Film Co-Production Agreement CM 7168

Jamaica No. 1 (2007)

Film Co-Production Agreement

between the Government of the United Kingdom of Great Britain and

Northern Ireland and the Government of Jamaica

Kingston, 23 April 2007

[The Agreement is not in force]

Presented to Parliament

by the Secretary of State for Foreign and Commonwealth Affairs

by Command of Her Majesty

July 2007

Cm 7168 £5.00

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The text in this document (excluding the Royal Arms and departmental logos) may be

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as Crown copyright and the title of the document specified.

Any enquiries relating to the copyright in this document should be addressed to The

Licensing Division, HMSO, St Clements House, 2-16 Colegate, Norwich, NR3 1BQ.

Fax: 01603 723000 or e-mail: [email protected].gsi.gov.uk

FILM CO-PRODUCTION AGREEMENT BETWEEN THE

GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND

NORTHERN IRELAND AND THE GOVERNMENT OF JAMAICA

The Government of the United Kingdom of Great Britain and Northern Ireland and

the Government of Jamaica (“the Parties”):

Considering that there is potential for the film industries of each country to work

together on account of shared or complementary characteristics that include the

structure of each film industry, the film culture of each country and the extent of

the availability in each country of film-making facilities, a suitably skilled

workforce and locations for filming,

Recognising that development of such potential will be to the mutual advantage of

each Party, in particular in respect of the growth and competitiveness of their film

industries and the enhancement of their film cultures,

Noting the benefits available in each country to films with national film status,

Desiring to encourage the making of films that reflect, enhance and convey the

diversity of culture and heritage in both countries,

Acknowledging the benefits that would flow from the making of such films and

from an increase in public availability of distinctive and successful co-produced

films, and

Noting that each Party expects from this Agreement a contribution by way of film-

making or cultural benefits, with the intention of creating an overall balance in

film-making contribution benefiting each country and in the cultural benefits to

each country.

Have agreed as follows:

RTICLE 1

Definitions

(1) In this Agreement:

“Agreement” means this agreement, including the Annex which forms an integral

part of this Agreement,

“Approved Co-production” means a co-produced film which has Approved Co-

Production status in accordance with Article 3,

“Co-producer” means any individual, partnership, body corporate or

unincorporated association who is a co-producer of a film,

“Competent Authority” means a government department or other body nominated

in accordance with Article 2,

“CSME Member State” means a State or Territory of the Caribbean region which is

party to the Revised Treaty of Chaguaramas establishing the Caribbean

Community including the CARICOM Single Market and Economy signed on 5th

July 2001,

“EEA State” means a State (other than the United Kingdom) which is a Contracting

Party to the Agreement on the European Economic Area signed at Oporto on 2nd

May 1992

(as it has effect from time to time),

“Film” includes any record, however made, of a sequence of visual images, which

is a record capable of being used as a means of showing that sequence as a moving

picture, and which is expected to be exhibited to the paying public at the cinema,

“Majority Party Co-producer” means the Party Co-producer making the greatest

financial contribution,

“Non-party Co-producer” means a co-producer who is not a Party Co-producer or a

Third Party Co-producer,

“Party Co-producer” means a UK Co-producer or a Jamaican Co-producer,

“Production Cost”, in relation to a co-production, means expenditure incurred for

the purposes of making the film,

“Jamaican Co-producer” means a co-producer who is established in Jamaica,

“Third Party Co-producer” means a co-producer who is established in another State

with which the UK or Jamaica has also entered into a co-production agreement,

“UK Co-producer” means a co-producer who is established in England, Wales,

Scotland or Northern Ireland.

(2) References to film-making contribution benefiting the UK or Jamaica

include, in particular, the expenditure in that country on goods and services which

directly results from the co-production and the use made of film-making facilities

or filming locations in that country.

(3) For the purposes of this Agreement the production of a film is completed

when the film is first in a form in which it can reasonably be regarded as ready for

copies of it to be made and distributed for presentation to the general public.

Treaty Series No.26 (1995) Cm 2847

RTICLE 2

Competent Authorities

(1) Each Party shall, by notice in writing to the other Party, nominate a

Competent Authority to make decisions on applications for the grant of Approved

Co-production status by any one or more co-producers of a film.

(2) In determining an application made to it, a Competent Authority shall assess

the application against the requirements which are set out in this Agreement and

are applied in accordance with guidance published by the Competent Authority

under this Article.

(3) Each Competent Authority may from time to time publish guidance

consisting of such information and advice as it considers appropriate with respect

to:

(a) how applications are to be made to the Competent Authority, and

(b) the operation and interpretation of this Agreement.

(4) Such guidance shall, in particular, set out:

(a) how the Competent Authority proposes to make decisions on

applications for the grant of Approved Co-production status, and

(b) factors it will take into account when exercising any discretion

conferred on it by this Agreement.

(5) The Competent Authorities shall jointly determine the procedure that they

will follow in arriving at any joint decisions required by this Agreement.

