

hapt

er; f

or th

e of

fenc

e of

a d

evic

e fo

r circ

umve

ntin

g a

tech

nolo

gica

l mea

sure

in s

ectio

n 4

of t

he C

hapt

er;

and

for

the

offe

nce

of e

lect

roni

c rig

hts

man

agem

ent

info

rmat

ion

in

sect

ion

5 of

the

Cha

pter

. C

opyr

ight

vio

latio

n (1

4.10

.200

5/82

1)

Sect

ion

56a

(14.

10.2

005/

821)

(1

) Any

one

who

1.

wilf

ully

or

out

of g

ross

neg

ligen

ce m

akes

a c

opy

of a

wor

k, o

r m

akes

a w

ork

avai

labl

e to

the

pub

lic c

ontra

ry t

o th

e pr

ovis

ions

of

this

Act

or

infr

inge

s th

e

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

30

prov

isio

ns o

f sec

tion

3 co

ncer

ning

mor

al ri

ghts

, 2.

oth

erw

ise

viol

ates

a p

rovi

sion

pro

tect

ing

copy

right

in

the

pres

ent

Act

or

acts

co

ntra

ry to

a d

irect

ion

issu

ed u

nder

sec

tion

41(2

), or

to a

pro

visi

on o

f se

ctio

n 51

or

sect

ion

52, o

r to

a pr

ohib

ition

refe

rred

to in

sect

ion

53(1

) or s

ectio

n 54

b(1)

, or

3. im

ports

into

the

coun

try o

r brin

gs o

nto

the

terr

itory

of F

inla

nd fo

r tra

nspo

rtatio

n to

a

third

cou

ntry

cop

ies

of a

wor

k w

hich

he

know

s or

has

wel

l fo

unde

d re

ason

to

susp

ect

to h

ave

been

pro

duce

d ou

tsid

e th

e co

untry

und

er s

uch

circ

umst

ance

s th

at

such

pro

duct

ion

in F

inla

nd w

ould

hav

e be

en p

unis

habl

e un

der t

his A

ct,

shal

l be

sen

tenc

ed t

o a

fine

for

a co

pyri

ght

viol

atio

n, u

nles

s th

e ac

t is

pun

isha

ble

as a

co

pyrig

ht o

ffen

ce u

nder

sect

ion

1 of

Cha

pter

49

of th

e Pe

nal C

ode.

(2

) The

mak

ing

of s

ingl

e co

pies

for p

rivat

e us

e of

a c

ompu

ter-

read

able

com

pute

r pro

gram

or

a d

atab

ase

whi

ch h

as b

een

publ

ishe

d or

cop

ies

of w

hich

hav

e be

en s

old

or o

ther

wis

e pe

rman

ently

tran

sfer

red

with

the

cons

ent o

f the

aut

hor,

or th

e m

akin

g of

sin

gle

copi

es fo

r pr

ivat

e us

e of

a w

ork

cont

rary

to

sect

ion

11(5

) sh

all

not

be c

onsi

dere

d to

con

stitu

te a

co

pyrig

ht v

iola

tion.

B

reac

h of

con

fiden

tialit

y (1

4.10

.200

5/82

1)

Sect

ion

56b

(21.

8.19

95/1

024)

A

vio

latio

n of

con

fiden

tialit

y re

ferr

ed t

o in

sec

tion

26d(

3) o

r se

ctio

n 26

l(4)

shal

l be

pu

nish

able

und

er s

ectio

n 1

or 2

of

Cha

pter

38

of t

he P

enal

Cod

e, u

nles

s th

e ac

t is

pu

nish

able

und

er s

ectio

n 5

of C

hapt

er 4

0 of

the

Pen

al C

ode

or u

nles

s a

mor

e se

vere

pu

nish

men

t for

the

act h

as b

een

laid

dow

n el

sew

here

in th

e la

w.

Ille

gal

dist

ribu

tion

of a

dev

ice

for

rem

ovin

g a

tech

nolo

gica

l m

easu

re p

rote

ctin

g a

com

pute

r pro

gram

(1

4.10

.200

5/82

1)

Sect

ion

56c

(14.

10.2

005/

821)

A

nyon

e w

ho d

istri

bute

s to

the

publ

ic fo

r the

pur

pose

of g

ain

or fo

r suc

h a

purp

ose

keep

s in

his p

osse

ssio

n an

y de

vice

who

se so

le p

urpo

se is

una

utho

rised

rem

oval

or c

ircum

vent

ion

of

a te

chno

logi

cal

devi

ce p

rote

ctin

g a

com

pute

r pr

ogra

m s

hall

be s

ente

nced

to

a fin

e fo

r un

auth

oris

ed d

istr

ibut

ion

of a

dev

ice

for

rem

ovin

g a

tech

nolo

gica

l mea

sure

pro

tect

ing

a co

mpu

ter p

rogr

am.

Bre

ach

of th

e ob

ligat

ion

to p

rovi

de in

form

atio

n (1

4.10

.200

5/82

1)

Sect

ion

56d

(24.

3.19

95/4

46)

Any

one

who

wilf

ully

or o

ut o

f gro

ss n

eglig

ence

vio

late

s the

pro

visi

on o

f sec

tion

26d(

2) o

r th

e ob

ligat

ion

to p

rovi

de in

form

atio

n or

to g

ive

acco

unt,

laid

dow

n in

sec

tion

26k(

2), s

hall

be s

ente

nced

to a

fine

for a

vio

latio

n of

the

oblig

atio

n to

pro

vide

info

rmat

ion

as p

rovi

ded

in t

he C

opyr

ight

Act

, unl

ess

a m

ore

seve

re p

unis

hmen

t fo

r th

e ac

t ha

s be

en l

aid

dow

n el

sew

here

in th

e la

w.

Vio

latio

n of

a te

chno

logi

cal m

easu

re (1

4.10

.200

5/82

1)

Sect

ion

56e

(14.

10.2

005/

821)

A

nyon

e w

ho w

ilful

ly o

r out

of g

ross

neg

ligen

ce in

frin

ges

1. th

e pr

ohib

ition

to c

ircum

vent

a te

chno

logi

cal m

easu

re, a

s pr

ovid

ed in

sec

tion

50a,

or

2.

the

proh

ibiti

on t

o pr

oduc

e or

dis

tribu

te d

evic

es f

or c

ircum

vent

ing

tech

nolo

gica

l m

easu

res,

as p

rovi

ded

in se

ctio

n 50

b,

shal

l be

sen

tenc

ed,

unle

ss t

he a

ct i

s pu

nish

able

as

a ci

rcum

vent

ion

of a

tec

hnol

ogic

al

mea

sure

und

er s

ectio

n 3

of C

hapt

er 4

9 of

the

Pena

l Cod

e or

as

a of

fenc

e of

a d

evic

e fo

r ci

rcum

vent

ing

a m

easu

re u

nder

sec

tion

4 of

the

Cha

pter

, to

a f

ine

for

a vi

olat

ion

of a

te

chno

logi

cal m

easu

re.

222

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

31

Vio

latio

n of

ele

ctro

nic

righ

ts m

anag

emen

t inf

orm

atio

n (1

4.10

.200

5/82

1)

Sect

ion

56f (

14.1

0.20

05/8

21)

Any

one

who

wilf

ully

or

out

of g

ross

neg

ligen

ce i

nfrin

ges

the

proh

ibiti

on t

o re

mov

e or

al

ter

elec

troni

c rig

hts

man

agem

ent

info

rmat

ion

refe

rred

to

in s

ectio

n 50

d(1)

or

the

proh

ibiti

on re

ferr

ed to

in su

bsec

tion

2 of

sai

d se

ctio

n to

dis

tribu

te to

the

publ

ic o

r im

port

a co

py o

f a

wor

k fo

r di

strib

utio

n to

the

pub

lic o

r co

mm

unic

ate

a w

ork

to t

he p

ublic

in

a fo

rm in

whi

ch th

e el

ectro

nic

man

agem

ent i

nfor

mat

ion

has

been

rem

oved

from

the

wor

k or

al

tere

d w

ithou

t aut

horis

atio

n, s

hall

be s

ente

nced

unl

ess

the

act i

s pu

nish

able

as

an o

ffen

ce

of e

lect

roni

c rig

hts

man

agem

ent i

nfor

mat

ion

unde

r se

ctio

n 5

of C

hapt

er 4

9 of

the

Pena

l C

ode,

to

a fin

e fo

r a

viol

atio

n of

ele

ctro

nic

righ

ts m

anag

emen

t in

form

atio

n, i

f th

e pe

rpet

rato

r kn

ows

or h

as w

ell-f

ound

ed r

easo

n to

sus

pect

tha

t hi

s ac

t ca

uses

, ena

bles

or

conc

eals

an

infr

inge

men

t of t

he ri

ghts

con

ferr

ed b

y th

is A

ct o

r fac

ilita

tes

the

infr

inge

men

t th

ereo

f. Pr

ohib

ition

to in

frin

ge (2

1.7.

2006

/679

) Se

ctio

n 56

g (2

1.7.

2006

/679

) If

a p

erso

n in

frin

ges

the

copy

right

, the

Cou

rt of

Jus

tice

may

pro

hibi

t him

to p

roce

ed w

ith

or re

peat

the

act.

C

ompe

nsat

ion

and

rem

uner

atio

n (1

4.10

.200

5/82

1)

Sect

ion

57 (1

4.10

.200

5/82

1)

(1)

Any

one

who

in v

iola

tion

of th

is A

ct o

r a

dire

ctio

n gi

ven

unde

r se

ctio

n 41

(2)

uses

a

wor

k or

im

ports

a c

opy

of w

ork

into

the

cou

ntry

or

brin

gs a

cop

y of

wor

k on

to t

he

terr

itory

of

Finl

and

for

trans

porta

tion

to a

thi

rd c

ount

ry s

hall

be o

blig

ed t

o pa

y a

reas

onab

le c

ompe

nsat

ion

to th

e au

thor

. The

ille

gal r

epro

duct

ion

of a

wor

k fo

r priv

ate

use

shal

l be

subj

ect t

o co

mpe

nsat

ion

only

in th

e ca

se th

at th

e m

aker

of t

he c

opy

has

know

n or

sh

ould

hav

e kn

own

that

the

mat

eria

l co

pied

has

bee

n m

ade

avai

labl

e to

the

pub

lic i

n vi

olat

ion

of th

is A

ct.

(2)

If t

he w

ork

is u

sed

wilf

ully

or

out

of n

eglig

ence

, the

inf

ringe

r sh

all,

in a

dditi

on t

o co

mpe

nsat

ion,

pay

dam

ages

for

any

oth

er l

oss,

incl

udin

g m

enta

l su

ffer

ing

and

othe

r de

trim

ent.

(3)

Any

one

who

, oth

erw

ise

than

by

usin

g a

wor

k, i

s gu

ilty

of a

n ac

t pu

nish

able

und

er

sect

ion

1, 3

or

5 of

Cha

pter

49

of th

e Pe

nal C

ode,

or s

ectio

n 56

a, p

arag

raph

1 o

f se

ctio

n 56

e or

sec

tion

56f

of th

is A

ct, s

hall

be o

blig

ed to

pay

the

auth

or d

amag

es f

or a

ny lo

ss,

men

tal s

uffe

ring

or o

ther

det

rimen

t cau

sed

by th

e cr

ime.

(4

) Th

e co

mpe

nsat

ion

refe

rred

to in

sub

sect

ions

2 a

nd 3

abo

ve s

hall

also

be

gove

rned

by

the

prov

isio

ns o

f the

Tor

t Lia

bilit

y A

ct (4

12/1

974)

. F

orfe

iture

(14.

10.2

005/

821)

Se

ctio

n 58

(14.

10.2

005/

821)

(1

) If a

cop

y of

a w

ork

has

been

pro

duce

d, im

porte

d in

to th

e co

untry

or b

roug

ht o

nto

the

terr

itory

of

Finl

and

for

furth

er tr

ansp

orta

tion

to a

third

cou

ntry

, or

mad

e av

aila

ble

to th

e pu

blic

or

alte

red

cont

rary

to th

is A

ct o

r to

a di

rect

ion

give

n un

der s

ectio

n 41

(2) o

r to

the

prov

isio

n of

sec

tion

51 o

r 52

or

to a

pro

hibi

tion

issu

ed u

nder

sec

tion

53(1

), or

if

a pr

ohib

ition

ref

erre

d to

in s

ectio

n 50

a or

50b

has

bee

n vi

olat

ed, t

he c

ourt

may

, upo

n th

e de

man

d of

the

inju

red

party

or,

in a

cas

e re

ferr

ed to

in s

ectio

n 50

b, o

f a p

ublic

pro

secu

tor,

orde

r, as

it d

eem

s re

ason

able

, tha

t the

cop

y an

d an

y co

mpo

sitio

n, p

rintin

g bl

ock,

mou

ld o

r ot

her

piec

e of

equ

ipm

ent

or i

llega

l de

vice

for

circ

umve

ntin

g te

chno

logi

cal

mea

sure

s be

de

stro

yed,

or

that

suc

h pr

oper

ty b

e al

tere

d in

spe

cifie

d w

ays

or b

e tra

nsfe

rred

to

the

inju

red

party

aga

inst

a c

ompe

nsat

ion

corr

espo

ndin

g to

the

cost

of

its m

anuf

actu

re, o

r be

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

32

rend

ered

unf

it fo

r un

auth

oris

ed u

se.

The

prov

isio

ns o

f th

is s

ubse

ctio

n sh

all

appl

y to

re

prod

uctio

n fo

r pr

ivat

e us

e on

ly i

f th

e m

aker

of

the

copy

has

kno

wn

or s

houl

d ha

ve

know

n th

at th

e m

ater

ial r

epro

duce

d ha

s be

en m

ade

avai

labl

e to

the

publ

ic in

vio

latio

n of

th

is A

ct.

(2)

If a

cop

y of

a w

ork

has

been

mad

e or

dis

tribu

ted

cont

rary

to th

is A

ct, o

r im

porte

d to

th

e co

untry

or b

roug

ht o

nto

the

terr

itory

of F

inla

nd in

a m

anne

r ref

erre

d to

in p

arag

raph

3

of s

ectio

n 56

a(1)

, and

it is

ord

ered

to b

e fo

rfei

ted

to th

e St

ate

unde

r th

e Su

mm

ary

Pena

l Pr

oced

ures

Act

(692

/199

3), t

he c

opy

of th

e w

ork

may

be

orde

red

to b

e de

stro

yed

upon

the

dem

and

of t

he i

njur

ed p

arty

. In

sum

mar

y pe

nal

proc

edur

es,

a co

urt

may

als

o or

der

a de

vice

inte

nded

for c

ircum

vent

ion

of a

tech

nolo

gica

l mea

sure

refe

rred

to in

sec

tion

50b

to

be f

orfe

ited

to th

e St

ate

or d

estro

yed

if it

has

been

man

ufac

ture

d, m

ade

avai

labl

e to

the

publ

ic, i

mpo

rted

into

the

coun

try fo

r dis

tribu

tion

to th

e pu

blic

or b

roug

ht o

nto

the

terr

itory

of

Fin

land

for t

rans

porta

tion

to a

third

cou

ntry

con

trary

to th

e pr

ovis

ions

of s

ectio

n 50

b(1)

. (3

) The

pro

visi

ons

of s

ubse

ctio

ns 1

and

2 s

hall

not a

pply

to a

per

son

who

has

acq

uire

d th

e pr

oper

ty o

r so

me

spec

ific

right

the

rein

in

good

fai

th,

or t

o a

wor

k of

arc

hite

ctur

e. A

bu

ildin

g m

ay, h

owev

er, b

e or

dere

d to

be

mod

ified

as

indi

cate

d by

the

spec

ific

feat

ures

of

the

case

and

the

circ

umst

ance

s. Se

ctio

n 59

N

otw

ithst

andi

ng t

he p

rovi

sion

s of

sec

tion

58(1

) th

e co

urt

may

, up

on a

req

uest

to

that

ef

fect

and

if

deem

ed r

easo

nabl

e in

vie

w o

f th

e ar

tistic

or

econ

omic

val

ue o

f th

e co

pies

re

ferr

ed t

o in

sai

d su

bsec

tion

or o

ther

circ

umst

ance

s, pe

rmit

that

the

cop

y be

mad

e av

aila

ble

to t

he p

ublic

or

othe

rwis

e us

ed f

or t

he i

nten

ded

purp

ose

in c

onsi

dera

tion

of

spec

ific

rem

uner

atio

n to

the

inju

red

party

. Pu

blic

atio

n of

judg

men

t (21

.7.2

006/

679)

Se

ctio

n 59

a (2

1.7.

2006

/679

) (1

) A c

ourt

of ju

stic

e m

ay, i

n a

civi

l mat

ter c

once

rnin

g co

pyrig

ht a

nd u

pon

the

requ

est o

f pl

aint

iff, o

rder

a d

efen

dant

to re

com

pens

e co

sts

incu

rred

from

the

diss

emin

atio

n, b

y us

ing

appr

opria

te m

easu

res,

of a

n in

form

atio

n ab

out t

he n

on-a

ppea

labl

e ju

dgm

ent i

n w

hich

the

defe

ndan

t ha

s be

en f

ound

to

infr

inge

cop

yrig

ht.

The

orde

r sh

all

not

be i

ssue

d, i

f th

e di

ssem

inat

ion

of t

he i

nfor

mat

ion

is l

imite

d el

sew

here

in

the

law

. Whe

n co

nsid

erin

g th

e is

suin

g of

the

orde

r an

d th

e co

nten

ts o

f it,

a c

ourt

of ju

stic

e sh

all t

ake

into

acc

ount

the

gene

ral

rele

vanc

e of

the

dis

sem

inat

ion

to t

he p

ublic

, th

e qu

ality

and

ext

ent

of t

he

infr

inge

men

t, th

e co

sts

whi

ch a

re c

ause

d by

the

dis

sem

inat

ion

and

othe

r co

rres

pond

ing

mat

ters

. (2

) A c

ourt

of ju

stic

e sh

all o

rder

a m

axim

um a

mou

nt o

f the

reas

onab

le d

isse

min

atio

n co

sts

to b

e re

com

pens

ed b

y th

e de

fend

ant.

The

plai

ntiff

is n

ot e

ntitl

ed to

com

pens

atio

n, if

the

info

rmat

ion

abou

t the

judg

men

t has

not

bee

n di

ssem

inat

ed w

ithin

the

time

that

a c

ourt

of

just

ice

orde

red

to b

e ru

n fr

om a

pas

sed

non-

appe

alab

le ju

dgm

ent.

App

licat

ion

of p

rovi

sion

s on

san

ctio

ns a

nd c

ompe

nsat

ion

to c

erta

in r

ight

s re

late

d to

co

pyri

ght (

14.1

0.20

05/8

21)

Sect

ion

60 (2

1.7.

2006

/679

) Th

e pr

ovis

ions

of

sect

ions

56a

, 56e

–56g

, 57−

59 a

nd 5

9a s

hall

corr

espo

ndin

gly

appl

y to

th

e rig

hts p

rote

cted

und

er C

hapt

er 5

. Pr

even

tion

of a

cces

s to

mat

eria

l inf

ring

ing

copy

righ

t (14

.10.

2005

/821

) Se

ctio

n 60

a (1

4.10

.200

5/82

1)

(1)

In i

ndiv

idua

l ca

ses,

notw

ithst

andi

ng c

onfid

entia

lity

prov

isio

ns,

an a

utho

r or

his

re

pres

enta

tive

shal

l be

ent

itled

, by

the

ord

er o

f th

e co

urt

of j

ustic

e, t

o ob

tain

con

tact

in

form

atio

n fr

om th

e m

aint

aine

r of a

tran

smitt

er, s

erve

r or a

sim

ilar d

evic

e or

oth

er se

rvic

e

223

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

33

prov

ider

act

ing

as a

n in

term

edia

ry a

bout

a t

ele-

subs

crib

er w

ho,

unau

thor

ised

by

the

auth

or,

mak

es m

ater

ial

prot

ecte

d by

cop

yrig

ht a

vaila

ble

to t

he p

ublic

to

a si

gnifi

cant

ex

tent

in te

rms

of th

e pr

otec

tion

of th

e au

thor

's rig

hts.

The

info

rmat

ion

shal

l be

supp

lied

with

out u

ndue

del

ay. T

he h

andl

ing

of th

e m

atte

r con

cern

ing

the

info

rmat

ion

to b

e su

pplie

d sh

all b

e go

vern

ed b

y th

e pr

ovis

ions

of C

hapt

er 8

of t

he C

ode

of Ju

dici

al P

roce

dure

. (2

) Th

e au

thor

or

his

repr

esen

tativ

e w

ho h

as o

btai

ned

cont

act i

nfor

mat

ion

refe

rred

to in

su

bsec

tion

1 ab

ove

shal

l be

gove

rned

by

the

prov

isio

ns o

f sec

tions

4, 5

, 8, 1

9, 3

1, 4

1 an

d 42

of

the

Act

on

the

Prot

ectio

n of

Priv

acy

in E

lect

roni

c C

omm

unic

atio

ns (

516/

2004

) pe

rtain

ing

to c

onfid

entia

lity

and

the

prot

ectio

n of

priv

acy

in c

omm

unic

atio

ns, t

he h

andl

ing

of m

essa

ges

and

iden

tific

atio

n da

ta,

info

rmat

ion

secu

rity,

gui

danc

e an

d su

perv

isio

n,

coer

cive

mea

sure

s and

sanc

tions

. (3

) A

n au

thor

or

his

repr

esen

tativ

e re

ferr

ed t

o in

thi

s se

ctio

n sh

all

defr

ay t

he c

osts

in

curr

ing

from

the

enf

orce

men

t of

an

orde

r to

sup

ply

info

rmat

ion

and

reco

mpe

nse

the

mai

ntai

ner

of t

he t

rans

mitt

er,

serv

er o

r ot

her

sim

ilar

devi

ce o

r ot

her

serv

ice

prov

ider

ac

ting

as a

n in

term

edia

ry fo

r pos

sibl

e da

mag

e.

Sect

ion

60b

(14.

10.2

005/

821)

Fo

r the

pur

pose

of p

rohi

bitin

g co

ntin

ued

viol

atio

n, th

e au

thor

or h

is re

pres

enta

tive

has

the

right

to ta

ke le

gal a

ctio

n ag

ains

t the

per

son

who

mak

es th

e al

lege

dly

copy

right

-infr

ingi

ng

mat

eria

l av

aila

ble

to t

he p

ublic

. In

allo

win

g th

e ac

tion,

the

cou

rt of

jus

tice

shal

l at

the

sa

me

time

orde

r th

at th

e m

akin

g av

aila

ble

of th

e m

ater

ial t

o th

e pu

blic

mus

t cea

se. T

he

cour

t of j

ustic

e m

ay im

pose

a c

ondi

tiona

l fin

e to

rein

forc

e th

e or

der.

Sect

ion

60c

(21.

7.20

06/6

79)

(1) I

n try

ing

a ca

se re

ferr

ed to

in s

ectio

n 60

b, th

e co

urt o

f jus

tice

may

, upo

n th

e re

ques

t of

the

auth

or o

r hi

s re

pres

enta

tive,

ord

er t

he m

aint

aine

r of

the

tra

nsm

itter

, ser

ver

or o

ther

de

vice

or

any

othe

r se

rvic

e pr

ovid

er a

ctin

g as

an

inte

rmed

iary

to d

isco

ntin

ue, o

n pa

in o

f fin

e, t

he m

akin

g of

the

alle

gedl

y co

pyrig

ht-in

frin

ging

mat

eria

l av

aila

ble

to t

he p

ublic

(in

junc

tion

to d

isco

ntin

ue),

unle

ss t

his

can

be r

egar

ded

as u

nrea

sona

ble

in v

iew

of

the

right

s of

the

pers

on m

akin

g th

e m

ater

ial a

vaila

ble

to th

e pu

blic

, the

inte

rmed

iary

and

the

auth

or.

(2) B

efor

e le

gal a

ctio

n re

ferr

ed to

in s

ectio

n 60

b is

take

n, th

e co

urt o

f jus

tice

refe

rred

to in

sa

id s

ectio

n m

ay, u

pon

the

requ

est o

f the

aut

hor o

r his

repr

esen

tativ

e, is

sue

an in

junc

tion

to d

isco

ntin

ue, i

f the

con

ditio

ns m

entio

ned

in s

ubse

ctio

n 1

for i

ts is

sue

are

met

and

if it

is

appa

rent

tha

t th

e au

thor

's rig

hts

wou

ld o

ther

wis

e be

ser

ious

ly p

reju

dice

d. T

he c

ourt

of

just

ice

shal

l re

serv

e an

opp

ortu

nity

to

be h

eard

bot

h fo

r th

e pe

rson

aga

inst

who

m t

he

inju

nctio

n is

sou

ght a

nd fo

r the

per

son

mak

ing

the

alle

gedl

y co

pyrig

ht-in

frin

ging

mat

eria

l av

aila

ble

to th

e pu

blic

. A s

ervi

ce o

f a n

otic

e to

the

pers

on a

gain

st w

hom

the

inju

nctio

n is

so

ught

may

be

deliv

ered

by

post

ing

it or

by

usin

g fa

x or

ele

ctro

nic

mai

l. T

he h

andl

ing

of

the

mat

ter s

hall

othe

rwis

e co

me

unde

r the

pro

visi

ons

of C

hapt

er 8

of t

he C

ode

of J

udic

ial

Proc

edur

e.

(3)

Upo

n th

e re

ques

t the

cou

rt m

ay is

sue

an in

terim

inju

nctio

n to

dis

cont

inue

ref

erre

d to

su

bsec

tion

2 w

ithou

t hea

ring

the

alle

ged

infr

inge

r, if

deem

ed n

eces

sary

for t

he u

rgen

cy o

f th

e ca

se. T

he in

junc

tion

shal

l rem

ain

in fo

rce

until

furth

er n

otic

e. A

fter t

he in

junc

tion

has

been

iss

ued,

the

alle

ged

infr

inge

r sh

all

be r

eser

ved

an o

ppor

tuni

ty t

o be

hea

rd w

ithou

t de

lay.

Afte

r he

arin

g th

e al

lege

d in

frin

ger,

the

cour

t sha

ll de

cide

with

out d

elay

whe

ther

it

reta

ins t

he in

junc

tion

in fo

rce

or c

ance

ls it

. (4

) An

inju

nctio

n to

dis

cont

inue

issu

ed p

ursu

ant t

o th

is se

ctio

n sh

all n

ot p

reju

dice

the

right

of

a th

ird p

erso

n to

sen

d an

d re

ceiv

e m

essa

ges.

The

inju

nctio

n to

dis

cont

inue

sha

ll en

ter

into

forc

e w

hen

the

appl

ican

t pro

vide

s th

e se

curit

y re

ferr

ed to

in [s

ectio

n 16

of C

hapt

er 7

of

the

Enfo

rcem

ent A

ct (3

7/18

95)]

1 to th

e ex

ecut

ion

offic

er, u

nles

s ot

herw

ise

prov

ided

in

sect

ion

7 of

Cha

pter

7 o

f th

e C

ode

of J

udic

ial P

roce

dure

. The

inju

nctio

n to

dis

cont

inue

is

sued

by

virtu

e of

sub

sect

ion

2 or

3 o

f th

is s

ectio

n sh

all e

xpire

, if

a le

gal a

ctio

n ha

s no

t

1

Enfo

rcem

ent C

ode

(705

/200

7), S

ectio

n 2

of C

hapt

er 8

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

34

been

take

n w

ithin

one

mon

th fr

om th

e is

suin

g of

the

inju

nctio

n.

(5)

If th

e le

gal a

ctio

n re

ferr

ed to

in s

ectio

n 60

b is

dis

mis

sed

or r

uled

inad

mis

sibl

e or

the

case

is d

isco

ntin

ued

due

to th

at p

lain

tiff h

as c

ance

lled

his

lega

l act

ion

or fa

iled

to a

ppea

r in

cou

rt of

just

ice,

the

pers

on r

eque

stin

g th

e in

junc

tion

to d

isco

ntin

ue m

ust r

ecom

pens

e th

e pe

rson

aga

inst

who

m th

e in

junc

tion

is is

sued

, as

wel

l as

alle

ged

infr

inge

r for

dam

age

caus

ed b

y th

e en

forc

emen

t of t

he in

junc

tion

and

for t

he c

osts

incu

rrin

g in

the

mat

ter.

The

sam

e sh

all a

pply

whe

n th

e in

junc

tion

to d

isco

ntin

ue is

can

celle

d by

virt

ue o

f sub

sect

ion

3 or

exp

ires

by v

irtue

of

subs

ectio

n 4.

The

taki

ng o

f le

gal a

ctio

n fo

r th

e co

mpe

nsat

ion

of

dam

ages

and

cos

ts s

hall

be g

over

ned

by th

e pr

ovis

ions

of

sect

ion

12 o

f C

hapt

er 7

of

the

Cod

e of

Judi

cial

Pro

cedu

re.

Sect

ion

60d

(14.

10.2

005/

821)

Th

e pr

ovis

ions

of

sect

ions

60a−6

0c a

bove

sha

ll co

rres

pond

ingl

y ap

ply

to th

e ho

lder

of

a rig

ht re

late

d to

cop

yrig

ht c

onfe

rred

by

Cha

pter

5 a

nd h

is re

pres

enta

tive.

F

orum

(14.

10.2

005/

821)

Se

ctio

n 61

Th

e co

mpe

tent

cou

rt in

cas

es in

volv

ing

radi

o or

tele

visi

on tr

ansm

issi

ons w

hich

vio

late

this

A

ct sh

all b

e th

e D

istri

ct C

ourt

of H

elsi

nki.

Rig

ht to

inst

itute

cri

min

al p

roce

edin

gs (1

4.10

.200

5/82

1)

Sect

ion

62

(1)

A p

ublic

pro

secu

tor

may

not

brin

g cr

imin

al a

ctio

n in

cas

es o

ther

tha

n a

copy

right

vi

olat

ion

in b

reac

h of

sec

tion

51 o

r se

ctio

n 52

or

a vi

olat

ion

of a

tech

nolo

gica

l mea

sure

re

ferr

ed to

in p

arag

raph

2 o

f sec

tion

56e,

unl

ess

the

inju

red

party

has

file

d fo

r pro

secu

tion

on th

e m

atte

r. (1

4.10

.200

5/82

1)

(2) A

n ac

tion

for a

bre

ach

of s

ectio

n 3

or o

f a d

irect

ion

give

n un

der s

ectio

n 41

(2) m

ay b

e br

ough

t by

the

sur

vivi

ng s

pous

e, b

y he

irs i

n th

e as

cend

ing

or d

esce

ndin

g lin

e or

by

brot

hers

and

sist

ers,

or b

y a

pers

on s

imila

rly re

late

d to

the

auth

or b

y ad

optio

n. T

he la

wsu

it fo

r a

brea

ch o

f a

proh

ibiti

on m

entio

ned

in s

ectio

n 53

(1)

abov

e sh

all

be f

iled

by t

he

auth

ority

refe

rred

to in

said

sect

ion.

C

HA

PTE

R 8

A

pplic

abili

ty o

f the

Act

Se

ctio

n 63

(31.

7.19

74/6

48)

(1) T

he p

rovi

sion

s of t

his A

ct re

latin

g to

cop

yrig

ht sh

all a

pply

: 1.

to w

orks

the

auth

or o

f whi

ch is

a F

inni

sh n

atio

nal o

r a p

erso

n ha

ving

his

hab

itual

re

side

nce

in F

inla

nd;

2. to

wor

ks f

irst p

ublis

hed

in F

inla

nd o

r pu

blis

hed

in F

inla

nd w

ithin

thirt

y da

ys o

f ha

ving

firs

t bee

n pu

blis

hed

in a

noth

er c

ount

ry;

3. to

a c

inem

atog

raph

ic w

ork

the

prod

ucer

of w

hich

has

his

hea

dqua

rters

or h

abitu

al

resi

denc

e in

Fin

land

; 4.

to w

orks

of a

rchi

tect

ure

loca

ted

in F

inla

nd; a

nd

5. to

wor

ks o

f art

inco

rpor

ated

in a

bui

ldin

g lo

cate

d in

Fin

land

or o

ther

wis

e fix

ed to

th

e gr

ound

in F

inla

nd.

(2)

In th

e ap

plic

atio

n of

par

agra

ph 3

of

subs

ectio

n 1

abov

e, u

nles

s ot

herw

ise

prov

ed, t

he

prod

ucer

of

the

cine

mat

ogra

phic

wor

k sh

all

be d

eem

ed t

o be

the

per

son

or c

ompa

ny

who

se n

ame

is m

entio

ned

in th

e us

ual m

anne

r in

the

cine

mat

ogra

phic

wor

k.

(3) T

he p

rovi

sion

s of

Cha

pter

2b

abov

e sh

all b

e ap

plie

d to

the

resa

le o

f wor

ks o

f fin

e ar

t ta

king

pla

ce in

Fin

land

. If t

he a

utho

r of t

he w

ork

is a

nat

iona

l of a

sta

te n

ot b

elon

ging

to

224

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

35

the

Euro

pean

Eco

nom

ic A

rea

and

has

no h

abitu

al r

esid

ence

with

in t

he E

urop

ean

Econ

omic

Are

a, t

he p

rovi

sion

s of

Cha

pter

2b

shal

l be

app

lied

only

if

the

auth

or i

s a

natio

nal o

f a s

tate

that

reci

proc

ally

app

lies

prov

isio

ns c

once

rnin

g a

corr

espo

ndin

g ro

yalty

to

the

resa

le ta

king

pla

ce in

that

cou

ntry

. The

Com

mis

sion

of t

he E

urop

ean

Com

mun

ities

sh

all

publ

ish

a lis

t of

the

se c

ount

ries.

The

prov

isio

ns o

f C

hapt

er 2

b sh

all

be a

pplie

d to

th

ose

entit

led

unde

r su

ch a

utho

r on

ly i

f th

ey a

re n

atio

nals

of

a co

untry

inc

lude

d in

the

C

omm

issi

on's

list.

(5.5

.200

6/34

5)

(4) T

he p

rovi

sion

s of s

ectio

ns 5

1−53

abo

ve sh

all a

pply

rega

rdle

ss o

f who

cre

ated

the

wor

k an

d w

here

the

wor

k w

as p

ublis

hed.

(24.

3.19

95/4

46)

Sect

ion

63a

(22.

12.1

995/

1654

) Th

e pr

ovis

ions

of s

ectio

n 44

a sh

all a

pply

to a

per

son

who

is a

nat

iona

l of a

Sta

te b

elon

ging

to

the

Euro

pean

Eco

nom

ic A

rea

or h

as h

abitu

al r

esid

ence

in s

uch

a St

ate,

and

to a

lega

l en

tity

havi

ng it

s sta

tuto

ry d

omic

ile in

a S

tate

bel

ongi

ng to

the

Euro

pean

Eco

nom

ic A

rea.

Se

ctio

n 64

(24.

3.19

95/4

46)

(1) T

he p

rovi

sion

s of s

ectio

n 45

abo

ve sh

all a

pply

if:

1. th

e pe

rfor

man

ce ta

kes p

lace

in F

inla

nd;

2. th

e pe

rfor

man

ce h

as b

een

reco

rded

on

a de

vice

refe

rred

to in

subs

ectio

n 2;

or

3. th

e pe

rfor

man

ce, w

hich

has

not

bee

n re

cord

ed o

n a

phon

ogra

m, i

s in

clud

ed in

a

trans

mis

sion

refe

rred

to in

subs

ectio

n 6.

(2

) The

pro

visi

ons o

f sec

tion

46 a

bove

shal

l app

ly to

a d

evic

e th

e so

und

on w

hich

has

bee

n re

cord

ed in

Fin

land

. (3

) Th

e pr

ovis

ions

of

sect

ion

46a

abov

e sh

all

appl

y to

a d

evic

e th

e m

ovin

g im

ages

on

whi

ch h

ave

been

reco

rded

in F

inla

nd.

(4)

The

prov

isio

ns o

f se

ctio

n 47

(1)

and

(2)

shal

l ap

ply

to a

pub

lic p

erfo

rman

ce w

hich

ta

kes

plac

e in

Fin

land

, to

oth

er o

rigin

al c

omm

unic

atio

n to

the

pub

lic t

han

on-d

eman

d co

mm

unic

atio

n w

hich

take

s pl

ace

in F

inla

nd, a

nd to

ret

rans

mis

sion

whi

ch ta

kes

plac

e in

Fi

nlan

d, if

a d

evic

e re

ferr

ed to

in s

ubse

ctio

n 2

of th

is s

ectio

n is

use

d in

the

perf

orm

ance

, co

mm

unic

atio

n o

r ret

rans

mis

sion

. (14

.10.

2005

/821

) (5

) Th

e pr

ovis

ions

of

sect

ion

47(3

) sh

all

appl

y to

a p

ublic

per

form

ance

and

to

othe

r co

mm

unic

atio

n to

the

publ

ic th

an o

n-de

man

d co

mm

unic

atio

n w

hich

take

s pla

ce in

Fin

land

if

the

perf

orm

ance

or c

omm

unic

atio

n in

volv

es a

mus

ic re

cord

ing

cont

aini

ng im

ages

whi

ch

has

been

dis

tribu

ted

or c

omm

unic

ated

to th

e pu

blic

in th

e co

mm

erci

al m

arke

t and

whi

ch

cont

ains

a p

erfo

rman

ce o

f a m

usic

al w

ork

reco

rded

in F

inla

nd. (

14.1

0.20

05/8

21)

(6) T

he p

rovi

sion

s of s

ectio

n 48

abo

ve sh

all a

pply

: 1.

to a

radi

o an

d te

levi

sion

tran

smis

sion

whi

ch ta

kes p

lace

in F

inla

nd; a

nd

2. t

o a

radi

o an

d te

levi

sion

tra

nsm

issi

on w

hich

tak

es p

lace

els

ewhe

re,

if th

e he

adqu

arte

rs o

f the

tran

smitt

ing

orga

nisa

tion

is in

Fin

land

. (7

) Th

e pr

ovis

ions

of

para

grap

h 1

of s

ectio

n 49

(1)

abov

e sh

all a

pply

to a

pro

duct

whi

ch

was

firs

t pub

lishe

d in

Fin

land

. The

pro

visi

ons

of p

arag

raph

2 o

f sec

tion

49(1

) abo

ve s

hall

appl

y to

a p

rodu

ct th

e m

aker

of

whi

ch is

a n

atio

nal o

f a

Stat

e be

long

ing

to th

e Eu

rope

an

Econ

omic

Are

a or

the

mak

er o

f whi

ch h

abitu

ally

resi

des i

n su

ch a

Sta

te. T

he p

rovi

sion

s of

para

grap

h 2

of s

ectio

n 49

(1)

abov

e sh

all a

lso

appl

y to

a p

rodu

ct th

e m

aker

of

whi

ch is

a

com

pany

or a

firm

set

up

in a

ccor

danc

e w

ith th

e la

w o

f a S

tate

bel

ongi

ng to

the

Euro

pean

Ec

onom

ic A

rea

and

havi

ng it

s st

atut

ory

dom

icile

, cen

tral a

dmin

istra

tion

or p

rinci

pal p

lace

of

bus

ines

s in

a S

tate

bel

ongi

ng to

the

Euro

pean

Eco

nom

ic A

rea.

If

such

a c

ompa

ny o

r fir

m o

nly

has

its s

tatu

tory

dom

icile

in a

Sta

te b

elon

ging

to th

e Eu

rope

an E

cono

mic

Are

a,

the

prov

isio

ns o

f par

agra

ph 2

of s

ectio

n 49

(1) a

bove

shal

l app

ly o

nly

if its

ope

ratio

ns h

ave

actu

al a

nd c

ontin

uous

lin

ks w

ith t

he e

cono

my

of a

Sta

te b

elon

ging

to

the

Euro

pean

Ec

onom

ic A

rea.

(3.4

.199

8/25

0)

(8)

The

prov

isio

ns i

n pa

ragr

aphs

1,

2 an

d 5

of s

ectio

n 63

(1)

rega

rdin

g a

wor

k sh

all

corr

espo

ndin

gly

appl

y to

a p

hoto

grap

hic

pict

ure

refe

rred

to in

sect

ion

49a.

(9

) Th

e pr

ovis

ions

of

sect

ion

50 a

bove

sha

ll ap

ply

to a

pre

ss r

epor

t w

hich

has

bee

n re

ceiv

ed in

Fin

land

.

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

36

Sect

ion

64a

(24.

