"In 1998, the Guilds asked Congress for help in ensuring that the transfer of rights in motion pictures does not work to deprive Guild members of residual payments. Congress responded with important residual transfer legislation that allows the Guilds to pursue claims in federal court against distributors that knew or had reason to know that a film or program was subject to a Guild's collective bargaining agreement, but failed to pay. The legislation also required a GAO study to determine the effectiveness of the legislation two years following the passage of the bill.

"GAO has examined the extent of the residuals assumption problem, as it existed prior to the enactment of the legislation, and the impact the legislation has had on the motion picture industry. The GAO report cites that residuals paid to performers, directors and writers total less than 1% of total industry revenues and found that more than $35 million in residuals went unpaid in the 3-year period immediately preceding enactment of the new law. The report also states that the law stands to provide a "significant" benefit for some Guild members, particularly those working in independent, low-budget films.

"The transfer legislation helps the Guilds perform one of their principal missions: to improve enforcement and collection of residual obligations. We wish to thank House Courts, Internet and Intellectual Property Subcommittee Chairman Howard Coble (R-NC), the Subcommittee's Ranking Democrat, Howard Berman (D-CA), Senate Judiciary Committee Chairman Orrin Hatch (R-UT) and the Ranking Democrat Patrick Leahy (D-VT) for their leadership in this area. The Guilds also wish to commend the General Accounting Office personnel for the professionalism and thoroughness with which they conducted their study."

To view the GAO Report on Motion Picture Reuse Legislation, click here.

If you don't have Acrobat Reader you can download it here for free.

Back     Top of Page