Earlier this year, a representative from Sony Pictures expressed interest in working with PERG to establish a sample Terms & Conditions document for the purpose of minimizing redlining of rental contracts. Using the AICP/ESTA Sample Terms and Conditions as a starting point, PERG established a committee to work with Sony that includes representatives from AbelCine, ARRI Rental, Camtec, Handheld Films, High Output, Illumination Dynamics, SIM Digital, Taylor and Taylor, and TCS. ESTA’s legal counsel is also participating in the process. Participants are hopeful that a Sony/ESTA sample document could pave the way for reducing redlining more widely in feature and television production where it is arguably the most burdensome.
PERG’s original sample T&C was developed in 2011 when PERG formed a joint committee with the AICP to create what is now the AICP/ESTA Sample T&C. The initiative came about as a result of a moderated discussion, organized by PERG in June of that year, in which seven top commercial production companies discussed issues with PERG members. At the conclusion of that meeting participants resolved to work together to reduce redlining. A committee was formed and worked tirelessly for three months to draft the document. It was at times a contentious and difficult process, but the committee was able to build trust over time, aided in part by involvement from insurance representatives who acted as neutral arbiters. Both sides were able to explain the practical effect of certain provisions, which may not have been understood by the other side.
The committee was comprised of representatives from four AICP member companies, a business manager from the AICP, management from two camera rental companies and two lighting and grip rental companies, a senior claims representative from an entertainment underwriter, an entertainment insurance broker and an ESTA business representative. The end result, vetted by attorneys on both sides, was a terms and conditions that reflected how business is done, that addressed issues concerning the use of digital technology, and opened lines of communication between producers and PERG.
Historically, a rental contract is drafted by the rental company to be one hundred percent protective of its own interests. However, this often invites redlining, which can leave the rental house unprotected in key areas. A sample T&C, for the first time, made verbiage available that was protective of both the interests of the production company and the rental company. The document created a sense of fairness and predictability as to how claims regarding rentals will be settled. The document is, by its nature, a compromise for both sides, and each side could certainly identify places where they might wish it were stronger, but the process produces a sound document that eliminates or greatly reduces redlining.
A Sony/ESTA Sample T&C would be a big win for all parties. First and foremost, it helps avoid the last-minute redlining of terms and conditions as the equipment is about to go out the door. The committee hopes having this agreement will encourage other major studios to see the benefits and request we work with them to create a sample document. You may want to share the Sony document, once it is released, with your contacts at other studios. If they are interested, please have them contact Harry Box, PERG manager, or Lori Rubinstein, ESTA’s Executive Director.
No comments:
Post a Comment