3.19

95/4

46)

(1) W

hen

prog

ram

me-

carr

ying

sig

nals

inte

nded

for r

ecep

tion

by th

e pu

blic

and

car

ryin

g a

wor

k pr

otec

ted

unde

r th

is A

ct a

re i

ntro

duce

d in

Fin

land

int

o an

uni

nter

rupt

ed c

hain

of

com

mun

icat

ion

lead

ing

to a

sat

ellit

e an

d ba

ck d

own

tow

ards

the

earth

und

er th

e co

ntro

l an

d re

spon

sibi

lity

of a

bro

adca

stin

g or

gani

satio

n, t

his

sate

llite

com

mun

icat

ion

to t

he

publ

ic s

hall

be g

over

ned

by th

e pr

ovis

ions

of s

ectio

n 2

on m

akin

g av

aila

ble

to th

e pu

blic

an

d ot

her p

rovi

sion

s of t

his A

ct o

n ra

dio

and

tele

visi

on tr

ansm

issi

ons.

(2) I

f the

com

mun

icat

ion

to th

e pu

blic

by

sate

llite

refe

rred

to in

subs

ectio

n 1

take

s pla

ce in

a

Stat

e no

t bel

ongi

ng to

the

Euro

pean

Eco

nom

ic A

rea

whe

re th

e le

vel o

f leg

al p

rote

ctio

n do

es n

ot c

orre

spon

d to

the

lev

el o

f pr

otec

tion

prov

ided

by

Cha

pter

2 o

f th

e C

ounc

il D

irect

ive

(93/

83/E

EC)

on t

he C

oord

inat

ion

of C

erta

in R

ules

Con

cern

ing

Cop

yrig

ht a

nd

Rig

hts

Rel

ated

to

C

opyr

ight

A

pplic

able

to

Sa

telli

te

Bro

adca

stin

g an

d C

able

R

etra

nsm

issi

on, a

nd

1. th

e si

gnal

s ar

e tra

nsm

itted

tow

ards

the

sate

llite

from

a tr

ansm

issi

on s

tatio

n si

tuat

ed

in F

inla

nd, o

r, 2.

in

a ca

se i

n w

hich

a t

rans

mitt

ing

stat

ion

situ

ated

in

Finl

and

is n

ot u

sed,

a

broa

dcas

ting

orga

nisa

tion

esta

blis

hed

in F

inla

nd h

as c

omm

issi

oned

oth

ers

to c

arry

ou

t the

act

of c

omm

unic

atio

n,

the

com

mun

icat

ion

to th

e pu

blic

by

sate

llite

sha

ll be

dee

med

to ta

ke p

lace

in F

inla

nd. T

he

sate

llite

com

mun

icat

ion

shal

l be

gov

erne

d by

the

pro

visi

ons

of s

ectio

n 2

on m

akin

g av

aila

ble

to t

he p

ublic

and

oth

er

prov

isio

ns o

f th

is A

ct

on r

adio

and

tel

evis

ion

trans

mis

sion

s. Se

ctio

n 64

b (1

4.10

.200

5/82

1)

(1)

The

inju

nctio

ns p

rovi

ded

for i

n se

ctio

ns 5

0a, 5

0b a

nd 5

0d s

hall

appl

y to

a p

roce

dure

re

ferr

ed to

in sa

id se

ctio

ns w

hich

take

s pla

ce in

Fin

land

. (2

) Th

e pr

ovis

ions

of s

ectio

n 50

c sh

all a

pply

to th

e us

e of

wor

ks in

Fin

land

. Se

ctio

n 65

O

n a

cond

ition

of

reci

proc

ity,

the

Pres

iden

t of

the

Rep

ublic

may

iss

ue o

rder

s fo

r th

e ap

plic

atio

n of

thi

s A

ct i

n re

latio

n to

oth

er c

ount

ries

and

to w

orks

firs

t pu

blis

hed

by a

n in

tern

atio

nal o

rgan

isat

ion

and

to u

npub

lishe

d w

orks

whi

ch s

uch

orga

nisa

tion

has

a rig

ht to

pu

blis

h.

Sect

ion

66

Subj

ect t

o th

e pr

ovis

ions

of s

ectio

ns 6

7−71

, thi

s A

ct s

hall

also

app

ly to

lite

rary

or a

rtist

ic

wor

ks c

ompl

eted

bef

ore

the

Act

com

es in

to fo

rce.

Se

ctio

n 67

C

opie

s of

a w

ork

mad

e un

der a

pre

viou

s A

ct m

ay b

e fr

eely

dis

tribu

ted

and

disp

laye

d. T

he

rent

al o

f she

et m

usic

and

the

right

to p

rovi

de fo

r a p

aym

ent b

y de

cree

sha

ll, h

owev

er, b

e go

vern

ed b

y th

e pr

ovis

ions

of s

ectio

n [2

3].

Sect

ion

68

Type

mat

ter,

prin

ting

bloc

ks, m

ould

s an

d ot

her

devi

ces

prod

uced

und

er th

e pr

evio

us la

w

for t

he re

prod

uctio

n of

a p

artic

ular

wor

k m

ay b

e us

ed a

ccor

ding

to th

eir p

urpo

se u

ntil

the

end

of 1

962,

not

with

stan

ding

the

prov

isio

ns o

f the

pre

sent

Act

. The

pro

visi

ons

of s

ectio

n 67

shal

l cor

resp

ondi

ngly

app

ly to

cop

ies p

rodu

ced

in th

e co

urse

of s

uch

use.

Se

ctio

n 69

C

opyr

ight

in

new

spap

ers,

perio

dica

ls,

and

othe

r w

orks

whi

ch c

onsi

st o

f in

depe

nden

t co

ntrib

utio

ns b

y se

vera

l con

tribu

tors

and

whi

ch a

re p

ublis

hed

befo

re th

is A

ct c

omes

into

fo

rce

shal

l bel

ong

to th

e ed

itor

in a

ccor

danc

e w

ith s

ectio

n 5,

and

the

term

of

prot

ectio

n sh

all b

e ca

lcul

ated

acc

ordi

ng to

sect

ion

44.

225

Uno

ffici

al tr

ansl

atio

n 20

.4.2

010

37

Sect

ion

70

(1)

A c

ontra

ct o

n th

e tra

nsfe

r of c

opyr

ight

con

clud

ed b

efor

e th

e co

min

g in

to fo

rce

of th

e pr

esen

t Act

sha

ll co

me

unde

r the

pre

viou

s A

ct, b

ut e

ven

such

con

tract

s sh

all b

e go

vern

ed

by th

e pr

ovis

ions

of s

ectio

n 29

. (2

) A

ny p

rivile

ges

and

inju

nctio

ns a

pplic

able

at t

he ti

me

of th

e co

min

g in

to fo

rce

of th

e pr

esen

t Act

shal

l rem

ain

in fo

rce.

Se

ctio

n 71

If

, bef

ore

the

com

ing

into

forc

e of

this

Act

, an

auth

or h

as tr

ansf

erre

d a

wor

k of

art,

or h

as

exec

uted

a d

raw

ing

on c

omm

issi

on, h

is ri

ght t

o tra

nsfe

r a d

uplic

ate

of th

e sa

me

wor

k of

art

to a

third

par

ty o

r to

mak

e fo

r a th

ird p

arty

a w

ork

base

d up

on th

e sa

me

draw

ing,

sha

ll be

go

vern

ed b

y th

e pr

ovis

ions

of

the

prev

ious

law

. The

pre

viou

s la

w s

hall

also

app

ly t

o a

portr

ait e

xecu

ted

befo

re th

e co

min

g in

to fo

rce

of th

is A

ct, i

nsof

ar a

s co

ncer

ns th

e rig

hts

of

the

auth

or in

resp

ect t

here

of.

Sect

ion

72

(1)

The

prov

isio

ns o

f sec

tions

66−

68 s

hall

corr

espo

ndin

gly

appl

y to

the

right

s pr

otec

ted

unde

r Cha

pter

5. (

22.1

2.19

95/1

654)

(2

) A

n ag

reem

ent r

efer

red

to in

sec

tion

45 c

once

rnin

g re

cord

ing

on a

dev

ice

whi

ch h

as

been

con

clud

ed b

efor

e th

is A

ct c

omes

int

o fo

rce

shal

l co

rres

pond

ingl

y co

me

unde

r th

e pr

ovis

ion

of se

ctio

n 70

(1).

Sect

ion

73

This

Act

sha

ll co

me

into

forc

e on

Sep

tem

ber 1

, 196

1. It

abr

ogat

es th

e A

ct o

f Jun

e 3,

192

7 (N

o. 1

74/2

7) o

n C

opyr

ight

in P

rodu

cts

of In

telle

ctua

l Act

ivity

, as

wel

l as

sect

ion

28 o

f the

D

ecre

e of

Mar

ch 1

5, 1

880

(No.

8/8

0) R

elat

ing

to t

he R

ight

s of

Writ

ers

and

Arti

sts

in

Res

pect

of t

he P

rodu

cts o

f The

ir La

bour

.

226

APPENDIX 9

227

REG

ULA

TIO

NS

CO

NC

ERN

ING

CO

-PR

OD

UC

TIO

N S

UPP

OR

T FO

R F

ULL

-LEN

GTH

FE

ATU

RE

FILM

S, A

NIM

ATI

ON

S A

ND

DO

CU

MEN

TAR

IES

1

ELIG

IBIL

ITY

CR

ITER

IA

1.1.

Gen

eral

pro

visi

ons

1.1.

1. P

roje

cts

for

feat

ure

film

s, a

nim

atio

ns a

nd d

ocum

enta

ries

of a

min

imum

leng

th

of 7

0 m

inut

es, i

nten

ded

for c

inem

a re

leas

e, a

re e

ligib

le.

1.1.

2. P

roje

cts

subm

itted

mus

t be

co-p

rodu

ctio

ns b

etw

een

at le

ast t

wo

inde

pend

ent

prod

ucer

s, e

stab

lishe

d in

diff

eren

t mem

ber s

tate

s of

the

Fund

.

1.1.

3. P

roje

cts

subm

itted

mus

t com

ply

with

the

legi

slat

ion

of th

e co

untri

es c

once

rned

, th

e bi

late

ral

treat

ies

in

forc

e be

twee

n th

e co

-pro

duci

ng

coun

tries

or

, w

here

ap

plic

able

, with

the

Eur

opea

n C

onve

ntio

n on

Cin

emat

ogra

phic

Co-

prod

uctio

n.

For t

he p

urpo

ses

of th

ese

regu

latio

ns, t

he a

war

ding

of n

atio

nal p

ublic

sup

port

will

be

cons

ider

ed,

whe

re a

ppro

pria

te,

equi

vale

nt t

o na

tiona

l ac

cred

itatio

n (c

o-pr

oduc

tion

stat

us c

ertif

icat

e) is

sued

by

the

com

pete

nt n

atio

nal a

utho

ritie

s.

1.1.

4. P

roje

cts

subm

itted

mus

t con

form

to th

e cu

ltura

l obj

ectiv

es o

f the

Fun

d.

1.1.

5. P

roje

cts

of a

bla

tant

ly p

orno

grap

hic

natu

re o

r ad

voca

ting

viol

ence

or

open

ly

inci

ting

to a

vio

latio

n of

hum

an ri

ghts

are

not

elig

ible

.

1.1.

6. P

roje

cts

mus

t inc

lude

a d

igita

l mas

ter

copy

for

cine

ma

rele

ase

(min

imum

2K

, co

mpa

tible

with

DC

I spe

cific

atio

ns o

r IS

O n

orm

s on

D-C

inem

a).

1.2.

Elig

ible

pro

duce

rs

1.2.

1. F

inan

cial

sup

port

may

onl

y be

aw

arde

d to

Eur

opea

n na

tura

l or

lega

l per

sons

go

vern

ed b

y th

e le

gisl

atio

n of

one

of

the

Fund

's m

embe

r st

ates

, w

hose

prin

cipa

l ac

tivity

co

nsis

ts

in

prod

ucin

g ci

nem

atog

raph

ic

wor

ks,

and

who

se

orig

ins

are

inde

pend

ent o

f pub

lic o

r priv

ate

broa

dcas

ting

orga

nisa

tions

or t

elec

om c

ompa

nies

.

1.2.

2. A

com

pany

is c

onsi

dere

d E

urop

ean

if it

is m

ajor

ity o

wne

d an

d co

ntin

ues

to b

e m

ajor

ity o

wne

d, e

ither

dire

ctly

or i

ndire

ctly

, by

natio

nals

of t

he m

embe

r sta

tes.

1.2.

3. A

pro

duct

ion

com

pany

is c

onsi

dere

d in

depe

nden

t w

hen

less

tha

n 25

% o

f its

sh

are

capi

tal

is h

eld

by a

sin

gle

broa

dcas

ter

or l

ess

than

50%

whe

re s

ever

al

broa

dcas

ters

are

invo

lved

.

1.2.

4. P

rodu

cers

who

hav

e pr

evio

usly

rec

eive

d su

ppor

t fro

m E

urim

ages

mus

t ha

ve

met

all

thei

r co

ntra

ctua

l ob

ligat

ions

to

the

Fund

, in

par

ticul

ar t

he s

ubm

issi

on o

f re

venu

e st

atem

ents

for

any

pro

ject

(s)

prev

ious

ly s

uppo

rted

by E

urim

ages

and

the

re

imbu

rsem

ent o

f any

out

stan

ding

am

ount

s du

e.

1.3.

Co-

prod

uctio

n st

ruct

ure

1.3.

1. In

the

case

of a

mul

tilat

eral

co-

prod

uctio

n, th

e pa

rtici

patio

n of

the

maj

ority

co-

prod

ucer

m

ust

not

exce

ed

70%

of

th

e to

tal

co-p

rodu

ctio

n bu

dget

an

d th

e pa

rtici

patio

n of

eac

h m

inor

ity c

o-pr

oduc

er m

ust n

ot b

e lo

wer

than

10%

. In

the

case

of a

bila

tera

l co-

prod

uctio

n, th

e pa

rtici

patio

n of

the

maj

ority

co-

prod

ucer

m

ust

not

exce

ed 8

0% o

f th

e to

tal c

o-pr

oduc

tion

budg

et a

nd t

he p

artic

ipat

ion

of t

he

min

ority

co-

prod

ucer

mus

t not

be

low

er th

an 2

0%.

N

otw

ithst

andi

ng t

he a

bove

, in

the

cas

e of

bila

tera

l co

-pro

duct

ions

with

a b

udge

t su

perio

r to

5 m

illio

n €,

the

parti

cipa

tion

of th

e m

ajor

ity c

o-pr

oduc

er m

ust n

ot e

xcee

d 90

% o

f the

tota

l co-

prod

uctio

n bu

dget

. 1.

3.2.

The

stru

ctur

e of

the

co-

prod

uctio

n sh

all

be a

ttest

ed b

y a

duly

sig

ned

co-

prod

uctio

n ag

reem

ent.

For

the

purp

oses

of

the

proj

ect

sele

ctio

n pr

oced

ure,

a d

eal

mem

o m

ay e

xcep

tiona

lly b

e ac

cept

ed p

rovi

ded

it co

ntai

ns d

etai

led

prov

isio

ns o

n th

e fo

llow

ing

esse

ntia

l asp

ects

of t

he c

o-pr

oduc

tion:

−

clea

r in

dica

tion

of th

e pa

rtici

patio

n of

eac

h co

-pro

duce

r in

the

finan

cing

of t

he

proj

ect;

− jo

int o

wne

rshi

p of

all

the

right

s;

− sh

arin

g of

the

rev

enue

s be

twee

n th

e co

-pro

duce

rs (

excl

usiv

e an

d/or

sha

red

terr

itorie

s);

− de

finiti

on o

f th

e to

tal

budg

et,

spen

ding

req

uire

men

ts a

nd t

he e

vent

of

over

-bu

dget

; −

refe

renc

e to

the

treat

ies

appl

icab

le.

1.

4. P

artic

ipat

ion

of p

rodu

cers

and

fin

anci

ers

esta

blis

hed

in n

on-m

embe

r st

ates

of t

he F

und

1.

4.1.

Co-

prod

ucer

s fro

m n

on-m

embe

r st

ates

of

the

Fund

may

par

ticip

ate

in t

he

proj

ect p

rovi

ded

that

thei

r com

bine

d co

-pro

duct

ion

perc

enta

ge d

oes

not e

xcee

d 30

%

of th

e to

tal c

o-pr

oduc

tion

budg

et.

1.4.

2. T

he E

xecu

tive

Dire

ctor

may

car

ry o

ut a

ny v

erifi

catio

n he

or

she

cons

ider

s ap

prop

riate

in o

rder

to e

nsur

e th

at c

ontro

l of t

he p

roje

ct r

emai

ns in

the

hand

s of

the

co-p

rodu

cers

from

the

mem

ber s

tate

s of

the

Eur

imag

es F

und.

1.5.

Tec

hnic

al a

nd a

rtis

tic c

o-op

erat

ion

and

finan

cial

co-

prod

uctio

ns

1.5.

1. P

roje

cts

mus

t di

spla

y ar

tistic

and

/or

tech

nica

l co-

oper

atio

n be

twee

n at

leas

t tw

o co

-pro

duce

rs e

stab

lishe

d in

diff

eren

t mem

ber s

tate

s of

the

Fund

. Th

is c

o-op

erat

ion

will

be

asse

ssed

on

the

basi

s of

the

natio

nalit

y an

d/or

resi

denc

e of

th

e he

ads

of d

epar

tmen

ts (

dire

ctor

, scr

iptw

riter

, com

pose

r, di

rect

or o

f ph

otog

raph

y,

soun

d en

gine

er,

edito

r, ar

t di

rect

or,

cost

umes

) an

d of

the

mai

n ro

les

(firs

t, se

cond

an

d th

ird ro

le),

as w

ell a

s on

the

stud

io o

r sho

otin

g lo

catio

n, p

ost-p

rodu

ctio

n lo

catio

n an

d se

rvic

e pr

ovid

ers.

1.5.

2. H

owev

er, a

co-

prod

uctio

n w

ith a

n ex

clus

ivel

y fin

anci

al c

ontri

butio

n fro

m o

ne o

r m

ore

co-p

rodu

cers

is

also

elig

ible

on

cond

ition

tha

t it

has

acce

ss t

o na

tiona

l ac

cred

itatio

n in

the

co-p

rodu

cing

cou

ntrie

s.

1.6.

Eur

opea

n pr

ojec

t

228

1.6.

1. T

he d

irect

or o

f th

e fil

m m

ust

poss

ess

a va

lid p

assp

ort

or lo

ng-te

rm r

esid

ence

pe

rmit

issu

ed b

y on

e of

the

mem

ber s

tate

s of

the

Cou

ncil

of E

urop

e.

1.6.

2. In

the

case

of f

ictio

n pr

ojec

ts, t

he E

urop

ean

char

acte

r will

be

asse

ssed

on

the

basi

s of

the

poin

ts s

yste

m in

clud

ed in

the

Eur

opea

n C

onve

ntio

n on

Cin

emat

ogra

phic

C

o-pr

oduc

tion.

The

se p

roje

cts

mus

t ach

ieve

at l

east

15

out o

f 19

poin

ts, a

ccor

ding

to

the

poin

ts s

yste

m s

et o

ut b

elow

: D

irect

or

3 S

crip

twrit

er

3 C

ompo

ser

1 Fi

rst r

ole

3 S

econ

d ro

le

2 Th

ird ro

le

1 C

amer

aman

1

Sou

nd re

cord

ist a

nd m

ixer

1 E

dito

r

1

Art

dire

ctor

and

cos

tum

es

1

Stu

dio

or s

hoot

ing

loca

tion

1

Pos

t-pro

duct

ion

loca

tion

1 TO

TAL

19

Firs

t, se

cond

and

third

role

s ar

e de

term

ined

by

the

num

ber o

f day

s w

orke

d.

1.6.

3. In

the

case

of a

nim

atio

n pr

ojec

ts, t

he E

urop

ean

char

acte

r will

be

asse

ssed

on

the

basi

s of

the

poin

ts s

yste

m s

et o

ut b

elow

. The

pro

ject

mus

t ach

ieve

at l

east

14

out

of 2

1 po

ints

: C

once

ptio

n

1

Scr

ipt

2 C

hara

cter

des

ign

2 M

usic

com

posi

tion

1 D

irect

ing

2 S

tory

boar

d

2

Chi

ef D

ecor

ator

1

Com

pute

r bac

kgro

unds

1

Layo

ut

2 50

% o

f the

exp

ense

s fo

r ani

mat

ion

in E

urop

e

2 50

% o

f the

col

ourin

g in

Eur

ope

2

Com

posi

ting

1 E

ditin

g

1

Sou

nd

1 TO

TAL

21

1.

6.4.

In th

e ca

se o

f doc

umen

tary

pro

ject

s, th

e Eu

rope

an c

hara

cter

will

be

asse

ssed

on

the

basi

s of

the

poin

ts s

yste

m s

et o

ut b

elow

. The

pro

ject

mus

t ach

ieve

at l

east

50%

of

the

tota

l poi

nts:

Dire

ctor

3

Scr

iptw

riter

2

Cam

eram

an

2 E

dito

r

2

Sho

otin

g lo

catio

n

2 P

ost-p

rodu

ctio

n lo

catio

n

2 R

esea

rche

r

1

Com

pose

r

1

Sou

nd e

ngin

eer

1 1.

6.5.

A p

roje

ct th

at d

oes

not a

chie

ve th

e m

inim

um p

oint

s de

scrib

ed in

the

prov

isio

ns

abov

e m

ay s

till

be c

onsi

dere

d el

igib

le o

n co

nditi

on t

hat

it ha

s ac

cess

to

natio

nal

accr

edita

tion

in a

ccor

danc

e w

ith th

e le

gisl

atio

n in

forc

e in

the

co-p

rodu

cing

cou

ntrie

s co

ncer

ned.

C

ompl

ianc

e w

ith

this

re

quire

men

t sh

all

be

atte

sted

by

w

ritte

n co

nfirm

atio

n of

pr

ovis

iona

l acc

redi

tatio

n (p

rovi

sion

al c

o-pr

oduc

tion

stat

us c

ertif

icat

e) g

rant

ed b

y th

e co

mpe

tent

nat

iona

l aut

horit

ies.

1.

7. S

tart

of p

rinci

pal p

hoto

grap

hy

1.7.

1. A

pplic

atio

ns f

or f

ictio

n an

d do

cum

enta

ry p

roje

cts

are

elig

ible

onl

y if

prin

cipa

l ph

otog

raph

y ha

s no

t co

mm

ence

d at

th

e tim

e of

th

e B

oard

of

M

anag

emen

t’s

exam

inat

ion

of t

he a

pplic

atio

n an

d is

sch

edul

ed t

o co

mm

ence

not

lat

er t

han

six

mon

ths

afte

r thi

s da

te.

1.7.

2. T

he E

xecu

tive

Dire

ctor

may

gra

nt a

der

ogat

ion

from

Arti

cle

1.7.

1 w

here

pre

-sh

ootin

g fo

r a

limite

d du

ratio

n is

req

uire

d fo

r cl

imat

ic o

r te

chni

cal

reas

ons.

The

E

xecu

tive

Dire

ctor

may

als

o ag

ree

to u

p ha

lf of

the

tota

l sho

otin

g ta

king

pla

ce b

efor

e th

e tim

e of

the

Boa

rd o

f M

anag

emen

t’s e

xam

inat

ion

of t

he a

pplic

atio

n w

here

the

re

are

unav

oida

ble

and

duly

just

ified

reas

ons.

A w

ritte

n re

ques

t set

ting

out t

he r

easo

ns fo

r th

ese

dero

gatio

ns m

ust b

e se

nt to

the

Exe

cutiv

e D

irect

or p

rior t

o th

e su

bmis

sion

of t

he a

pplic

atio

n.

1.7.

3. A

pplic

atio

ns f

or a

nim

atio

n pr

ojec

ts a

re e

ligib

le o

nly

if pr

inci

pal a

nim

atio

n ha

s no

t co

mm

ence

d at

the

tim

e of

the

Boa

rd o

f M

anag

emen

t’s e

xam

inat

ion

of t

he

appl

icat

ion

and

is s

ched

uled

to c

omm

ence

no

late

r tha

n si

x m

onth

s af

ter t

his

date

. 1.

8. C

opyr

ight

regu

latio

ns a

nd jo

int o

wne

rshi

p of

the

nega

tive

1.8.

1. P

roje

cts

subm

itted

mus

t co

mpl

y w

ith t

he c

opyr

ight

reg

ulat

ions

in f

orce

in t

he

Eur

opea

n co

-pro

duci

ng c

ount

ries,

inte

r al

ia w

ith r

egar

d to

dec

isio

ns c

once

rnin

g th

e fin

al c

ut.

1.8.

2 Th

e ne

gativ

e m

ust b

e jo

intly

ow

ned

by a

ll co

-pro

duce

rs.

1.9.

Fin

anci

al re

quire

men

ts

229

1.9.

1. P

roje

cts

shou

ld h

ave

the

bene

fit,

in e

ach

of t

he c

o-pr

oduc

ing

coun

tries

, of

ei

ther

pub

lic s

uppo

rt, o

r a

tele

visi

on p

re-s

ale,

or

a m

inim

um g

uara

ntee

or

any

othe

r fin

anci

ng a

rrang

emen

t ver

ifiab

le b

y an

d ac

cept

able

to th

e Ex

ecut

ive

Dire

ctor

(exc

ept

for e

quity

inve

stm

ents

, def

erra

ls a

nd in

-kin

d co

ntrib

utio

ns).

1.9.

2. A

t le

ast

50%

of

the

finan

cing

in e

ach

of t

he c

o-pr

oduc

ing

coun

tries

mus

t be

co

nfirm

ed b

y fo

rmal

und

erta

king

s or

agr

eem

ents

in p

rinci

ple

such

as

cont

ract

s, d

eal

mem

os,

lette

rs o

f in

tent

with

am

ount

s, c

onfir

mat

ions

of

publ

ic s

uppo

rt an

d ba

nk

stat

emen

ts.

How

ever

, a

bank

sta

tem

ent

cann

ot b

e th

e so

le c

onfir

mat

ion

that

the

fin

anci

ng

thre

shol

d ha

s be

en

met

. D

efer

rals

(in

clud

ing

prod

ucer

s’

fee

and

over

head

s) a

nd i

n-ki

nd c

ontri

butio

ns s

hall

be a

ccep

ted

as c

onfir

med

sou

rces

of

finan

cing

onl

y up

to a

max

imum

of 1

5% o

f the

tota

l co-

prod

uctio

n bu

dget

. 1.

9.3

The

Exe

cutiv

e D

irect

or m

ay r

eque

st a

ny f

urth

er e

vide

nce

he o

r sh

e m

ay

cons

ider

nec

essa

ry in

ord

er t

o as

sess

the

fin

anci

al c

apac

ity o

f th

e co

-pro

duce

rs o

r fin

anci

ers.

1.

9.4.

The

pro

duct

ion

budg

et s

hall

clea

rly i

nclu

de t

he c

osts

nec

essa

ry f

or t

he

com

plet

ion

of a

dig

ital m

aste

r cop

y fo

r cin

ema

rele

ase

(min

imum

2K

, com

patib

le w

ith

DC

I spe

cific

atio

ns o

r ISO

nor

ms

on D

-Cin

ema)

. 2

CA

LL F

OR

PR

OJE

CTS

2.

1. A

pplic

atio

ns

2.1.

1. A

pplic

atio

ns fo

r fin

anci

al s

uppo

rt sh

all b

e su

bmitt

ed to

the

Exe

cutiv

e D

irect

or

of E

urim

ages

by

one

of t

he c

o-pr

oduc

ers,

with

the

con

sent

of

all t

he c

o-pr

oduc

ers

atte

sted

in w

ritin

g.

2.1.

2. A

pplic

atio

ns s

hall

be s

ubm

itted

in E

nglis

h or

Fre

nch

in a

ccor

danc

e w

ith t

he

inst

ruct

ions

set

out

in th

e ap

plic

atio

n fo

rm, t

oget

her

with

all

item

s re

ferr

ed to

in th

e ch

eckl

ist

atta

ched

to

th

e ap

plic

atio

n fo

rm

(incl

udin

g th

e re

leva

nt

evid

ence

of

fin

anci

ng).

Inco

mpl

ete

appl

icat

ions

or

proj

ects

whi

ch d

o no

t con

form

to th

e el

igib

ility

cr

iteria

at t

he ti

me

whe

n th

ey a

re s

ubm

itted

for f

undi

ng s

hall

be d

ecla

red

inel

igib

le b

y th

e S

ecre

taria

t an

d sh

all n

ot b

e in

clud

ed o

n th

e ag

enda

of

Boa

rd o

f M

anag

emen

t m

eetin

gs.

2.1.

3. C

o-pr

oduc

ers

mus

t co

ntac

t th

eir

Nat

iona

l R

epre

sent

ativ

es o

n th

e B

oard

of

Man

agem

ent

of

Eur

imag

es

at

the

earli

est

oppo

rtuni

ty.

If on

e of

th

e N

atio

nal

Rep

rese

ntat

ives

con

cern

ed h

as n

ot b

een

cont

acte

d pr

ior t

o th

e m

eetin

g of

the

Boa

rd

of M

anag

emen

t, th

e pr

ojec

t sha

ll be

with

draw

n fro

m th

e ag

enda

.

2.1.

4. T

he E

xecu

tive

Dire

ctor

may

car

ry o

ut a

ny v

erifi

catio

n he

or

she

cons

ider

s ap

prop

riate

as

to th

e co

mpl

ianc

e of

the

proj

ect w

ith th

e E

urim

ages

regu

latio

ns.

2.2.

Dea

dlin

es

2.2.

1. A

pplic

atio

n de

adlin

es,

fixed

ann

ually

by

the

Boa

rd o

f M

anag

emen

t, w

ill b

e pu

blis

hed

on th

e E

urim

ages

web

site

: http

://w

ww

.coe

.int/E

urim

ages

.

2.2.

2. A

pplic

atio

ns m

ust

be r

ecei

ved

by t

he S

ecre

taria

t w

ithou

t ex

cept

ion

befo

re

6 pm

on

the

day

of t

he a

pplic

atio

n de

adlin

e (d

ate

of r

ecei

pt a

lone

is

cons

ider

ed

valid

).

2.3.

Cur

renc

y an

d ap

plic

able

exc

hang

e ra

tes

2.3.

1. T

he a

ccou

nts

of E

urim

ages

are

kep

t in

eur

os,

and

the

amou

nt o

f fin

anci

al

supp

ort i

s ex

pres

sed

in e

uros

.

2.3.

2. I

n de

term

inin

g th

e eq

uiva

lent

in

euro

s of

the

tot

al p

rodu

ctio

n co

sts,

of

the

cont

ribut

ion

of e

ach

co-p

rodu

ctio

n pa

rtner

and

of

the

amou

nt o

f fin

anci

al s

uppo

rt ap

plie

d fo

r, th

e on

ly a

pplic

able

exc

hang

e ra

te fo

r for

eign

cur

renc

ies

into

eur

os, i

s th

at

regu

larly

fixe

d by

the

Fina

nce

Div

isio

n of

the

Cou

ncil

of E

urop

e an

d pu

blis

hed

on th

e E

urim

ages

web

site

: http

://w

ww

.coe

.int/E

urim

ages

. 2.

4. R

e-su

bmis

sion

s 2.

4.1.

Th

e sa

me

proj

ect

cann

ot

be

plac

ed

on

the

agen

da

of

the

Boa

rd

of

Man

agem

ent a

nd th

en w

ithdr

awn

mor

e th

an tw

ice.

2.4.

2. A

pro

ject

pre

viou

sly

reje

cted

by

the

Boa

rd o

f M

anag

emen

t ca

nnot

be

re-

subm

itted

.

2.4.

3.

It m

ust

be

note

d th

at

a pr

ojec

t w

ithdr

awn

from

th

e ag

enda

w

ill

not

auto

mat

ical

ly b

e pl

aced

on

the

agen

da o

f th

e ne

xt B

oard

of

Man

agem

ent

mee

ting.

A

ny r

eque

st f

or r

e-su

bmis

sion

mus

t be

mad

e in

writ

ing

by t

he d

eleg

ate

prod

ucer

w

ithin

the

appl

icat

ion

dead

lines

men

tione

d un

der p

ara

2.2.

3

SELE

CTI

ON

OF

PRO

JEC

TS

3.1.

Ana

lysi

s by

Sec

reta

riat

The

Exe

cutiv

e D

irect

or w

ill p

rovi

de th

e B

oard

of M

anag

emen

t with

a s

yste

mat

ic a

nd

deta

iled

anal

ysis

of e

ach

proj

ect.

3.2

Sele

ctio

n cr

iteria

3.

2.1.

Th

e B

oard

of M

anag

emen

t will

sel

ect p

roje

cts

keep

ing

in m

ind

the

obje

ctiv

es

of th

e Fu

nd.

3.2.

2.

In d

oing

so,

it w

ill c

arry

out

a c

ompa

rativ

e an

alys

is o

f the

pro

ject

s su

bmitt

ed,

thro

ugh

an o

vera

ll ev

alua

tion

base

d up

on th

e ap

plic

atio

n of

the

follo

win

g se

lect

ion

crite

ria:

A

RTI

STI

C C

RIT

ER

IA

Q

ualit

y of

the

scrip

t/lev

el o

f dev

elop

men

t: •

Sto

ry a

nd th

eme

(orig

inal

ity o

f con

tent

, sub

ject

); •

Cha

ract

ers

and

dial

ogue

; •

Nar

rativ

e st

ruct

ure;

•

Sty

le (d

irect

or’s

inte

ntio

n, c

inem

atic

vis

ion,

gen

re, t

one)

.

Con

tribu

tion

of th

e cr

eativ

e te

am (i

nclu

ding

exp

erie

nce,

trac

k re

cord

s):

230

• D

irect

or a

nd a

utho

r(s)

; •

Pro

duce

rs;

• C

ast a

nd c

rew

.

PR

OD

UC

TIO

N C

RIT

ER

IA

•

Arti

stic

and

tech

nica

l co-

oper

atio

n;

• C

ircul

atio

n po

tent

ial (

fest

ival

s, d

istri

butio

n, a

udie

nce)

; •

Fina

ncin

g (c

onsi

sten

cy a

nd le

vel o

f con

firm

ed fi

nanc

ing)

. 4

NA

TUR

E O

F FI

NA

NC

IAL

SUPP

OR

T A

ND

AM

OU

NTS

4.

1. P

rodu

ctio

n su

ppor

t Fi

nanc

ial

supp

ort

is p

rovi

ded

in t

he f

orm

of

a co

nditi

onal

ly r

epay

able

int

eres

t-fre

e lo

an (a

dvan

ce o

n re

ceip

ts).

4.2.

Am

ount

of f

inan

cial

sup

port

4.

2.1.

Fin

anci

al s

uppo

rt sh

all n

ot e

xcee

d 17

% o

f the

tota

l pro

duct

ion

cost

of t

he fi

lm

and

shal

l in

no e

vent

be

supe

rior t

o 70

0 00

0 €.

4.

2.2.

The

bud

get,

the

finan

cing

pla

n an

d th

e am

ount

of

supp

ort

requ

este

d to

E

urim

ages

will

be

asse

ssed

and

ver

ified

by

the

Exe

cutiv

e D

irect

or.

4.3.

Allo

catio

n of

fina

ncia

l sup

port

4.

3.1.

The

fina

ncia

l sup

port

shal

l be

allo

cate

d to

eac

h co

-pro

duce

r ac

cord

ing

to th

e pr

opor

tion

of h

is o

r her

fina

ncia

l par

ticip

atio

n in

the

co-p

rodu

ctio

n.

4.3.

2. E

urim

ages

fina

ncia

l sup

port

may

be

allo

cate

d di

spro

porti

onat

ely,

exc

ept i

n th

e ca

se o

f fin

anci

al c

o-pr

oduc

tions

. S

uch

disp

ropo

rtion

ate

allo

catio

n to

one

of

the

co-

prod

ucer

s sh

all n

ot b

e lo

wer

than

10%

nor

exc

eed

50%

of t

he to

tal a

mou

nt a

lloca

ted

by

Eur

imag

es

to

the

co-p

rodu

ctio

n co

ncer

ned.

In

su

ch

case

s,

the

Eur

imag

es

cont

ribut

ion

shal

l not

exc

eed

50%

of t

he to

tal f

inan

cing

of a

ny o

f the

co-

prod

ucer

s.

Nev

erth

eles

s, t

he r

epay

men

t of

the

am

ount

aw

arde

d w

ill b

e in

pro

porti

on t

o ea

ch

prod

ucer

's p

erce

ntag

e in

the

co-p

rodu

ctio

n.

4.4.

Val

idity

of t

he s

uppo

rt d

ecis

ion

The

valid

ity o

f any

dec

isio

n to

sup

port

the

co-p

rodu

ctio

n of

a c

inem

atog

raph

ic w

ork

will

exp

ire i

f no

agr

eem

ent

betw

een

Eur

imag

es a

nd t

he c

o-pr

oduc

ers

has

been

en

tere

d in

to w

ithin

a p

erio

d of

tw

elve

mon

ths

from

the

dat

e of

the

Boa

rd o

f M

anag

emen

t mee

ting

at w

hich

the

deci

sion

was

take

n an

d if

prin

cipa

l pho

togr

aphy

ha

s no

t co

mm

ence

d w

ithin

the

sam

e pe

riod.

In

the

even

t of

dul

y ju

stifi

ed r

easo

ns,

the

Exe

cutiv

e D

irect

or m

ay e

xten

d su

ch a

per

iod

by a

max

imum

of t

hree

mon

ths.

5 SU

PPO

RT

AG

REE

MEN

T A

ND

PA

YMEN

TS

5.1.

C

oncl

usio

n of

the

supp

ort a

gree

men

t 5.

1.1.

An

agre

emen

t bet

wee

n th

e co

-pro

duce

rs in

volv

ed a

nd th

e E

xecu

tive

Dire

ctor

, ac

ting

on b

ehal

f of

Eur

imag

es,

shal

l st

ipul

ate

the

term

s on

whi

ch t

he s

uppo

rt is

aw

arde

d.

5.1.

2. T

he s

uppo

rt ag

reem

ent

shal

l be

dra

wn

up u

pon

rece

ipt

of t

he f

ollo

win

g do

cum

ents

: -

defin

itive

co-

prod

uctio

n co

ntra

ct(s

) plu

s an

y ad

dend

a th

eret

o;

-

revi

sed

finan

cing

pl

an

incl

udin

g th

e ac

tual

am

ount

of

th

e su

ppor

t al

loca

ted

by th

e B

oard

of M

anag

emen

t;

-

conf

irmat

ion

of a

rtist

ic a

nd/o

r tec

hnic

al c

o-op

erat

ion;

-

co

nfirm

atio

n of

the

attri

butio

n of

pro

visi

onal

nat

iona

l acc

redi

tatio

n;

-

cont

ract

s or

firm

und

erta

king

s co

nfirm

ing

the

finan

cing

of t

he p

roje

ct;

-

any

othe

r do

cum

ent

prov

ing

that

the

con

ditio

ns p

rece

dent

set

by

the

Boa

rd o

f Man

agem

ent h

ave

been

met

. 5.

1.3.

The

Exe

cutiv

e D

irect

or m

ay, a

t his

or h

er o

wn

disc

retio

n, te

rmin

ate

the

supp

ort

agre

emen

t 10

year

s af

ter t

he fi

rst c

omm

erci

al e

xplo

itatio

n of

the

film

. 5.

2. P

aym

ent o

f the

fina

ncia

l sup

port

U

nles

s ot

herw

ise

agre

ed b

y th

e E

xecu

tive

Dire

ctor

of

Eur

imag

es,

paym

ent

will

be

mad

e in

thre

e in

stal

men

ts:

5.2.

1. T

he fi

rst i

nsta

lmen

t of 6

0% o

f the

tota

l am

ount

aw

arde

d is

pay

able

follo

win

g:

- th

e si

gnat

ure

of th

e su

ppor

t agr

eem

ent a

s de

fined

in A

rticl

e 5.

1 ab

ove;

-

the

first

day

of p

rinci

pal p

hoto

grap

hy.

5.2.

