PENCILS DOWN! LEGAL IMPLICATIONS OF THE WGA STRIKE. Web Conference November 8, 2007

Transcription

1 PENCILS DOWN! LEGAL IMPLICATIONS OF THE WGA STRIKE Web Conference November 8, 2007 Attorney Advertising Prior results do not guarantee a similar outcome Models used are not clients but may be representative of clients 321 N. Clark Street, Suite 2800, Chicago, IL

2 Presented By THE ASSOCIATION OF MEDIA & ENTERTAINMENT COUNSEL and FOLEY & LARDNER LLP

3 Moderator Jimmy Nguyen Foley & Lardner Former co-chair, Entertainment & Media Industry Team AMEC Law Firm Advisory Board

4 Who does the strike involve? 12,000 members of the Writers Guild of America, who write primarily for television shows and movies. The Writers Guild of America is split into two guilds, West and East; the two components were jointly negotiating the new writers contract and are on strike together. The Alliance of Motion Pictures and Television Producers (AMPTP)

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7 Panelists Carole Handler Foley & Lardner Specialist in entertainment, intellectual property and antitrust law

8 Panelists Arnold Peter Raskin Peter Rubin & Simon Former Director of Labor Relations, and then Vice President, Legal & Business Affairs, Universal Studios Negotiated more than 40 labor agreements with 10 unions representing more than 15,000 employees

9 Panelists Ken Suddleson Foley & Lardner Formerly Executive Vice President, Office of the Chairman, Paramount Pictures On behalf of Paramount, participated in industry union negotiations through the Association of Motion Picture and Television Producers

10 Panelists David White Entertainment Strategies Group Former General Counsel of Screen Actors Guild

11 Central Issues

12 What are the central issues in the strike? Writers want: Residuals for shows and movies streamed over the Web and on cellphones. A doubling of residual payments from home video sales. Extension of guild pay and benefits to writers on reality TV programs. Jurisdiction over writers who write content distributed

13 What are the central issues in the strike? Producers say: DVD sales are needed to offset rising marketing & production costs It's too early to lock into pay formulas for online shows because technologies are changing rapidly. No pay for streaming of TV shows on the Web because it is a form of promotion.

14 What writers are not involved? Writers for: Commercials Sports programs Reality TV News Animation is grey area

15 Antitrust Implications Collusion among the unions? Collusion among the studios and TV networks? Labor Exemption

16 WGA Strike Rules

17 WGA Strike Rules: Writers Cannot Start writing on a project during strike Continue writing on a project writer started before strike Perform writing services from home (i.e., just because writer is not working at a struck company s place of business does not exempt the writer)

18 WGA Strike Rules: Writers Cannot Attend meetings or have conversations with producers, directors or other reps re: future projects, even ones that will not begin until after strike Attend pitch meetings or receive notes on material even if writers won t make revisions until after strike

19 WGA Strike Rules: Writers Cannot Write material for any new media production (i.e., Internet, mobile phone) Probably cannot write animated series if in doubt, don t Sign any transactional documents including contracts, C of As

20 WGA Strike Rules: Writers Cannot Cross a picket line (or writer may be subject to discipline) if writer is a hyphenate, although writer may technically be allowed to cross the picket line re: nonwriting services, writer is advised not to Discuss any future writing projects, sales or options of literary material Negotiate with a struck company for financing / production of a project

21 WGA Strike Rules: Writers Can Accept payment for writing services rendered pre-strike Accept payment for sale/option where all steps/acts took place pre-strike Accept payment if struck company is exercising a pre-strike option or unilaterally elects to extend an option BUT writer may not be required to sign/deliver any related transaction documents.

22 WGA Strike Rules: Writers Must Notify agents that they are no longer empowered to negotiate on writers behalf due to the strike Notify struck companies that they must return spec materials due to the strike and copy the Guild on the correspondence Participate in strike activities as requested picketing, answering calls, etc.

23 The Script Validation Program Designed to maintain a current record of MBAcovered material at the time the strike begins. The guild requests that writers file with WGA: Unproduced material delivered during the 6 months leading up to the strike Undelivered material being written as of the date of the strike Any spec or samples submitted to production companies in the 6 months leading up to the strike Potential conflict between obligations as a guild member and as an employee and definite grey area

24 The Script Validation Program

25 Issues To Consider

26 Issues To Consider Will writers be able to finish their current projects? Could a striking writer talk to studios about projects? What about "spec" scripts already submitted? What if a production company must stop production because of the strike, must it continue to make payments to non-writers who are not on strike?

27 Issues To Consider What happens in the event a WGA writer has submitted a completed script for a program that is not yet produced?

28 Issues To Consider What if a producer/production is a WGA signatory but not a member of the Alliance of Motion Picture and Television Producers (AMPTP)?

29 Issues To Consider What about writers who also work as producers and directors?

30 Issues To Consider What if a Writers Guild member continues to work during the strike?

31 Issues To Consider What if a nonunion writer crosses the picket line?

32 Issues To Consider What is financial core status?

33 Questions from Webinar Audience

34 For Follow-up Information: Carole Handler, Foley or Arnold Peter, Raskin Peter Rubin & Simon or Ken Suddleson, Foley or David White, Entertainment Strategic Solutions or Jimmy Nguyen, Foley or

35 For Follow-up Information: Please click here for a copy of this presentation and handout materials. (full link: )