EntertainmentPublishersNews

Polly Payroll

Thu, 2 Feb 2006 15:21:44 -0800

Polly Payroll Question: If a paid employee loses or breaks an expensive item on set, what is the procedure for recouping the cost of the item? Can I take it out of his or her wages? Polly: No. Under California law, you the only lawful deductions you can make from an employee’s wages are: 1. Deductions required of the employer by federal or state law, such as income taxes or garnishments. 2. Deductions authorized in writing by the employee to cover insurance premiums, hospital or medical dues, and 401K. 3. Deductions authorized by a collective bargaining or wage agreement, to cover health and welfare or pension payments.

An employer cannot legally make a deduction from wages for reason of mistake or accident of cash shortage, breakage or loss of company property or equipment. California courts have held that losses occurring without fault on the part of the employee or that are a result of simple negligence are inevitable in almost any business operation and thus, the employer must bear such losses as a cost of doing business.

Brits’ Breaks: Brilliant!

Thu, 2 Feb 2006 15:18:29 -0800

Christmas came early for British filmmakers this year, as the government just announced the long-awaited new tax breaks, which proved to be more generous than originally expected. In a pre-budget briefing December 5, the Chancellor of the Exchequer announced that the new rate of tax relief for films budgeted up to £20 million ($34.8 million) would be a net 20%, while films budgeted above that amount will receive a break of a net 16%. Both rates apply only to funds spent in the U.K., and carry a ceiling of 80%. He also announced the implementation of a more flexible system that allows producers to take their tax credits either at the start of production, or later when they are receiving profits from the film.

The U.K. Film Council says the new incentives will help to foster more home-grown indies such as “Bend it like Beckham,” “Shaun of the Dead” and “Vera Drake,” which found audiences overseas as well as at home. The upgrade also “puts the UK in pole position for attracting big budget US studio films” such as “Charlie and the Chocolate Factory” and “Batman Begins,” said the council.

“Today’s announcement by the Chancellor is the best news the British film industry has received for five years,” said John Woodward, CEO of the film council. “It marks a new era for the future growth of our industry which operates in a highly competitive global marketplace.”

The Department for Culture, Media and Sport also announced details of a new “cultural test” to ensure that the breaks go to films that deliver “real benefits to our domestic film industry, UK audiences and the British economy.” The test for British films introduces a points system based on the content of the film, talent, practitioners and filmmakers to provide a clear definition of a British film.

"One thing the cultural test is not, is an attempt to dictate the content or subject matter of British films,” said Creative Industries Minister James Purnell. “’Mrs. Henderson Presents’ or ‘Pride and Prejudice’ could qualify, but so too could ‘Batman Begins’ – based in Gotham City, but filmed in the UK, employing Brits and using British facilities."

Copyright Issues Hit U.S. Where It Hurts

Thu, 2 Feb 2006 15:16:07 -0800

In a lengthy new report commissioned by NBC Universal, the country was put on notice that U.S. job growth and the overall health of the economy may be inextricably linked to the protection of intellectual property. The study, “Engines of Growth: Economic Contributions of the U.S. Intellectual Property Industries,” seeks to quantify the extent to which IP industries contribute to the economy, thereby highlighting the danger of IP piracy, which has proven a detriment to some of these industries, particularly entertainment. But the thrust of the report is that copyright infringement is a scourge that threatens all IP industries, which make up a surprisingly large segment of the nation’s GDP.

The study concluded that IP industries contribute nearly 40% of the growth achieved by all U.S. private industry, and 60% of exported “high-value-add” products and services. The companies are some of the largest and highest-paying in the country, employing 18 million workers who earn on average more than 40% of all U.S. workers. According to the study, without these industries, 10-year growth estimates of the GDP would be approximately 30% lower than they currently stand.

In arriving at the findings, the report’s chief author, Stephen Siwek of Economists Incorporated, broke IP industries down into three cumulative groups. “Convergence Industries” are those that create products in digital form, which have become highly susceptible to piracy in recent years. These include the motion picture, television and music industries, as well as software publishers, makers of semi-conductors, advertisers and printers. “Non-Dedicated Support Industries” conduct the physical distribution and transportation of the products and services produced by other IP firms. The third category, “Other Patent Industries,” is comprised all companies that rely on legal patents to build, manufacture and innovate new commercial and consumer products. They include automotive, pharmaceutical and chemical companies, as well as the aerospace industry – one of the largest positive contributors to the U.S. balance of trade.

In fact, the report showed that total value added in the categories of Other Patent Industries and Non-Dedicated Support Industries combined were nearly equal to that of Convergence Industries. In other words, what many consider the “core” copyright industries – movies, TV, music – really make up only around half the of the total contribution to our economy that depends on IP protection, though its job growth has outpaced more traditional sectors such as automotive, aircraft and plastics.

“To most people, piracy invokes the music recording industry, which has been decimated by illegal peer-to-peer file sharing,” wrote NBC Universal CEO Bob Wright in an op-ed piece for the Wall Street Journal. “But in our digital age, anyone who has a new invention, a creative idea, or a technological breakthrough is at risk of a rip-off, whether it be in the automotive, entertainment, pharmaceutical, software, or any other intellectual property-dependent business sector.”