2. T

he s

econ

d in

stal

men

t of 2

0% o

f the

tota

l am

ount

aw

arde

d is

pay

able

: -

afte

r co

nfirm

atio

n of

com

plet

ion

of t

he d

igita

l an

swer

prin

t fro

m t

he

labo

rato

ry (m

inim

um 2

K, c

ompa

tible

with

DC

I spe

cific

atio

ns o

r IS

O n

orm

s on

D-C

inem

a).;

- af

ter

rece

ipt

of

dist

ribut

ion

guar

ante

es

and/

or

pre-

sale

s up

on

whi

ch

bind

ing

agre

emen

ts h

ave

been

con

clud

ed b

efor

e th

e an

swer

prin

t of t

he

film

has

bee

n co

mpl

eted

; -

afte

r app

rova

l of t

he c

redi

t lis

t by

the

Exe

cutiv

e D

irect

or;

- if

appr

opria

te, a

fter s

igna

ture

of t

he c

olle

ctio

n ac

coun

t agr

eem

ent.

5.2.

3. T

he th

ird in

stal

men

t of 2

0% o

f the

tota

l am

ount

aw

arde

d is

pay

able

: -

afte

r co

nfirm

atio

n of

cin

ema

rele

ase

in t

he c

o-pr

oduc

ing

coun

tries

or,

if ap

prop

riate

(do

cum

enta

ries

only

), se

lect

ion

in a

t lea

st o

ne s

igni

fican

t film

fe

stiv

al;

- af

ter

rece

ipt

and

appr

oval

by

Eur

imag

es o

f th

e to

tal

final

cos

ts o

f th

e pr

oduc

tion

and

the

expe

nditu

re o

f ea

ch c

o-pr

oduc

er,

pres

ente

d in

a

stan

dard

fo

rm

appr

oved

by

E

urim

ages

an

d ce

rtifie

d by

a

qual

ified

ch

arte

red

acco

unta

nt

inde

pend

ent

from

th

e pr

oduc

tion

com

pani

es

invo

lved

, sh

owin

g an

y va

riatio

ns in

the

cos

ts c

ompa

red

with

the

bud

get

231

appr

oved

by

the

Boa

rd o

f Man

agem

ent;

- af

ter r

ecei

pt o

f the

fina

l fin

anci

ng p

lan;

-

afte

r re

ceip

t of

the

evi

denc

e of

the

pay

men

t of

the

min

ima

guar

ante

es

incl

uded

in

the

finan

cing

pla

n an

d th

e lis

t of

ded

uctio

ns a

ppro

ved

by

Eur

imag

es. M

inim

a gu

aran

tees

pai

d in

cas

h sh

all n

ot b

e ac

cept

ed;

- af

ter

rece

ipt a

nd a

ppro

val b

y E

urim

ages

of t

he p

ublic

ity m

ater

ial f

or e

ach

co-p

rodu

cing

cou

ntry

and

rece

ipt o

f 50

copi

es o

f the

DV

D w

ith E

nglis

h or

Fr

ench

sub

title

s;

- af

ter c

onfir

mat

ion

of a

ttrib

utio

n of

def

initi

ve n

atio

nal a

ccre

dita

tion.

5.3.

Pro

duct

ion

bank

acc

ount

(s)

Pay

men

t of

the

co-

prod

ucer

s' s

hare

of

the

amou

nt a

war

ded

shal

l be

mad

e by

E

urim

ages

eith

er t

o th

e re

spec

tive

prod

uctio

n ba

nk a

ccou

nts

open

ed b

y ea

ch c

o-pr

oduc

er,

or t

o a

sing

le p

rodu

ctio

n ba

nk a

ccou

nt o

pene

d by

the

del

egat

e co

-pr

oduc

er, o

n co

nditi

on th

at w

ritte

n co

nsen

t is

rece

ived

from

eac

h of

the

co-p

rodu

cers

co

ncer

ned.

5.

4. C

ompl

etio

n gu

aran

tee

S

houl

d th

e co

-pro

duce

rs c

oncl

ude

a co

mpl

etio

n gu

aran

tee,

Eur

imag

es m

ust

be a

si

gnat

ory

to th

e co

ntra

ct a

nd h

ave

the

stat

us o

f ben

efic

iary

.

6 R

EFER

ENC

E TO

EU

RIM

AG

ES S

UPP

OR

T 6.

1. E

urim

ages

sup

port

mus

t be

men

tione

d cl

early

and

vis

ibly

in th

e m

ain

cred

its a

t th

e be

ginn

ing

of th

e fil

m, a

s hi

gh a

s po

ssib

le a

fter

the

prod

ucer

s an

d in

acc

orda

nce

with

its

finan

cial

con

tribu

tion,

as

wel

l as

in m

ajor

pub

licity

mat

eria

l for

the

film

.

6.2.

The

dra

ft fro

nt a

nd e

nd c

redi

ts m

ust

be s

ubm

itted

to

Eur

imag

es f

or p

rior

appr

oval

. Fa

iling

thi

s, E

urim

ages

res

erve

s th

e rig

ht t

o re

fuse

pay

men

t of

the

ou

tsta

ndin

g ba

lanc

e of

the

supp

ort a

war

ded.

7

REP

AYM

ENT

OF

THE

SUPP

OR

T 7.

1. E

urim

ages

reco

upm

ent c

orrid

or

7.1.

1. T

he s

uppo

rt am

ount

is re

paya

ble,

from

the

first

eur

o, fr

om e

ach

prod

ucer

’s n

et

rece

ipts

at a

rate

equ

al to

the

perc

enta

ge o

f the

Eur

imag

es s

hare

in th

e fin

anci

ng o

f th

e fil

m, a

nd a

fter d

educ

tion

– if

form

ally

app

rove

d by

the

Sec

reta

riat –

of d

istri

butio

n gu

aran

tees

and

/or

pre-

sale

s ne

cess

ary

for

the

finan

cing

of

the

film

upo

n w

hich

bi

ndin

g ag

reem

ents

hav

e be

en c

oncl

uded

bef

ore

com

plet

ion

of t

he a

nsw

er p

rint.

Whe

re p

art o

f the

dis

tribu

tion

min

ima

guar

ante

es is

fina

nced

by

“Sof

ica”

and

/or o

ther

fin

anci

al in

stitu

tions

(e.

g. g

ap f

inan

cing

), th

ese

sum

s sh

all n

ot b

e re

coup

ed b

efor

e E

urim

ages

. A

ny o

ther

ded

uctio

ns o

r co

mpa

rabl

e fin

anci

ng a

rran

gem

ents

are

to

be

appr

oved

by

the

Boa

rd o

f Man

agem

ent.

7.1.

2. E

ach

co-p

rodu

cer

shal

l be

pro

porti

onal

ly r

espo

nsib

le f

or r

epay

men

t of

the

sh

are

of t

he s

uppo

rt al

loca

ted

to h

im o

r he

r. R

epay

men

t is

due

up

to 1

00%

of

the

amou

nt a

war

ded.

In

the

case

of

disp

ropo

rtion

ate

allo

catio

n of

Eur

imag

es s

uppo

rt (a

ccor

ding

to th

e co

nditi

ons

unde

r Arti

cle

4.3.

2 ab

ove)

, the

repa

ymen

t of t

he s

uppo

rt aw

arde

d w

ill b

e in

pro

porti

on to

the

co-p

rodu

ctio

n pe

rcen

tage

s.

7.1.

3 W

hen

ther

e is

a g

roup

of

natio

nal

co-p

rodu

cers

(ie

. co

-pro

duce

rs w

ithin

the

sa

me

mem

ber

stat

e),

one

co-p

rodu

cer

resp

onsi

ble

for

repo

rting

obl

igat

ions

and

re

paym

ent

of t

he s

ums

due

by t

he w

hole

gro

up s

hall

be a

ppoi

nted

. Fa

iling

thi

s,

Eur

imag

es w

ill a

ppoi

nt o

ne.

7.2.

Pro

duce

rs’ n

et re

ceip

ts

7.2.

1. T

he fo

llow

ing

are

cons

ider

ed a

s pr

oduc

ers'

net

rec

eipt

s: a

ll re

ceip

ts r

esul

ting

from

exp

loita

tion

of a

ll or

par

t of t

he fi

lm a

nd fr

om a

ny p

rodu

cts

deriv

ed fr

om th

e fil

m

in t

he t

errit

orie

s ex

clus

ivel

y al

loca

ted

to t

he p

rodu

cers

, as

wel

l as

in t

he t

errit

orie

s ot

her t

han

thos

e ex

clus

ivel

y al

loca

ted

to th

e pr

oduc

ers,

afte

r ded

uctio

n of

“ded

uctib

le

cost

s” li

nked

to th

e ex

ploi

tatio

n of

the

film

(as

defin

ed in

Arti

cle

7.3

belo

w).

Thes

e ne

t re

ceip

ts s

hall

cons

titut

e th

e ba

sis

for t

he re

imbu

rsem

ent o

f the

sup

port.

7.2.

2. A

ny p

re-s

ales

and

dis

tribu

tion

guar

ante

es in

exc

ess

of th

e fin

anci

ng n

eces

sary

to

cov

er th

e pr

oduc

tion

cost

app

rove

d by

Eur

imag

es a

s w

ell a

s th

ose

conc

lude

d af

ter

com

plet

ion

of t

he a

nsw

er p

rint

are

cons

ider

ed a

s ne

t re

ceip

ts f

or t

he p

urpo

se o

f re

paym

ent

to

Eur

imag

es.

The

Exe

cutiv

e D

irect

or

mus

t ha

ve

rece

ived

va

lid

docu

men

tatio

n be

fore

pay

men

t of t

he s

econ

d in

stal

men

t of t

he s

uppo

rt (s

ee A

rticl

e 5.

2.2.

abo

ve).

7.3.

Ded

uctib

le a

mou

nts

7.

3.1.

The

onl

y “d

educ

tible

cos

ts”

acce

pted

by

Eur

imag

es f

or t

he c

alcu

latio

n of

net

re

ceip

ts a

re:

a) t

he d

istri

butio

n co

mm

issi

on u

p to

25%

(pe

r se

t of

rig

hts

sold

in

one

terr

itory

), ex

cept

in d

omes

tic c

o-pr

oduc

ing

coun

tries

; b)

pro

vide

d th

at th

e co

sts

liste

d be

low

are

not

alre

ady

fully

or p

artia

lly in

clud

ed in

the

prod

uctio

n bu

dget

app

rove

d by

Eur

imag

es:

-

tech

nica

l cos

ts re

late

d to

the

man

ufac

ture

and

the

forw

ardi

ng o

f rel

ease

pr

ints

of

the

film

, as

wel

l as

the

man

ufac

ture

of

a fo

reig

n la

ngua

ge

vers

ion

of th

e w

ork;

-

co

sts

rela

ted

to p

ublic

ity f

or t

he l

aunc

h of

the

film

(P

&A

) an

noun

ced,

in

curr

ed a

nd p

aid

by th

e di

strib

utor

s an

d/or

sal

es a

gent

s, a

nd a

ppro

ved

by e

ach

prod

ucer

upo

n re

ceip

t of a

ll ite

ms

of e

vide

nce

of th

ese

cost

s.

c) n

on-d

educ

tible

taxe

s pa

id to

pub

lic a

utho

ritie

s fo

r the

exp

loita

tion

of th

e fil

m;

d) c

usto

ms

dutie

s an

d fe

es to

pro

fess

iona

l org

anis

atio

ns, c

osts

rela

ted

to s

ubm

issi

on

of th

e fil

m to

cen

sure

, con

trol a

nd a

rchi

ve b

odie

s, in

sofa

r as

they

are

dire

ctly

rela

ted

to th

e fil

m c

once

rned

. Th

eref

ore,

def

erra

ls,

equi

ty in

vest

men

ts,

roya

lties

, pr

ofit

parti

cipa

tions

and

aut

hors

’ rig

hts

cann

ot b

e de

duct

ed fr

om th

e re

venu

es g

ener

ated

by

the

proj

ect.

7.3.

2. A

ll su

ch “d

educ

tible

cos

ts” s

houl

d be

dul

y sp

ecifi

ed in

the

finan

cial

sta

tem

ents

pr

ovid

ed b

y th

e di

strib

utor

s an

d/or

sal

es a

gent

s an

d sh

all b

e su

bjec

t to

verif

icat

ion.

232

All

dedu

ctio

ns m

ust b

e ap

prov

ed b

y th

e E

xecu

tive

Dire

ctor

. 7.

4. R

even

ue s

tate

men

ts

7.4.

1. S

tarti

ng f

rom

the

firs

t co

mm

erci

al e

xplo

itatio

n of

the

pro

ject

, co

-pro

duce

rs

shal

l, w

ithou

t prio

r req

uest

, pro

vide

Eur

imag

es a

t the

end

of e

ach

half-

year

per

iod

for

the

first

tw

o ye

ars

and

at t

he e

nd o

f ea

ch c

alen

dar

year

the

reaf

ter

with

rev

enue

st

atem

ents

con

cern

ing

the

expl

oita

tion

of th

e fil

m.

Thes

e st

atem

ents

sha

ll be

pre

sent

ed i

n a

clea

r an

d de

taile

d fo

rmat

, sh

owin

g th

e ex

ploi

tatio

n re

sults

of

th

e fil

m

for

each

ty

pe

of

med

ia,

clea

rly

indi

catin

g th

e “d

educ

tible

cos

ts”,

and

shal

l inc

lude

a c

opy

of th

e ro

yalty

sta

tem

ents

from

dis

tribu

tors

an

d sa

les

agen

ts, a

s w

ell a

s a

copy

of a

ll sa

les

and

licen

ce a

gree

men

ts.

Eur

imag

es r

eser

ves

the

right

, if

nece

ssar

y, t

o re

ques

t pr

oduc

ers

to u

se a

sta

ndar

d fo

rm a

ppro

ved

by E

urim

ages

for t

he p

rese

ntat

ion

of re

venu

e st

atem

ents

. 7.

4.2.

Eac

h co

-pro

duce

r is

obl

iged

to p

rovi

de E

urim

ages

with

a c

opy

of a

ll co

ntra

cts

for t

he e

xplo

itatio

n of

the

film

or a

ny p

art t

here

of.

7.5.

Col

lect

ion

acco

unt

For

proj

ects

with

a b

udge

t of

3 m

illio

n €

or m

ore,

the

set

ting

up o

f a

colle

ctio

n ac

coun

t by

a co

llect

ion

agen

cy s

hall

be o

blig

ator

y.

For

proj

ects

with

a b

udge

t of l

ess

than

3 m

illio

n €,

Eur

imag

es r

eser

ves

the

right

to

dem

and

the

setti

ng u

p of

a c

olle

ctio

n ac

coun

t by

a co

llect

ion

agen

cy.

In a

ll ca

ses,

Eur

imag

es m

ust b

e a

sign

ator

y to

the

subs

eque

nt a

gree

men

t. 8

MO

DIF

ICA

TIO

N O

F TH

E SU

PPO

RT

GR

AN

TED

AN

D T

ERM

INA

TIO

N O

F TH

E SU

PPO

RT

AG

REE

MEN

T 8.

1. E

volu

tion

of th

e co

-pro

duct

ion

8.1.

1. C

o-pr

oduc

ers

mus

t re

ques

t pr

ior

appr

oval

of

the

Exe

cutiv

e D

irect

or a

nd

prov

ide

adeq

uate

do

cum

enta

tion

conc

erni

ng

any

mod

ifica

tion

to

the

artis

tic,

tech

nica

l, le

gal

or f

inan

cial

asp

ects

of

the

proj

ect

as a

ppro

ved

by t

he B

oard

of

Man

agem

ent.

8.1.

2. A

ny s

ubst

antia

l mod

ifica

tion

of th

e ar

tistic

or

finan

cial

stru

ctur

e of

the

proj

ect

mus

t be

app

rove

d by

the

Boa

rd o

f M

anag

emen

t. A

ny o

ther

cha

nges

sha

ll be

ap

prov

ed b

y th

e E

xecu

tive

Dire

ctor

. 8.

2. D

ecre

ase

in fi

nal p

rodu

ctio

n co

sts

Sho

uld

the

final

pro

duct

ion

cost

s of

the

film

be

mor

e th

an 1

0% lo

wer

than

the

budg

et

desc

ribed

in

the

supp

ort

agre

emen

t be

twee

n E

urim

ages

and

the

pro

duce

rs,

the

supp

ort

gran

ted

by

Eur

imag

es

will

be

re

duce

d pr

opor

tiona

lly

to

the

decr

ease

ex

ceed

ing

10%

.

8.3.

Can

cella

tion

of fi

nanc

ial s

uppo

rt

8.3.

1. E

urim

ages

fina

ncia

l sup

port

shal

l be

canc

elle

d if

the

film

is n

ot c

ompl

eted

or

thea

trica

lly e

xhib

ited

in e

ach

of th

e co

-pro

duci

ng c

ount

ries

with

in th

e tim

e lim

it se

t in

the

supp

ort

agre

emen

t. It

shal

l al

so b

e ca

ncel

led

or i

mm

edia

tely

rep

ayab

le i

f a

prod

ucer

fails

to m

eet t

he te

rms

of th

ese

Reg

ulat

ions

or

the

oblig

atio

ns c

onta

ined

in

the

term

s of

the

supp

ort a

gree

men

t.

8.3.

2. E

urim

ages

may

exc

eptio

nally

and

for

dul

y ju

stifi

ed r

easo

ns d

erog

ate

from

A

rticl

e 8.

3.1.

9

DIS

PUTE

SET

TLEM

ENT

AN

D IN

TER

PRET

ATI

ON

OF

THE

REG

ULA

TIO

NS

9.1.

The

re c

an b

e no

app

eal a

gain

st a

dec

isio

n of

the

Boa

rd o

f Man

agem

ent n

ot to

su

ppor

t a re

ques

t for

fina

ncia

l sup

port.

9.2.

Any

dis

pute

rel

atin

g to

the

exe

cutio

n of

any

agr

eem

ent

conc

lude

d pu

rsua

nt t

o th

ese

Reg

ulat

ions

sha

ll be

sub

mitt

ed,

faili

ng a

frie

ndly

set

tlem

ent

betw

een

the

parti

es,

for

deci

sion

to

an A

rbitr

atio

n B

oard

com

pose

d of

tw

o ar

bitra

tors

, ea

ch

sele

cted

by

one

of th

e pa

rties

, and

a p

resi

ding

arb

itrat

or, a

ppoi

nted

by

the

othe

r tw

o ar

bitra

tors

. If a

pre

sidi

ng a

rbitr

ator

is n

ot a

ppoi

nted

und

er th

e ab

ove

cond

ition

s w

ithin

a

perio

d of

four

mon

ths,

the

Pre

side

nt o

f the

Eur

opea

n C

ourt

of H

uman

Rig

hts

shal

l m

ake

the

appo

intm

ent.

9.3.

How

ever

, the

par

ties

may

sub

mit

the

disp

ute

for a

dec

isio

n to

a s

ingl

e ar

bitra

tor

chos

en b

y th

em b

y co

mm

on a

gree

men

t or,

faili

ng s

uch

agre

emen

t, by

the

Pre

side

nt

of th

e E

urop

ean

Cou

rt of

Hum

an R

ight

s.

9.4.

The

Boa

rd r

efer

red

to in

par

agra

ph 9

.2 o

r, if

appr

opria

te, t

he a

rbitr

ator

ref

erre

d to

in p

arag

raph

9.3

, sha

ll de

term

ine

the

proc

edur

e to

be

follo

wed

.

9.5.

Fai

ling

agre

emen

t be

twee

n th

e pa

rties

on

the

law

app

licab

le,

the

Boa

rd,

or if

ap

prop

riate

, the

arb

itrat

or, s

hall

deci

de e

x ae

quo

et b

ono

in th

e lig

ht o

f gen

eral

lega

l pr

inci

ples

, as

wel

l as

obs

ervi

ng c

usto

ms

used

in

the

cine

mat

ogra

phic

and

aud

io-

visu

al fi

eld.

9.6.

The

arb

itrat

ion

deci

sion

sha

ll be

fina

l and

sha

ll be

bin

ding

on

the

parti

es.

9.7.

The

Boa

rd o

f Man

agem

ent r

eser

ves

the

right

to in

terp

ret a

nd a

men

d th

ese

Reg

ulat

ions

.

233

234

APPENDIX 10

235

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-1-

ME

DIA

200

7 (2

007-

2013

) *

C

AL

L F

OR

PR

OPO

SAL

S E

AC

EA

25/

2010

GU

IDE

LIN

ES

SUPP

OR

T F

OR

TH

E D

EV

EL

OPM

EN

T O

F

SIN

GL

E P

RO

JEC

TS

(A

NIM

AT

ION

, CR

EA

TIV

E D

OC

UM

EN

TA

RY

AN

D D

RA

MA

)

*

Dec

isio

n N

° 171

8/20

06/E

C

of th

e Pa

rlia

men

t and

of t

he C

ounc

il

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-2-

TA

BL

E O

F C

ON

TE

NT

S

1.

INT

RO

DU

CT

ION

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.

L

EG

AL

BA

SIS

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.3

2.

OB

JEC

TIV

ES

& P

RIO

RIT

IES

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.3

2.1.

G

LO

BA

L O

BJE

CT

IVE

S O

F T

HE

ME

DIA

PR

OG

RA

MM

E...

......

......

......

......

......

......

......

......

......

......

......

....3

2.

2.

S PE

CIF

IC O

BJE

CT

IVE

S O

F TH

E D

EV

EL

OPM

EN

T S

UPP

OR

T...

......

......

......

......

......

......

......

......

......

......

.....4

2.

3.

P RIO

RIT

IES

OF

TH

IS C

AL

L F

OR

PR

OPO

SAL

S...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

4

3.

TIM

ET

AB

LE

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.4

4.

AV

AIL

AB

LE

BU

DG

ET

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

..5

5.

EL

IGIB

ILIT

Y C

RIT

ER

IA...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

6

5.1.

E

LIG

IBL

E A

PPL

ICA

NT

S ...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.6

5.2.

E

LIG

IBL

E C

OU

NT

RIE

S...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...8

5.3.

E

LIG

IBL

E A

CT

IVIT

IES

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

8 5.

4.

EL

IGIB

LE

PR

OPO

SAL

S...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...8

6.

EX

CL

USI

ON

CR

ITE

RIA

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.....9

7.

SEL

EC

TIO

N C

RIT

ER

IA...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

10

7.1.

O

PER

AT

ION

AL

CA

PAC

ITY

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

....1

0 7.

2.

F IN

AN

CIA

L C

APA

CIT

Y...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

11

8.

AW

AR

D C

RIT

ER

IA...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

..11

8.1.

C

RIT

ER

IA F

OR

AU

TO

MA

TIC

PO

INT

S....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

....1

1 8.

2.

EV

AL

UA

TIO

N C

RIT

ER

IA C

ON

SID

ER

ED

BY

TH

E IN

DE

PEN

DE

NT

EX

PER

TS...

......

......

......

......

......

......

....1

2

9.

FIN

AN

CIA

L C

ON

DIT

ION

S....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

12

9.1.

C

ON

TR

AC

TU

AL

PR

OV

ISIO

NS

AN

D P

AY

ME

NT

PR

OC

ED

UR

ES

......

......

......

......

......

......

......

......

......

......

.13

9.2.

C

ER

TIF

ICA

TE

ON

TH

E F

INA

NC

IAL

ST

AT

EM

EN

TS

AN

D U

ND

ER

LY

ING

AC

CO

UN

TS.

......

......

......

......

.....1

4 9.

3.

GU

AR

AN

TE

E...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...14

9.

4.

D

OU

BL

E F

INA

NC

ING

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

14

9.5

E

LIG

IBL

E C

OST

S....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

..14

9.6.

I N

EL

IGIB

LE

CO

STS.

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

..15

9.7.

S O

UR

CE

S O

F IN

CO

ME

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

....1

6

10.

SUB

-CO

NT

RA

CT

ING

AN

D A

WA

RD

OF

PRO

CU

RE

ME

NT

CO

NT

RA

CT

S...

......

......

......

.....1

6

11.

PUB

LIC

ITY

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...16

12.

DA

TA

PR

OT

EC

TIO

N...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.17

13.

PRO

CE

DU

RE

FO

R T

HE

SU

BM

ISSI

ON

OF

PRO

POSA

LS

......

......

......

......

......

......

......

......

......

.17

13.1

. PU

BL

ICA

TIO

N...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.17

13.2

. A

PPL

ICA

TIO

N F

OR

M...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...17

13

.3.

SUB

MIS

SIO

N O

F T

HE

GR

AN

T A

PPL

ICA

TIO

N...

......

......

......

......

......

......

......

......

......

......

......

......

......

.....1

7 13

.4.

RU

LE

S A

PPL

ICA

BL

E...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.....1

8 13

.5.

CO

NT

AC

TS

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...19

ME

DIA

EU

RO

PEA

N T

AL

EN

T P

RIZ

E...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.20

236

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-3-

1.

INT

RO

DU

CT

ION

L

egal

Bas

is

The

cur

rent

Cal

l for

Pro

posa

ls a

nd a

ttach

ed G

uide

lines

(he

reaf

ter:

"C

all f

or P

ropo

sals

") a

re b

ased

on

Dec

isio

n N

o 17

18/2

006/

EC o

f th

e E

urop

ean

Parl

iam

ent

and

of t

he C

ounc

il of

15

Nov

embe

r 20

06

conc

erni

ng t

he i

mpl

emen

tatio

n of

a p

rogr

amm

e of

sup

port

for

the

Eur

opea

n au

diov

isua

l se

ctor

(M

ED

IA 2

007)

.1 T

he to

tal b

udge

t for

the

ME

DIA

Pro

gram

me

2007

-201

3 am

ount

s to

EU

R 7

54,9

5 m

illio

n.

The

Eur

opea

n C

omm

issi

on i

s re

spon

sibl

e fo

r th

e im

plem

enta

tion

of th

e M

EDIA

Pro

gram

me

and

for

the

deci

sion

to

gran

t in

divi

dual

Eur

opea

n U

nion

fun

ds.

The

Educ

atio

n, A

udio

visu

al a

nd C

ultu

re

Exe

cutiv

e A

genc

y he

reaf

ter

"the

Age

ncy"

man

ages

the

ME

DIA

Pro

gram

me

on b

ehal

f an

d un

der

the

cont

rol o

f the

Eur

opea

n C

omm

issi

on.

The

ME

DIA

Pro

gram

me

Uni

t of

the

Edu

catio

n, A

udio

visu

al a

nd C

ultu

re E

xecu

tive

Age

ncy

is

resp

onsi

ble

for t

he im

plem

enta

tion

of th

is C

all f

or P

ropo

sals

. T

his

Cal

l is

aim

ed a

t E

urop

ean

appl

ican

ts w

hose

act

iviti

es c

ontr

ibut

e to

the

ach

ieve

men

t of

the

ob

ject

ives

of

the

ME

DIA

Pro

gram

me

as d

escr

ibed

in th

e E

urop

ean

Parl

iam

ent a

nd C

ounc

il D

ecis

ion

No

1718

/200

6/E

C.

The

se G

uide

lines

exp

lain

how

to

subm

it a

prop

osal

with

a v

iew

to

obta

inin

g a

Eur

opea

n U

nion

fi

nanc

ial c

ontr

ibut

ion.

Th

e im

plem

enta

tion

of th

is C

all f

or P

ropo

sals

is su

bjec

t to

the

adop

tion

of th

e Eu

rope

an U

nion

bud

get

for t

he y

ear 2

011

by th

e bu

dget

aut

hori

ty.

2.

OB

JEC

TIV

ES

& P

RIO

RIT

IES

2.1.

G

loba

l obj

ectiv

es o

f the

ME

DIA

pro

gram

me

The

glo

bal o

bjec

tives

of t

he M

ED

IA 2

007

prog

ram

me

are

to:

Pres

erve

and

enh

ance

Eur

opea

n cu

ltura

l and

ling

uist

ic d

iver

sity

and

its

cine

mat

ogra

phic

and

au

diov

isua

l her

itage

, gua

rant

ee it

s ac

cess

ibili

ty to

the

publ

ic a

nd p

rom

ote

inte

rcul

tura

l di

alog

ue;

Incr

ease

the

circ

ulat

ion

and

view

ersh

ip o

f Eur

opea

n au

diov

isua

l wor

ks in

side

and

out

side

the

Eur

opea

n U

nion

, inc

ludi

ng th

roug

h gr

eate

r coo

pera

tion

betw

een

play

ers;

St

reng

then

the

com

petit

iven

ess

of th

e E

urop

ean

audi

ovis

ual s

ecto

r in

the

fram

ewor

k of

an

open

and

com

petit

ive

Eur

opea

n m

arke

t fav

oura

ble

to e

mpl

oym

ent,

incl

udin

g by

pro

mot

ing

links

bet

wee

n au

diov

isua

l pro

fess

iona

ls.

1 pub

lishe

d in

the

Off

icia

l Jou

rnal

of t

he E

urop

ean

Com

mun

ities

on

the

24th

of N

ovem

ber 2

006

(OJ

L32

7, p

p 12

-29)

.

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-4-

2.2.

Sp

ecifi

c ob

ject

ives

of t

he D

evel

opm

ent s

uppo

rt

The

cur

rent

Cal

l for

Pro

posa

ls h

as th

e sp

ecif

ic o

bjec

tive

of p

rom

otin

g, b

y pr

ovid

ing

fina

ncia

l sup

port

, th

e de

velo

pmen

t of

prod

uctio

n pr

ojec

ts in

tend

ed f

or E

urop

ean

and

inte

rnat

iona

l mar

kets

pre

sent

ed b

y in

depe

nden

t E

urop

ean

prod

uctio

n co

mpa

nies

in

th

e fo

llow

ing

cate

gori

es:

anim

atio

n,

crea

tive

docu

men

tary

and

dra

ma.

2.

3.

Prio

ritie

s of t

his C

all f

or P

ropo

sals

T

hree

type

s of

sup

port

for

dev

elop

men

t are

ava

ilabl

e w

ithin

the

fram

ewor

k of

this

Cal

l for

Pro

posa

ls:

supp

ort f

or S

ingl

e Pr

ojec

ts, S

late

Fun

ding

and

Sla

te F

undi

ng 2

nd S

tage

. T

hese

gui

delin

es c

once

rn s

uppo

rt f

or S

ingl

e Pr

ojec

ts. T

hey

are

aim

ed a

t co

mpa

nies

int

eres

ted

in

deve

lopi

ng a

sin

gle

proj

ect.

3.

TIM

ET

AB

LE

T

he C

all f

or P

ropo

sals

25/

10 is

ope

n co

untin

g fr

om th

e da

te o

f its

pub

licat

ion

in th

e O

ffic

ial J

ourn

al

until

11/

04/2

011.

It

has

two

dead

lines

. A

pplic

ants

may

onl

y m

ake

one

subm

issi

on f

or d

evel

opm

ent

supp

ort

thro

ugho

ut t

he d

urat

ion

of t

his

Cal

l. T

hey

mus

t ch

oose

to

whi

ch o

f th

e tw

o de

adlin

es t

hey

appl

y.

To

be r

egis

tere

d fo

r th

e 1st

dea

dlin

e, th

e ap

plic

atio

n fo

r su

ppor

t mus

t be

sent

to th

e A

genc

y be

twee

n th

e da

te o

f the

pub

licat

ion

of th

e C

all f

or P

ropo

sals

and

29/

11/1

0. T

he in

tent

ion

is to

info

rm a

pplic

ants

of

the

outc

ome

of th

e se

lect

ion

proc

edur

e of

this

1st d

eadl

ine

no la

ter t

han

the

mon

th o

f Apr

il 20

11.

T

o be

reg

iste

red

for

the

2nd d

eadl

ine,

the

appl

icat

ion

for

supp

ort m

ust b

e se

nt to

the

Age

ncy

betw

een

30/1

1/10

and

11/

04/1

1, t

he d

ate

of c

losu

re o

f th

e C

all

for

Prop

osal

s. T

he i

nten

tion

is t

o in

form

ap

plic

ants

of

the

outc

ome

of t

he s

elec

tion

proc

edur

e of

thi

s 2nd

dea

dlin

e no

lat

er t

han

the

mon

th o

f Se

ptem

ber 2

011.

Pl

ease

read

car

eful

ly s

ectio

n 13

.3. c

once

rnin

g th

e pr

oced

ures

for s

ubm

ittin

g ap

plic

atio

ns.

A p

rodu

ctio

n co

mpa

ny c

an o

nly

subm

it on

e ap

plic

atio

n fo

r dev

elop

men

t sup

port

(Sin

gle

Proj

ect,

Slat

e Fu

ndin

g or

Sla

te F

undi

ng 2

nd S

tage

) fo

r th

e 20

11 b

udge

t ye

ar.

Furt

herm

ore,

a c

ompa

ny t

hat

has

a Sl

ate

Fund

ing

or S

late

Fun

ding

2nd

Sta

ge c

ontr

act

runn

ing

cann

ot a

pply

for

sup

port

for

a S

ingl

e Pr

ojec

t or

Slat

e Fu

ndin

g. I

t can

onl

y ap

ply

for

Slat

e Fu

ndin

g 2nd

Sta

ge u

nder

cer

tain

con

ditio

ns (

see

the

Gui

delin

es fo

r Sla

te F

undi

ng 2

nd s

tage

).

The

sub

mitt

ed p

roje

ct m

ay n

ot h

ave

ente

red

into

pro

duct

ion

befo

re th

e da

te o

f th

e G

rant

Dec

isio

n or

th

e da

te o

f si

gnat

ure

by th

e la

st p

arty

of

the

agre

emen

t bet

wee

n th

e be

nefi

ciar

y an

d th

e A

genc

y. T

he

estim

ated

dat

e of

the

Gra

nt D

ecis

ion

or o

f th

e si

gnat

ure

of t

he a

gree

men

ts i

s Ju

ne 2

011

for

appl

icat

ions

sub

mitt

ed u

nder

the

1st d

eadl

ine

and

Nov

embe

r 20

11 f

or t

hose

app

licat

ions

sub

mitt

ed

unde

r the

2nd

dea

dlin

e.

The

per

iod

of e

ligib

ility

of

cost

s w

ill s

tart

fro

m th

e da

te o

f th

e su

bmis

sion

of

the

appl

icat

ion

and

ends

no

lat

er t

han

30/0

6/20

13 f

or r

eque

sts

for

supp

ort

subm

itted

with

in t

he 1

st d

eadl

ine

and

no l

ater

tha

n 30

/11/

2013

for

tho

se r

eque

sts

subm

itted

with

in t

he 2

nd d

eadl

ine.

If

the

proj

ect

ente

rs i

nto

prod

uctio

n be

fore

the

afo

rem

entio

ned

date

s, t

he p

erio

d of

elig

ibili

ty o

f co

sts

ends

on

the

date

of

entry

int

o pr

oduc

tion

of th

e pr

ojec

t. H

owev

er, t

he a

cqui

sitio

n of

aut

hor

righ

ts is

elig

ible

ret

roac

tivel

y fo

r a

peri

od o

f 12

mon

ths

prec

edin

g th

e da

te o

f sub

mis

sion

of t

he a

pplic

atio

n.

237

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-5-

The

max

imum

dur

atio

n of

the

act

ion

is u

ntil

30/0

6/20

13 f

or t

he a

pplic

ants

reg

iste

red

for

the

1st

dead

line

and

until

30/

11/2

013

for

the

appl

ican

ts r

egis

tere

d fo

r th

e 2nd

dea

dlin

e. H

owev

er, i

f af

ter

the

Gra

nt D

ecis

ion

or s

igni

ng o

f th

e ag

reem

ent

it be

com

es i

mpo

ssib

le f

or t

he b

enef

icia

ry,

for

fully

ju

stif

ied

reas

ons

beyo

nd th

eir c

ontr

ol, t

o co

mpl

ete

the

actio

n w

ithin

the

sche

dule

d pe

riod

, an

exte

nsio

n to

the

elig

ibili

ty p

erio

d m

ay b

e gr

ante

d fo

r a m

axim

um o

f 6 a

dditi

onal

mon

ths

if re

ques

ted

at th

e la

test

on

e m

onth

bef

ore

the

clos

ing

date

of t

he a

ctio

n.

W

ith th

e ex

cept

ion

of th

e ac

quis

ition

of

righ

ts, a

ll co

sts

incu

rred

bef

ore

the

date

of

the

subm

issi

on o

f th

e ap

plic

atio

n w

ill b

e co

nsid

ered

inel

igib

le.

4.

AV

AIL

AB

LE

BU

DG

ET

T

he to

tal b

udge

t ear

mar

ked

for t

he c

o-fi

nanc

ing

of a

ctio

ns u

nder

this

Cal

l for

Pro

posa

ls is

est

imat

ed a

t E

UR

17m

, su

bjec

t to

the

ado

ptio

n of

the

Eur

opea

n U

nion

bud

get

for

the

year

201

1 by

the

bud

get

auth

ority

. O

f th

is E

UR

17m

, th

e bu

dget

allo

cate

d to

co-

fina

ncin

g Si

ngle

Pro

ject

s is

est

imat

ed t

o be

EU

R 7

m

(EU

R 3

,5m

for t

he 1

st d

eadl

ine

and

EU

R 3

,5m

for t

he 2

nd).

T

he b

udge

t al

loca

ted

to c

o-fi

nanc

ing

Slat

e Fu

ndin

g is

est

imat

ed t

o be

6m

and

to

co–f

inan

cing

Sla

te

Fund

ing

2nd S

tage

is e

stim

ated

to b

e E

UR

4m

(see

the

spec

ific

Gui

delin

es).

Fi

nanc

ial c

ontr

ibut

ions

from

the

Com

mis

sion

may

not

exc

eed

50%

of t

he to

tal e

ligib

le c

osts

. How

ever

th

e M

ED

IA P

rogr

amm

e’s

fund

ing

may

be

rais

ed u

p to

60%

for a

ctio

ns in

tend

ing

to p

rom

ote

Eur

opea

n cu

ltura

l div

ersi

ty.

Act

ions

pre

sent

ing

an in

tere

st in

pro

mot

ing

Eur

opea

n cu

ltura

l div

ersi

ty a

re th

ose

whi

ch b

ring

toge

ther

di

ffer

ent

cultu

ral

iden

titie

s na

tiona

l an

d/or

reg

iona

l w

ithin

a f

ram

ewor

k of

int

er-c

ultu

ral

dial

ogue

am

ong

at le

ast t

wo

Eur

opea

n co

untr

ies.

The

act

ion

mus

t be

cent

red

on th

e cu

ltura

l spe

cifi

citie

s of

the

coun

trie

s in

volv

ed a

nd h

ighl

ight

the

valu

es h

eld

by th

eir p

opul

atio

ns.

The

sel

ectio

n of

an

actio

n do

es n

ot s

igni

fy a

gree

men

t to

the

leve

l of

fina

ncia

l sup

port

requ

este

d. T

he

fina

l am

ount

to

be a

war

ded

will

be

dete

rmin

ed w

ithin

the

ava

ilabl

e bu

dget

ary

reso

urce

s an

d in

co

nsid

erat

ion

of th

e na

ture

and

cos

ts o

f the

act

ion.

E

ach

gran

t will

am

ount

to b

etw

een

EU

R 1

0,00

0 an

d E

UR

60,

000

exce

pt fo

r fea

ture

-len

gth

anim

atio

ns

for t

heat

rica

l rel

ease

, for

whi

ch th

e m

axim

um is

EU

R 8

0,00

0.

The

reci

pien

t com

pany

mus

t gua

rant

ee th

e re

mai

ning

fina

ncin

g.

The

Eur

opea

n U

nion

gra

nt w

ill b

e de

taile

d in

the

Gra

nt D

ecis

ion

or A

gree

men

t bet

wee

n th

e A

genc

y an

d th

e be

nefic

iary

com

pany

bot

h as

a p

erce

ntag

e of

the

deve

lopm

ent b

udge

t and

as

a to

tal a

mou

nt.

The

Age

ncy

rese

rves

the

righ

t not

to d

istri

bute

all

the

fund

s av

aila

ble.

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-6-

5.

EL

IGIB

ILIT

Y C

RIT

ER

IA

Onl

y ap

plic

atio

ns w

hich

com

ply

with

the

fol

low

ing

crite

ria

will

be

the

subj

ect

of a

n in

-dep

th

eval

uatio

n.

The

Age

ncy

rese

rves

the

rig

ht n

ot t

o pr

oces

s pr

opos

als

whi

ch l

ack

the

requ

ired

docu

men

tatio

n or

in

form

atio

n (d

ocum

ents

lis

ted

in

the

appl

icat

ion

form

) at

th

e de

adlin

e.

