Channel 5 Letter regarding Time Shifted Rights
11/01/2012
This Pact member alert is intended for those working across business and legal, negotiations and commercial rights in production companies.
Pact understands Channel 5 has recently sought to acquire from Producers time shifted transmissions (i.e. +1, +2 and +3) rights by way of a ‘Letter of Amendment’ for all agreements entered into with the Producer.
Pact wishes to clarify the position on time shifted rights granted to Channel 5 under Pact/Channel 5 Terms of Trade.
Under the 2004 and 2007 Pact/ Channel 5 Terms of Trade, Channel 5 was not granted time shifted rights. If Channel 5 contacts you in respect of time shifted rights under either the 2004 or 2007 Pact/Channel 5 Terms of Trade, the grant of these rights should be commercially negotiated with Channel 5.
In 2009 Pact agreed a number of changes to the 2010 Terms of Trade with Channel 5; as a result of which Channel 5 were granted a “Playweek” which gives Channel 5 “the right to transmit the Programme on up to One time-shift variant per channel which may be +1 or +2 or +3 hours” (please also see 2009 Pact/Channel 5, Terms of Trade, p9, Definition of ‘Play Week’)
Please Note: a summary of the changes between the 2007 and 2010 Pact/Channel Five Terms of Trade is available to download on the Pact website.
The Letter of Amendment issued by Channel 5 and referred to above seeks to obtain time shifted rights for all Production Agreements between Channel 5 and the Producer; on the basis of the time shifted transmission rights Pact negotiated for the 2010 Pact/Channel 5 Terms of Trade.
Production companies should be aware that the changes made in 2010 to the Pact agreement were not retrospective and the time shift transmission rights have only ever been granted for the Pact agreed 2010 Terms of Trade; they do not apply to any other arrangements made previously.
Please Note: before entering into commercial negotiations or granting Channel 5 time shifted transmissions rights in respect of Production Agreements that are not subject to the 2010 Pact/Channel 5 Terms of Trade, you should ensure you can obtain all necessary clearances and can account for costs applicable to such clearances.
In respect of Production Agreements issued by Channel 5 and claimed to be 2010 Pact/Channel 5 Terms of Trade you should at all times check the Agreement has not been amended by Channel 5 and it accurately reflects the Pact/Channel 5 Terms of Trade (the Pact/Channel 2010 Terms of Trade are available to download on the Pact website).
If you have received an amended version of the 2010 Pact/Channel 5 Terms of Trade the amendments have not been endorsed or agreed by Pact and as such these changes have been made unilaterally by Channel 5. Where you have entered into an amended Channel 5 version of the 2010 Pact/ Channel 5 Terms of Trade agreement, this is a standalone agreement and as a result the grant of time shifted rights to Channel 5 would form part of your commercial negotiations.
If you have received an amended 2010 Pact/Channel 5 Terms of Trade agreement, please refer to the guidance note “Guidance to Independent Producers on Dealings with Five” on the Pact website highlighting a number of the changes to the agreement which have not been agreed or supported by Pact.
