Feds study impact of '98 residuals law
Digital Copyright Act allows guilds to pursue claims in federal court
The law, part of the Digital Copyright Act, allows guilds to pursue claims in federal court against distributors that knew or had reason to know that a film or TV program was subject to a guild contract.
According to the Government Accounting Office report, the legislation could benefit union members, but more time was needed to reach a conclusion.
"The absence of an observable effect on the low-budget sector suggests that the legislation may not have a significant impact," the GAO report said. "The ultimate impact of the legislation, however, may depend on how the courts interpret it."
According to the report -- which was mandated by the legislation -- unpaid residuals to writers, actors and directors since 1998 totaled more than $35 million, less than 2% of the $1.7 billion paid during that period.
The GAO also noted that low-budget indie films could become unprofitable if made under guild contracts, but added that the overall impact on the industry would be small.
The law was passed after the Screen Actors Guild, Directors Guild of America and Writers Guild of America lobbied for help in ensuring that the transfer of rights in motion pictures did not deprive guild members of residual payments.
SAG and the DGA issued a joint statement Friday praising backers of the legislation and the GAO for conducting the study. "The transfer legislation helps the guilds perform one of their principal missions: to improve enforcement and collection of residual obligations," the unions said.
The Assn. of Independent Feature Film Producers took issue with the report's assertion that the legislation would cause fewer indie films to be purchased and distributed. The org cited the "inherent" cost efficiencies and the fact that many indie films are non-union.