Eve

n in

th

e ca

se

of

resu

bmis

sion

all

the

requ

ired

doc

umen

tatio

n m

ust b

e pr

ovid

ed.

5.1

Elig

ible

app

lican

ts

Inde

pend

ent

Eur

opea

n co

mpa

nies

hav

ing

as t

heir

mai

n ac

tivity

aud

iovi

sual

pro

duct

ion

and

whi

ch h

ave

been

lega

lly c

onst

itute

d fo

r at

leas

t 12

mon

ths.

The

pre

sent

Cal

l is

open

to in

depe

nden

t Eur

opea

n pr

oduc

tion

com

pani

es th

at h

ave

been

reg

iste

red

for

at le

ast 1

2 m

onth

s at

the

date

of s

ubm

issi

on.

A E

urop

ean

prod

uctio

n co

mpa

ny i

s a

com

pany

who

se m

ain

obje

ct a

nd a

ctiv

ity i

s au

diov

isua

l pr

oduc

tion

and

whi

ch is

regi

ster

ed in

one

of t

he M

embe

r Sta

tes

of th

e E

urop

ean

Uni

on o

r in

one

of th

e co

untr

ies

part

icip

atin

g in

the

ME

DIA

200

7 Pr

ogra

mm

e an

d w

hich

is

owne

d an

d co

ntin

ues

to b

e ow

ned,

whe

ther

dir

ectly

or b

y m

ajor

ity s

hare

hold

ing,

by

natio

nals

from

thes

e co

untr

ies.

A

n in

depe

nden

t pr

oduc

tion

com

pany

is

an a

udio

visu

al p

rodu

ctio

n co

mpa

ny w

hich

doe

s no

t ha

ve

maj

ority

con

trol

by

a te

levi

sion

bro

adca

ster

, ei

ther

in

shar

ehol

ding

or

com

mer

cial

ter

ms.

Maj

ority

co

ntro

l is

con

side

red

to o

ccur

whe

n m

ore

than

25%

of

the

shar

e ca

pita

l of

a p

rodu

ctio

n co

mpa

ny i

s he

ld b

y a

sing

le b

road

cast

er (

50%

whe

n se

vera

l bro

adca

ster

s ar

e in

volv

ed)

or w

hen,

ove

r a

thre

e-ye

ar

peri

od, m

ore

than

90%

of

a pr

oduc

tion

com

pany

’s r

even

ue is

gen

erat

ed in

co-

oper

atio

n w

ith a

sin

gle

broa

dcas

ter.

T

he fo

llow

ing

are

not e

ligib

le:

- Fou

ndat

ions

, Ins

titut

es, U

nive

rsiti

es, a

ssoc

iatio

ns a

nd o

ther

lega

l bod

ies

actin

g in

the

publ

ic in

tere

st;

- app

licat

ions

from

gro

ups o

f com

pani

es;

- pr

ivat

e in

divi

dual

s.

5.1.

1 L

egal

Ent

ity

In o

rder

to

dem

onst

rate

its

exi

sten

ce a

s a

lega

l en

tity,

the

app

lican

t m

ust

prov

ide

the

follo

win

g do

cum

ents

: -

bank

det

ails

for

m, d

uly

com

plet

ed a

nd s

igne

d (t

he f

orm

rel

atin

g to

the

fina

ncia

l ide

ntif

icat

ion

of th

e ap

plic

ant

com

pany

acc

ordi

ng t

o th

e co

untry

in

whi

ch i

t is

est

ablis

hed

is a

vaila

ble

on t

he f

ollo

win

g w

ebsi

te: h

ttp://

ec.e

urop

a.eu

/bud

get/e

xecu

tion/

ftie

rs_e

n.ht

m)

- ext

ract

from

the

offi

cial

gaz

ette

/trad

e re

gist

er, a

nd c

ertif

icat

e of

liab

ility

to V

AT

(if,

as in

cer

tain

co

untr

ies,

the

trad

e re

gist

er n

umbe

r and

VA

T n

umbe

r are

iden

tical

, onl

y on

e of

thes

e do

cum

ents

is

requ

ired

). T

he fo

rm re

latin

g to

the

lega

l str

uctu

re o

f the

app

lican

t com

pany

acc

ordi

ng to

the

coun

try in

w

hich

it is

est

ablis

hed

is a

vaila

ble

on th

e fo

llow

ing

web

site

: ht

tp://

ec.e

urop

a.eu

/bud

get/e

xecu

tion/

lega

l_en

titie

s_en

.htm

238

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-7-

5.1.

2 C

ompa

nies

ab

le

to

prov

ide

evid

ence

th

at

they

ha

ve

com

plet

ed

and

com

mer

cial

ly

dist

ribu

ted

a pr

evio

us e

ligib

le w

ork

Com

pani

es su

bmitt

ing

an a

pplic

atio

n m

ust h

ave

prod

uced

a w

ork

and

prov

e:

- tha

t the

y w

ere

the

sole

pro

duct

ion

com

pany

; -

or t

hat

they

wer

e, i

n th

e ca

se o

f a

co-p

rodu

ctio

n w

ith a

noth

er p

rodu

ctio

n co

mpa

ny,

the

maj

or c

o-pr

oduc

er in

the

fina

ncin

g pl

an o

r the

del

egat

e pr

oduc

er;

- or

tha

t th

eir

Chi

ef E

xecu

tive

or o

ne o

f th

eir

shar

ehol

ders

has

a p

erso

nal

cred

it on

the

wor

k as

pr

oduc

er o

r del

egat

e pr

oduc

er.

By

way

of

dero

gatio

n a

prev

ious

wor

k pr

oduc

ed b

y a

com

pany

oth

er th

an th

e ap

plic

ant c

ompa

ny m

ay

be a

ccep

ted,

if

the

appl

ican

t co

mpa

ny c

an s

how

tha

t its

Chi

ef E

xecu

tive,

one

of

its s

hare

hold

ers

(ind

ivid

ual

pers

on)

or o

ne o

f th

e pr

oduc

ers

it em

ploy

s (t

his

prod

ucer

mus

t ha

ve b

een

a fu

lltim

e em

ploy

ee o

f th

e ap

plic

ant

com

pany

for

at

leas

t tw

elve

mon

ths

on t

he d

ate

of t

he a

pplic

atio

n), h

as a

pe

rson

al c

redi

t in

the

role

of p

rodu

cer,

dele

gate

pro

duce

r or e

xecu

tive

prod

ucer

. O

nly

offi

cial

cre

dits

as

prod

ucer

, del

egat

e pr

oduc

er o

r ex

ecut

ive

prod

ucer

that

app

ear

in th

e on

scre

en

cred

its a

re a

ccep

ted

as p

roof

of

pers

onal

cre

dits

. D

ecla

ratio

ns o

f th

ird

part

ies

will

not

be

take

n in

to

acco

unt.

If th

e pr

evio

us w

ork

is a

ser

ies,

the

appl

ican

t com

pany

mus

t pro

vide

the

evid

ence

list

ed a

bove

for

the

entir

e se

ries

. T

he p

revi

ous w

ork

mus

t be

in o

ne o

f the

follo

win

g el

igib

le c

ateg

orie

s (se

e 5.

3):

– an

ani

mat

ion

of a

t le

ast

24 m

inut

es (

the

tota

l le

ngth

of

the

seri

es i

n th

e ca

se o

f a

seri

es).

Tw

o an

imat

ion

shor

ts c

an b

e ac

cept

ed o

nly

in t

he c

ase

of a

n ap

plic

atio

n fo

r su

ppor

t fo

r an

ani

mat

ion

proj

ect;

– a

crea

tive

docu

men

tary

of a

t lea

st 2

5 m

inut

es (l

engt

h pe

r epi

sode

in th

e ca

se o

f a s

erie

s);

– a

dram

a of

at l

east

50

min

utes

(the

tota

l len

gth

of th

e se

ries

in th

e ca

se o

f a s

erie

s).

The

pre

viou

s w

ork

mus

t be

com

plet

ed. A

pro

duct

ion

(one

-off

pro

ject

or

seri

es)

is r

egar

ded

as

com

plet

ed o

n:

– th

e da

te o

f off

icia

l del

iver

y by

the

labo

rato

ry o

f the

ans

wer

pri

nt (f

or c

inem

a fi

lms)

;

– th

e da

te o

f of

fici

al d

eliv

ery

of t

he m

aste

r co

py t

o th

e br

oadc

aste

r (f

or w

orks

int

ende

d fo

r te

levi

sion

);

In re

spec

t to

seri

es, t

he e

ntir

e se

ries

mus

t be

com

plet

ed b

y th

e da

te o

f sub

mis

sion

. T

he a

pplic

ant c

ompa

ny m

ust a

lso

show

that

the

wor

k ha

s be

en c

omm

erci

ally

dis

trib

uted

dur

ing

the

peri

od b

etw

een

1 Ja

nuar

y 20

08 a

nd th

e da

te o

f sub

mis

sion

of i

ts a

pplic

atio

n.

Dis

trib

utio

n is

und

erst

ood

to b

e al

l fo

rms

of c

omm

erci

al r

elea

se o

f th

e w

ork

to t

he p

ublic

: ci

nem

a,

tele

visi

on, D

VD

and

on-

line

dist

ribu

tion.

It m

ay b

e th

e fi

rst c

omm

erci

al re

leas

e or

a re

-rel

ease

or a

re-

publ

icat

ion.

The

fol

low

ing

are

not

cons

ider

ed t

o be

com

mer

cial

rel

ease

s: f

ree

on-l

ine

acce

ss a

nd

scre

enin

gs a

t fes

tival

, cin

ema

mus

eum

s, c

ultu

ral a

ssoc

iatio

ns a

nd o

ther

com

para

ble

stru

ctur

es.

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-8-

If t

he p

revi

ous

expe

rien

ce i

s th

e pr

oduc

tion

of t

wo

anim

atio

n sh

orts

, ex

hibi

tion

at f

estiv

als

will

, ho

wev

er, b

e ac

cept

ed a

s pr

oof o

f dis

trib

utio

n.

The

dat

e ta

ken

into

acc

ount

in v

erify

ing

that

dis

trib

utio

n ha

s ta

ken

plac

e du

ring

the

refe

renc

e pe

riod

is

the

date

on

whi

ch th

e di

stri

butio

n co

ntra

ct w

as s

igne

d or

the

date

the

dist

ribu

tion

took

pla

ce (

date

of

cine

ma

rele

ase,

bro

adca

st d

ate

etc.

).

App

licat

ions

sen

t w

ithou

t a

duly

sig

ned

dist

ribu

tion

agre

emen

t or

dul

y do

cum

ente

d pr

oof

that

the

di

stri

butio

n to

ok p

lace

with

in t

he r

efer

ence

per

iod

will

be

dire

ctly

elim

inat

ed f

rom

the

sel

ectio

n pr

oced

ure.

5.

2 E

ligib

le C

ount

ries

L

egal

ent

ities

sub

mitt

ing

an a

pplic

atio

n m

ust b

e es

tabl

ishe

d in

one

of t

he fo

llow

ing

coun

trie

s:

• M

embe

r Sta

tes

of th

e E

urop

ean

Uni

on;

• C

ount

ries

in th

e E

urop

ean

Eco

nom

ic A

rea

part

icip

atin

g in

the

MED

IA 2

007

Pr

ogra

mm

e (I

cela

nd, L

iech

tens

tein

and

Nor

way

);

• Sw

itzer

land

and

Cro

atia

. 5.

3 E

ligib

le a

ctiv

ities

T

he d

evel

opm

ent a

ctiv

ities

for t

he fo

llow

ing

audi

ovis

ual w

orks

(one

-off

s or

ser

ies)

are

elig

ible

.

5.3.

1. A

nim

atio

n pr

ojec

ts in

tend

ed fo

r co

mm

erci

al e

xplo

itatio

n

Onl

y an

imat

ion

proj

ects

(whe

ther

a o

ne-o

ff o

r a s

erie

s) o

f no

less

than

24

min

utes

are

elig

ible

.

5.3.

2. C

reat

ive

docu

men

tari

es in

tend

ed fo

r co

mm

erci

al e

xplo

itatio

n

Cre

ativ

e do

cum

enta

ries

tak

e a

real

-lif

e su

bjec

t as

the

ir s

tart

ing

poin

t bu

t re

quir

e su

bsta

ntia

l or

igin

al

wri

ting

and

set o

ut a

n au

thor

’s a

nd/o

r dire

ctor

’s p

oint

of v

iew

. O

nly

docu

men

tari

es o

f no

less

than

25

min

utes

(dur

atio

n pe

r epi

sode

in c

ase

of s

erie

s) a

re e

ligib

le.

5.

3.3.

Dra

ma

proj

ects

inte

nded

for

com

mer

cial

exp

loita

tion

Onl

y dr

ama

proj

ects

(whe

ther

a o

ne-o

ff o

r a s

erie

s) o

f no

less

than

50

min

utes

are

elig

ible

.

5.3.

4. In

elig

ible

Act

iviti

es

The

dev

elop

men

t and

pro

duct

ion

activ

ities

for t

he fo

llow

ing

cate

gori

es o

f wor

k ar

e in

elig

ible

:

-

live

reco

rdin

gs,

TV

gam

es,

talk

sho

ws,

rea

lity

show

s or

edu

catio

nal,

teac

hing

and

‘ho

w-t

o’

prog

ram

mes

; -

docu

men

tari

es p

rom

otin

g to

uris

m,

"mak

ing-

of",

rep

orts

, an

imal

rep

orta

ges,

new

s pr

ogra

mm

es a

nd

"doc

u-so

aps"

; - p

roje

cts

prom

otin

g, d

irec

tly o

r ind

irec

tly, m

essa

ges

that

are

at o

dds

with

the

polic

ies

of th

e E

urop

ean

Uni

on. F

or e

xam

ple,

pro

ject

s th

at m

ay b

e co

ntra

ry to

the

inte

rest

s of

pub

lic h

ealth

(al

coho

l, to

bacc

o,

drug

s), r

espe

ct fo

r hum

an ri

ghts

, peo

ple'

s se

curi

ty, f

reed

om o

f exp

ress

ion

etc.

;

- pro

ject

s pr

omot

ing

viol

ence

and

/or r

acis

m a

nd/o

r with

a p

orno

grap

hic

cont

ent;

- wor

ks o

f a p

rom

otio

nal n

atur

e;

239

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-9-

- ins

titut

iona

l pro

duct

ions

to p

rom

ote

a sp

ecif

ic o

rgan

isat

ion

or it

s ac

tiviti

es.

5.4

Elig

ible

pro

posa

ls

A p

ropo

sal i

s el

igib

le if

: –

it is

bot

h su

bmitt

ed o

nlin

e us

ing

the

appl

icat

ion

form

(eFo

rm) a

nd th

e ap

plic

atio

n pa

ckag

e is

sen

t by

regi

ster

ed m

ail o

r pr

ivat

e co

urie

r no

late

r th

an th

e sp

ecif

ied

dead

line

for

subm

issi

on o

f pr

opos

als

(see

T

imet

able

3);

–

the

appl

icat

ion

pack

age

cont

ains

the

sign

ed r

eque

sted

atta

chm

ents

(or

igin

al s

igna

ture

s of

the

pers

on

auth

oris

ed t

o en

ter

into

leg

ally

bin

ding

com

mitm

ent

on b

ehal

f of

the

app

lican

t or

gani

satio

ns),

the

prin

ted

onlin

e ap

plic

atio

n fo

rm,

all

anne

xes

to t

he a

pplic

atio

n fo

rm a

nd t

he r

eque

sted

sup

port

ing

docu

men

ts.

App

lican

ts m

ust

subm

it a

budg

et t

hat

is b

alan

ced

in t

erm

s of

exp

endi

ture

and

rev

enue

and

mus

t co

mpl

y w

ith t

he c

eilin

g fo

r E

urop

ean

Uni

on c

ofin

anci

ng, s

et a

t 50

% (

60%

for

act

ions

pre

sent

ing

an

inte

rest

in p

rom

otin

g E

urop

ean

cultu

ral d

iver

sity

). 6.

E

XC

LU

SIO

N C

RIT

ER

IA

App

lican

ts m

ust

stat

e th

at t

hey

are

not

in a

ny o

f th

e si

tuat

ions

des

crib

ed i

n A

rtic

les

93(1

), 94

and

96

(2)(

a) o

f th

e Fi

nanc

ial

Reg

ulat

ion

appl

icab

le t

o th

e ge

nera

l bu

dget

of

the

Eur

opea

n C

omm

uniti

es

(Cou

ncil

Reg

ulat

ion

(EC

, Eur

atom

) No

1605

/200

2 as

am

ende

d) a

nd s

et o

ut b

elow

. A

pplic

ants

will

be

excl

uded

fro

m p

artic

ipat

ing

in t

he C

all

for

Prop

osal

s if

the

y ar

e in

any

of

the

follo

win

g si

tuat

ions

: a)

th

ey a

re b

ankr

upt o

r bei

ng w

ound

up,

are

hav

ing

thei

r af

fair

s ad

min

iste

red

by th

e co

urts

, hav

e en

tere

d in

to a

n ar

rang

emen

t with

cre

dito

rs, h

ave

susp

ende

d bu

sine

ss a

ctiv

ities

, are

the

subj

ect

of p

roce

edin

gs c

once

rnin

g th

ose

mat

ters

, or

are

in

any

anal

ogou

s si

tuat

ion

aris

ing

from

a

sim

ilar p

roce

dure

pro

vide

d fo

r in

natio

nal l

egis

latio

n or

regu

latio

ns;

b)

they

hav

e be

en c

onvi

cted

of

an o

ffen

ce c

once

rnin

g th

eir

prof

essi

onal

con

duct

by

a ju

dgm

ent

whi

ch h

as th

e fo

rce

of re

s jud

icat

a;

c)

they

hav

e be

en g

uilty

of

grav

e pr

ofes

sion

al m

isco

nduc

t pr

oven

by

any

mea

ns w

hich

the

co

ntra

ctin

g au

thor

ity c

an ju

stif

y;

d)

they

hav

e no

t fu

lfill

ed o

blig

atio

ns r

elat

ing

to t

he p

aym

ent

of s

ocia

l se

curi

ty c

ontr

ibut

ions

or

the

paym

ent o

f ta

xes

in a

ccor

danc

e w

ith th

e le

gal p

rovi

sion

s of

the

coun

try

in w

hich

they

are

es

tabl

ishe

d or

with

tho

se o

f th

e co

untry

of

the

cont

ract

ing

auth

ority

or

thos

e of

the

cou

ntry

w

here

the

cont

ract

is to

be

perf

orm

ed;

e)

they

hav

e be

en t

he s

ubje

ct o

f a

judg

men

t w

hich

has

the

for

ce o

f re

s ju

dica

ta f

or f

raud

, co

rrup

tion,

invo

lvem

ent i

n a

crim

inal

org

anis

atio

n or

any

oth

er il

lega

l act

ivity

det

rim

enta

l to

the

Uni

on's

fina

ncia

l int

eres

ts;

f)

they

are

sub

ject

to

an a

dmin

istr

ativ

e pe

nalty

ref

erre

d to

in

Art

icle

96(

1) o

f th

e Fi

nanc

ial

Reg

ulat

ion

(Cou

ncil

Reg

ulat

ion

1605

/200

2 of

25/

06/0

2, a

s am

ende

d) .

A

pplic

ants

will

not

be

gran

ted

fina

ncia

l ass

ista

nce

if, o

n th

e da

te o

f the

gra

nt a

war

d pr

oced

ure,

they

: a)

ar

e su

bjec

t to

a co

nflic

t of i

nter

ests

; b)

ar

e gu

ilty

of m

isre

pres

enta

tion

in s

uppl

ying

the

inf

orm

atio

n re

quir

ed b

y th

e co

ntra

ctin

g au

thor

ity a

s a

cond

ition

of

part

icip

atio

n in

the

gra

nt a

war

d pr

oced

ure,

or

fail

to s

uppl

y th

is

info

rmat

ion;

c)

fi

nd th

emse

lves

in o

ne o

f th

e si

tuat

ions

of

excl

usio

n, r

efer

red

to in

Art

93(

1) o

f th

e Fi

nanc

ial

Reg

ulat

ion,

for t

his

gran

t aw

ard

proc

edur

e an

d th

ey a

re s

ubje

ct to

the

pena

lty c

onsi

stin

g of

the

excl

usio

n fr

om c

ontr

acts

and

gra

nts

fina

nced

by

the

budg

et fo

r a m

axim

um p

erio

d of

ten

year

s.

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-10-

In a

ccor

danc

e w

ith A

rtic

les

from

93

to 9

6 of

the

Fin

anci

al R

egul

atio

n, a

dmin

istr

ativ

e an

d fi

nanc

ial

pena

lties

may

be

impo

sed

on a

pplic

ants

who

are

gui

lty o

f m

isre

pres

enta

tion

or a

re f

ound

to

have

se

riou

sly

faile

d to

mee

t the

ir c

ontr

actu

al o

blig

atio

ns u

nder

a p

revi

ous

cont

ract

aw

ard

proc

edur

e.

To

com

ply

with

the

se p

rovi

sion

s, a

pplic

ants

mus

t si

gn a

dec

lara

tion

on t

heir

hono

ur c

ertif

ying

tha

t th

ey a

re n

ot in

any

of t

he s

ituat

ions

refe

rred

to in

Art

icle

s 93

and

94

of th

e Fi

nanc

ial R

egul

atio

n.

7.

SEL

EC

TIO

N C

RIT

ER

IA

App

lican

ts m

ust h

ave

stab

le a

nd s

uffi

cien

t sou

rces

of f

undi

ng to

mai

ntai

n th

eir

activ

ity th

roug

hout

the

peri

od d

urin

g w

hich

the

actio

n is

bei

ng c

arri

ed o

ut o

r th

e ye

ar f

or w

hich

the

gran

t is

awar

ded

and

to

part

icip

ate

in it

s fu

ndin

g. T

hey

mus

t hav

e th

e pr

ofes

sion

al c

ompe

tenc

ies

and

qual

ific

atio

ns re

quir

ed to

co

mpl

ete

the

prop

osed

act

ion.

A

pplic

ants

mus

t sub

mit

a de

clar

atio

n on

thei

r hon

our,

com

plet

ed a

nd s

igne

d, a

ttest

ing

to th

eir s

tatu

s as

a

lega

l ent

ity a

nd to

thei

r fin

anci

al a

nd o

pera

tiona

l cap

acity

to c

ompl

ete

the

prop

osed

act

iviti

es.

7.1

Ope

ratio

nal c

apac

ity

In o

rder

to

perm

it an

ass

essm

ent

of t

heir

ope

ratio

nal

capa

city

, app

lican

ts m

ust

subm

it, t

oget

her

with

th

eir a

pplic

atio

ns:

•

the

deta

ils o

f th

e ex

peri

ence

of

the

mem

bers

of

the

appl

ican

t com

pany

's te

am d

irec

tly

atta

ched

to th

e de

velo

pmen

t of t

he s

ubm

itted

act

ion;

• a

list o

f pr

oduc

tions

alr

eady

pro

duce

d by

the

appl

ican

t Com

pany

and

/or

the

prod

ucer

of

the

refe

rral

wor

k (s

ee 5

.1.2

.);

• th

e do

cum

ents

rela

ting

to th

e ow

ners

hip

of ri

ghts

. N

o la

ter t

han

on th

e da

te o

f sub

mis

sion

, the

app

lican

t com

pany

mus

t sho

w th

at it

hol

ds th

e m

ajor

ity o

f th

e ri

ghts

rel

atin

g to

the

pro

ject

for

whi

ch s

uppo

rt i

s be

ing

soug

ht.

It i

s re

quir

ed t

o pr

ovid

e a

cont

ract

cov

erin

g th

e ri

ghts

to

the

artis

tic m

ater

ial

incl

uded

in

the

appl

icat

ion.

Thi

s m

ust

incl

ude

at l

east

: co

ncep

t, su

bjec

t, tr

eatm

ent,

scri

pt o

r bi

ble.

Thi

s co

ntra

ct m

ust b

e du

ly s

igne

d an

d da

ted

by th

e au

thor

(s).

The

follo

win

g ty

pes

of c

ontr

acts

will

be

acce

pted

:

- an

opt

ion

agre

emen

t co

ncer

ning

the

tra

nsfe

r of

rig

hts

betw

een

the

auth

or a

nd t

he

appl

ican

t com

pany

, of

an a

dequ

ate

dura

tion

to c

over

the

who

le d

evel

opm

ent s

ched

ule

and

clea

rly

setti

ng o

ut th

e co

nditi

ons

for e

xerc

isin

g th

e op

tion;

or

- a

con

trac

t tra

nsfe

rrin

g th

e ri

ghts

from

the

auth

or to

the

appl

ican

t com

pany

.

T

he o

ptio

n ag

reem

ent o

r tra

nsfe

r of r

ight

s co

ntra

ct c

an b

e re

plac

ed b

y:

- a

unila

tera

l de

clar

atio

n of

the

tra

nsfe

r of

rig

hts

to t

he a

pplic

ant

com

pany

whe

re t

he

auth

or is

the

prod

ucer

, a s

hare

hold

er o

r an

empl

oyee

of t

he c

ompa

ny;

- a

co-p

rodu

ctio

n or

co-

deve

lopm

ent a

gree

men

t dul

y da

ted

and

sign

ed b

y th

e pa

rtie

s an

d cl

earl

y sh

owin

g th

at th

e ap

plic

ant c

ompa

ny h

olds

the

maj

ority

of

the

righ

ts a

t the

dat

e of

th

e ap

plic

atio

n.

If t

he p

roje

ct i

s an

ada

ptat

ion

of a

n ex

istin

g w

ork

(nov

el,

biog

raph

y et

c.),

the

appl

ican

t co

mpa

ny m

ust

also

sho

w t

hat

it ho

lds

the

maj

ority

of

the

righ

ts r

elat

ing

to t

he r

ight

s of

ad

apta

tion

to th

is w

ork

with

an

optio

n ag

reem

ent o

r tr

ansf

er o

f ri

ghts

con

trac

t dul

y da

ted

and

sign

ed.

240

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-11-

7.2

Fina

ncia

l cap

acity

In

ord

er to

per

mit

an a

sses

smen

t of t

heir

fina

ncia

l cap

acity

, app

lican

ts m

ust s

ubm

it:

•

For

requ

ests

exc

eedi

ng E

UR

25,

000

the

prof

it an

d lo

ss a

ccou

nts

of t

he a

pplic

ant,

toge

ther

with

the

bala

nce

shee

t for

the

2 fi

nanc

ial y

ears

for

whi

ch th

e ac

coun

ts h

ave

been

clo

sed

for p

rofi

t com

pani

es a

nd o

f the

last

yea

r for

non

pro

fit c

ompa

nies

.

Plea

se n

ote

that

the

data

to b

e pr

ovid

ed a

re d

iffe

rent

dep

endi

ng o

n w

heth

er th

e ap

plic

ant i

s a

prof

it or

a

non

prof

it co

mpa

ny. T

he A

genc

y ap

plie

s th

ese

crite

ria

taki

ng in

to a

ccou

nt th

e le

gisl

ativ

e fr

amew

ork

of

the

diff

eren

t cou

ntri

es p

artic

ipat

ing

in th

e Pr

ogra

mm

e.

If

, on

the

basi

s of

the

docu

men

ts s

ubm

itted

, the

Age

ncy

cons

ider

s th

at f

inan

cial

cap

acity

has

not

bee

n pr

oved

or i

s no

t sat

isfa

ctor

y, it

may

: o

reje

ct th

e ap

plic

atio

n o

ask

for f

urth

er in

form

atio

n o

requ

ire

a gu

aran

tee

(see

9.3

) o

offe

r a

Gra

nt D

ecis

ion/

Agr

eem

ent

with

out

pre-

fina

ncin

g or

mak

e a

firs

t pa

ymen

t on

th

e ba

sis

of e

xpen

ses

alre

ady

incu

rred

. E

xem

ptio

ns

The

ver

ific

atio

n of

fin

anci

al c

apac

ity s

hall

not a

pply

to g

rant

s be

low

/equ

al to

EU

R 2

5,00

0. I

f su

ch is

th

e ca

se t

he a

pplic

ant

mus

t ce

rtif

y th

at i

t ha

s th

e op

erat

iona

l an

d fi

nanc

ial

capa

city

to

com

plet

e th

e pr

opos

ed a

ctiv

ities

.

8.

AW

AR

D C

RIT

ER

IA

Elig

ible

app

licat

ions

con

form

ing

to t

he s

elec

tion

requ

irem

ents

will

be

asse

ssed

on

the

basi

s of

the

fo

llow

ing

crite

ria:

8.

1.

Cri

teri

a fo

r au

tom

atic

poi

nts

Cri

teri

a N

umbe

r of

poi

nts

A

proj

ect

whi

ch

has

been

th

e su

bjec

t of

tr

aini

ng

supp

orte

d by

the

ME

DIA

Pro

gram

me

2

An

appl

ican

t co

mpa

ny e

stab

lishe

d in

a c

ount

ry w

ith l

ow

prod

uctio

n ca

paci

ty2

1

An

appl

ican

t com

pany

whi

ch b

enef

ited

from

dev

elop

men

t su

ppor

t un

der

ME

DIA

PL

US

or M

ED

IA 2

007

for

a pr

ojec

t tha

t has

bee

n pr

oduc

ed

1

(No

mat

ter

how

man

y pr

ojec

ts

supp

orte

d by

ME

DIA

hav

e be

en

prod

uced

)

2 T

he f

ollo

win

g ar

e co

nsid

ered

as

coun

tries

with

low

pro

duct

ion

capa

city

: Aus

tria

, Bel

gium

, Bul

gari

a, C

roat

ia,

Cyp

rus,

Cze

ch R

epub

lic,

Den

mar

k, E

ston

ia,

Finl

and,

Gre

ece,

Hun

gary

, Ic

elan

d, É

ire/I

rela

nd,

Lie

chte

nste

in,

Lat

via,

Lith

uani

a, L

uxem

burg

, M

alta

, N

orw

ay,

Net

herl

ands

, Po

land

, Po

rtuga

l, R

oman

ia,

Slov

akia

, Sl

oven

ia,

Swed

en a

nd S

witz

erla

nd.

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-12-

8.2.

E

valu

atio

n C

rite

ria

cons

ider

ed b

y th

e in

depe

nden

t exp

erts

App

licat

ions

will

be

eval

uate

d in

term

s of

the

awar

d cr

iteri

a w

ith th

e he

lp o

f in

depe

nden

t exp

erts

. On

the

basi

s of

the

ind

epen

dent

exp

erts

’ op

inio

ns,

a lis

t of

pro

ject

s, r

anke

d ac

cord

ing

to m

erit,

will

be

esta

blis

hed.

Gra

nts

are

allo

cate

d to

the

best

pro

ject

s w

ithin

the

limits

of t

he a

vaila

ble

budg

et.

The

Age

ncy

sele

cts

expe

rts

on t

he b

asis

of

thei

r in

depe

nden

ce,

prof

essi

onal

exp

erie

nce

and

qual

ity.

The

ir

eval

uatio

ns

may

no

t be

co

mm

unic

ated

to

app

lican

ts,

for

reas

ons

of

conf

iden

tialit

y an

d im

part

ialit

y.

Poin

ts w

ill b

e al

loca

ted

out o

f a to

tal o

f 100

on

the

basi

s of

the

follo

win

g w

eigh

tings

:

Cri

teri

a re

latin

g to

the

appl

ican

t com

pany

Cri

teri

a re

latin

g to

the

subm

itted

pro

ject

Cri

teri

a W

eigh

ting

C

rite

ria

Wei

ghtin

g Q

ualit

y of

th

e de

velo

pmen

t st

rate

gy

10

Qua

lity

of th

e pr

ojec

t 40

Con

sist

ency

of

th

e de

velo

pmen

t bud

get

10

Pote

ntia

l for

pro

duct

ion

and

the

feas

ibili

ty o

f the

pro

ject

10

Qua

lity

of

the

fina

ncin

g st

rate

gy

10

Pote

ntia

l fo

r E

urop

ean

and

inte

rnat

iona

l dis

trib

utio

n 10

Qua

lity

of

the

dist

ribut

ion

stra

tegy

10

Tot

al

40 p

oint

s T

otal

60

poi

nts

Tot

al s

core

is a

chie

ved

by a

ddin

g th

e au

tom

atic

poi

nts

and

the

awar

d cr

iteri

a po

ints

allo

cate

d by

the

inde

pend

ent e

xper

ts

9.

FIN

AN

CIA

L C

ON

DIT

ION

S E

urop

ean

Uni

on g

rant

s ar

e in

cent

ives

to

carr

y ou

t ac

tions

whi

ch w

ould

not

be

feas

ible

with

out

the

ME

DIA

Pro

gram

me

fina

ncia

l sup

port

, and

are

bas

ed o

n th

e pr

inci

ple

of c

o-fi

nanc

ing.

T

hey

com

plem

ent

the

appl

ican

t's o

wn

fina

ncia

l co

ntri

butio

n an

d/or

nat

iona

l, re

gion

al o

r pr

ivat

e as

sist

ance

that

has

bee

n ob

tain

ed e

lsew

here

. A

ccep

tanc

e of

an

appl

icat

ion

by t

he A

genc

y do

es n

ot c

onst

itute

an

unde

rtak

ing

to a

war

d a

fina

ncia

l co

ntri

butio

n eq

ual

to t

he a

mou

nt r

eque

sted

by

the

bene

fici

ary.

The

aw

ardi

ng o

f a

gran

t do

es n

ot

esta

blis

h an

ent

itlem

ent f

or s

ubse

quen

t yea

rs.

Gra

nt a

pplic

atio

ns m

ust i

nclu

de a

det

aile

d es

timat

ed b

udge

t in

whi

ch a

ll pr

ices

are

giv

en in

eur

o.

App

lican

ts f

rom

cou

ntri

es o

utsi

de t

he e

uro

zone

mus

t us

e th

e m

onth

ly a

ccou

ntin

g ra

te a

pplic

able

at

the

begi

nnin

g of

the

mon

th o

f th

e ap

plic

atio

n an

d av

aila

ble

from

the

ME

DIA

Des

ks a

nd A

nten

nae

or

from

the

web

site

of t

he C

omm

issi

on a

t: ht

tp://

ec.e

urop

a.eu

/bud

get/i

nfor

euro

. T

he b

udge

t fo

r th

e ac

tion

atta

ched

to

the

appl

icat

ion

mus

t ha

ve r

even

ue a

nd e

xpen

ditu

re i

n ba

lanc

e an

d sh

ow c

lear

ly th

e co

sts

whi

ch a

re e

ligib

le fo

r fin

anci

ng fr

om th

e U

nion

bud

get.

241

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-13-

The

allo

cate

d am

ount

may

not

exc

eed

the

amou

nt re

ques

ted.

T

he a

pplic

ant m

ust i

ndic

ate

the

sour

ces

and

amou

nts

any

othe

r fu

ndin

g re

ceiv

ed o

r ap

plie

d fo

r in

the

sam

e fi

nanc

ial y

ear f

or th

e sa

me

actio

n.

The

ben

efic

iary

sha

ll su

pply

evi

denc

e of

the

co-f

inan

cing

pro

vide

d, e

ither

by

way

of o

wn

reso

urce

s, o

r in

the

for

m o

f fi

nanc

ial

tran

sfer

s fr

om t

hird

par

ties.

The

app

lican

ts s

hall

prov

ide

an e

xplic

it un

dert

akin

g fr

om e

ach

co-f

inan

cing

org

anis

atio

n to

pro

vide

the

amou

nt o

f fu

ndin

g st

ated

in th

e gr

ant

appl

icat

ion

for t

he o

pera

tion.

T

he A

genc

y g

rant

may

not

hav

e th

e pu

rpos

e or

eff

ect o

f pr

oduc

ing

a pr

ofit

for

the

bene

fici

ary.

Pro

fit

is d

efin

ed a

s a

surp

lus

of re

ceip

ts o

ver c

osts

. The

am

ount

of t

he g

rant

will

be

redu

ced

by th

e am

ount

of

any

surp

lus.

9.

1 C

ontr

actu

al p

rovi

sion

s and

Pay

men

t pro

cedu

res

In th

e ev

ent o

f de

fini

tive

appr

oval

by

the

Age

ncy,

a G

rant

Dec

isio

n or

a G

rant

Agr

eem

ent,

draw

n up

in

eur

o an

d de

taili

ng th

e co

nditi

ons

and

leve

l of f

undi

ng w

ill b

e se

nt to

the

bene

fici

ary.

In

cas

e of

ben

efic

iari

es e

stab

lishe

d ou

tsid

e th

e E

urop

ean

Uni

on:

the

2 co

pies

of

the

orig

inal

G

rant

Agr

eem

ent m

ust b

e si

gned

by

the

bene

fici

ary

and

retu

rned

to th

e A

genc

y im

med

iate

ly.

The

Age

ncy

will

sig

n it

last

.

In

cas

e of

ben

efic

iari

es e

stab

lishe

d w

ithin

the

Eur

opea

n U

nion

Mem

ber S

tate

s: th

e G

rant

D

ecis

ion

mus

t not

be

retu

rned

to th

e A

genc

y. T

he g

ener

al c

ondi

tions

app

licab

le to

the

Dec

isio

n (G

ener

al C

ondi

tions

2.1

.1.3

) are

ava

ilabl

e in

the

'Doc

umen

ts re

gist

er' o

f the

Age

ncy

web

site

(Cal

ls fo

r pro

posa

ls II

.a)

http

://ea

cea.

ec.e

urop

a.eu

/abo

ut/d

ocum

ents

/cal

ls_g

en_c

ondi

tions

/2a_

actio

n_no

cont

ribu

tion_

en.

pdf

As

rega

rds

Gra

nt D

ecis

ions

, ben

efic

iari

es u

nder

stan

d th

at:

Subm

issi

on o

f a

gran

t ap

plic

atio

n im

plie

s ac

cept

ance

of

thes

e G

ener

al C

ondi

tions

. T

hese

G

ener

al C

ondi

tions

bin

d th

e be

nefi

ciar

y to

who

m th

e gr

ant i

s aw

arde

d an

d sh

all c

onst

itute

an

anne

x to

the

Gra

nt D

ecis

ion.

T

he a

ccou

nt o

r su

b-ac

coun

t in

dica

ted

by t

he b

enef

icia

ry m

ust

mak

e it

poss

ible

to

iden

tify

the

fund

s tr

ansf

erre

d by

the

Age

ncy.

If

the

fund

s pa

id in

to th

is a

ccou

nt g

ive

rise

to in

tere

st o

r eq

uiva

lent

pro

fits

in

acc

orda

nce

with

the

legi

slat

ion

of th

e co

untry

whe

re th

e ac

coun

t is

held

, suc

h pr

ofit

or in

tere

st w

ill

be r

ecov

ered

by

the

Age

ncy

whe

re it

res

ults

fro

m th

e pr

e-fi

nanc

ing

paym

ent i

f th

is p

aym

ent e

xcee

ds

EU

R 5

0,00

0.

A p

re-f

inan

cing

pay

men

t of 7

0% w

ill b

e tr

ansf

erre

d to

the

bene

fici

ary

with

in 4

5 da

ys o

f:

- the

dat

e of

rece

ptio

n of

the

paym

ent r

eque

st (f

or G

rant

Dec

isio

ns),

- the

dat

e w

hen

the

last

of t

he tw

o pa

rtie

s si

gns

the

agre

emen

t (fo

r Gra

nt A

gree

men

ts)

and

all t

he p

ossi

ble

guar

ante

es a

re re

ceiv

ed. P

re-f

inan

cing

is in

tend

ed to

pro

vide

the

bene

fici

ary

with

a

floa

t.

The

Age

ncy

will

est

ablis

h th

e am

ount

of

the

final

pay

men

t to

be m

ade

to th

e be

nefi

ciar

y on

the

basi

s of

the

fin

al r

epor

t. If

the

elig

ible

cos

ts a

ctua

lly in

curr

ed b

y th

e ap

plic

ant

duri

ng t

he a

ctio

n ar

e lo

wer

th

an a

ntic

ipat

ed, t

he A

genc

y w

ill a

pply

its

rate

of

fund

ing

to th

e ac

tual

cos

ts, a

nd th

e be

nefi

ciar

y w

ill,

whe

re a

pplic

able

, be

requ

ired

to

repa

y an

y ex

cess

am

ount

s al

read

y tr

ansf

erre

d by

the

Age

ncy

unde

r th

e pr

e-fi

nanc

ing

paym

ent.

