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Members of the Guild are also backed with the confidence of knowing that the Residuals Department monitors industry compliance with the reuse provisions of Guild agreements. Members are entitled to additional compensation whenever their pictures are reused on videocassette, pay television, basic cable or free television. Enforcement of these provisions are accurately handled by computerized policing systems, audit programs, and arbitration proceedings when necessary. Claims personnel within the department are always available to speak with members about residual obligations.
The DGA contract also protects your right to share in
the revenues generated from the sale and distribution
of your work. These revenues are called residuals. The
DGA is committed to tracking down residual
payments which represent additional income for DGA
filmmakers.
What are Residual Payments?
Residual payments are made to DGA directors following a film's theatrical run for its subsequent exploitation on videocassette, laserdisc and DVD, pay television, basic cable and free television. Residuals represent additional income for the DGA filmmakers. It's one of the greatest financial advantages of being a DGA member.
The DGA's Residuals department monitors industry compliance with the reuse provisions of the DGA's negotiated agreements. In other words, a director may be entitled to payments whenever a feature film he or she worked on is exploited on videocassette, pay television, basic cable or free television. Annually, members receive more than $200 million from reuse of their work. Residuals collections total more than $1.5 billion since 1980. Additional millions are collected internationally through the Guild's Foreign Levies Program and our agreements with collection societies around the world. The DGA aggressively enforces these agreements worldwide with computerized policing systems, variousaudit programs and claims mechanisms which target producers who fail to meet their obligations under the bargaining agreements. When necessary, the Guild will, on behalf of members, bring claims to arbitration, and represent members' residuals interests related to bankruptcy filings and library acquisitions.
What Makes Residual Payments Such a Great Benefit?
Residuals aren't based on a film's profitability. They are payable regardless of break even, are due from the distributor's gross and are payable on non-returnable advances, as well.
By working with the Guild, even the lowest production budget levels have been able to meet residuals obligations.
The DGA protects its members' future residuals payments by taking a secured interest in the production and federal legislation that the DGA sponsored and was signed into law by then President Clinton further protecting a Guild member's payments. This just scratches the surface of residuals. For further information and help in answering any questions about residuals contact the Residuals Department.
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