If

the

bene

fici

ary

is u

nabl

e to

pas

s th

e Fi

nanc

ial C

apac

ity te

st th

e fo

llow

ing

optio

ns a

re a

vaila

ble:

1.

Pro

vide

a b

ank

guar

ante

e fo

r the

am

ount

of t

he p

re-f

inan

cing

pay

men

t.

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-14-

2. R

eque

st a

Gra

nt D

ecis

ion/

Agr

eem

ent w

ithou

t pre

-fin

anci

ng.

3. R

eque

st a

n in

teri

m p

aym

ent c

orre

spon

ding

to 5

0% o

f the

val

ue o

f the

am

ount

aw

arde

d, a

fter

at l

east

50

% o

f the

est

imat

ed d

evel

opm

ent b

udge

t has

bee

n sp

ent.

Thi

s pa

ymen

t will

take

pla

ce a

fter

rece

ptio

n an

d ap

prov

al b

y th

e A

genc

y of

an

Inte

rim F

inan

cial

Rep

ort c

ertif

ied

by a

n ex

tern

al a

ppro

ved

audi

tor.

9.2

Cer

tific

ate

on th

e fin

anci

al st

atem

ents

and

und

erly

ing

acco

unts

A

cer

tific

ate

on t

he f

inan

cial

sta

tem

ents

and

und

erly

ing

acco

unts

, pro

duce

d by

an

appr

oved

aud

itor,

may

be

dem

ande

d by

the

auth

oris

ing

offic

er r

espo

nsib

le in

sup

port

of a

ny p

aym

ent o

n th

e ba

sis

of h

is

asse

ssm

ent o

f ris

ks.

The

cer

tific

ate

shal

l be

atta

ched

to

the

requ

est

for

inte

rim

and

/or

fina

l pa

ymen

t. T

he c

ertif

icat

e sh

all

cert

ify,

in

acco

rdan

ce w

ith a

met

hodo

logy

app

rove

d by

the

con

trac

ting

auth

ority

, th

at t

he c

osts

de

clar

ed b

y th

e be

nefi

ciar

y in

the

fina

ncia

l sta

tem

ents

on

whi

ch th

e re

ques

t for

pay

men

t is

base

d ar

e re

al, a

ccur

atel

y re

cord

ed a

nd e

ligib

le in

acc

orda

nce

with

the

Gra

nt D

ecis

ion/

Agr

eem

ent.

9.

3 G

uara

ntee

T

he A

genc

y m

ay re

quir

e an

y ap

plic

ant w

hich

has

bee

n aw

arde

d a

gran

t to

prov

ide

a gu

aran

tee

firs

t, in

or

der t

o lim

it th

e fi

nanc

ial r

isks

link

ed to

the

pre-

fina

ncin

g pa

ymen

t. T

he p

urpo

se o

f thi

s gu

aran

tee

is to

mak

e a

bank

or a

fina

ncia

l ins

titut

ion

stan

d as

irre

voca

ble

colla

tera

l se

curi

ty fo

r, or

firs

t-ca

ll gu

aran

tor o

f, th

e gr

ant b

enef

icia

ry's

oblig

atio

ns.

Thi

s fi

nanc

ial

guar

ante

e, i

n eu

ro,

shal

l be

pro

vide

d by

an

appr

oved

ban

k or

fin

anci

al i

nstit

utio

n es

tabl

ishe

d in

one

of

the

Mem

ber

Stat

e of

the

Eur

opea

n U

nion

. Whe

n th

e be

nefic

iary

is e

stab

lishe

d in

a

thir

d co

untry

, th

e au

thor

isin

g of

fice

r re

spon

sibl

e m

ay a

gree

tha

t a

bank

or

fina

ncia

l in

stitu

tion

esta

blis

hed

in t

hat

thir

d co

untry

may

pro

vide

the

gua

rant

ee i

f he

con

side

rs t

hat

the

bank

or

fina

ncia

l in

stitu

tion

offe

rs e

quiv

alen

t se

curi

ty a

nd c

hara

cter

istic

s as

tho

se o

ffer

ed b

y a

bank

or

fina

ncia

l in

stitu

tion

esta

blis

hed

in a

Mem

ber S

tate

. T

he g

uara

ntee

sha

ll be

rel

ease

d as

the

pre-

fina

ncin

g is

gra

dual

ly c

lear

ed a

gain

st in

teri

m p

aym

ents

or

paym

ents

of

bala

nces

to

the

bene

fici

ary,

in

acco

rdan

ce w

ith t

he c

ondi

tions

lai

d do

wn

in t

he

deci

sion

/gra

nt a

gree

men

t. 9.

4 D

oubl

e fin

anci

ng

Subs

idis

ed a

ctio

ns m

ay n

ot b

enef

it fr

om a

ny o

ther

Eur

opea

n U

nion

fund

ing

for t

he s

ame

activ

ity.

9.5

Elig

ible

cos

ts

Elig

ible

cos

ts o

f th

e ac

tion

are

cost

s ac

tual

ly i

ncur

red

by t

he b

enef

icia

ry,

whi

ch m

eet

the

follo

win

g cr

iteri

a:

they

ar

e in

curr

ed

duri

ng

the

dura

tion

of

the

actio

n as

sp

ecif

ied

in

the

Gra

nt

Dec

isio

n/A

gree

men

t, w

ith t

he e

xcep

tion

of c

osts

rel

atin

g to

fin

al r

epor

ts a

nd c

ertif

icat

es o

n th

e ac

tion’

s fin

anci

al s

tate

men

ts a

nd u

nder

lyin

g ac

coun

ts;

they

are

con

nect

ed w

ith th

e su

bjec

t of t

he G

rant

Dec

isio

n/A

gree

men

t and

they

are

indi

cate

d in

th

e es

timat

ed o

vera

ll bu

dget

of t

he a

ctio

n;

they

are

nec

essa

ry fo

r the

impl

emen

tatio

n of

the

actio

n w

hich

is th

e su

bjec

t of t

he g

rant

;

th

ey a

re i

dent

ifia

ble

and

veri

fiab

le, i

n pa

rtic

ular

bei

ng r

ecor

ded

in t

he a

ccou

ntin

g re

cord

s of

th

e be

nefi

ciar

y an

d de

term

ined

acc

ordi

ng t

o th

e ap

plic

able

acc

ount

ing

stan

dard

s of

the

242

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-15-

coun

try w

here

the

ben

efic

iary

is

esta

blis

hed

and

acco

rdin

g to

the

usu

al c

ost-

acco

untin

g pr

actic

es o

f the

ben

efic

iary

;

th

ey c

ompl

y w

ith th

e re

quir

emen

ts o

f app

licab

le ta

x an

d so

cial

legi

slat

ion;

th

ey

are

reas

onab

le,

just

ifie

d,

and

com

ply

with

th

e re

quir

emen

ts

of

soun

d fi

nanc

ial

man

agem

ent,

in p

artic

ular

rega

rdin

g ec

onom

y an

d ef

ficie

ncy.

T

he b

enef

icia

ry's

inte

rnal

acc

ount

ing

and

audi

ting

proc

edur

es m

ust p

erm

it di

rect

rec

onci

liatio

n of

the

cost

s an

d re

venu

e de

clar

ed in

res

pect

of

the

actio

n w

ith th

e co

rres

pond

ing

acco

untin

g st

atem

ents

and

su

ppor

ting

docu

men

ts.

Elig

ible

dir

ect c

osts

: T

he e

ligib

le d

irec

t co

sts

for

the

actio

n ar

e th

ose

cost

s w

hich

, w

ith d

ue r

egar

d fo

r th

e co

nditi

ons

of

elig

ibili

ty s

et o

ut a

bove

, ar

e id

entif

iabl

e as

spe

cifi

c co

sts

dire

ctly

lin

ked

to t

he p

erfo

rman

ce o

f th

e ac

tion

and

whi

ch c

an t

here

fore

be

book

ed t

o it

dire

ctly

. In

par

ticul

ar,

the

follo

win

g di

rect

cos

ts a

re

elig

ible

, pro

vide

d th

at th

ey s

atis

fy th

e cr

iteri

a se

t out

in th

e pr

evio

us p

arag

raph

:

– ac

quis

ition

of a

utho

r rig

hts;

–

rese

arch

; –

arch

ive

rese

arch

; –

scri

ptw

ritin

g, in

clud

ing

trea

tmen

ts, u

p to

and

incl

udin

g th

e fi

nal d

raft

; –

stor

yboa

rds;

–

rese

arch

and

iden

tific

atio

n of

key

cas

t and

cre

w;

– pr

epar

atio

n of

the

prov

isio

nal p

rodu

ctio

n bu

dget

; –

prep

arat

ion

of a

fina

ncin

g pl

an;

– se

arch

for a

nd id

entif

icat

ion

of in

dust

ry p

artn

ers,

co-

prod

ucer

s an

d fi

nanc

iers

; –

prep

arat

ion

of th

e pr

oduc

tion

sche

dule

up

to d

eliv

ery;

–

initi

al

mar

ketin

g an

d sa

les

plan

s (t

arge

t m

arke

ts

and

buye

rs,

fore

seen

re

leas

es, p

rese

ntat

ion

at fe

stiv

als

and

mar

kets

, etc

.);

– pr

oduc

tion

of a

vid

eo tr

eatm

ent o

r of a

pilo

t. E

ligib

le in

dire

ct c

osts

(adm

inis

trat

ive

cost

s)

A fl

at-r

ate

amou

nt, n

ot e

xcee

ding

7%

of t

he e

ligib

le d

irect

cos

ts o

f the

act

ion,

is e

ligib

le u

nder

indi

rect

co

sts,

rep

rese

ntin

g th

e be

nefi

ciar

y’s

gene

ral a

dmin

istr

ativ

e co

sts

whi

ch c

an b

e re

gard

ed a

s ch

arge

able

to

the

actio

n.

Indi

rect

cos

ts m

ay n

ot i

nclu

de c

osts

ent

ered

und

er a

noth

er b

udge

t he

adin

g. I

ndir

ect

cost

s ar

e no

t el

igib

le w

here

the

bene

fici

ary

alre

ady

rece

ives

an

oper

atin

g gr

ant.

9.6

Inel

igib

le c

osts

T

he fo

llow

ing

cost

s sh

all n

ot b

e co

nsid

ered

elig

ible

:

- re

turn

on

capi

tal;

- de

bt a

nd d

ebt s

ervi

ce c

harg

es;

- pr

ovis

ions

for l

osse

s or

pot

entia

l fut

ure

liabi

litie

s;

- in

tere

st o

wed

; -

doub

tful d

ebts

; -

exch

ange

loss

es;

- V

AT

, un

less

the

ben

efic

iary

can

sho

w t

hat

it is

una

ble

to r

ecov

er i

t ac

cord

ing

to t

he

appl

icab

le n

atio

nal l

egis

latio

n;

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-16-

- co

sts

decl

ared

by

the

bene

fici

ary

and

cove

red

by a

noth

er a

ctio

n or

wor

k pr

ogra

mm

e re

ceiv

ing

a E

urop

ean

Uni

on g

rant

; -

exce

ssiv

e or

reck

less

exp

endi

ture

; -

the

part

icip

atio

n fe

e fo

r tra

inin

g ac

tiviti

es s

uppo

rted

by

ME

DIA

; -

prod

uctio

n co

sts.

C

ontr

ibut

ions

in k

ind

(suc

h as

pro

fess

iona

l cre

dits

/indu

stry

cre

dits

in k

ind

and

defe

rred

sal

arie

s) s

hall

no

t con

stitu

te e

ligib

le c

osts

. 9.

7 So

urce

s of i

ncom

e A

ll fi

nanc

ial c

ontr

ibut

ions

mus

t be

subs

tant

iate

d by

cle

ar s

tate

men

ts d

uly

date

d an

d si

gned

, spe

cify

ing

the

amou

nts

and

the

fact

that

they

will

be

prov

ided

in c

ash.

T

he F

inan

cing

Pla

n sh

ould

sho

w:

T

he d

irec

t mon

etar

y co

ntri

butio

n fr

om th

e ap

plic

ant (

own

reso

urce

s);

T

he fi

nanc

ial c

ontr

ibut

ion

from

oth

er fu

nd p

rovi

ders

(pub

lic a

nd/o

r pri

vate

);

T

he c

ontr

ibut

ion

appl

ied

for t

o th

e M

ED

IA P

rogr

amm

e.

10.

SUB

-CO

NT

RA

CT

ING

AN

D A

WA

RD

OF

PRO

CU

RE

ME

NT

CO

NT

RA

CT

W

here

im

plem

enta

tion

of t

he a

ctio

n re

quir

es s

ub-c

ontr

actin

g or

the

aw

ardi

ng o

f a

proc

urem

ent

cont

ract

, th

e be

nefi

ciar

y an

d, w

here

app

licab

le,

its p

artn

ers

mus

t ob

tain

com

petit

ive

tend

ers

from

po

tent

ial

cont

ract

ors

and

awar

d th

e co

ntra

ct t

o th

e bi

d of

feri

ng b

est

valu

e fo

r m

oney

, ob

serv

ing

the

prin

cipl

es o

f tr

ansp

aren

cy a

nd e

qual

tre

atm

ent

of p

oten

tial

cont

ract

ors

and

taki

ng c

are

to a

void

co

nflic

ts o

f int

eres

ts.

11.

PUB

LIC

ITY

A

ll gr

ants

aw

arde

d in

the

cou

rse

of a

fin

anci

al y

ear

mus

t be

pub

lishe

d on

the

Int

erne

t si

te o

f th

e E

urop

ean

Uni

on in

stitu

tions

dur

ing

the

firs

t hal

f of t

he y

ear f

ollo

win

g th

e cl

osur

e of

the

budg

et y

ear i

n re

spec

t of

whi

ch t

hey

wer

e aw

arde

d. T

he i

nfor

mat

ion

may

als

o be

pub

lishe

d us

ing

any

othe

r ap

prop

riat

e m

ediu

m, i

nclu

ding

the

Off

icia

l Jou

rnal

of t

he E

urop

ean

Uni

on.

With

the

agre

emen

t of

the

bene

fici

ary,

taki

ng a

ccou

nt o

f w

heth

er in

form

atio

n is

of

such

a n

atur

e as

to

jeop

ardi

se i

ts s

ecur

ity o

r pr

ejud

ice

its f

inan

cial

int

eres

ts,

the

Age

ncy

will

pub

lish

the

follo

win

g in

form

atio

n:

- n

ame

and

addr

ess

of th

e be

nefi

ciar

y,

- sub

ject

of t

he g

rant

, - a

mou

nt a

war

ded

and

rate

of f

undi

ng.

B

enef

icia

ries

mus

t cl

earl

y ac

know

ledg

e th

e E

urop

ean

Uni

on’s

con

trib

utio

n in

all

publ

icat

ions

or

in

conj

unct

ion

with

act

iviti

es fo

r whi

ch th

e gr

ant i

s us

ed.

Furt

herm

ore,

ben

efic

iari

es a

re r

equi

red

to g

ive

prom

inen

ce t

o th

e na

me

and

logo

of

the

Eur

opea

n C

omm

issi

on o

n al

l th

eir

publ

icat

ions

, pos

ters

, pro

gram

mes

and

oth

er p

rodu

cts

real

ised

und

er t

he c

o-fi

nanc

ed a

ctio

n an

d to

men

tion

“With

the

supp

ort o

f the

MED

IA P

rogr

amm

e of

the

Euro

pean

Uni

on”.

If

this

requ

irem

ent i

s no

t ful

ly c

ompl

ied

with

, the

ben

efic

iary

’s g

rant

may

be

redu

ced.

243

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-17-

12.

DA

TA

PR

OT

EC

TIO

N

All

pers

onal

dat

a (s

uch

as n

ames

, ad

dres

ses,

CV

s, e

tc.)

will

be

proc

esse

d in

acc

orda

nce

with

R

egul

atio

n (E

C)

No

45/2

001

of th

e E

urop

ean

Parl

iam

ent a

nd o

f th

e C

ounc

il of

18

Dec

embe

r 200

0 on

th

e pr

otec

tion

of i

ndiv

idua

ls w

ith r

egar

d to

the

pro

cess

ing

of p

erso

nal

data

by

the

Eur

opea

n U

nion

in

stitu

tions

and

bod

ies

and

on th

e fr

ee m

ovem

ent o

f suc

h da

ta.

You

r re

plie

s to

the

que

stio

ns i

n th

e ap

plic

atio

n fo

rm a

re n

eces

sary

in

orde

r to

ass

ess

your

gra

nt

appl

icat

ion

and

they

will

be

proc

esse

d so

lely

for

tha

t pu

rpos

e by

the

dep

artm

ent

resp

onsi

ble

for

the

Eur

opea

n U

nion

gra

nt p

rogr

amm

e co

ncer

ned.

On

requ

est,

you

may

be

sent

per

sona

l dat

a an

d co

rrec

t or

com

plet

e th

em.

For

any

ques

tion

rela

ting

to t

hese

dat

a, p

leas

e co

ntac

t th

e A

genc

y. B

enef

icia

ries

m

ay lo

dge

a co

mpl

aint

aga

inst

the

proc

essi

ng o

f the

ir p

erso

nal d

ata

with

the

Eur

opea

n D

ata

Prot

ectio

n Su

perv

isor

at a

ny ti

me.

A

pplic

ants

and

, if

they

are

lega

l ent

ities

, per

sons

who

hav

e po

wer

s of

rep

rese

ntat

ion,

dec

isio

n-m

akin

g or

con

trol

ove

r the

m, a

re in

form

ed th

at, s

houl

d th

ey b

e in

one

of t

he s

ituat

ions

men

tione

d in

: -

the

Com

mis

sion

Dec

isio

n of

16.

12.2

008

on t

he E

arly

War

ning

Sys

tem

(E

WS)

for

the

use

of

auth

oris

ing

offi

cers

of t

he C

omm

issi

on a

nd th

e ex

ecut

ive

agen

cies

(OJ,

L 3

44, 2

0.12

.200

8, p

. 125

), or

-

the

Com

mis

sion

Reg

ulat

ion

of 1

7.12

.200

8 on

the

Cen

tral

Exc

lusi

on D

atab

ase

– C

ED

(O

J L

344

, 20

.12.

2008

, p. 1

2),

thei

r pe

rson

al d

etai

ls (

nam

e, g

iven

nam

e if

nat

ural

per

son,

add

ress

, le

gal

form

and

nam

e an

d gi

ven

nam

e of

the

per

sons

with

pow

ers

of r

epre

sent

atio

n, d

ecis

ion-

mak

ing

or c

ontr

ol, i

f le

gal

pers

on)

may

be

reg

iste

red

in t

he E

WS

only

or

both

in

the

EW

S an

d C

ED

, and

com

mun

icat

ed t

o th

e pe

rson

s an

d en

titie

s lis

ted

in t

he a

bove

-men

tione

d D

ecis

ion

and

Reg

ulat

ion,

in

rela

tion

to t

he a

war

d or

the

ex

ecut

ion

of a

pro

cure

men

t con

trac

t or a

gra

nt a

gree

men

t or d

ecis

ion.

13

. PR

OC

ED

UR

E F

OR

TH

E S

UB

MIS

SIO

N O

F PR

OPO

SAL

S 13

.1

Publ

icat

ion

T

he C

all

for

Prop

osal

s is

bei

ng p

ublis

hed

in t

he O

ffic

ial

Jour

nal

of t

he E

urop

ean

Uni

on a

nd o

n th

e In

tern

et s

ite o

f the

EA

CE

A A

genc

y at

the

follo

win

g ad

dres

s: w

ww

.ec.

euro

pa.e

u/m

edia

13

.2

App

licat

ion

form

Gra

nt a

pplic

atio

ns m

ust b

e dr

awn

up in

one

of

the

offi

cial

EU

lang

uage

s, u

sing

the

form

spe

cifi

cally

de

sign

ed fo

r thi

s pu

rpos

e.

Th

e of

ficia

l for

ms

can

be d

ownl

oade

d fr

om th

e in

tern

et w

ebsi

te m

entio

ned

in S

ectio

n 13

.1.

13.3

Su

bmis

sion

of t

he g

rant

app

licat

ion

An

onlin

e ap

plic

atio

n sy

stem

has

bee

n se

t up

. Pr

opos

als

mus

t be

sub

mitt

ed b

y th

e de

adlin

e of

29

/11/

2010

and

11/

04/2

011,

bef

ore

12:0

0 C

ES/

CE

ST (

Mid

day,

Bru

ssel

s tim

e) u

sing

the

onl

ine

appl

icat

ion

form

, w

hich

is

acce

ssib

le o

n th

e w

ebsi

te o

f th

e E

xecu

tive

Age

ncy.

In

addi

tion,

the

ap

plic

atio

n pa

ckag

e m

ust

be s

ent

by r

egis

tere

d m

ail

or p

riva

te c

ouri

er b

y th

e de

adlin

e (t

he d

ate

as

post

mar

k or

mai

l ser

vice

sta

mp

will

be

take

n as

pro

of o

f tim

ely

send

ing)

. The

app

licat

ion

pack

age

has

to i

nclu

de t

he p

aper

cop

y of

the

onl

ine

appl

icat

ion

form

as

wel

l as

the

rel

evan

t m

anda

tory

ann

exes

. A

pplic

atio

n pa

ckag

es a

re n

ot re

turn

ed a

t the

end

of t

he s

elec

tion

proc

edur

e.

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-18-

A

pplic

atio

ns w

hich

do

not i

nclu

de a

ll th

e st

ipul

ated

doc

umen

ts in

the

requ

ired

for

mat

and

whi

ch a

re

not s

ubm

itted

bef

ore

the

dead

line

will

not

be

cons

ider

ed.

The

app

licat

ion

pack

age

mus

t be

sen

t by

reg

iste

red

mai

l or

pri

vate

cou

rier

pos

ted

no l

ater

tha

n th

e cl

osin

g da

tes

of 2

9/11

/201

0 an

d 11

/04/

2011

, to

the

follo

win

g ad

dres

s:

E

duca

tion,

Aud

iovi

sual

and

Cul

ture

Exe

cutiv

e A

genc

y (E

AC

EA

) C

onst

antin

Das

kala

kis

BO

UR

3/2

9 A

venu

e du

Bou

rget

, 1

B-1

140

Bru

ssel

s B

elgi

um

EN

VE

LO

PES

SHO

UL

D B

E C

LE

AR

LY

MA

RK

ED

: "M

ED

IA 2

007

- Dev

elop

men

t- C

all f

or P

ropo

sals

N

° 25

/201

0 Si

ngle

Pro

ject

(ani

mat

ion,

dra

ma

or c

reat

ive

docu

men

tary

)"

A

pplic

atio

ns s

ent b

y fa

x or

e-m

ail w

ill n

ot b

e ac

cept

ed. T

he A

genc

y ca

nnot

und

er a

ny c

ircu

mst

ance

s be

hel

d re

spon

sibl

e fo

r th

e sh

ortc

omin

gs o

f co

urie

r se

rvic

es,

and

it is

up

to t

he a

pplic

ant

alon

e to

en

sure

that

the

appl

icat

ion

pack

age

is s

ent o

ff in

goo

d tim

e. I

n th

e ev

ent t

hat t

here

are

any

cha

rges

in

the

deliv

ery

of a

n ap

plic

atio

n (p

osta

l, fis

cal

or o

ther

) th

e A

genc

y ca

nnot

be

held

lia

ble

for

them

and

w

ill re

fuse

to a

ccep

t suc

h pa

ckag

es.

N

o ch

ange

s to

the

doss

ier c

an b

e m

ade

afte

r the

app

licat

ion

has

been

sub

mitt

ed. H

owev

er, i

f th

ere

is a

ne

ed to

cla

rify

cer

tain

asp

ects

, the

Age

ncy

may

con

tact

the

appl

ican

t for

this

pur

pose

.

App

lican

ts w

ill b

e in

form

ed o

f the

rece

ipt o

f the

ir p

ropo

sal w

ithin

15

wor

king

day

s.

O

nly

appl

icat

ions

tha

t fu

lfil

the

elig

ibili

ty c

rite

ria

will

be

cons

ider

ed f

or a

gra

nt. I

f an

app

licat

ion

is

deem

ed in

elig

ible

, a le

tter i

ndic

atin

g th

e re

ason

s w

ill b

e se

nt to

the

appl

ican

t.

Sele

cted

pro

posa

ls w

ill b

e su

bjec

ted

to a

fina

ncia

l ana

lysi

s, in

con

nect

ion

with

whi

ch th

e A

genc

y m

ay

ask

the

pers

ons

resp

onsi

ble

for

the

prop

osed

act

ions

to

prov

ide

addi

tiona

l in

form

atio

n an

d, i

f ap

prop

riat

e, g

uara

ntee

s.

13

.4

Rul

es a

pplic

able

C

ounc

il R

egul

atio

n (E

C,

Eur

atom

) N

o 16

05/2

002

of 2

5 Ju

ne 2

002

on t

he F

inan

cial

Reg

ulat

ion

appl

icab

le t

o th

e ge

nera

l bu

dget

of

the

Eur

opea

n C

omm

uniti

es.

(OJ

L 2

48,

16.9

.200

2, p

. 1,

as

last

am

ende

d).

C

omm

issi

on R

egul

atio

n (E

C,

Eur

atom

) N

o 23

42/2

002

of 2

3 D

ecem

ber

2002

lay

ing

dow

n de

taile

d ru

les

for

the

impl

emen

tatio

n of

Cou

ncil

Reg

ulat

ion

(EC

, E

urat

om)

No

1605

/200

2 on

the

Fin

anci

al

Reg

ulat

ion

appl

icab

le to

the

gene

ral b

udge

t of

the

Euro

pean

Com

mun

ities

. (O

J L

357

, 31.

12.2

002,

p.

1, a

s la

st a

men

ded)

.

Dec

isio

n N

° 17

18/2

006/

EC o

f th

e E

urop

ean

Parl

iam

ent

and

of t

he C

ounc

il of

15

Nov

embe

r 20

06

conc

erni

ng th

e im

plem

enta

tion

of a

sup

port

pro

gram

me

for

the

Eur

opea

n au

diov

isua

l sec

tor

(ME

DIA

20

07).

244

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-19-

13.5

C

onta

cts

Add

ition

al i

nfor

mat

ion

is a

vaila

ble

at M

ED

IA D

esks

and

Ant

enna

e as

per

the

lis

t in

clud

ed o

n th

e fo

llow

ing

web

site

: ht

tp://

ec.e

urop

a.eu

/cul

ture

/med

ia/p

rogr

amm

e/ov

ervi

ew/w

ho/d

esks

/inde

x_en

.htm

Cal

l for

pro

posa

ls E

ACEA

25/

2010

– D

evel

opm

ent -

Sin

gle

Proj

ect

-20-

M

ED

IA E

urop

ean

Tal

ent P

rize

1.

OB

JEC

TIV

ES

AN

D P

RIO

RIT

IES

The

ME

DIA

Eur

opea

n T

alen

t Pr

ize

is a

war

ded

to t

he b

est

proj

ect

chos

en f

rom

the

Sin

gle

Proj

ects

se

lect

ed d

urin

g th

e fi

rst d

eadl

ine

of th

e E

AC

EA

Cal

l for

Pro

posa

ls 2

5/20

10

It a

ims

to r

ewar

d a

prod

uctio

n co

mpa

ny a

nd a

scr

eenw

rite

r th

at h

as p

ut f

orw

ard

a hi

gh q

ualit

y pr

ojec

t w

ith a

str

ong

Eur

opea

n po

tent

ial.

The

wor

k ca

n be

an

anim

atio

n, a

cre

ativ

e do

cum

enta

ry o

r a

dram

a an

d m

ust b

e in

tend

ed fo

r the

atri

cal r

elea

se.

2.

CA

LE

ND

AR

T

he w

inne

r is

the

pro

ject

in

one

of t

he a

bove

men

tione

d el

igib

le c

ateg

orie

s th

at h

as o

btai

ned

the

high

est

amou

nt o

f po

ints

in

the

Sing

le P

roje

cts

sele

ctio

n pr

oced

ure

(EA

CE

A C

all

for

Prop

osal

s 25

/201

0 1st

dead

line)

. T

he c

andi

date

s w

ill b

e in

form

ed o

f th

e re

sults

of

the

com

petit

ion

at th

e sa

me

time

as th

e re

sults

of

the

1st d

eadl

ine,

that

is, b

y th

e en

d of

Apr

il 20

11.

3. N

AT

UR

E O

F T

HE

PR

IZE

T

he M

ED

IA E

urop

ean

Tal

ent

Priz

e w

ill b

e aw

arde

d du

ring

the

Can

nes

Inte

rnat

iona

l Fi

lm F

estiv

al

2011

. T

he a

utho

r and

pro

duce

r of t

he p

roje

ct w

ill b

e in

vite

d by

the

Can

nes

Fest

ival

and

will

be

acco

mpa

nied

at

the

mar

ket i

n or

der t

o m

ake

the

awar

ded

proj

ect k

now

n an

d to

look

for p

artn

ers.

4.

EL

IGIB

ILIT

Y C

RIT

ER

IA

The

pro

ject

mus

t be

elig

ible

for S

ingl

e Pr

ojec

t sup

port

. T

he w

ork

mus

t be

an a

nim

atio

n, a

cre

ativ

e do

cum

enta

ry o

r a d

ram

a in

tend

ed fo

r the

atri

cal r

elea

se.

5. A

WA

RD

CR

ITE

RIA

T

he w

inni

ng p

roje

ct w

ill b

e th

e on

e th

at r

ecei

ves

the

high

est

tota

l po

ints

with

in t

he S

ingl

e Pr

ojec

t se

lect

ion

proc

ess

(1st

dea

dlin

e).

245

246

APPENDIX 11

247

guid

elin

es [u

k]

guid

elin

es [u

k] /

con

tent

s2

cont

ents

GE

NE

RA

L C

ON

DIT

ION

SPA

GE

1A

BO

UT

NO

RD

ISK

FIL

M &

TV

FO

ND

32

CO

ND

ITIO

NS

AN

D A

PP

LIC

ATIO

N E

VALU

ATIO

N4

3TY

PE

S O

F S

UP

PO

RT

AN

D C

RIT

ER

IA F

OR

SU

PP

OR

T5

4R

EIM

BU

RS

EM

EN

T7

5B

RE

AC

H O

F C

ON

TRA

CT

8

SP

EC

IFIC

CO

ND

ITIO

NS

6S

UP

PO

RT

FOR

PR

OJE

CT

DE

VE

LOP

ME

NT

97

SU

PP

OR

T FO

R P

RO

DU

CTI

ON

OF

FEAT

UR

E F

ILM

S11

8S

UP

PO

RT

FOR

PR

OD

UC

TIO

N O

F TV

FIC

TIO

N /

SE

RIE

S14

9S

UP

PO

RT

FOR

PR

OD

UC

TIO

N O

F D

OC

UM

EN

TAR

IES

1710

SU

PP

OR

T FO

R C

INE

MA

DIS

TRIB

UTI

ON

2011

SU

PP

OR

T FO

R D

UB

BIN

G22

12S

UP

PO

RT

FOR

FIL

M C

ULT

UR

AL

INIT

IATI

VE

S24

248

guid

elin

es [u

k] /

gen

eral

con

ditio

ns3

gene

ral c

ondi

tions

1.A

BO

UT

NO

RD

ISK

FIL

M &

TV

FO

ND

(ww

w.n

ordi

skfil

mog

tvfo

nd.c

om)

1.1

PU

RP

OS

EN

ordi

sk F

ilm &

TV

Fon

d (h

erea

fter

calle

d “t

he F

und”

) pro

mot

es N

ordi

c fil

m a

nd T

V p

rodu

ctio

ns o

fhi

gh q

ualit

y by

pro

vidi

ng s

uppo

rt fo

r to

p fin

anci

ng fo

r pr

ojec

t dev

elop

men

t and

pro

duct

ion

offe

atur

e fil

m, T

V fi

ctio

n /

serie

s an

d cr

eativ

e do

cum

enta

ries.

The

Fund

furt

herm

ore

prom

otes

as

top

fund

er d

istr

ibut

ion

and

dubb

ing

of N

ordi

c fil

ms

insi

de th

eN

ordi

c co

untr

ies

and

Film

Cul

tura

l Ini

tiativ

es o

f Nor

dic

impo

rtan

ce.

1.2

STA

TUS

AN

D O

PE

RAT

ION

STh

e Fu

nd is

a fo

unda

tion,

sub

ject

to th

e le

gal s

tatu

s an

d pr

ovis

ions

in fo

rce

for

foun

datio

ns in

Nor

way

.

The

oper

atio

ns o

f the

Fun

d sh

all b

e ca

rrie

d ou

t acc

ordi

ng to

the

late

st S

tatu

tes

and

Agr

eem

ent i

nfo

rce

betw

een

the

Fund

and

the

Par

tner

s of

the

Fund

.

1.3

THE

PA

RTN

ER

STh

e Fu

nd c

ompr

ises

17

part

ners

(her

eafte

r ca

lled

“the

Par

tner

s of

the

Fund

”):

The

Nor

dic

Cou

ncil

of M

inis

ters

Nor

dic

Film

Fun

ds /

Film

Inst

itute

s:Th

e D

anis

h Fi

lm In

stitu

te, T

he F

inni

sh F

ilm F

ound

atio

n, T

he Ic

elan

dic

Film

Cen

tre, T

he N

orw

egia

nFi

lm In

stitu

te a

nd T

he S

wed

ish

Film

Inst

itute

.

Nor

dic

TV B

road

cast

ers

(her

eafte

r ca

lled

“the

TV

Par

tner

s of

the

Fund

”):

DR

and

TV

2 D

enm

ark,

YLE

, San

oma

Ent

erta

inm

ent /

Nel

onen

Med

ia, M

TV3

Finl

and,

RU

V a

nd S

töð

2 Ic

elan

d, N

RK

and

TV

2 N

orw

ay, S

VT,

TV

4 an

d K

anal

5 S

wed

en.

1.4

BO

AR

D O

F D

IRE

CTO

RS

The

Nor

dic

Cou

ncil

of M

inis

ter

appo

ints

a B

oard

of D

irect

ors

whi

ch b

ears

fina

l res

pons

ibili

ty fo

r th

eop

erat

ions

of t

he F

und.

AD

ecis

ion

mad

e by

the

Boa

r d o

f Dire

ctor

s is

irre

voca

ble.

guid

elin

es [u

k] /

gen

eral

con

ditio

ns4

2. C

ON

DIT

ION

S A

ND

AP

PLI

CAT

ION

EVA

LUAT

ION

2.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

T FO

R P

RO

JEC

T D

EV

ELO

PM

EN

T &

PR

OD

UC

TIO

N•

The

proj

ect m

ust b

e su

ited

for

cine

ma

exhi

bitio

n, T

V d

istr

ibut

ion

or fo

r ot

her

type

of

dist

ribut

ion.

•Th

e pr

ojec

t mus

t be

cons

ider

ed b

y th

e Fu

nd to

hav

e a

suffi

cien

t aud

ienc

e po

tent

ial i

n th

e N

ordi

c co

untr

ies.

•Th

e Fu

nd d

oes

not c

ontr

ibut

e to

the

fund

ing

of a

pro

ject

that

has

bee

n pr

e-so

ld to

or

that

is

co-p

rodu

ced

by a

Nor

dic

TV b

road

cast

er th

at is

not

one

of t

he T

V P

artn

ers

of th

e Fu

nd.

2.2

AP

PLI

CAT

ION

App

licat

ions

mus

t be

subm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om.

•A

pplic

atio

n w

ith a

nnex

es s

hall

be w

ritte

n in

a S

cand

inav

ian

lang

uage

or

in E

nglis

h.

•A

pplic

atio

ns a

r e e

valu

ated

on

a co

ntin

uous

bas

is.

•P

roce

ssin

g of

app

licat

ions

nor

mal

ly ta

kes

4 to

6 w

eeks

.

2.3

EVA

LUAT

ION

OF

AP

PLI

CAT

ION

•Th

e Fu

nd w

ill m

ake

a co

mpr

ehen

sive

eva

luat

ion

of th

e pr

ojec

t, on

the

basi

s of

art

istic

, con

tent

-r e

late

d, p

rodu

ctio

n- a

nd d

istr

ibut

ion-

rela

ted

crite

ria, a

s w

ell a

s th

ose

oblig

atio

ns th

at re

sult

from

the

late

st S

tatu

tes

and

the

Agr

eem

ent i

n fo

rce

betw

een

the

Fund

and

the

Par

tner

s of

the

Fund

.

•Th

e Fu

nd p

oses

no

cond

ition

s re

gard

ing

a co

mm

on N

ordi

c th

eme,

join

t Nor

dic

co-p

rodu

ctio

n or

inte

r-N

ordi

c co

mbi

natio

n of

sta

ff or

act

ors.

•Th

e Fu

nd w

ill in

par

ticul

ar p

riorit

ise

proj

ects

that

hav

e ch

ildre

n an

d yo

ung

peop

le a

s th

eir

targ

etgr

oups

.

2.4

DE

CIS

ION

•Th

e C

hief

Exe

cutiv

e O

f fice

r of

the

Fund

is re

spon

sibl

e to

the

Boa

rd o

f Dire

ctor

s fo

r de

cisi

ons

mad

e re

gard

ing

the

gran

ting

or th

e re

fusa

l of s

uppo

rt.

2.5

RIG

HTS

OF

THE

FU

ND

•Th

e Fu

nd r e

tain

s th

e rig

ht to

men

tion

all p

roje

cts

that

hav

e re

ceiv

ed s

uppo

rt in

all

prin

ted

mat

ter

and

on th

e In

tern

et w

eb s

ite o

f the

Fun

d.

•Th

e Fu

nd re

tain

s th

e rig

ht to

exh

ibit

still

s, tr

aile

rs, T

V s

pots

as

wel

l as

exce

rpts

from

the

film

(max

imum

dur

atio

n 5

min

utes

) and

oth

er v

isua

l mat

eria

l on

the

web

site

of t

he F

und

or in

conn

ectio

n w

ith e

vent

s in

itiat

ed b

y th

e Fu

nd, w

here

the

Fund

par

ticip

ates

etc

.

•Th

e pr

oduc

er re

mai

ns re

spon

sibl

e th

at th

e Fu

nd’s

use

of a

ll ab

ove-

men

tione

d m

ater

ial h

as b

een

clea

red

with

the

appr

opria

te r

ight

s ho

lder

s.

249

guid

elin

es [u

k] /

gen

eral

con

ditio

ns5

3. T

YP

ES

OF

SU

PP

OR

T A

ND

CR

ITE

RIA

FO

R S

UP

PO

RT

The

Fund

pro

vide

s su

ppor

t in

the

form

of t

op fi

nanc

ing

unde

r th

e fo

llow

ing

cond

ition

s:

3.1

SU

PP

OR

T FO

R P

RO

JEC

T D

EV

ELO

PM

EN

T•

Nat

iona

l bas

e fu

ndin

g m

ust b

e co

nfirm

ed. N

atio

nal b

ase

fund

ing

is d

efin

ed a

s fu

ndin

g pr

ovid

edby

sour

ces

in th

e m

ain

prod

ucer

’s h

ome

coun

try,

e.g

. nat

iona

l film

inst

itute

s /

fund

s, re

gion

al fi

lmfu

nds,

the

Fund

’s T

V P

artn

ers

and

dist

ribut

ors.

•S

uppo

rt w

ill p

rimar

ily b

e gr

ante

d fo

r fe

atur

e fil

ms

and

TV fi

ctio

n /

serie

s, to

a le

sser

deg

ree

for

docu

men

tarie

s.

•If

a pr

ojec

t has

app

lied

for

but n

ot re

ceiv

ed s

uppo

rt fo

r pr

ojec

t dev

elop

men

t, it

is s

till p

ossi

ble

toap

ply

for

supp

ort f

or p

rodu

ctio

n.

MAY

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

PR

OD

UC

TIO

N C

OM

PAN

IES

3.2

SU

PP

OR

T FO

R P

RO

DU

CTI

ON

FEAT

UR

E F

ILM

S•

Nat

iona

l bas

e fu

ndin

g m

ust b

e co

nfirm

ed. N

atio

nal b

ase

fund

ing

is d

efin

ed a

s fu

ndin

g pr

ovid

edby

sou

r ces

in th

e m

ain

prod

ucer

’s h

ome

coun

try,

e.g

. nat

iona

l film

inst

itute

s /

fund

s, re

gion

al fi

lmfu

nds,

the

Fund

’sTV

Par

tner

s an

d di

strib

utor

s.

•D

istr

ibut

ion

guar

ante

e fo

r ci

nem

a ex

hibi

tion

mus

t be

sign

ed w

ith a

min

imum

of 2

Nor

dic

coun

trie

s an

d di

strib

utio

n co

ntra

ct m

ust b

e si

gned

with

a m

inim

um o

f 1 o

f the

TV

Par

tner

s of

the

Fund

.

•A

ltern

ativ

ely,

a d

istr

ibut

ion

guar

ante

e fo

r ci

nem

a ex

hibi

tion

in a

min

imum

of 1

Nor

dic

coun

try

and

adi

strib

utio

n co

ntra

ct w

ith a

min

imum

of 2

of t

he T

V P

artn

ers

of th

e Fu

nd m

ust b

e si

gned

.

TV F

ICTI

ON

/ S

ER

IES

•N

atio

nal b

ase

fund

ing

mus

t be

conf

irmed

. Nat

iona

l bas

e fu

ndin

g is

def

ined

as

fund

ing

prov

ided

by s

ourc

es in

the

mai

n pr

oduc

er’s

hom

e co

untr

y, e

.g. n

atio

nal f

ilm in

stitu

tes

/ fu

nds,

regi

onal

film

fund

s, th

e Fu

nd’s

TV

Par

tner

s an

d di

strib

utor

s.

•D

istr

ibut

ion

cont

ract

s m

ust b

e si

gned

with

a m

inim

um o

f 2 o

f the

TV

Par

tner

s of

the

Fund

(b

ut o

nly

with

1 if

a T

V c

ompa

ny is

itse

lf th

e pr

oduc

er).

DO

CU

ME

NTA

RIE

S•

Nat

iona

l bas

e fu

ndin

g m

ust b

e co

nfirm

ed. N

atio

nal b

ase

fund

ing

is d

efin

ed a

s fu

ndin

g pr

ovid

edby

sou

rces

in th

e m

ain

prod

ucer

’s h

ome

coun

try,

e.g

. nat

iona

l film

inst

itute

s /

fund

s, re

gion

al fi

lmfu

nds,

the

Fund

’s T

V P

artn

ers

and

dist

ribut

ors.

•D

istr

ibut

ion

cont

ract

s m

ust b

e si

gned

with

a m

inim

um o

f 2 o

f the

TV

Par

tner

s of

the

Fund

.A

ltern

ativ

ely,

a d

istr

ibut

ion

guar

ante

e fo

r ci

nem

a ex

hibi

tion

in a

min

imum

of 2

Nor

dic

coun

trie

san

d a

dist

ribut

ion

cont

ract

with

a m

inim

um o

f 1 o

f the

TV

Par

tner

s of

the

Fund

mus

t be

sign

ed.

MAY

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

PR

OD

UC

TIO

N C

OM

PAN

IES

guid

elin

es [u

k] /

gen

eral

con

ditio

ns6

3.3

SU

PP

OR

T FO

R C

INE

MA

DIS

TRIB

UTI

ON

•A

film

app

lyin

g fo

r di

strib

utio

n su

ppor

t mus

t hav

e be

en w

ell r

ecei

ved

by it

s re

spec

tive

natio

nal

audi

ence

, and

mus

t hav

e a

satis

fact

ory

audi

ence

pot

entia

l in

one

or m

ore

Nor

dic

coun

trie

s.

•S

uppo

rt m

ay b

e gr

ante

d in

depe

nden

tly o

f whe

ther

the

film

pre

viou

sly

has

been

gra

nted

prod

uctio

n su

ppor

t fro

m th

e Fu

nd.

The

Fund

may

, und

er s

peci

al c

ircum

stan

ces,

pro

vide

sup

port

for

othe

r ty

pes

of d

istr

ibut

ion.

MAY

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

DIS

TRIB

UTI

ON

CO

MPA

NIE

S B

AS

ED

IN T

HE

CO

UN

TRY

WH

ER

E T

HE

FIL

M W

ILL

BE

RE

LEA

SE

D

3.4

SU

PP

OR

TFO

R D

UB

BIN

GS

uppo

rt is

gra

nted

for

dubb

ing

to a

noth

er N

ordi

c la

ngua

ge.

Afil

m a

pply

ing

for

supp

ort f

or d

ubbi

ng s

hall

have

bee

n w

ell r

ecei

ved

by it

s re

spec

tive

natio

nal

audi

ence

, and

mus

t hav

e a

satis

fact

ory

dist

ribut

ion

and

audi

ence

pot

entia

l in

one

or m

ore

Nor

dic

coun

trie

s.

•S

uppo

rt m

ay b

e gr

ante

d in

depe

nden

tly o

f whe

ther

the

film

pre

viou

sly

has

been

gra

nted

prod

uctio

n su

ppor

t fro

m th

e Fu

nd.

•S

uppo

rt is

nor

mal

ly o

nly

gran

ted

to fi

lms

for

child

ren

and

youn

g pe

ople

.

MAY

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

PR

OD

UC

TIO

N C

OM

PAN

IES

OR

DIS

TRIB

UTI

ON

CO

MPA

NIE

S B

AS

ED

IN T

HE

CO

UN

TRY

WH

ER

E T

HE

FIL

M W

ILL

BE

RE

LEA

SE

D

3.5

SU

PP

OR

T FO

R F

ILM

CU

LTU

RA

L IN

ITIA

TIV

ES

Sup

port

is g

rant

ed fo

r Fi

lm C

ultu

ral I

nitia

tives

in th

e fo

rm o

f wor

ksho

ps, s

emin

ars

or fe

stiv

alpr

ogra

mm

es th

at m

ay s

treng

then

the

com

pete

nce

of th

e jo

int N

ordi

c fil

m a

nd T

V c

omm

unity

.

MAY

BE

AP

PLI

ED

FO

R B

Y T

HE

OR

GA

NIS

ER

OF

THE

INIT

IATI

VE

250

guid

elin

es [u

k] /

gen

eral

con

ditio

ns7

4. R

EIM

BU

RS

EM

EN

T

The

Fund

sup

ports

pro

ject

dev

elop

men

t and

pro

duct

ion

by w

ay o

f loa

ns th

at a

re re

paya

ble

acco

rdin

g to

the

follo

win

g ru

les:

The

Fund

is e

ntitl

ed to

a s

har e

(Rei

mbu

rsem

ent P

erce

ntag

e) o

f the

pro

duce

r’s W

orld

Wid

e R

ecei

pts.

Rei

mbu

rsem

ent s

tart

s w

hen

the

prod

ucer

’s W

orld

Wid

e R

ecei

pts

has

reac

hed

an a

mou

nt d

efin

edbe

fore

hand

(Bre

ak-E

ven

Poi

nt).

4.1

WO

RLD

WID

E R

EC

EIP

TS

The

tota

l of t

he p

rodu

cer’s

gro

ss re

ceip

ts fr

om th

roug

hout

the

wor

ld a

nd fr

om a

ll m

edia

.

Acc

ordi

ng to

cus

tom

ary

busi

ness

pra

ctic

e m

inim

um g

uara

ntee

and

P&

A a

re n

ot c

ount

ed a

s pa

rt o

fth

e pr

oduc

er’s

Wor

ld W

ide

Rec

eipt

s.

Roy

altie

s m

ay n

ot b

e de

duct

ed fr

om th

e pr

oduc

er’s

Wor

ld W

ide

Rec

eipt

s.

4.2

RE

IMB

UR

SE

ME

NT

PE

RC

EN

TAG

ETh

e Fu

nd’s

amou

nt o

f sup

port

in p

er c

ent o

f the

Nor

dic

fund

ing,

min

us In

Adv

ance

App

rove

d O

wn

Fina

ncin

g.

4.3

BR

EA

K-E

VE

N P

OIN

TTh

e pr

oduc

er’s

In A

dvan

ce A

ppro

ved

Ow

n Fi

nanc

ing

plus

a s

urch

arge

of 3

5 pe

r ce

nt, p

lus

Nor

dic

TV in

vest

men

t.

4.4

PR

OD

UC

ER

’S IN

AD

VAN

CE

AP

PR

OV

ED

OW

N F

INA

NC

ING

The

amou

nt o

f the

In A

dvan

ce A

ppro

ved

Ow

n Fi

nanc

ing

for

each

pr o

ject

is d

eter

min

ed b

y th

eFu

nd.

The

Fund

may

i.a.

app

rove

the

follo

win

g ite

ms

as p

art o

f the

Pro

duce

r’s In

Adv

ance

App

rove

d O

wn

Fina

ncin

g:•

Cas

h-in

-han

d•

Labo

ur d

efer

men

ts•

Pro

duce

r’s d

efer

men

ts o

n ow

n co

ntrib

utio

n•

Co-

prod

ucer

and

dis

trib

utor

def

erm

ents

•S

uppl

ier

defe

rmen

ts

Ow

n fin

anci

ng s

hall

be r

isk

part

icip

atio

n.

The

Fund

doe

s i.a

. not

appr

ove

the

follo

win

g ite

ms

as p

art o

f the

Pro

duce

r’s In

Adv

ance

App

rove

dO

wn

Fina

ncin

g:•

Dis

trib

utor

’ s m

inim

um g

uara

ntee

and

P&

A•

TV in

vest

men

t or

pre-

sale

of d

istr

ibut

ion

right

s to

a N

ordi

c TV

bro

adca

stin

g co

mpa

ny•

Sup

port

from

regi

onal

film

fund

s•

Non

-Nor

dic

fund

ing

guid

elin

es [u

k] /

gen

eral

con

ditio

ns8

App

licat

ion

for

chan

ge in

the

amou

nt o

f In

Adv

ance

App

rove

d O

wn

Fina

ncin

g sh

all b

e ap

prov

ed b

yth

e Fu

nd a

t the

late

st b

efor

e th

e na

tiona

l rel

ease

of t

he fi

lm.

The

Fund

is, u

pon

requ

est,

entit

led

to d

ocum

enta

tion

of a

ll re

ceip

ts a

nd c

osts

con

nect

ed to

the

prod

uctio

n of

the

film

and

has

the

right

to a

udit

the

prod

ucer

’s a

ccou

nts

as p

art o

f the

con

trol

.

4.5

RE

PO

RTI

NG

AN

D R

EIM

BU

RS

EM

EN

TTh

e Fu

nd m

ay, a

s a

max

imum

, be

reim

burs

ed th

e am

ount

gra

nted

as

proj

ect d

evel

opm

ent s

uppo

rtan

d pr

oduc

tion

supp

ort.

The

Fund

’s c

laim

for

reim

burs

emen

t is

no lo

nger

app

licab

le to

rece

ipts

der

ived

afte

r 5

year

s fro

mth

e fil

m’s

nat

iona

l the

atric

al re

leas

e. F

or T

V d

ocum

enta

ries

and

TV fi

ctio

n /

serie

s th

is li

mit

appl

ies

to 5

yea

rs fr

om th

e fil

m’s

firs

t nat

iona

l TV

dis

trib

utio

n.

Ann

ual i

ncom

e re

port

s m

ust b

e su

bmitt

ed to

the

Fund

, the

firs

t one

cal

cula

ted

one

year

afte

r th

ena

tiona

l cin

ema

rele

ase

of th

e pr

ojec

t and

the

last

one

cal

cula

ted

five

year

s af

ter

the

natio

nal

cine

ma

rele

ase

of th

e pr

ojec

t.

The

repo

rts

mus

t be

acco

mpa

nied

by

copi

es o

f rel

evan

t sub

-ann

exes

from

dis

trib

utor

(s),

sale

sag

ent e

tc o

r be

pro

perly

aud

ited

by a

n ac

coun

tant

or

draw

n up

by

a co

llect

ion

agen

cy a

ppro

ved

by th

e Fu

nd.

The

repo

rts

mus

t be

subm

itted

by

the

late

st th

ree

mon

ths

afte

r th

e ca

lcul

atio

n da

te to

:N

ordi

sk F

ilm &

TV

Fon

dc/

o E

CA

A/S

Ham

mer

ensg

ade

6,4

DK

-126

7 C

open

hage

n K

Den

mar

k

5. B

RE

AC

H O

F C

ON

TRA

CT

If ci

rcum

stan

ces

that

are

rele

vant

to th

e co

mm

itmen

t of s

uppo

rt, o

r to

the

Con

trac

t, ar

e si

gnifi

cant

lych

ange

d, o

r if

the

Pr o

duce

r si

gnifi

cant

ly d

oes

not f

ulfil

his

/ h

er o

blig

atio

ns in

acc

orda

nce

with

the

Gui

delin

es a

nd /

or

the

Con

trac

t, th

e Fu

nd h

as th

e rig

ht to

term

inat

e th

e C

ontr

act w

ith im

med

iate

effe

ct.

In s

uch

case

s, th

e Fu

nd h

as th

e rig

ht to

dem

and

reim

burs

emen

t of a

ny c

ontr

ibut

ion

paid

.

251

guid

elin

es [u

k] /

spe

cific

con

ditio

ns9

spec

ific

cond

ition

s

6.S

UP

PO

RT

FOR

PR

OJE

CT

DE

VE

LOP

ME

NT

MA Y

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

PR

OD

UC

TIO

N C

OM

PAN

IES

6.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

TN

ordi

sk F

ilm &

TV

Fon

d pr

ovid

es s

uppo

rt fo

r pr

ojec

t dev

elop

men

t in

the

form

of t

op fi

nanc

ing,

prim

arily

for

feat

ure

film

s an

d TV

fict

ion

/ se

ries,

and

und

er th

e fo

llow

ing

cond

ition

s:•

Nat

iona

l bas

e fu

ndin

g fo

r th

e pr

ojec

t dev

elop

men

t mus

t be

conf

irmed

.

6.2

AP

PLI

CAT

ION

App

licat

ions

mus

t nor

mal

ly b

e su

bmitt

ed b

efor

e pr

ojec

t dev

elop

men

t sta

rts.

The

follo

win

g ite

ms

shal

l be

subm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om:

•S

ynop

sis

(max

imum

hal

f pag

e A

4)•

Feat

ure

Film

, TV

Fic

tion

/ S

erie

s: M

anus

crip

t •

Doc

umen

tary

: Tre

atm

ent

•A

nim

atio

n: S

tory

line

/ dr

awin

gs /

cha

ract

er d

escr

iptio

ns

•P

roje

ct d

escr

iptio

n an

d pl

an fo

r ex

ecut

ion

of d

evel

opm

ent w

ork

•C

V fo

r cr

eativ

e st

aff

•B

udge

t for

the

proj

ect d

evel

opm

ent.

Onl

y ex

pens

es d

irect

ly a

ssoc

iate

d w

ith th

e fo

rthc

omin

g de

velo

pmen

t of t

he p

roje

ct m

ay b

e in

clud

ed in

the

budg

et.

•Fi

nanc

ing

plan

sho

win

g co

nfirm

ed fi

nanc

ing.

Am

ount

s sh

all b

e gi

ven

in n

atio

nal a

nd N

orw

egia

ncu

rren

cy,a

nd s

hall

incl

ude

conv

ersi

on r

ate

•D

ocum

enta

tion

of c

onfir

med

fina

ncin

g•

Doc

umen

tatio

n of

spe

cifie

d ow

n fin

anci

ng

The

follo

win

g m

ust a

lso

be s

ent b

y po

st:

•Fe

atur

e Fi

lm, T

V F

ictio

n /

Ser

ies:

Man

uscr

ipt -

2 c

opie

s•

Doc

umen

tary

: Tre

atm

ent -

1 c

opy

•A

nim

atio

n: S

tory

line

/ dr

awin

gs /

cha

ract

er d

escr

iptio

ns -

2 c

opie

s•

If di

rect

or is

con

firm

ed, 2

of h

is /

her

s la

test

film

s on

DV

D•

Visu

al m

ater

ial –

2 c

opie

s (p

ilot,

trai

ler

etc)

.

6.3

CO

MM

ITM

EN

TTh

e pr

oduc

er w

ill re

ceiv

e a

Lett

er o

f Com

mitm

ent f

rom

the

Fund

.

6.4

DR

AFT

ING

OF

CO

NTR

AC

TTh

e Fu

nd w

ill d

raft

a C

ontr

act f

or a

pro

ject

that

has

bee

n gr

ante

d su

ppor

t.

Afte

r th

e C

ontr

act h

as b

een

sign

ed, t

he p

r odu

ctio

n co

mpa

ny m

ay n

ot m

ake

subs

tant

ial c

hang

es in

econ

omic

or

right

-rel

ated

con

ditio

ns, u

nles

s th

ese

have

bee

n pr

esen

ted

in w

ritin

g to

and

acc

epte

dby

the

Fund

.

6.5

PAY

ME

NT

OF

INS

TALM

EN

TSC

ondi

tions

for

the

paym

ent o

f the

Fun

d’s

supp

ort w

ill b

e de

term

ined

for

each

pro

ject

. Nor

mal

ly th

eC

ontr

act w

ill s

tipul

ate

paym

ent i

n 2

inst

alm

ents

.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns10

Mat

eria

l ass

ocia

ted

with

the

paym

ent o

f ins

talm

ents

is s

ubm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om

The

first

inst

alm

ent w

ill b

e pa

id w

hen

the

natio

nal m

ain

finan

cier

has

pai

d its

firs

t ins

talm

ent.

Bef

ore

paym

ent o

f the

firs

t ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•S

igne

d C

ontr

act

•In

voic

e

Bef

ore

paym

ent o

f the

last

inst

alm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•R

epor

t of e

xpen

ditu

re s

how

ing

final

spe

nd c

ompa

red

with

bud

get

•S

tatu

s re

port

for

the

proj

ect a

nd th

e de

velo

pmen

t wor

k•

Del

iver

able

mat

eria

l in

acco

rdan

ce w

ith th

e C

ontr

act

•In

voic

e

6.6

CR

ED

ITIN

G A

ND

AC

CO

UN

TSO

n al

l mat

eria

l fro

m th

e pr

ojec

t dev

elop

men

t and

oth

er in

form

atio

n m

ater

ial i

t sha

ll be

evi

dent

that

the

film

has

bee

n de

velo

ped

with

the

supp

ort o

f Nor

disk

Film

& T

V F

ond.

Cre

ditin

g sh

all b

eap

prov

ed b

y th

e Fu

nd a

nd s

hall

appe

ar o

n eq

ual t

erm

s w

ith th

e m

ain

finan

cier

.

The

Fund

is, u

pon

requ

est,

entit

led

to d

ocum

enta

tion

of a

ll co

sts

conn

ecte

d to

the

deve

lopm

ent o

fth

e fil

m a

nd h

as th

e rig

ht to

aud

it th

e pr

oduc

er’s

acc

ount

s as

par

t of t

he c

ontr

ol.

6.7

RE

IMB

UR

SE

ME

NT

If th

e Fu

nd p

rovi

des

supp

ort f

or th

e pr

oduc

tion

of a

pro

ject

that

has

pre

viou

sly

been

gra

nted

supp

ort f

or p

roje

ct d

evel

opm

ent,

this

sup

port

sha

ll be

incl

uded

in th

e Fu

nd’ s

tota

l con

trib

utio

n an

dbe

sub

ject

to re

imbu

rsem

ent i

n ac

cord

ance

with

the

Con

trac

t for

pro

duct

ion

supp

ort.

If th

e pr

ojec

t is

prod

uced

with

out t

he F

und

cont

ribut

es to

sup

port

the

prod

uctio

n its

elf,

the

supp

ort

for

proj

ect d

evel

opm

ent s

hall

be re

imbu

rsed

in a

ccor

danc

e w

ith th

e ru

les

on re

imbu

rsem

ent,

asgi

ven

in G

ener

al C

ondi

tions

, ite

m 4

.

If th

e pr

ojec

t is

not r

ealis

ed, d

eman

d fo

r re

imbu

rsem

ent i

s no

t app

licab

le.

252

guid

elin

es [u

k] /

spe

cific

con

ditio

ns11

7. S

UP

PO

RT

FOR

TH

E P

RO

DU

CTI

ON

OF

FEAT

UR

E F

ILM

SM

AY B

E A

PP

LIE

D F

OR

BY

NO

RD

IC P

RO

DU

CTI

ON

CO

MPA

NIE

S

7.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

TN

ordi

sk F

ilm &

TV

Fon

d w

ill p

rovi

de s

uppo

rt fo

r th

e pr

oduc

tion

of fe

atur

e fil

ms

in th

e fo

rm o

f top

finan

cing

und

er th

e fo

llow

ing

cond

ition

s:•

Nat

iona

l bas

e fu

ndin

g m

ust b

e co

nfirm

ed.

•D

istr

ibut

ion

guar

ante

e m

ust b

e si

gned

for

cine

ma

exhi

bitio

n fo

r a

min

imum

of 2

Nor

dic

coun

trie

s an

d di

strib

utio

n co

ntra

ct m

ust b

e si

gned

with

a m

inim

um o

f 1 o

f the

TV

Par

tner

s of

the

Fund

.•

Alte

rnat

ivel

y, a

dis

trib

utio

n gu

aran

tee

for

cine

ma

exhi

bitio

n in

a m

inim

um o

f 1 N

ordi

c co

untr

y an

d a

dist

ribut

ion

cont

ract

with

a m

inim

um o

f 2 o

f the

TV

Par

tner

s of

the

Fund

mus

t be

sign

ed.

•W

hen

a TV

com

pany

itse

lf pr

oduc

es a

feat

ure

film

, dis

trib

utio

n co

ntra

cts

mus

t be

sign

ed w

ith

min

imum

1 o

f the

oth

er T

V P

artn

ers

of th

e Fu

nd a

nd d

istr

ibut

ion

guar

ante

e m

ust b

e si

gned

for

cine

ma

exhi

bitio

n fo

r a

min

imum

of 2

Nor

dic

coun

trie

s.

7.2

AP

PLI

CAT

ION

App

licat

ions

mus

t nor

mal

ly b

e su

bmitt

ed b

efor

e pr

oduc

tion

star

ts.

The

follo

win

g ite

ms

shal

l be

subm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om:

•S

ynop

sis

(max

imum

hal

f pag

e A

4)•

Man

uscr

ipt

•A

nim

atio

n: S

tory

line

/ dr

awin

gs /

cha

ract

er d

escr

iptio

ns

•P

rodu

cer’s

stat

emen

t•

Dire

ctor

’sst

atem

ent

•C

V fo

r cr

eativ

e st

aff

•P

relim

inar

y tim

e sc

hedu

le

•B

udge

t•

Fina

ncin

g pl

an s

how

ing

conf

irmed

fina

ncin

g. A

mou

nts

shal

l be

give

n in

nat

iona

l and

Nor

weg

ian

curr

ency

,and

sha

ll in

clud

e co

nver

sion

rat

e•

Doc

umen

tatio

n of

con

firm

ed fi

nanc

ing

•D

ocum

enta

tion

of s

peci

fied

own

finan

cing

•D

istr

ibut

ion

guar

ante

e fo

r ci

nem

a ex

hibi

tion

in a

min

imum

of 2

Nor

dic

coun

trie

s an

d a

dist

ribut

ion

cont

ract

or

LOC

for

TV w

ith m

inim

um 1

of t

he T

V P

artn

ers

of th

e Fu

nd•

Alte

rnat

ivel

y, a

dis

trib

utio

n gu

aran

tee

for

cine

ma

exhi

bitio

n in

a m

inim

um o

f 1 N

ordi

c co

untr

y an

d di

strib

utio

n co

ntra

cts

or L

OC

for

TV w

ith a

min

imum

of 2

of t

he T

V P

artn

ers

of th

e Fu

nd•

Dis

trib

utio

n pl

an fo

r ci

nem

a, in

clud

ing

adm

issi

ons

estim

ate,

in th

e co

untr

y of

orig

in o

f the

film

The

follo

win

g m

ust a

lso

be s

ent b

y po

st:

•M

anus

crip

t – 3

cop

ies

•A

nim

atio

n: S

tory

line

/ dr

awin

gs /

cha

ract

er d

escr

iptio

ns –

3 c

opie

s•

DV

D fe

atur

ing

the

dire

ctor

’s la

st 2

film

s •

Visu

al m

ater

ial –

2 c

opie

s (p

ilot,

trai

ler

etc)

.

7.3

CO

MM

ITM

EN

TTh

e pr

oduc

er w

ill re

ceiv

e a

Lett

er o

f Com

mitm

ent f

rom

the

Fund

in w

hich

a d

eadl

ine

is s

peci

fied

for

fulfi

lmen

t of t

he fo

rmal

requ

irem

ents

(see

item

7.4

). Th

e de

adlin

e w

ill b

e de

term

ined

in r e

latio

n to

the

time

plan

of t

he p

roje

ct a

nd w

ill n

orm

ally

be

befo

reth

e fir

st d

ay o

f prin

cipa

l pho

togr

aphy

.If t

hede

adlin

e is

not

resp

ecte

d, th

e Fu

nd w

ill c

onsi

der

itsel

f rel

ieve

d of

all

com

mitm

ents

, and

the

supp

ort

gran

ted

will

aut

omat

ical

ly b

e w

ithdr

awn.

It is

the

resp

onsi

bilit

y of

the

prod

ucer

to m

ake

sure

the

dead

line

is re

spec

ted.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns12

7.4

DR

AFT

ING

OF

CO

NTR

AC

TTh

e Fu

nd w

ill d

raft

a C

ontr

act f

or a

pro

ject

that

is g

rant

ed s

uppo

rt. T

he fo

llow

ing

item

s sh

all b

esu

bmitt

ed v

ia w

ww

.nor

disk

film

ogtv

fond

.com

:

Onl

y ne

w d

ocum

ents

can

be

uplo

aded

, fie

lds

cann

ot b

e ed

ited

and

old

docu

men

ts c

anno

t be

dele

ted.

All

new

info

rmat

ion

mus

t be

uplo

aded

as

pdf f

iles.

Up-

date

d pr

oduc

tion

info

rmat

ion:

•Le

ngth

of t

he fi

lm•

Sho

otin

g fo

rmat

of t

he fi

lm•

Scr

eeni

ng fo

rmat

of t

he fi

lm•

Cas

t lis

t (m

ain

role

s)•

Sta

ff lis

t (ke

y fu

nctio

ns)

•P

rodu

ctio

n pl

an w

ith d

ates

for

star

t and

com

plet

ion

of p

rinci

pal p

hoto

grap

hy

•P

ost-

prod

uctio

n pl

an w

ith d

ates

for

editi

ng, s

ound

wor

k, s

ound

mix

, lab

wor

k, d

eliv

ery

prin

t •

Exp

ecte

d na

tiona

l rel

ease

dat

e fo

r ci

nem

a an

d TV

Up-

date

d fin

anci

al in

form

atio

n :•

Det

aile

d bu

dget

•Fi

nanc

ing

plan

•C

onfir

mat

ion

of a

ll fin

anci

ng:

°In

the

case

of f

inan

cial

par

ticip

atio

n by

a T

V c

ompa

ny th

e re

latio

nshi

p be

twee

n in

vest

men

tan

d pa

ymen

t for

dis

trib

utio

n rig

hts

shal

l be

spec

ified

°In

the

case

of f

inan

cial

par

ticip

atio

n by

dis

trib

utor

and

/ o

r co

-pro

duce

r th

e re

latio

nshi

pbe

twee

n in

vest

men

t and

min

imum

gua

rant

ee s

hall

be s

peci

fied

°In

the

case

of f

inan

cial

par

ticip

atio

n by

a n

atio

nal f

ilm in

stitu

te /

film

fund

a c

opy

of th

e fin

al,

sign

ed c

ontr

act s

hall

be s

ubm

itted

Up-

date

d di

strib

utio

n in

form

atio

n :•

Dis

trib

utio

n co

ntra

ct th

at g

uara

ntee

s ci

nem

a ex

hibi

tion

in a

t lea

st 2

Nor

dic

coun

trie

s an

d a

dist

ribut

ion

cont

ract

with

min

imum

1 o

f the

TV

Par

tner

s of

the

Fund

•

Alte

rnat

ivel

y, a

dis

trib

utio

n co

ntra

ct th

at g

uara

ntee

s ci

nem

a ex

hibi

tion

in a

t lea

st 1

Nor

dic

coun

try

and

dist

ribut

ion

cont

ract

s w

ith a

min

imum

of 2

of t

he T

V P

artn

ers

of th

e Fu

nd

•D

istr

ibut

ion

plan

for

cine

ma

with

def

ined

targ

et g

roup

and

des

crip

tion

of h

ow th

is w

ill b

e re

ache

d,as

wel

l as

adm

issi

ons

estim

ate

in th

e co

untr

y of

orig

in o

f the

film

•In

the

case

of a

TV

com

pany

pro

duci

ng a

feat

ure

film

, dis

trib

utio

n co

ntra

ct th

at g

uara

ntee

cin

ema

exhi

bitio

n fo

r a

min

imum

of 2

Nor

dic

coun

trie

s, a

nd d

istr

ibut

ion

cont

ract

from

min

imum

1 o

f the

othe

r TV

Par

tner

s of

the

Fund

sha

ll be

pro

vide

d•

Stil

ls fr

om th

e fil

m, a

t lea

st 1

of t

he d

irect

or. T

o be

sup

plie

d di

gita

lly, m

inim

um 3

00 d

pi

The

Con

trac

t will

onl

y be

dra

fted

upon

rece

ptio

n of

all

final

doc

umen

tatio

n.

Afte

r th

e C

ontr

act h

as b

een

sign

ed, t

he p

rodu

ctio

n co

mpa

ny m

ay n

ot m

ake

subs

tant

ial c

hang

es to

the

man

uscr

ipt a

nd /

or

to a

rtis

tic, p

rodu

ctio

n-re

late

d, e

cono

mic

, tec

hnic

al, m

arke

ting-

or

right

s-re

late

d co

nditi

ons,

unl

ess

thes

e ha

ve b

een

pres

ente

d in

writ

ing

to a

nd a

ccep

ted

by th

e Fu

nd.

7.5

PAY

ME

NT

OF

INS

TALM

EN

TSC

ondi

tions

for

the

paym

ent o

f the

Fun

d’s

supp

ort w

ill b

e de

term

ined

indi

vidu

ally

for

each

pro

ject

.N

orm

ally

the

Con

trac

t will

stip

ulat

e pa

ymen

t in

4 in

stal

men

ts.

253

guid

elin

es [u

k] /

spe

cific

con

ditio

ns13

Mat

eria

l ass

ocia

ted

with

the

paym

ent o

f ins

talm

ents

is s

ubm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om.

The

first

inst

alm

ent w

ill b

e pa

id w

hen

the

natio

nal m

ain

finan

cier

has

pai

d its

firs

t ins

talm

ent.

Bef

ore

paym

ent o

f the

firs

t ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•S

igne

d C

ontr

act

•In

voic

e

Bef

ore

paym

ent o

f the

sub

sequ

ent i

nsta

lmen

ts th

e fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•R

epor

t of e

xpen

ditu

re s

how

ing

spen

d co

mpa

red

with

bud

get,

as w

ell a

s fin

al c

ost e

stim

ate

•W

ritte

n re

port

on

the

stat

us o

f the

pro

ject

•

Invo

ice

Bef

ore

paym

ent o

f the

fina

l ins

talm

ent t

he fo

llow

ing

shal

l be

subm

itted

:•

Cer

tifie

d ac

coun

ts s

how

ing

final

spe

nd c

ompa

red

with

bud

get

•A

ll ot

her

deliv

erab

le m

ater

ial (

see

item

7.6

)•

Invo

ice

7.6

CR

ED

ITIN

G A

ND

AC

CO

UN

TSFr

om th

e op

enin

g or

clo

sing

cre

dits

of t

he fi

lm a

nd o

ther

info

rmat

ion

mat

eria

l it s

hall

be e

vide

nt th

atth

e fil

m h

as b

een

prod

uced

with

the

supp

ort o

f Nor

disk

Film

& T

V F

ond.

Cre

ditin

g sh

all b

eap

prov

ed b

y th

e Fu

nd a

nd s

hall

appe

ar o

n eq

ual t

erm

s w

ith th

e m

ain

finan

cier

.

The

Fund

is, u

pon

requ

est,

entit

led

to d

ocum

enta

tion

of a

ll co

sts

conn

ecte

d to

the

prod

uctio

n of

the

film

and

has

the

right

to a

udit

the

prod

ucer

’s a

ccou

nts

as p

art o

f the

con

trol

.

Del

iver

able

mat

eria

l :•

Aco

py o

f the

film

(DV

D) w

ith S

cand

inav

ian

or E

nglis

h su

btitl

es, i

nclu

ding

trai

ler

/ TV

spo

ts•

Pos

ter

•S

tills

, min

imum

5, d

eliv

ered

dig

itally

, min

imum

300

dpi

•A

repr

esen

tativ

e se

lect

ion

of re

view

s•

Rec

ord

of fe

stiv

al p

artic

ipat

ion

and

any

priz

es w

on•

Rec

ord

of in

tern

atio

nal s

ales

7.7

RE

IMB

UR

SE

ME

NT

For

rule

s on

reim

burs

emen

t, se

e G

ener

al C

ondi

tions

, ite

m 4

.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns14

8.S

UP

PO

RT

FOR

TH

EP

RO

DU

CTI

ON

OF

TV F

ICTI

ON

/ S

ER

IES

MAY

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

PR

OD

UC

TIO

N C

OM

PAN

IES

8.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

TN

ordi

sk F

ilm &

TV

Fon

d w

ill p

rovi

de s

uppo

rt fo

r th

e pr

oduc

tion

of T

V fi

ctio

n /

serie

s in

the

form

of

top

finan

cing

und

er th

e fo

llow

ing

cond

ition

s:•

Nat

iona

l bas

e fu

ndin

g m

ust b

e co

nfirm

ed.

•D

istr

ibut

ion

cont

ract

s m

ust b

e si

gned

with

a m

inim

um o

f 2 o

f the

TV

Par

tner

s of

the

Fund

(b

ut o

nly

with

1 if

a T

V c

ompa

ny is

itse

lf th

e pr

oduc

er).

8.2

AP

PLI

CAT

ION

App

licat

ions

mus

t nor

mal

ly b

e su

bmitt

ed b

efor

e pr

oduc

tion

star

ts.

The

follo

win

g ite

ms

shal

l be

subm

itted

via

nor

disk

film

ogtv

fond

.com

:•

Syn

opsi

s (m

axim

um h

alf p

age

A4)

•M

anus

crip

t •

Ani

mat

ion:

Sto

rylin

e /

draw

ings

/ c

hara

cter

des

crip

tions

•

Pro

duce

r’s s

tate

men

t•

Dire

ctor

’s s

tate

men

t•

CV

for

crea

tive

staf

f•

Pre

limin

ary

time

sche

dule

•

Bud

get

•Fi

nanc

ing

plan

sho

win

g co

nfirm

ed fi

nanc

ing.

Am

ount

s sh

all b

e gi

ven

in n

atio

nal a

nd N

orw

egia

ncu

rren

cy,a

nd s

hall

incl

ude

conv

ersi

on r

ate

•D

ocum

enta

tion

of c

onfir

med

fina

ncin

g•

Doc

umen

tatio

n of

spe

cifie

d ow

n fin

anci

ng•

Dis

trib

utio

n co

ntra

cts

or L

OC

for

TV w

ith m

inim

um 2

of t

he T

V P

artn

ers

of th

e Fu

nd

•D

istr

ibut

ion

plan

for

TV, i

nclu

ding

spe

ctat

or e

stim

ate,

in th

e co

untr

y of

orig

in o

f the

film

s /

serie

s

The

follo

win

g m

ust a

lso

be s

ent b

y po

st:

•M

anus

crip

t – 3

cop

ies

•A

nim

atio

n: S

tory

line

/ dr

awin

gs /

cha

ract

er d

escr

iptio

ns –

3 c

opie

s•

DV

D fe

atur

ing

the

dire

ctor

’s la

st 2

film

s •

Visu

al m

ater

ial –

2 c

opie

s (p

ilot,

trai

ler

etc)

.

8.3

CO

MM

ITM

EN

TTh

e pr

oduc

er w

ill re

ceiv

e a

Lett

er o

f Com

mitm

ent f

rom

the

Fund

in w

hich

a d

eadl

ine

is s

peci

fied

for

fulfi

lmen

t of t

he fo

rmal

r equ

irem

ents

(see

item

8.4

). Th

e de

adlin

e w

ill b

e de

term

ined

in re

latio

n to

the

time

plan

of t

he p

roje

ct a

nd w

ill n

orm

ally

be

befo

re th

e fir

st d

ay o

f prin

cipa

l pho

togr

aphy

. If t

hede

adlin

e is

not

resp

ecte

d, th

e Fu

nd w

ill c

onsi

der

itsel

f rel

ieve

d of

all

com

mitm

ents

, and

the

supp

ort

gran

ted

will

aut

omat

ical

ly b

e w

ithdr

awn.

It is

the

resp

onsi

bilit

y of

the

prod

ucer

to m

ake

sure

the

dead

line

is re

spec

ted.

254

guid

elin

es [u

k] /

spe

cific

con

ditio

ns15

8.4

DR

AFT

ING

OF

CO

NTR

AC

TTh

e Fu

nd w

ill d

raft

a C

ontr

act f

or a

pro

ject

that

is g

rant

ed s

uppo

rt. T

he fo

llow

ing

item

s sh

all b

e vi

aw

ww

.nor

disk

film

ogtv

fond

.com

:

Onl

y ne

w d

ocum

ents

can

be

uplo

aded

, fie

lds

cann

ot b

e ed

ited

and

old

docu

men

ts c

anno

t be

dele

ted.

All

new

info

rmat

ion

mus

t be

uplo

aded

as

pdf f

iles.

Up-

date

d pr

oduc

tion

info

rmat

ion:

•Le

ngth

of t

he fi

lm /

ser

ies

•S

hoot

ing

form

at o

f the

film

/ s

erie

s•

Scr

eeni

ng fo

rmat

of t

he fi

lm /

ser

ies

•C

ast l

ist (

mai

n ro

les)

•S

taff

list (

key

func

tions

)•

Pro

duct

ion

plan

with

dat

es fo

r st

art a

nd c

ompl

etio

n of

prin

cipa

l pho

togr

aphy

•

Pos

t-pr

oduc

tion

plan

with

dat

es fo

r ed

iting

, sou

nd w

ork,

sou

nd m

ix, l

ab w

ork,

mas

ter

•E

xpec

ted

natio

nal r

elea

se fo

r TV

Up-

date

d fin

anci

al in

form

atio

n :•

Det

aile

d bu

dget

•Fi

nanc

ing

plan

•C

onfir

mat

ion

of a

ll fin

anci

ng:

°In

the

case

of f

inan

cial

par

ticip

atio

n by

a T

V c

ompa

ny th

e re

latio

nshi

p be

twee

n in

vest

men

tan

d pa

ymen

t for

dis

trib

utio

n rig

hts

shal

l be

spec

ified

°In

the

case

of f

inan

cial

par

ticip

atio

n by

dis

trib

utor

and

/ o

r co

-pro

duce

r th

e re

latio

nshi

pbe

twee

n in

vest

men

t and

min

imum

gua

rant

ee s

hall

be s

peci

fied

°In

the

case

of f

inan

cial

par

ticip

atio

n by

a n

atio

nal f

ilm in

stitu

te /

film

fund

a c

opy

of th

e fin

al,

sign

ed c

ontr

act s

hall

be s

ubm

itted

Up-

date

d di

strib

utio

n in

form

atio

n :•

Inth

e ca

se o

f an

inde

pend

ent p

rodu

ctio

n co

mpa

ny p

rodu

cing

TV

fict

ion

/ se

ries,

dis

trib

utio

nco

ntra

cts

shal

l be

sign

ed w

ith m

inim

um 2

of t

he T

V P

artn

ers

of th

e Fu

nd•

In th

e ca

se o

f a T

V c

ompa

ny it

self

prod

ucin

g TV

fict

ion

/ se

ries,

dis

trib

utio

nco

ntra

ct s

hall

besi

gned

with

min

imum

1 o

f the

TV

Par

tner

s of

the

Fund

•D

istr

ibut

ion

plan

for

TV w

ith d

efin

ed ta

rget

gro

up a

nd d

escr

iptio

n of

how

this

will

be

reac

hed,

as

wel

l as

spec

tato

r es

timat

e in

the

coun

try

of o

rigin

of t

he fi

lm /

ser

ies

•S

tills

from

the

film

, at l

east

1 o

f the

chi

ef d

irect

or. T

o be

sup

plie

d di

gita

lly, m

inim

um 3

00 d

pi

The

Con

trac

t will

onl

y be

dra

fted

upon

rece

ptio

n of

all

final

doc

umen

tatio

n.

Afte

r th

e C

ontr

act h

as b

een

sign

ed, t

he p

rodu

ctio

n co

mpa

ny m

ay n

ot m

ake

subs

tant

ial c

hang

es to

the

man

uscr

ipt a

nd /

or

to a

rtis

tic, p

rodu

ctio

n-re

late

d, e

cono

mic

, tec

hnic

al, m

arke

ting-

or

right

s-re

late

d co

nditi

ons,

unl

ess

thes

e ha

ve b

een

pres

ente

d in

writ

ing

to a

nd a

ccep

ted

by th

e Fu

nd.

8.5

PAY

ME

NT

OF

INS

TALM

EN

TSC

ondi

tions

for

the

paym

ent o

f the

Fun

d’s

supp

ort w

ill b

e de

term

ined

indi

vidu

ally

for

each

pr o

ject

.N

orm

ally

the

Con

trac

t will

stip

ulat

e pa

ymen

t in

4 in

stal

men

ts.

Mat

eria

l ass

ocia

ted

with

the

paym

ent o

f ins

talm

ents

is s

ubm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns16

The

first

inst

alm

ent w

ill b

e pa

id w

hen

the

natio

nal m

ain

finan

cier

has

pai

d its

firs

t ins

talm

ent.

Bef

ore

paym

ent o

f the

firs

t ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•S

igne

d C

ontr

act

•In

voic

e

Bef

ore

paym

ent o

f the

sub

sequ

ent i

nsta

lmen

ts th

e fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•R

epor

t of e

xpen

ditu

re s

how

ing

spen

d co

mpa

red

with

bud

get,

as w

ell a

s fin

al c

ost e

stim

ate

•W

ritte

n re

port

on

the

stat

us o

f the

pro

ject

•

Invo

ice

Bef

ore

paym

ent o

f the

fina

l ins

talm

ent t

he fo

llow

ing

shal

l be

subm

itted

:•

Cer

tifie

d ac

coun

ts s

how

ing

final

spe

nd c

ompa

red

with

bud

get

•A

ll ot

her

deliv

erab

le m

ater

ial (

see

item

8.6

)•

Invo

ice

8.6

CR

ED

ITIN

G A

ND

AC

CO

UN

TSFr

om th

e op

enin

g or

clo

sing

cre

dits

of t

he fi

lm /

ser

ies

and

othe

r in

form

atio

n m

ater

ial i

t sha

ll be

evid

ent t

hat t

he fi

lm /

ser

ies

has

been

pr o

duce

d w

ith th

e su

ppor

t of N

ordi

sk F

ilm &

TV

Fon

d.C

redi

ting

shal

l be

appr

oved

by

the

Fund

.Th

e Fu

nd is

, upo

n re

ques

t, en

title

d to

doc

umen

tatio

n of

all

cost

s co

nnec

ted

to th

e pr

oduc

tion

ofth

e fil

m /

ser

ies

and

has

the

right

to a

udit

the

prod

ucer

’s a

ccou

nts

as p

art o

f the

con

trol

.

Del

iver

able

mat

eria

l :•

Aco

py o

f the

film

/ s

erie

s (D

VD

) with

Sca

ndin

avia

n or

Eng

lish

subt

itles

, inc

ludi

ng tr

aile

r /

TV s

pots

•P

oste

r (if

ava

ilabl

e)•

Stil

ls, m

inim

um 5

, del

iver

ed d

igita

lly, m

inim

um 3

00 d

pi•

Are

pres

enta

tive

sele

ctio

n of

revi

ews

•R

ecor

d of

fest

ival

par

ticip

atio

n an

d an

y pr

izes

won

•R

ecor

d of

inte

rnat

iona

l sal

es

8.7

RE

IMB

UR

SE

ME

NT

For

rule

s on

reim

burs

emen

t, se

e G

ener

al C

ondi

tions

, ite

m 4

.

255

guid

elin

es [u

k] /

spe

cific

con

ditio

ns17

9. S

UP

PO

RT

FOR

TH

E P

RO

DU

CTI

ON

OF

DO

CU

ME

NTA

RIE

S

MAY

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

PR

OD

UC

TIO

N C

OM

PAN

IES

9.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

TN

ordi

sk F

ilm &

TV

Fon

d w

ill p

rovi

de s

uppo

rt fo

r th

e pr

oduc

tion

of d

ocum

enta

ries

in th

e fo

rm o

f top

finan

cing

und

er th

e fo

llow

ing

cond

ition

s:•

Nat

iona

l bas

e fu

ndin

g m

ust b

e co

nfirm

ed.

•D

istr

ibut

ion

cont

ract

s m

ust b

e si

gned

with

a m

inim

um o

f 2 o

f the

TV

Par

tner

s of

the

Fund

.A

lter n

ativ

ely,

a d

istr

ibut

ion

guar

ante

e fo

r ci

nem

a ex

hibi

tion

in a

min

imum

of 2

Nor

dic

coun

trie

san

d a

dist

ribut

ion

cont

ract

with

a m

inim

um o

f 1 o

f the

TV

Par

tner

s of

the

Fund

mus

t be

sign

ed.

9.2

AP

PLI

CAT

ION

App

licat

ions

mus

t nor

mal

ly b

e su

bmitt

ed b

efor

e pr

oduc

tion

star

ts.

The

follo

win

g ite

ms

shal

l be

subm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om:

•S

ynop

sis

(max

imum

hal

f pag

e A

4)•

Trea

tmen

t / m

anus

crip

t (3

copi

es)

•P

rodu

cer’s

sta

tem

ent

•D

irect

or’s

sta

tem

ent

•C

V fo

r cr

eativ

e st

aff

•P

relim

inar

y tim

e sc

hedu

le

•B

udge

t•

Fina

ncin

g pl

an s

how

ing

conf

irmed

fina

ncin

g. A

mou

nts

shal

l be

give

n in

nat

iona

l and

Nor

weg

ian

curr

ency

,and

sha

ll in

clud

e co

nver

sion

rat

e•

Doc

umen

tatio

n of

con

firm

ed fi

nanc

ing

•D

ocum

enta

tion

of s

peci

fied

own

finan

cing

•D

istr

ibut

ion

cont

ract

or

LOC

for

TV w

ith m

inim

um 2

of t

he T

V P

artn

ers

of th

e Fu

nd•

Alte

rnat

ivel

y, a

dis

trib

utio

n gu

aran

tee

for

cine

ma

exhi

bitio

n in

a m

inim

um o

f 2 N

ordi

c co

untr

ies

and

dist

ribut

ion

cont

ract

or

LOC

for

TV w

ith m

inim

um 1

of t

he T

V P

artn

ers

of th

e Fu

nd•

Dis

trib

utio

n pl

an fo

r TV

,inc

ludi

ng s

pect

ator

est

imat

e in

the

coun

try

of o

rigin

of t

he fi

lm, o

r (w

hen

appl

icab

le) p

relim

inar

y di

strib

utio

n pl

an fo

r ci

nem

a w

ith a

dmis

sion

s es

timat

e in

the

coun

try

ofor

igin

of t

he fi

lm

The

follo

win

g m

ust a

lso

be s

ent b

y po

st:

•Tr

eatm

ent /

Man

uscr

ipt –

1 c

opy

•D

VD

feat

urin

g th

e di

rect

or’s

last

2 fi

lms

•Vi

sual

mat

eria

l – 1

cop

y (p

ilot,

trai

ler

etc)

.

9.3

CO

MM

ITM

EN

TTh

e pr

oduc

er w

ill r e

ceiv

e a

Lett

er o

f Com

mitm

ent f

rom

the

Fund

in w

hich

a d

eadl

ine

is s

peci

fied

for

fulfi

lmen

t of t

he fo

rmal

requ

irem

ents

(see

item

9.4

). Th

e de

adlin

e w

ill b

e de

term

ined

in re

latio

n to

the

prod

uctio

n pl

an o

f the

pro

ject

and

will

nor

mal

ly b

e be

fore

the

first

day

of p

rinci

pal p

hoto

grap

hy.

If th

e de

adlin

e is

not

resp

ecte

d, th

e Fu

nd w

ill c

onsi

der

itsel

f rel

ieve

d of

all

com

mitm

ents

, and

the

supp

ort g

rant

ed w

ill a

utom

atic

ally

be

with

draw

n. It

is th

e re

spon

sibi

lity

of th

e pr

oduc

er to

mak

esu

re th

e de

adlin

e is

resp

ecte

d.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns18

9.4

DR

AFT

ING

OF

CO

NTR

AC

TTh

e Fu

nd w

ill d

raft

a C

ontr

act f

or a

pro

ject

that

has

bee

n gr

ante

d su

ppor

t.

The

follo

win

g ite

ms

shal

l be

sent

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om:

Onl

y ne

w d

ocum

ents

can

be

uplo

aded

, fie

lds

cann

ot b

e ed

ited

and

old

docu

men

ts c

anno

t be

dele

ted.

All

new

info

rmat

ion

mus

t be

uplo

aded

as

pdf f

iles.

Up-

date

d tr

eatm

ent /

man

uscr

ipt

Up-

date

d pr

oduc

tion

info

rmat

ion:

•Le

ngth

(s) o

f the

film

•S

hoot

ing

form

at o

f the

film

•S

cree

ning

form

at(s

) of t

he fi

lm•

Sta

ff lis

t (ke

y fu

nctio

ns)

•P

rodu

ctio

n pl

an w

ith d

ates

for

star

t and

com

plet

ion

of p

rinci

pal p

hoto

grap

hy

•P

ost-

prod

uctio

n pl

an w

ith d

ates

for

editi

ng, s

ound

wor

k, s

ound

mix

, lab

wor

k, m

aste

r an

d (w

hen

appl

icab

le) d

eliv

ery

prin

t •

Exp

ecte

d na

tiona

l rel

ease

for

TV a

nd (w

hen

appl

icab

le) f

or c

inem

a

Up-

date

d fin

anci

al in

form

atio

n :•

Det

aile

d bu

dget

•Fi

nanc

ing

plan

•C

onfir

mat

ion

of a

ll fin

anci

ng:

°In

the

case

of f

inan

cial

par

ticip

atio

n by

a T

V c

ompa

ny th

e re

latio

nshi

p be

twee

n in

vest

men

tan

d pa

ymen

t for

dis

trib

utio

n rig

hts

shal

l be

spec

ified

°In

the

case

of f

inan

cial

par

ticip

atio

n by

dis

trib

utor

and

/ o

r co

-pro

duce

r th

e re

latio

nshi

pbe

twee

n in

vest

men

t and

min

imum

gua

rant

ee s

hall

be s

peci

fied

°In

the

case

of f

inan

cial

par

ticip

atio

n by

a n

atio

nal f

ilm in

stitu

te /

film

fund

a c

opy

of th

e fin

al,

sign

ed c

ontr

act s

hall

be s

ubm

itted

Up-

date

d di

strib

utio

n in

form

atio

n :•

Dis

trib

utio

n co

ntra

cts

with

min

imum

2 o

f the

TV

Par

tner

s of

the

Fund

•A

ltern

ativ

ely,

dis

trib

utio

n co

ntra

ct th

at g

uara

ntee

cin

ema

exhi

bitio

n in

a m

inim

um o

f 2 N

ordi

cco

untr

ies

and

dist

ribut

ion

cont

ract

with

min

imum

1 o

f the

TV

Par

tner

s of

The

Fun

d•

Dis

trib

utio

n pl

an fo

r ci

nem

a w

ith d

efin

ed ta

rget

gro

up a

nd d

escr

iptio

n of

how

this

will

be

reac

hed,

as w

ell a

s ad

mis

sion

s es

timat

e in

the

coun

try

of o

rigin

of t

he fi

lm•

Stil

ls fr

om th

e fil

m, a

t lea

st 1

of t

he d

irect

or. T

o be

sup

plie

d di

gita

lly, m

inim

um 3

00 d

pi

The

Con

trac

t will

onl

y be

dra

fted

upon

rece

ptio

n of

all

final

doc

umen

tatio

n.

Afte

r th

e C

ontr

act h

as b

een

sign

ed, t

he p

rodu

ctio

n co

mpa

ny m

ay n

ot m

ake

subs

tant

ial c

hang

es to

the

man

uscr

ipt a

nd /

or

to a

rtis

tic, p

rodu

ctio

n-re

late

d, e

cono

mic

, tec

hnic

al, m

arke

ting-

or

right

s-re

late

d co

nditi

ons,

unl

ess

thes

e ha

ve b

een

pres

ente

d in

writ

ing

to a

nd a

ccep

ted

by th

e Fu

nd.

9.5

PAY

ME

NT

OF

INS

TALM

EN

TSC

ondi

tions

for

the

paym

ent o

f the

Fun

d’s

supp

ort w

ill b

e de

term

ined

indi

vidu

ally

for

each

pro

ject

.N

orm

ally

the

Con

trac

t will

stip

ulat

e pa

ymen

t in

4 in

stal

men

ts.

256

guid

elin

es [u

k] /

spe

cific

con

ditio

ns19

Mat

eria

l ass

ocia

ted

with

the

paym

ent o

f ins

talm

ents

is s

ubm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om.

The

first

inst

alm

ent w

ill b

e pa

id w

hen

the

natio

nal m

ain

finan

cier

has

pai

d its

firs

t ins

talm

ent.

Bef

ore

paym

ent o

f the

firs

t ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•S

igne

d C

ontr

act

•In

voic

e

Bef

ore

paym

ent o

f the

sub

sequ

ent i

nsta

lmen

ts th

e fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•R

epor

t of e

xpen

ditu

re s

how

ing

spen

d co

mpa

red

with

bud

get,

as w

ell a

s fin

al c

ost e

stim

ate

•W

ritte

n re

port

on

the

stat

us o

f the

pro

ject

•

Invo

ice

Bef

ore

paym

ent o

f the

fina

l ins

talm

ent t

he fo

llow

ing

shal

l be

subm

itted

:•

Cer

tifie

d ac

coun

ts s

how

ing

final

spe

nd c

ompa

red

with

bud

get

•A

ll ot

her

deliv

erab

le m

ater

ial (

see

item

9.6

)•

Invo

ice

9.6

CR

ED

ITIN

G A

ND

AC

CO

UN

TSFr

om th

e op

enin

g or

clo

sing

cre

dits

of t

he fi

lm a

nd o

ther

info

rmat

ion

mat

eria

l it s

hall

be e

vide

nt th

atth

e fil

m h

as b

een

prod

uced

with

the

supp

ort o

f Nor

disk

Film

& T

V F

ond.

Cre

ditin

g sh

all b

eap

prov

ed b

y th

e Fu

nd a

nd s

hall

appe

ar o

n eq

ual t

erm

s w

ith th

e m

ain

finan

cier

.

The

Fund

is, u

pon

requ

est,

entit

led

to d

ocum

enta

tion

of a

ll co

sts

conn

ecte

d to

the

prod

uctio

n of

the

film

and

has

the

right

to a

udit

the

prod

ucer

’s a

ccou

nts

as p

art o

f the

con

trol

.

Del

iver

able

mat

eria

l :•

Aco

py o

f the

film

(DV

D) w

ith S

cand

inav

ian

or E

nglis

h su

btitl

es, i

nclu

ding

trai

ler

/ TV

spo

ts•

Pos

ter

(if a

pplic

able

)•

Stil

ls, m

inim

um 3

, del

iver

ed d

igita

lly, m

inim

um 3

00 d

pi•

Are

pres

enta

tive

sele

ctio

n of

revi

ews

•R

ecor

d of

fest

ival

par

ticip

atio

n an

d an

y pr

izes

won

•R

ecor

d of

inte

rnat

iona

l sal

es

9.7

RE

IMB

UR

SE

ME

NT

For

rule

s on

reim

burs

emen

t, se

e G

ener

al C

ondi

tions

, ite

m 4

.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns20

10. S

UP

PO

RT

FOR

CIN

EM

A D

ISTR

IBU

TIO

NM

AY B

E A

PP

LIE

D F

OR

BY

NO

RD

IC D

ISTR

IBU

TIO

N C

OM

PAN

IES

IN T

HE

CO

UN

TRIE

S W

HE

RE

TH

EFI

LM W

ILL

BE

RE

LEA

SE

D

10.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

TTh

e N

ordi

c Fi

lm &

TV

Fun

d pr

ovid

es fu

ndin

g fo

r to

p fin

anci

ng o

f cin

ema

dist

ribut

ion

unde

r th

efo

llow

ing

cond

ition

s:

•A

film

app

lyin

g fo

r su

ppor

t to

cove

r di

strib

utio

n co

sts

mus

t hav

e be

en w

ell r

ecei

ved

by it

sre

spec

tive

natio

nal a

udie

nce,

and

mus

t hav

e a

satis

fact

ory

audi

ence

pot

entia

l in

one

or m

ore

Nor

dic

coun

trie

s.

•S

uppo

rt m

ay b

e gr

ante

d in

depe

nden

tly o

f whe

ther

the

film

pre

viou

sly

has

been

gra

nted

prod

uctio

n su

ppor

t fro

m th

e Fu

nd.

•S

uppo

rt is

pro

vide

d as

a c

ash

cont

ribut

ion

and

is th

us n

ot s

ubje

ct to

reim

burs

emen

t.

The

Fund

may

, und

er s

peci

al c

ircum

stan

ces,

pro

vide

sup

port

for

othe

r ty

pes

of d

istr

ibut

ion.

10.2

AP

PLI

CAT

ION

App

licat

ions

mus

t nor

mal

ly b

e su

bmitt

ed a

t the

late

st fo

ur w

eeks

bef

ore

the

prem

ière

.

The

follo

win

g ite

ms

shal

l be

subm

itted

via

nor

disk

film

ogtv

fond

.com

:•

Syn

opsi

s (m

axim

um h

alf p

age

A4)

•A

copy

of t

he fi

lm (D

VD

) in

the

orig

inal

lang

uage

, if a

pplic

able

with

Eng

lish

or S

cand

inav

ian

subt

itles

•D

istr

ibut

ion

budg

et•

Fina

ncin

g pl

an. A

mou

nts

shal

l be

give

n in

nat

iona

l and

Nor

weg

ian

curr

ency

, and

sha

ll in

clud

eco

nver

sion

rat

e°

Oth

er a

pplic

able

sup

port

(exc

ludi

ng a

utom

atic

Med

ia P

rogr

amm

e su

ppor

t) sh

all b

e de

taile

din

the

finan

cing

pla

n•

Doc

umen

tatio

n of

the

dist

ribut

or’s

spe

cifie

d ow

n fin

anci

ng•

Dis

trib

utio

n pl

an w

ith d

efin

ed ta

rget

gro

up a

nd d

escr

iptio

n of

how

this

will

be

reac

hed,

as

wel

l as

adm

issi

ons

estim

ate

in th

e co

untr

y w

here

the

film

will

be

rele

ased

10.3

CO

MM

ITM

EN

T Th

e D

istr

ibut

or w

ill re

ceiv

e a

Lett

er o

f Com

mitm

ent f

rom

the

Fund

.

10.4

DR

AFT

ING

OF

CO

NTR

AC

TTh

e Fu

nd w

ill d

raft

a C

ontr

act f

or a

pro

ject

that

has

bee

n gr

ante

d su

ppor

t.

10.5

PAY

ME

NT

OF

INS

TALM

EN

TSP

aym

ent o

f the

Fun

d’s

supp

ort w

ill o

nly

take

pla

ce w

hen

the

dist

ribut

ion

has

been

fully

fina

nced

.Th

e am

ount

of e

ach

inst

alm

ent w

ill b

e de

term

ined

indi

vidu

ally

for

each

pro

ject

. Nor

mal

ly th

eC

ontr

act w

ill s

tipul

ate

paym

ent i

n 2

inst

alm

ents

.

Mat

eria

l ass

ocia

ted

with

the

paym

ent o

f ins

talm

ents

is s

ubm

itted

via

w

ww

.nor

disk

film

ogtv

fond

.com

.

257

guid

elin

es [u

k] /

spe

cific

con

ditio

ns21

Bef

ore

paym

ent o

f the

firs

t ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•S

igne

d co

ntra

ct•

Invo

ice

Bef

ore

paym

ent o

f the

fina

l ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•A

ccou

nts

show

ing

final

spe

nd c

ompa

red

with

dis

trib

utio

n bu

dget

•A

ccou

nts

show

ing

tota

l inc

ome

•Th

e Fu

nd’s

eva

luat

ion

repo

rt re

gard

ing

the

rece

ptio

n of

the

film

in re

latio

n to

exp

ecte

d re

sults

via

w

ww

.nor

disk

film

ogtv

fond

.com

•In

voic

e

10.6

CR

ED

ITS

AN

D A

CC

OU

NTS

From

the

adve

rtis

ing

mat

eria

l it s

hall

be e

vide

nt th

at th

e fil

m h

as b

een

dist

ribut

ed w

ith th

e su

ppor

tof

Nor

disk

Film

& T

V F

ond.

Cre

ditin

g sh

all b

e ap

prov

ed b

y th

e Fu

nd.

The

Fund

is, u

pon

requ

est,

entit

led

to d

ocum

enta

tion

of a

ll re

ceip

ts a

nd c

osts

con

nect

ed w

ith th

edi

strib

utio

n of

the

film

and

has

the

right

to a

udit

the

dist

ribut

or’s

acc

ount

s as

par

t of t

he c

ontr

ol.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns22

11. S

UP

PO

RT

FOR

DU

BB

ING

MAY

BE

AP

PLI

ED

FO

R B

Y N

OR

DIC

PR

OD

UC

TIO

N C

OM

PAN

IES

OR

BY

DIS

TRIB

UTI

ON

CO

MPA

NIE

SB

AS

ED

IN T

HE

CO

UN

TRY

WH

ER

E T

HE

FIL

M W

ILL

BE

RE

LEA

SE

D

Sup

port

is g

rant

ed fo

r th

e du

bbin

g of

a N

ordi

c fil

m to

ano

ther

Nor

dic

lang

uage

.

11.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

TTh

e N

ordi

c Fi

lm &

TV

Fun

d pr

ovid

es fu

ndin

g fo

r to

p fin

anci

ng o

f dub

bing

und

er th

e fo

llow

ing

cond

ition

s:

•A

Film

app

lyin

g fo

r su

ppor

t for

dub

bing

mus

t hav

e be

en w

ell r

ecei

ved

by it

s re

spec

tive

natio

nal

audi

ence

, and

mus

t hav

e a

satis

fact

ory

dist

ribut

ion

and

audi

ence

pot

entia

l in

one

or m

ore

Nor

dic

coun

trie

s.

•S

uppo

rt m

ay b

e gr

ante

d in

depe

nden

tly o

f whe

ther

the

film

pre

viou

sly

has

been

gra

nted

prod

uctio

nsu

ppor

t fro

m th

e Fu

nd.

•S

uppo

rt fo

r du

bbin

g is

nor

mal

ly o

nly

gran

ted

to fi

lms

for

child

ren

and

youn

g pe

ople

.

Sup

port

is p

rovi

ded

as a

cas

h co

ntrib

utio

n an

d is

thus

not

sub

ject

to re

imbu

rsem

ent.

11.2

AP

PLI

CAT

ION

App

licat

ions

mus

t nor

mal

ly b

e su

bmitt

ed b

efor

edu

bbin

g st

arts

.

The

follo

win

g ite

ms

shal

l be

subm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om:

•S

ynop

sis

(max

imum

hal

f pag

e A

4)•

Aco

py o

f the

film

(DV

D) i

f app

licab

le w

ith E

nglis

h or

Sca

ndin

avia

n su

btitl

es•

Bud

get f

or th

e du

bbin

g•

Fina

ncin

g pl

an s

how

ing

conf

irmed

fina

ncin

g. A

mou

nts

shal

l be

give

n in

nat

iona

l and

Nor

weg

ian

curr

ency

, and

sha

ll in

clud

e co

nver

sion

rat

e•

Doc

umen

tatio

n of

spe

cifie

d ow

n fin

anci

ng•

Dis

trib

utio

n pl

an w

ith d

efin

ed ta

rget

gro

up a

nd d

escr

iptio

n of

how

this

will

be

reac

hed,

as

wel

l as

adm

issi

ons

estim

ate

in th

e co

untr

y w

here

the

film

will

be

rele

ased

11.3

CO

MM

ITM

EN

T Th

e pr

oduc

er o

r di

strib

utor

will

rece

ive

a Le

tter

of C

omm

itmen

t fro

m th

e Fu

nd.

11.4

DR

AFT

ING

OF

CO

NTR

AC

TTh

e Fu

nd w

ill d

raft

a C

ontr

act f

or a

pro

ject

that

has

bee

n gr

ante

d su

ppor

t.

11.5

PAY

ME

NT

OF

INS

TALM

EN

TSP

aym

ent o

f the

Fun

d’s

supp

ort w

ill o

nly

take

pla

ce w

hen

the

dubb

ing

has

been

fully

fina

nced

. The

amou

nt o

f eac

h in

stal

men

t will

be

dete

rmin

ed in

divi

dual

ly fo

r ea

ch p

roje

ct. N

orm

ally

the

Con

trac

tw

ill s

tipul

ate

paym

ent i

n 2

inst

alm

ents

.

Mat

eria

l ass

ocia

ted

with

the

paym

ent o

f ins

talm

ents

is s

ubm

itted

via

w

ww

.nor

disk

film

ogtv

fond

.com

.

258

guid

elin

es [u

k] /

spe

cific

con

ditio

ns23

Bef

ore

paym

ent o

f the

firs

t ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•S

igne

d co

ntra

ct•

Invo

ice

Bef

ore

paym

ent o

f the

fina

l ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•A

ccou

nts

show

ing

final

spe

nd c

ompa

red

with

dub

bing

bud

get

•E

valu

atio

n re

port

rega

rdin

g th

e re

cept

ion

of th

e fil

m in

rela

tion

to e

xpec

ted

resu

lts•

Aco

py (D

VD

) of t

he d

ubbe

d fil

m•

Invo

ice

11.6

CR

ED

ITS

AN

D A

CC

OU

NTS

From

the

adve

rtis

ing

mat

eria

l it s

hall

be e

vide

nt th

at th

e fil

m h

as b

een

dubb

ed w

ith th

e su

ppor

t of

Nor

disk

Film

& T

V F

ond.

Cre

ditin

g sh

all b

e ap

prov

ed b

y th

e Fu

nd.

The

Fund

is, u

pon

requ

est,

entit

led

to d

ocum

enta

tion

of a

ll re

ceip

ts a

nd c

osts

con

nect

ed w

ith th

edu

bbin

g of

the

film

and

has

the

right

to a

udit

the

prod

ucer

’s /

dis

trib

utor

’s a

ccou

nts

as p

art o

f the

cont

rol.

guid

elin

es [u

k] /

spe

cific

con

ditio

ns24

12. S

UP

PO

RT

FOR

FIL

M C

ULT

UR

AL

INIT

IATI

VE

SM

AY B

E A

PP

LIE

D F

OR

BY

TH

E O

RG

AN

ISE

R O

F TH

E IN

ITIA

TIV

E

12.1

CO

ND

ITIO

NS

FO

R G

RA

NTI

NG

OF

SU

PP

OR

T•

Sup

port

may

be

gran

ted

for

Film

Cul

tura

l Ini

tiativ

es in

the

form

of w

orks

hops

, sem

inar

s or

fest

ival

prog

ram

mes

that

may

str

engt

hen

the

com

pete

nce

of th

e jo

int N

ordi

c fil

m a

nd T

V c

omm

unity

.

•S

uppo

rt w

ill o

nly

be p

aid

whe

n th

e in

itiat

ive

has

been

fully

fina

nced

.

Any

bud

get c

hang

es m

ade

afte

r fu

ndin

g ha

s be

en g

rant

ed m

ust b

e ap

prov

ed in

adv

ance

by

the

Fund

.

Sup

port

is p

rovi

ded

in th

e fo

rm o

f eith

er g

uara

ntee

aga

inst

loss

or

as a

cas

h co

ntrib

utio

n an

d is

thus

not

sub

ject

to re

imbu

rsem

ent.

12.2

AP

PLI

CAT

ION

App

licat

ions

mus

t nor

mal

ly b

e su

bmitt

ed b

efor

e th

e pr

ojec

t sta

rts.

Due

to th

e w

ide

varie

ty o

f Film

Cul

tura

l Ini

tiativ

es it

is d

if fic

ult t

o sp

ecify

wha

t is

need

ed a

s re

leva

ntba

sis

for

an a

pplic

atio

n. P

oten

tial a

pplic

ants

are

ther

efor

ead

vise

d to

con

tact

the

Fund

in e

ach

case

. App

licat

ions

mus

t be

subm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om.

12.3

CO

MM

ITM

EN

TTh

e or

gani

ser

of th

e in

itiat

ive

will

rece

ive

a Le

tter

of C

omm

itmen

t fro

m th

e Fu

nd.

12.4

DR

AFT

ING

OF

CO

NTR

AC

TTh

e Fu

nd w

ill d

raft

a C

ontr

act f

or a

pro

ject

that

has

bee

n gr

ante

d su

ppor

t.

12.5

PAY

ME

NT

Pay

men

t of t

he F

und’

s su

ppor

t will

be

dete

rmin

ed in

divi

dual

ly fo

r ea

ch p

roje

ct. N

orm

ally

the

Con

trac

t will

stip

ulat

e pa

ymen

t in

2 in

stal

men

ts. I

n th

e ca

se o

f gua

rant

ee a

gain

st lo

ss s

uppo

rt w

illbe

pai

d in

1 in

stal

men

t. In

suc

h ca

ses

the

rule

s fo

r pa

ymen

t of t

he la

st in

stal

men

t app

lies.

Mat

eria

l ass

ocia

ted

with

the

paym

ent o

f ins

talm

ents

is s

ubm

itted

via

ww

w.n

ordi

skfil

mog

tvfo

nd.c

om.

Bef

ore

paym

ent o

f the

firs

t ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•S

igne

d C

ontr

act

•In

voic

e

Bef

ore

paym

ent o

f the

fina

l ins

talm

ent t

he fo

llow

ing

item

s sh

all b

e su

bmitt

ed:

•A

ccou

nts

show

ing

final

spe

nd c

ompa

red

with

bud

get

•Th

e Fu

nd’s

eva

luat

ion

repo

rt re

gard

ing

the

rece

ptio

n of

the

initi

ativ

e in

rela

tion

to e

xpec

ted

resu

lt vi

a w

ww

.nor

disk

film

ogtv

fond

.com

•In

voic

e

259

guid

elin

es [u

k] /

spe

cific

con

ditio

ns25

12.6

CR

ED

ITS

AN

D A

CC

OU

NTS

From

the

adve

rtis

ing

mat

eria

l it s

hall

be e

vide

nt th

at th

e in

itiat

ive

has

been

org

anis

ed w

ith th

esu

ppor

t of N

ordi

sk F

ilm &

TV

Fon

d. C

redi

ting

shal

l be

appr

oved

by

the

Fund

.

The

Fund

is, u

pon

requ

est,

entit

led

to d

ocum

enta

tion

of a

ll re

ceip

ts a

nd c

osts

con

nect

ed w

ith th

ein

itiat

ive

and

has

the

right

to a

udit

the

orga

nise

r’s a

ccou

nts

as p

art o

f the

con

trol

YELLOW1.DK

260

APPENDIX 12

261

1

Th

e F

inn

ish

Film

Fo

un

da

tio

n

S

UP

PO

RT

GU

IDE

LIN

ES

1

Ja

nu

ary

20

09

Confirm

ed b

y th

e F

oundation’s

Board

on 3

1.1

2.2

008

Ch

an

ges t

o p

rev

iou

s g

uid

elin

es a

re in

bo

ld

GU

IDE

LIN

ES

FO

R F

ILM

PR

OD

UC

TIO

N S

UP

PO

RT

GU

IDE

LIN

ES

FO

R S

UP

PO

RT

FO

R C

UL

TU

RA

L E

XC

HA

NG

E,

EX

HIB

ITIO

N A

ND

D

IST

RIB

UT

ION

, A

ND

ED

UC

AT

ION

AL

AC

TIV

ITIE

S

2

GU

IDE

LIN

ES

FO

R F

ILM

PR

OD

UC

TIO

N S

UP

PO

RT

1. G

EN

ER

AL

The F

innis

h F

ilm F

oundation g

rants

support

for

pro

fessio

nal film

pro

duction in F

inla

nd. T

he

Foundation’s

goal is

to p

rom

ote

hig

h-q

ualit

y, v

ers

atile

and o

rigin

al F

innis

h f

ilm p

roduction. T

he s

upport

is

based o

n the A

ct on the P

rom

otion o

f F

ilm A

rt (

28/2

000).

S

upport

can b

e g

rante

d u

pon a

pplic

ation to f

eatu

re-length

, short

and s

erialis

ed f

iction f

ilms,

docum

enta

ries, and a

nim

ate

d a

nd c

hild

ren’s

film

s. T

he a

pplic

ation m

ust be s

ubm

itte

d o

n a

pre

-printe

d

applic

ation f

orm

. S

upport

cannot be g

rante

d to tele

vis

ion c

om

panie

s o

r to

com

panie

s in w

hic

h a

tele

vis

ion c

om

pany

hold

s a

share

of

15%

or

more

, nor

to a

sta

te, m

unic

ipal or

churc

h a

uth

ority

or

institu

tion, nor

to a

com

pany

in w

hic

h the s

tate

has a

majo

rity

hold

ing, nor

to a

ny

org

anis

ation o

r in

stitu

tion c

om

para

ble

to

the a

bove. N

either

can s

upport

be g

rante

d f

or

a p

roduction that is

inte

nded f

or

the m

ark

eting o

f a

pro

duct, r

ange o

f pro

ducts

or

serv

ices, or

anyt

hin

g c

om

para

ble

to these.

2. S

UP

PO

RT

CA

TE

GO

RIE

S

2.1

. S

cript support

S

cript support

can b

e g

rante

d to a

n indiv

idual or

a team

for

the w

riting o

f a f

ilm s

cript. T

he m

axim

um

support

per

film

is E

UR

10,0

00.

The a

pplic

ant m

ust supply

the F

oundation w

ith a

work

ing p

lan f

or

the s

cript as p

art

of

the a

pplic

ation.

2.2

. D

evelo

pm

ent support

A

pro

duction c

om

pany

(a r

egis

tere

d s

ocie

ty in

Fin

lan

d)

hold

ing the r

ights

to a

film

in F

inla

nd c

an b

e

gra

nte

d d

evelo

pm

ent support

for

the f

ilm p

roje

ct. T

he s

upport

cannot exceed E

UR

100,0

00 p

er

film

. T

he s

upport

can b

e a

pplie

d tow

ard

e.g

. th

e w

riting a

nd f

urt

her

develo

pm

ent of

the s

cript; p

roduction,

shooting a

nd s

et desig

n p

lans, and a

ny

oth

er

measure

s r

equired b

efo

re a

budget and the r

ela

ted

financin

g a

rrangem

ents

can b

e c

om

ple

ted.

The a

pplic

ant m

ust supply

the F

oundation w

ith the f

ollo

win

g a

ppendic

es to the a

pplic

ation:

�

A p

roje

ct develo

pm

ent pla

n

�

A d

evelo

pm

ent budget and a

fin

ancin

g p

lan

�

A n

o o

lder

than o

ne-m

onth

-old

cert

ific

ate

of

tax lia

bili

ty a

nd p

roof

of

paid

old

-age p

ensio

n insura

nce

pre

miu

ms

Only

direct costs

of

the p

roje

ct are

inclu

ded in the d

evelo

pm

ent budget. Indirect costs

of

the a

pplic

ant's

com

pany

(rent fo

r fixed o

ffic

es, fixed d

ata

com

munic

ations c

osts

, etc

.) a

re inclu

ded in the p

erc

enta

ge

reserv

ed f

or

adm

inis

trative c

osts

in the p

roje

ct’s b

udget.

The c

osts

of

the p

roje

ct are

observ

ed in the b

udget exclu

siv

e o

f V

AT

. If

the r

ecip

ient is

verifiably

not

entitled to d

eduction o

f V

AT

, th

e V

AT

may

be o

bserv

ed in the b

udget.

Work

carr

ied o

ut by

the o

wner

of

the p

roduction c

om

pany

for

the p

roje

ct is

indic

ate

d in the b

udget as a

fixed tota

l com

pensation.

2.3

. A

dvance s

upport

for

pro

duction

A p

roduction c

om

pany

hold

ing the r

ights

to a

film

in F

inla

nd c

an b

e g

rante

d a

dvance s

upport

for

pro

duction f

or

the c

om

ple

tion o

f th

e f

ilm. G

rante

d p

roduction s

upport

can c

over

a m

axim

um

of

50%

of

262

3

the f

ilm’s

pro

duction c

osts

, in

clu

din

g a

ny

develo

pm

ent support

already

gra

nte

d f

or

the p

roje

ct by

the

Foundation.

Advance s

upport

for

pro

duction c

annot be g

rante

d f

or

a c

om

ple

ted p

roduction. A

film

is c

onsid

ere

d

com

ple

ted w

hen a

fin

ished r

ele

ase p

rint or

a T

V m

aste

r of

it e

xis

ts.

The a

pplic

ant m

ust supply

the F

oundation w

ith the f

ollo

win

g d

ocum

ents

as p

art

of

the a

pplic

ation:

�

The s

cript

�

A d

eta

iled b

udget

�

A f

inancin

g p

lan

�

A p

roduction p

lan, in

clu

din

g a

pro

duction s

chedule

and d

eta

ils a

bout th

e indiv

iduals

with p

rim

ary

art

istic a

nd f

iscal accounta

bili

ty f

or

the p

roje

ct

�

A p

relim

inary

mark

eting a

nd d

istr

ibution p

lan f

or

cin

em

a d

istr

ibution in a

ccord

ance w

ith the m

odel

issued b

y th

e F

oundation

�

An info

rmation s

heet about th

e f

ilm d

raw

n u

p in a

ccord

ance w

ith the m

odel is

sued b

y th

e

Foundation a

nd a

photo

gra

ph f

rom

the f

ilm in e

lectr

onic

form

�

A

no o

lder

than o

ne-m

onth

-old

cert

ific

ate

of

tax lia

bili

ty a

nd p

roof

of

paid

old

-age p

ensio

n insura

nce

pre

miu

ms

When s

upport

is a

pplie

d f

or

the F

innis

h p

art

of

inte

rnational co-p

roductions, th

e a

pplic

ant m

ust in

additio

n to the a

fore

mentioned a

ppendic

es to the a

pplic

ation a

lso d

eliv

er

the f

ollo

win

g d

ocum

ents

to

the F

oundation:

■ A

coopera

tion c

ontr

act or

deal m

em

o o

f all

the p

roduction p

art

ies

■ A

deta

iled b

udget fo

r th

e F

innis

h p

roducer's s

hare

■

A

deta

iled b

udget fo

r th

e w

hole

pro

duction

■ A

fin

ancin

g p

lan f

or

the F

innis

h p

roducer’s s

hare

of

the p

roduction

■ A

fin

ancin

g p

lan f

or

the w

hole

pro

duction

■ A

pro

duction p

lan f

or

the F

innis

h p

roducer’s s

hare

of

the p

roduction

The b

udget m

ust cover

all

direct pro

duction c

osts

up to the f

irst re

lease p

rint, inclu

din

g a

7–10%

re

serv

ation f

or

contingencie

s. In

direct costs

of

the p

roduction c

om

pany

are

inclu

ded in the p

erc

enta

ge

reserv

ed f

or

adm

inis

trative c

osts

in the b

udget. T

his

share

cannot exceed 5

% o

f th

e p

roduction c

osts

and o

r th

e a

ctu

al costs

of

the c

om

pany

as indic

ate

d in the b

ookkeepin

g. T

he r

eserv

ation f

or

contingencie

s a

nd the p

erc

enta

ge f

or

adm

inis

trative c

osts

are

calc

ula

ted o

n the b

asis

of

the a

ctu

al

pro

duction c

osts

(not in

clu

din

g d

evelo

pm

ent costs

). T

he r

eserv

ation f

or

contingencie

s a

s w

ell

as the

perc

enta

ge f

or

adm

inis

trative c

osts

must be f

ully

fin

anced.

The c

osts

of

the p

roje

ct are

observ

ed in the b

udget exclu

siv

e o

f V

AT

. If

the r

ecip

ient is

verifiably

not

entitled to d

eduction o

f V

AT

, th

e V

AT

may

be o

bserv

ed in the b

udget.

The s

ala

ries o

f th

e p

roduction c

om

pany’

s p

erm

anent sta

ff m

ust be indic

ate

d in e

uro

in the b

udget.

Work

carr

ied o

ut by

the o

wner

of

the p

roduction c

om

pany

for

the p

roje

ct is

indic

ate

d in the b

udget as a

fixed tota

l com

pensation.

The b

udget m

ust als

o c

over

any

pro

duction-s

tage m

ark

eting c

osts

, such a

s p

ublic

ity,

PR

and m

edia

expenses, and the p

repara

tion c

osts

for

the r

ela

ted p

rom

otional m

ate

rial lis

ted in c

hapte

r 6 to b

e

deliv

ere

d to the F

oundation.

Com

pensation f

or

the u

se o

f th

e p

roducer’s o

wn e

quip

ment cannot exceed 6

0%

of

the c

urr

ent re

nta

l ra

te.

If the p

roduction c

osts

of

the f

ilm e

xceed E

UR

500,0

00, advance s

upport

for

pro

duction c

annot be

gra

nte

d u

nle

ss a

pro

duction insura

nce c

overing the e

ssential negative, pers

on a

nd e

quip

ment risks is

taken o

ut fo

r th

e f

ilm p

roje

ct in

question.

2.4

. M

ark

eting a

nd d

istr

ibution s

upport

M

ark

eting a

nd d

istr

ibution s

upport

can b

e g

rante

d f

or

mark

eting a

nd d

istr

ibution c

osts

associa

ted w

ith

the F

innis

h c

inem

a d

istr

ibution o

f dom

estic f

ilms a

nd inte

rnational co-p

roductions. T

he s

upport

can b

e

4

gra

nte

d to p

roduction c

om

panie

s h

old

ing the r

ights

to the f

ilm in F

inla

nd, or

to a

pro

fessio

nal

dis

trib

ution c

om

pany

hold

ing the d

istr

ibution r

ights

to the f

ilm. T

he s

upport

is a

pplie

d f

or

by

the p

art

y w

ith the m

ain

mark

eting r

esponsib

ility

. T

he s

upport

can c

over

up to 5

0%

of

the c

osts

, w

ith a

maxim

um

of

EU

R 8

0,0

00 p

er

film

. S

upport

can a

lso b

e g

rante

d s

epara

tely

for

the testing o

f th

e f

ilm a

nd its

mark

eting m

ate

rial. T

he

testing m

ust be c

onducte

d b

y a p

rofe

ssio

nal, independent in

stitu

tion. T

he s

upport

can c

over

a

maxim

um

of

50%

of

the testing c

osts

, but no m

ore

than E

UR

5,0

00 p

er

film

. T

he a

pplic

ant m

ust pre

sent th

e F

oundation w

ith a

revis

ed m

ark

eting a

nd d

istr

ibution p

lan, to

geth

er

with

possib

le test analy

sis

results, befo

re the p

roduction o

f key

mark

eting m

ate

rial is

launched. T

he a

ctu

al

applic

ation f

or

mark

eting a

nd d

istr

ibution s

upport

must be s

ubm

itte

d to the F

oundation n

o late

r th

an s

ix

weeks b

efo

re the p

rem

iere

. B

efo

re the d

ecis

ion is m

ade, th

e p

roducer,

dis

trib

uto

r and r

epre

senta

tives

of

the F

oundations g

o thro

ugh the m

ark

eting p

lan togeth

er.

T

he a

pplic

ant m

ust supply

the F

oundation w

ith the f

ollo

win

g d

ocum

ents

as p

art

of

the a

pplic

ation:

�

A f

inal m

ark

eting a

nd d

istr

ibution p

lan join

tly

pre

pare

d b

y th

e p

roducer

and the d

istr

ibuto

r in

accord

ance w

ith the m

odel is

sued b

y th

e F

oundation

�

A d

eta

iled b

udget in

accord

ance w

ith the m

odel is

sued b

y th

e F

oundation

�

A s

igned d

istr

ibution c

ontr

act

�

Deta

ils a

bout m

ark

eting c

o-o

pera

tion a

nd p

art

ners

hip

s

�

A n

o m

ore

than o

ne-m

onth

-old

cert

ific

ate

of

tax lia

bili

ty a

nd p

roof

of

paid

old

-age p

ensio

n insura

nce

pre

miu

ms

The s

upport

recip

ient m

ust see to it th

at th

e f

ilm is s

ubtitled in the o

ffic

ial la

nguages o

f F

inla

nd a

s

appro

priate

for

the d

istr

ibution o

f th

e f

ilm. W

hen the f

ilm is d

istr

ibute

d in m

ore

than o

ne r

ele

ase p

rint, a

copy

in F

innis

h a

nd S

wedis

h is a

lways

required.

2.5

. P

ost-

rele

ase s

upport

for

pro

duction

Post-

rele

ase s

upport

for

pro

duction c

an b

e g

rante

d o

n the b

asis

of

a d

om

estic f

ilm’s

tota

l num

ber

of

adm

issio

ns, to

a p

roduction c

om

pany

hold

ing the r

ights

to the f

ilm in F

inla

nd. P

ost-

rele

ase s

upport

can

be g

rante

d to a

film

whic

h the F

oundation e

valu

ate

s a

s h

avin

g s

uff

icie

nt dom

estic c

onte

nt, the

dom

estic theatr

ical re

lease o

f w

hic

h w

as o

n 1

January

1997 o

r subsequently,

and w

hic

h a

ttra

cte

d a

m

inim

um

of

45,0

00 r

egula

r-priced a

dm

issio

ns a

t dom

estic f

ilm theatr

es d

uring its

first ye

ar

of

rele

ase.

Als

o a

dm

issio

ns f

or

Koulu

kin

o s

how

ings a

re taken into

account in

the c

alc

ula

tion o

f post-

rele

ase

support

. P

ost-

rele

ase s

up

po

rt is g

ran

ted

to

th

e s

um

of

EU

R 4

.00 p

er

each

so

ld r

eg

ula

r-p

riced

tic

ket

du

rin

g t

he f

irst

year

of

rele

ase o

f th

e f

ilm

, sta

rtin

g a

t 45,0

01 s

old

tic

kets

. T

ickets

so

ld t

o

Ko

ulu

kin

o-s

cre

en

ing

s a

re a

lso

taken

in

to a

cco

un

t w

hen

po

st-

rele

ase s

up

po

rt is c

alc

ula

ted

. T

he

tota

l am

ou

nt

of

the p

ost-

rele

ase s

up

po

rt c

an

no

t, h

ow

ev

er,

exceed

EU

R 2

00,0

00 o

r 50%

of

the

pro

du

cti

on

co

sts

ap

pro

ved

by t

he F

ou

nd

ati

on

. In

cases w

here

th

e f

ilm

has b

een

gra

nte

d

ad

van

ce s

up

po

rt f

or

pro

du

cti

on

by t

he F

ou

nd

ati

on

, th

e p

ost-

rele

ase s

up

po

rt c

an

no

t exceed

E

UR

400,0

00 a

nd

th

e s

um

to

tal o

f th

e g

ran

ted

ad

van

ce s

up

po

rt f

or

pro

du

cti

on

an

d t

he p

ost-

rele

ase s

up

po

rt c

an

no

t exceed

EU

R 8

00,0

00 o

r a m

axim

um

of

50%

of

the p

rod

ucti

on

co

sts

ap

pro

ved

by t

he F

ou

nd

ati

on

.

Po

st-

rele

ase s

up

po

rt m

ust

be a

pp

lied

fo

r w

ith

in s

ix (

6)

mo

nth

s f

rom

th

e d

ate

wh

en

on

e (

1)

year

has e

lap

sed

fro

m t

he t

heatr

ical re

lease o

f th

e f

ilm

. In

ord

er

to a

pp

ly f

or

po

st-

rele

ase s

up

po

rt, it

is r

eq

uir

ed

th

at

the a

pp

lican

t d

eliv

ers

a

cla

rifi

cati

on

co

ncern

ing

th

e t

ota

l co

sts

of

the f

ilm

in

qu

esti

on

as w

ell a

s a

sp

ecif

icati

on

of

the

imp

lem

en

ted

fin

an

cin

g a

nd

its

so

urc

es, au

tho

rised

by a

cert

ifie

d a

cco

un

tan

t.

Po

st-

rele

ase s

up

po

rt m

ust

be u

tilised

fo

r fi

lm p

rod

ucti

on

or

dev

elo

pm

en

t th

ere

of,

in

acco

rdan

ce w

ith

th

e g

uid

elin

es f

or

pro

du

cti

on

su

pp

ort

. T

he r

ecip

ien

t m

ay u

se t

he p

ost-

rele

ase

su

pp

ort

to

co

ver

the s

elf

-fin

an

ced

part

of

the f

ilm

, to

wh

ich

th

e s

up

po

rt w

as g

ran

ted

. T

he

recip

ien

t m

ust

deliv

er

a w

ritt

en

fin

al re

po

rt c

on

cern

ing

th

e u

tilisati

on

of

the p

ost-

rele

ase

263

5

su

pp

ort

to

th

e F

ou

nd

ati

on

by t

he d

ate

in

dic

ate

d in

th

e s

up

po

rt a

gre

em

en

t, h

ow

ev

er

no

late

r th

an

tw

o y

ears

fro

m t

he s

ign

ing

of

the s

up

po

rt a

gre

em

en

t.

The a

pplic

ant m

ust pro

vid

e the F

oundation w

ith the f

ollo

win

g d

ocum

ents

as p

art

of

the a

pplic

ation:

�

A u

tilisati

on

pla

n f

or

the p

ost-

rele

ase s

up

po

rt

�

A c

ert

ifie

d a

ccounta

nt’s s

tate

ment verify

ing the tota

l pro

duction c

osts

and a

deta

iled a

ccount of

obta

ined f

inancin

g a

nd its

sourc

es.

�

The d

istr

ibuto

r’s s

tate

ment confirm

ing the n

um

ber

of

paid

adm

issio

ns a

t a d

om

estic f

ilm theatr

e

during its

first ye

ar

of

rele

ase.

�

The c

om

pany’

s late

st clo

sin

g o

f accounts

and a

valid

extr

act fr

om

the tra

de r

egis

ter

�

A n

o m

ore

than o

ne-m

onth

-old

cert

ific

ate

of

tax lia

bili

ty a

nd p

roof

of

paid

old

-age p

ensio

n insura

nce

pre

miu

ms

A s

up

po

rt a

gre

em

en

t b

etw

een

th

e F

ou

nd

ati

on

an

d t

he r

ecip

ien

t co

ncern

ing

th

e p

ost-

rele

ase

su

pp

ort

mu

st

be s

ign

ed

wit

hin

six

(6)

mo

nth

s o

f th

e s

up

po

rt d

ecis

ion

. P

ost-

rele

ase s

up

po

rt is p

aid

ou

t in

tw

o o

r m

ore

in

sta

lmen

ts, th

e f

irst

insta

lmen

t su

bseq

uen

t to

th

e s

ign

ing

of

the s

up

po

rt a

gre

em

en

t, a

nd

th

e last

insta

lmen

t o

f 20%

su

bseq

uen

t to

th

e

ap

pro

val o

f th

e f

inal re

po

rt b

y t

he F

ou

nd

ati

on

. In

cases w

here

th

e F

ou

nd

ati

on

has g

ran

ted

ad

van

ce s

up

po

rt f

or

pro

du

cti

on

to

th

e f

ilm

, th

e

gu

idelin

es t

hat

were

valid

at

the t

ime o

f th

e s

up

po

rt d

ecis

ion

will b

e a

pp

lied

to

th

e p

ost-

rele

ase

su

pp

ort

.

2.6

. D

ifficult a

nd L

ow

-budget F

ilms

The E

uro

pean C

om

mis

sio

n C

inem

a C

om

munic

ation (

Com

munic

ation f

rom

the C

om

mis

sio

n to the

Council,

the E

uro

pean P

arlia

ment, the E

conom

ic a

nd S

ocia

l C

om

mitte

e a

nd the C

om

mitte

e o

f T

he

Regio

ns o

n c

ert

ain

legal aspects

rela

ting to c

inem

ato

gra

phic

and o

ther

audio

vis

ual w

ork

s (

2002/C

43/0

4, C

OM

(2001)

534 fin

al))

sta

tes that “a

id inte

nsity

must in

princip

le b

e lim

ited to 5

0%

of

the

pro

duction b

udget'.

T

he r

estr

iction w

ill n

ot be a

pplie

d to d

ifficult a

nd low

-budget film

s. T

he C

om

mis

sio

n c

onsid

ers

that

under

the s

ubsid

iarity

princip

le it is

up to e

ach m

em

ber

sta

te to e

sta

blis

h a

definitio

n o

f a d

ifficult a

nd

low

-budget film

accord

ing to n

ational para

mete

rs.

A f

ilm is c

lassifie

d a

s a

difficult f

ilm w

hen:

•

it d

oes n

ot

seek a

larg

e a

ud

ien

ce, an

d

•

it f

aces s

pecia

l d

iffi

cu

ltie

s a

ttra

cti

ng

co

mm

erc

ial fi

nan

cin

g a

nd

wo

uld

no

t b

e p

ossib

le

to p

rod

uce w

ith

ou

t sta

te a

id e

xceed

ing

50%

of

the p

rod

ucti

on

bu

dg

et

For

pro

jects

that qualif

y as d

ifficult o

r lo

w-b

udget film

, support

may

be g

rante

d a

s f

ollo

ws:

•

Advance p

roduction s

upport

: m

axim

um

of

70%

of

the f

ilm’s

pro

duction c

osts

, in

clu

din

g a

ny

develo

pm

ent support

already

gra

nte

d f

or

the p

roje

ct by

the F

oundation.

•

Mark

eting a

nd D

istr

ibution s

upport

: up to 7

0%

of

the c

osts

, w

ith a

maxim

um

of

EU

R 8

0,0

00

per

film

. P

lus s

upport

for

the testing o

f th

e f

ilm a

nd its

mark

eting m

ate

rial covering a

maxim

um

of

70%

of

the testing c

osts

, but no m

ore

than E

UR

5,0

00 p

er

film

.

3. S

UP

PO

RT

DE

CIS

ION

S

3.1

. P

rovis

ional S

upport

Decis

ion

With a

pro

vis

ional support

decis

ion, th

e F

oundation p

rovis

ionally

reserv

es s

upport

for

the a

pplic

ant.

Pro

vis

ional support

decis

ions c

an b

e m

ade o

nly

if

the a

pplic

ant has f

ollo

wed the g

uid

elin

es f

or

earlie

r support

decis

ions a

nd p

rovid

ed the F

oundation w

ith a

ll th

e r

equired r

eport

s in tim

e. If

the a

pplic

ant or

an indiv

idual or

a legal pers

on u

nder

contr

act to

the a

pplic

ant has s

evera

l pro

jects

support

ed b

y th

e

Foundation, th

e a

bove s

tipula

tion m

ay

be a

pplie

d to a

ll pro

jects

of

the a

pplic

ants

in q

uestion.

Pro

vis

ional support

decis

ions a

re b

ased o

n a

n e

valu

ation o

f th

e e

ntire

pro

ject in

term

s o

f conte

nt,

expre

ssio

n a

nd a

ctu

al pro

duction, acknow

ledgin

g the a

pplic

ant’s a

rtis

tic, pro

ductional and f

inancia

l pote

ntial to

com

ple

te the p

roduction in q

uestion.

6

When s

upport

is a

pplie

d f

or

the F

innis

h c

ontr

ibution to a

n inte

rnational co-p

roduction, th

e p

rovis

ional

support

decis

ion is a

lso influenced b

y th

e p

roje

ct’s inte

rest in

term

s o

f th

e F

innis

h a

udie

nce, th

e

pro

spects

of

continued c

o-o

pera

tion b

etw

een the c

o-p

roducers

, and the v

olu

me o

f F

innis

h c

ontr

ibution

and a

rtis

tic input in

the p

roje

ct.

The F

oundation m

ay

request additio

nal in

form

ation f

rom

the a

pplic

ant befo

re m

akin

g its

fin

al decis

ion.

The p

rovis

ional support

decis

ion e

xpires u

nle

ss a

support

agre

em

ent satisfa

cto

ry to the F

oundation is

sig

ned w

ithin

the tim

e f

ram

es g

iven in p

ara

gra

ph 3

.2.

The a

bove r

egula

tions f

or

pro

vis

ional support

decis

ions a

nd the s

tipula

tions a

bout support

agre

em

ents

giv

en late

r in

this

docum

ent do n

ot apply

to p

ost-

rele

ase s

upport

for

pro

duction. T

he F

oundation

makes d

ecis

ions a

bout gra

nting p

ost-

rele

ase s

upport

as e

xpla

ined in p

ara

gra

ph 4

.

3.2

. S

upport

agre

em

ent

In the c

ase o

f script, d

evelo

pm

ent and m

ark

eting a

nd d

istr

ibution s

upport

, th

e F

oundation a

nd the

applic

ant m

ust sig

n a

support

agre

em

ent w

ithin

thre

e (

3)

month

s o

f th

e p

rovis

ional support

decis

ion.

In the c

ase o

f pro

duction s

upport

, th

e F

oundation a

nd the a

pplic

ant m

ust sig

n a

n a

gre

em

ent w

ithin

six

(6

) m

onth

s o

f th

e p

rovis

ional support

decis

ion.

The s

upport

agre

em

ent confirm

s the b

udget and the f

inancin

g p

lan f

or

the p

roje

ct in

question. T

he

confirm

ed b

udget and s

upport

allo

cations c

annot be c

hanged w

ithout th

e F

oundation’s

written c

onsent.

The r

ecip

ient is

accounta

ble

for

the im

ple

menta

tion o

f th

e p

roje

ct accord

ing to the s

upport

agre

em

ent.

The a

gre

em

ent on s

cript support

cannot be s

igned u

nle

ss the F

oundation is s

upplie

d w

ith the f

ollo

win

g

docum

ents

:

�

A w

ork

ing p

lan f

or

the s

cript

�

A c

opyr

ight w

aiv

er

for

the o

rigin

al w

ork

, if the s

cript is

based o

n a

n e

xis

ting w

ork

�

If

the s

cript support

goes to a

team

, an a

gre

em

ent betw

een its

mem

bers

covering s

cript copyr

ight

issues a

nd the d

istr

ibution o

f th

e s

upport

betw

een the team

mem

bers

T

he a

gre

em

ent on d

evelo

pm

ent support

cannot be s

igned u

nle

ss the F

oundation is s

upplie

d w

ith the

follo

win

g d

ocum

ents

:

- A

develo

pm

ent pla

n

- A

budget and f

inancin

g p

lan f

or

the d

evelo

pm

ent

- C

ontr

acts

or

bin

din

g s

tate

ments

confirm

ing that th

e s

hare

of

financin

g f

rom

oth

er

sourc

es, as

indic

ate

d in the b

udget, h

as b

een a

rranged in f

ull

and in a

ccord

ance w

ith the f

inancin

g p

lan, and

cla

rification o

f th

e r

ecip

ient’s s

elf-f

inancin

g

- A

ppro

priate

contr

acts

with c

opyr

ight hold

ers

-

Oth

er

contr

acts

rele

vant to

the p

roje

ct and the s

upport

decis

ion

The a

gre

em

ent on p

rovis

ional support

cannot be s

igned u

nle

ss the F

oundation is s

upplie

d w

ith the

follo

win

g d

ocum

ents

:

- T

he s

cript of

the f

ilm

- A

deta

iled b

udget confirm

ed b

y th

e F

oundation

- A

fin

ancin

g p

lan c

onfirm

ed b

y th

e F

oundation

- A

liq

uid

ity

pla

n f

or

the p

roje

ct, c

overing g

ross tota

l pro

ject costs

and f

inancin

g

- C

ontr

acts

or

bin

din

g s

tate

ments

confirm

ing that th

e s

hare

of

financin

g f

rom

oth

er

sourc

es, as

indic

ate

d in the b

udget, h

as b

een a

rranged in f

ull

and in a

ccord

ance w

ith the f

inancin

g p

lan

- A

cla

rification o

f self-f

inancin

g

- A

ppro

priate

contr

acts

with c

opyr

ight hold

ers

-

An insura

nce p

olic

y -

Oth

er

contr

acts

rele

vant to

the p

roje

ct and the s

upport

decis

ion

264

7

When s

upport

has b

een g

rante

d to the F

innis

h c

ontr

ibution to a

n inte

rnational co-p

roduction, th

e

applic

ant m

ust in

additio

n to the a

fore

mentioned a

ppendic

es to the c

ontr

act als

o d

eliv

er

the f

ollo

win

g

docum

ents

to the F

oundation:

- A

co-o

pera

tion c

ontr

act betw

een a

ll co-p

roducers

-

A b

udget deta

iled f

or

each c

ountr

y

If t

he f

ilm

has b

een

gra

nte

d d

ev

elo

pm

en

t su

pp

ort

or

ad

van

ce s

up

po

rt f

or

pro

du

cti

on

by t

he

Fo

un

dati

on

, th

e r

ecip

ien

t is

ob

lig

ed

to

in

dic

ate

th

at

the f

ilm

has r

eceiv

ed

su

pp

ort

fro

m T

he

Fin

nis

h F

ilm

Fo

un

dati

on

in

th

e f

ilm

’s lis

t o

f cre

dit

s a

lon

g w

ith

th

e n

am

es o

f th

e p

rod

ucti

on

ad

vis

ors

. S

ubsequent to

consultin

g the s

upport

recip

ient, the F

oundation h

as the r

ight to

sig

n u

p the f

ilm, to

w

hic

h a

dvance s

upport

for

pro

duction h

as b

een g

rante

d, to

inte

rnational, n

on-c

om

merc

ial film

events

. If

the r

ecip

ient off

ers

the f

ilm to s

imila

r in

tern

ational events

independently

and a

t his

ow

n c

ost, the

recip

ient is

oblig

ed to info

rm the F

oundation o

f th

is.

The a

gre

em

ent on m

ark

eting a

nd d

istr

ibution s

upport

cannot be s

igned u

nle

ss the F

oundation is

supplie

d w

ith the f

ollo

win

g d

ocum

ents

:

- A

fin

al m

ark

eting a

nd d

istr

ibution p

lan d

raw

n u

p b

y th

e p

roducer

and d

istr

ibuto

r jo

intly

and in

accord

ance w

ith the m

odel is

sued b

y th

e F

oundation

- A

deta

iled b

udget in

accord

ance w

ith the m

odel is

sued b

y th

e F

oundation

- A

sig

ned d

istr

ibution p

lan

- D

eta

ils a

bout m

ark

eting c

o-o

pera

tion a

nd p

art

ners

hip

s

- C

ontr

acts

or

bin

din

g s

tate

ments

confirm

ing that th

e s

hare

of

financin

g f

rom

oth

er

sourc

es, as

indic

ate

d in the b

udget, h

as b

een a

rranged in f

ull

- C

larification o

f th

e r

ecip

ient’s s

elf-f

inancin

g

- O

ther

contr

acts

rele

vant to

the p

roje

ct and the s

upport

decis

ion

In the f

inancin

g p

lan, th

e f

ollo

win

g c

an b

e a

cknow

ledged a

s the r

ecip

ient’s s

elf-f

inancin

g:

�

A c

ash c

ontr

ibution, pro

vid

ed that th

e p

roducer

can p

resent a c

orr

espondin

g b

ank g

uara

nte

e o

r equiv

ale

nt of

it

�

Defe

rment of

the p

roducer’s a

nd t

he o

ther

asso

cia

ted

film

makers

’ sala

ries t

o a

reaso

nab

le

deg

ree, pro

vid

ed that th

e s

ubje

ct has g

iven w

ritten c

onsent fo

r th

e d

efe

rment

�

Use o

f ow

n e

quip

ment as d

eta

iled in the b

udget

When the s

upport

recip

ient is

a r

egis

tere

d s

ocie

ty, th

e s

upport

agre

em

ent cannot be s

igned u

nle

ss the

recip

ient has s

upplie

d the F

oundation w

ith the c

om

pany’

s late

st clo

sin

g o

f accounts

, verified b

y its

bookkeeper,

and a

valid

, no m

ore

than s

ix-m

onth

-old

extr

act fr

om

the tra

de r

egis

ter.

In a

dditio

n, th

e

recip

ient m

ust deliv

er

a n

o m

ore

than thre

e-m

onth

-old

cert

ific

ate

of

tax lia

bili

ty a

nd p

roof

of

paid

old

-age p

ensio

n insura

nce p

rem

ium

s. Join

t-sto

ck c

om

panie

s m

ust deliv

er

an u

p-t

o-d

ate

share

hold

er’s

regis

ter

(Lim

ited-lia

bili

ty C

om

panie

s A

ct, c

hapte

r 3)

to the F

oundation. If

the info

rmation in the

afo

rem

entioned d

ocum

ents

has b

een m

odifie

d, th

e F

oundation m

ust be n

otified o

f th

e m

odific

ations.

The F

oundation’s

support

must not be u

sed f

or

purp

oses o

ther

than those d

eta

iled in the s

upport

agre

em

ent.

4. P

AY

ME

NT

OF

SU

PP

OR

T

Gra

nte

d a

dvance s

upport

for

pro

duction w

ill b

e p

aid

to the r

ecip

ient in

fiv

e insta

lments

: �

20%

aft

er

the s

ignin

g o

f th

e s

upport

agre

em

ent

�

50%

at th

e s

tart

of

shooting

�

10%

at th

e e

nd o

f shooting o

nce the r

ecip

ient’s inte

rim

report

that has b

een d

raw

n u

p in

accord

ance w

ith the m

odel is

sued b

y th

e F

oundation h

as b

een a

ppro

ved b

y th

e F

oundation

�

10%

when the w

ork

print has b

een a

ppro

ved b

y th

e F

oundation

�

10%

, or

a m

axim

um

of

EU

R 2

0,0

00, w

hen the f

inal re

port

has b

een a

ppro

ved b

y th

e F

oundation

and the p

rom

otional item

s d

efined in the s

upport

agre

em

ent have b

een d

eliv

ere

d to the F

oundation

(if

10%

of

the s

upport

am

ounts

to m

ore

than E

UR

20,0

00, th

e d

iffe

rence w

ill b

e p

aid

out in

the third

insta

lment)

.

8

Script support

, develo

pm

ent support

, and m

ark

eting a

nd d

istr

ibution s

upport

will

be p

aid

in tw

o o

r m

ore

in

sta

lments

, th

e f

irst in

sta

lment aft

er

the s

ignin

g o

f th

e s

upport

agre

em

ent and the f

inal in

sta

lment,

20%

, once the f

inal re

port

has b

een a

ppro

ved b

y th

e F

oundation.

Post-

rele

ase s

upport

for

pro

duction is p

aid

the c

ale

ndar

year

follo

win

g the f

ilm’s

cin

em

a r

ele

ase, no

late

r th

an o

ne m

onth

aft

er

the F

oundation h

as c

onfirm

ed the tota

l of

post-

rele

ase s

upport

gra

nte

d f

or

the f

ilm in q

uestion, and n

o late

r th

an o

ne y

ear

aft

er

the a

pplic

ation h

as b

een s

ubm

itte

d to the

Foundation.

The F

oundation r

eserv

es the r

ight to

deduct any

outs

tandin

g p

aym

ents

of

the r

ecip

ient befo

re p

ayi

ng

out gra

nte

d s

upport

. T

he F

oundation h

as the r

ight to

suspend s

upport

paym

ents

until fu

rther

notice, if

the r

ecip

ient has n

ot deliv

ere

d the a

ppro

priate

inte

rim

report

or

final re

port

as a

gre

ed in the

corr

espondin

g a

gre

em

ent or

in a

ny

oth

er

contr

act sig

ned w

ith the F

oundation, or

oth

erw

ise thro

ugh h

is

actions c

om

pro

mis

ed the c

om

ple

tion o

f th

e f

ilm.

5. M

ON

ITO

RIN

G

The r

ecip

ient's

bookkeepin

g m

ust be in c

om

plia

nce w

ith the B

ookkeepin

g A

ct and the B

ookkeepin

g

Sta

tute

, and b

e in a

ccord

ance w

ith s

ound b

ookkeepin

g p

ractice. T

he r

ecip

ient is

als

o o

blig

ed to

arr

ange the a

ppro

priate

fin

ancia

l m

onitoring o

f th

e p

roduction. T

he F

oundation r

eserv

es the r

ight to

in

spect th

e r

ecip

ient’s e

ntire

bookkeepin

g a

nd a

dm

inis

tration a

t any

tim

e.

The r

ecip

ient m

ust observ

e the F

innis

h F

ilm F

oundation’s

guid

elin

es a

nd r

ecom

mendations o

n the

princip

les o

f bookkeepin

g, clo

sin

g o

f accounts

and a

uditin

g p

ractices in a

film

pro

duction c

om

pany.

If

the m

onitoring o

f th

e p

roje

ct costs

indic

ate

s c

hanges in the b

udget or

the f

inancin

g p

lan, th

e r

ecip

ient

must notify

the F

oundation o

f it im

media

tely

and in w

riting. If

pro

ject costs

are

cle

arly

gre

ate

r th

an the

budget confirm

ed in the s

upport

agre

em

ent, the r

ecip

ient m

ust supply

the F

oundation w

ith a

dequate

docum

enta

tion o

f acquired a

dditio

nal fu

ndin

g. T

he r

ecip

ient is

als

o o

blig

ed to n

otify

the F

oundation in

writing a

bout any

oth

er

rele

vant art

istic o

r financia

l changes in the p

roje

ct.

The r

ecip

ient of

advance s

upport

for

pro

duction m

ust supply

the F

oundation w

ith a

n inte

rim

report

dra

wn u

p in a

ccord

ance w

ith the m

odel is

sued b

y th

e F

oundation o

n the p

roduction's

pro

gre

ss a

t th

e

end o

f shooting. T

he inte

rim

report

should

giv

e d

eta

iled info

rmation a

bout actu

al pro

duction c

osts

and

financin

g a

s c

om

pare

d w

ith the b

udget, togeth

er

with a

n e

stim

ate

on f

urt

her

costs

and f

inancin

g, and

an a

ccount of

the p

roduction’s

pro

gre

ss a

s c

om

pare

d w

ith the o

utlin

ed p

lans. S

ubsta

ntial devia

tions

from

the o

rigin

al budget m

ust be a

ccounte

d f

or

separa

tely

. T

he F

oundation r

eserv

es the r

ight to

re

quest fu

rther

deta

ils it deem

s n

ecessary

for

the a

ppro

val of

the inte

rim

report

fro

m the r

ecip

ient.

6. F

INA

L R

EP

OR

T

The r

ecip

ient m

ust subm

it to the F

oundation a

written f

inal re

port

by

the a

gre

ed d

ate

, but no late

r th

an

two y

ears

aft

er

the s

ignin

g o

f th

e s

upport

agre

em

ent.

For

script support

, th

e c

om

ple

ted f

ilm s

cript is

equiv

ale

nt to

the f

inal re

port

. T

he f

inal re

port

for

develo

pm

ent support

must in

clu

de a

written a

ccount of

the im

ple

menta

tion o

f develo

pm

ent as c

om

pare

d w

ith the p

lans togeth

er

with a

n a

ccount of

imple

mente

d c

osts

and d

eta

ils

on f

undin

g. If

a n

ew

pro

vis

ional support

decis

ion f

or

develo

pm

ent and a

dvance s

upport

for

pro

duction

has a

lready

been m

ade f

or

the f

ilm in q

uestion, th

e F

oundation c

an d

ecid

e that th

e r

eport

s o

n a

ll re

late

d s

upport

can b

e g

iven togeth

er.

T

he f

inal re

port

for

advance s

upport

for

pro

duction m

ust conta

in a

n a

ccount of

imple

mente

d c

osts

, to

geth

er

with info

rmation a

bout im

ple

mente

d f

inancin

g. T

he r

eport

must in

dic

ate

the im

ple

mente

d

pro

duction c

osts

and f

inancin

g a

s c

om

pare

d w

ith the o

rigin

al budget. A

separa

te, item

ised lis

t m

ust be

giv

en f

or

use o

f th

e p

roducer’s o

wn e

quip

ment and a

ny

inte

rnal fo

rward

s m

ade in the c

ost accounting.

The c

om

pany’

s indirect costs

may

be inclu

ded a

s a

dm

inis

trative c

osts

, th

e s

hare

of

whic

h m

ust not

exceed 5

% o

f th

e a

ctu

al pro

duction c

osts

(not in

clu

din

g d

evelo

pm

ent costs

). T

hese inte

rnal fo

rward

s

that are

cla

ssifie

d f

or

diffe

rent pro

jects

must not exceed the a

ctu

al costs

of

the c

om

pany

as s

tate

d in

the b

ookkeepin

g.

265

9

The s

hare

of

contingencie

s m

ust not exceed their tota

l in

the b

udget confirm

ed a

t th

e s

ignin

g o

f th

e

support

agre

em

ent. If

the b

udget has b

een e

xceeded, th

e d

iffe

rence m

ust be d

educte

d f

rom

contingencie

s. T

he r

ecip

ient m

ay

reta

in the r

em

ain

der

of

the r

eserv

ation f

or

contingencie

s b

udgete

d in

the s

upport

agre

em

ent. A

written r

eport

on p

roduction d

eta

ils a

s c

om

pare

d w

ith the initia

l pla

ns m

ust

be inclu

ded in the f

inal re

port

. T

ogeth

er

with the f

inal re

port

for

advance s

upport

, th

e r

ecip

ient m

ust deliv

er

the p

rom

otional m

ate

rial

specifie

d in the s

upport

agre

em

ent to

the F

oundation f

or

pro

motional purp

oses.

For

cin

em

a r

ele

ases, th

e r

ecip

ient is

usually

expecte

d to p

rovid

e the F

oundation w

ith:

- 20 D

VD

copie

s w

ith E

nglis

h s

ubtitles

- A

dia

logue lis

t in

the o

rigin

al la

nguages a

nd in E

nglis

h

- A

syn

opsis

of

the f

ilm, a w

ord

fro

m the d

irecto

r and the d

irecto

r’s C

V/f

ilmogra

phy

in b

oth

Fin

nis

h

and E

nglis

h

- A

full

list of

cre

dits f

or

the f

ilm

- P

hoto

gra

phs o

f th

e f

ilm a

nd the d

irecto

r, w

hic

h a

re s

uitable

for

printing

For

a T

V-d

istr

ibution f

ilm, th

e r

ecip

ient is

usually

expecte

d to p

rovid

e the F

oundation w

ith:

- 20 D

VD

copie

s w

ith E

nglis

h s

ubtitles

- A

dia

logue lis

t in

Englis

h

- A

syn

opsis

of

the f

ilm, a w

ord

fro

m the d

irecto

r and the d

irecto

r’s C

V/f

ilmogra

phy

in b

oth

Fin

nis

h

and E

nglis

h

- A

full

list of

cre

dits f

or

the f

ilm in F

innis

h a

nd E

nglis

h

- P

hoto

gra

phs o

f th

e f

ilm a

nd the d

irecto

r, w

hic

h a

re s

uitable

for

printing

The f

inal re

port

on m

ark

eting a

nd d

istr

ibution s

upport

must conta

in a

n a

ccount of

imple

mente

d c

osts

and im

ple

mente

d f

inancin

g. T

he r

eport

must in

dic

ate

the im

ple

mente

d m

ark

eting a

nd d

istr

ibution c

osts

and f

inancin

g d

eta

ils a

s c

om

pare

d w

ith the b

udget. In a

dditio

n, a f

illed-o

ut evalu

ation f

orm

in

accord

ance w

ith the m

odel is

sued b

y th

e F

oundation m

ust be a

ppended to the f

inal re

port

. T

he d

eta

iled a

ccount of

imple

mente

d c

osts

in the f

inal re

port

must be b

ased o

n the r

ecip

ient’s

bookkeepin

g, im

ple

mente

d legal sala

ry c

osts

, and v

erified b

y th

e b

ookkeeper.

If

the tota

l support

gra

nte

d to the p

roje

ct exceeds E

UR

20,0

00, th

e a

ccount of

imple

mente

d c

osts

must be v

erified b

y a

cert

ifie

d a

ccounta

nt.

The s

upport

recip

ient is

oblig

ate

d to p

rovid

e h

is b

ookkeeper

and a

ccounta

nt w

ith the F

innis

h F

ilm

Foundations S

upport

Guid

elin

es a

nd r

ecom

mendations f

or

princip

les o

f bookkeepin

g, clo

sin

g o

f accounts

and a

uditin

g to b

e o

bserv

ed in f

ilm p

roduction c

om

panie

s (

01.0

1.2

007).

T

he s

upport

recip

ient is

als

o o

blig

ate

d to p

rovid

e its

bookkeeper

and a

ccounta

nt w

ith the s

upport

agre

em

ent, b

udget, a

nd o

ther

appendic

es to the s

upport

agre

em

ent of

the p

roje

ct in

question. If

the

support

recip

ient negle

cts

this

duty

, th

e F

ilm F

oundation h

as the r

ight to

deliv

er

the d

ocum

ents

in

question to the b

ookkeeper

and a

ccounta

nt m

entioned in the s

upport

agre

em

ent.

The F

oundation r

eserv

es the r

ight to

request th

e r

ecip

ient to

supply

any

additio

nal re

port

s it deem

s

necessary

for

the a

ppro

val of

the f

inal re

port

. T

he F

oundation a

lso r

eserv

es the r

ight to

audit the

pro

duction’s

fin

al re

port

. T

he r

ecip

ient m

ust ensure

that th

e F

oundation's

auditors

are

supplie

d w

ith a

ll th

e d

ocum

ents

required f

or

the a

udit.

Based o

n the f

inal re

port

and the p

ossib

le a

udit the F

oundation c

onfirm

s the p

roje

ct’s a

ctu

al costs

.

Should

the s

hare

of

develo

pm

ent support

gra

nte

d b

y th

e F

oundation e

xceed the p

roje

ct’s f

inal cost,

and the s

hare

of

advance s

upport

for

pro

duction o

r m

ark

eting a

nd d

istr

ibution s

upport

equal m

ore

than

50/7

0%

of

the f

inal costs

, th

e F

oundation w

ill d

educt th

e d

iffe

rence f

rom

the s

upport

insta

lment not ye

t paid

out or

recover

it f

rom

the r

ecip

ient.

7. C

AN

CE

LLA

TIO

N O

F T

HE

SU

PP

OR

T A

GR

EE

ME

NT

AN

D R

EC

OV

ER

Y O

F S

UP

PO

RT

S

upport

recovery

follo

ws the s

tipula

tions o

f chapte

r 5 o

f th

e S

tate

Aid

Act (6

88/2

001).

Recip

ien

ts o

f sta

te g

ran

ts m

ust

wit

ho

ut

dela

y r

etu

rn s

tate

gra

nts

or

part

s t

here

of,

th

e u

se o

f w

hic

h h

as b

een

1

0

fau

lty, excessiv

e o

r ev

iden

tly u

nfo

un

ded

. T

he F

oundation a

lso r

eserv

es the r

ight to

cancel th

e

support

agre

em

ent altogeth

er

and to r

ecla

im p

aid

support

insta

lments

, if the p

roduction is n

ot

com

ple

ted in the m

anner

and s

chedule

outlin

ed in the s

upport

agre

em

ent or

if the r

ecip

ient has f

aile

d

to c

om

ply

with the s

upport

guid

elin

es, th

e term

s o

f th

e s

upport

agre

em

ent, o

r any

oth

er

rela

ted

oblig

ation, or

thro

ugh h

is a

ctions o

therw

ise jeopard

ised the c

om

ple

tion o

f th

e f

ilm.

266

9HSTFMG*aeaehj+

ISBN: 978-952-60-4048-6 (pdf) ISBN: 978-952-60-4047-9 ISSN-L: 1799-4934 ISSN: 1799-4942 (pdf) ISSN: 1799-4934 Aalto University School of Economics Department of Management and International Business aalto.fi

BUSINESS + ECONOMY ART + DESIGN + ARCHITECTURE SCIENCE + TECHNOLOGY CROSSOVER DOCTORAL DISSERTATIONS

Aalto-D

D 15

/2011

Pia Naarajärvi

International Co-Production and C

ollaborative Agreem

ents, the Case of the Finnish Film

Industry A

alto U

nive

rsity

Department of Management and International Business

International Co-Production and Collaborative Agreements, the Case of the Finnish Film Industry

Pia Naarajärvi

DOCTORAL DISSERTATIONS