RTICLE 3

Grant of Approved Co-production status

(1) A co-produced film which meets the requirements set out in this Agreement

may be granted Approved Co-production status.

(2) Approved Co-production status shall be granted only if:

(a) an application in respect of a film is made to each of the Competent

Authorities in accordance with procedures established under Article 2,

and

(b) both Competent Authorities agree to approve the application in

accordance with this Article.

(3) Approval of an application in respect of a film shall be given in two stages:

(a) provisional approval, and

(b) final approval.

(4) Provisional or final approval shall be given:

(a) only if the requirements set out in Article 4 are met, and

(b) subject to such conditions as the Competent Authorities (acting jointly)

consider appropriate.

(5) For the purposes of eligibility for the benefits referred to in Article 9, a film

shall be treated as having Approved Co-production status only if:

(a) the Competent Authorities have agreed to give the film final approval

under this Article, and

(b) that approval has not been withdrawn.

(6) For all other purposes:

(a) references to the grant of Approved Co-production status are to the

giving of either final approval or provisional approval under this

Article, and

(b) a film shall be treated as having Approved Co-production status if

either stage of approval has been given and that approval has not been

withdrawn.

(7) If at any stage the Competent Authorities do not agree to approve an

application in respect of a film, Approved Co-production status shall be refused.

(8) Nothing in this Agreement binds the relevant authorities in the UK or

Jamaica to permit the public exhibition of a film which has been granted Approved

Co-production status.

RTICLE 4

Requirements for Approved Co-production status

(1) A film may be granted Approved Co-production status only if each

Competent Authority is satisfied that:

(a) subject to paragraph (3) of this Article, the general requirements set out

in the Annex to this Agreement have been (or are expected to be) met

in relation to the co-production, and

(b) the film delivers (or is expected to deliver) appropriate cultural benefits

to the country for which it is the Competent Authority, and

in relation to the grant of Approved Co-production status by that

Competent Authority have been (or are expected to be) met.

(2) The cultural benefits referred to in paragraph (1)(b) of this Article shall be

assessed by each Competent Authority in accordance with the guidance published

under Article 2(3).

(3) In the event of an inconsistency between:

(a) on the one hand, any of the provisions of the Annex to this Agreement,

and

(b) on the other, any temporary additional requirements imposed under

Article 6,

the Competent Authorities shall apply the temporary additional requirement.

RTICLE 5

Balance in film-making and cultural contributions benefiting each Party

(1) In connection with the making of films which have Approved Co-production

status under this Agreement, the Parties shall seek to ensure an approximate overall

balance in:

(a) the film-making contribution benefiting the UK and the film-making

contribution benefiting Jamaica, and

(b) the cultural benefits to the UK and the cultural benefits to Jamaica.

(2) Each Party shall assess the state of balance between the Parties and shall

report that assessment to the other annually in writing.

(3) Each Party shall consult the other on the general approach it proposes to take

in relation to balance and, in particular, on the methods it will adopt when collating

and measuring statistical data and on the approach it will take in measuring

whether or not a state of balance exists.

(4) In order to assess the state of balance between the Parties, each Party shall

collate and analyse statistical data about successful applications for the grant of

Approved Co-production status and shall report to the other annually in writing on

the current state of balance.

(5) In making an assessment of the state of balance, each Party shall take account

of the total number of Approved Co-productions during the three year period

immediately before any date on which an assessment of the state of balance is

made (subject to the period this Agreement has been in force and excluding co-

productions given approval in reliance on Section 2 of the Annex to this

Agreement).

RTICLE 6

Consequences of imbalance

(1) If a Party considers that there is (or is a risk of) imbalance in film-making

contributions or cultural benefits, it shall consult the other.

(2) If, after 6 months of consultations, the Parties are unable to agree on

appropriate measures to restore balance, the Party in deficit shall be entitled to take,

without the agreement of the other Party, such measures as it considers necessary.

(3) Measures imposed by a Party under this Article may include the imposition

of temporary additional requirements that must be met before its Competent

Authority can agree to the grant of Approved Co-production status.

(4) Temporary additional requirements shall apply only in respect of applications

which are:

(a) for the Competent Authorities to give provisional approval for

Approved Co-production status under Article 3, and

(b) made after the requirement comes into effect in accordance with

paragraph (5) of this Article.

(5) No temporary additional requirement may take effect before the Party

imposing it:

(a) has notified the other Party in writing of the requirement, and

(b) has published:

(i) a statement of the requirement, and

(ii) any changes to the guidance issued in accordance with Article 2

which may be required to give effect to it.

RTICLE 7

Withdrawal of Approved Co-production status

(1) Approval for a film which has Approved Co-production status may be

withdrawn if, at any time, it appears to either Competent Authority that:

(a) false or misleading information has been provided in connection with

an application for the approval,

(b) any of the conditions imposed under Article 3(4)(b) by the Competent

Authorities have not been complied with,

(d) any of the requirements specified in paragraph (2) of this Article are

not met.

(2) The requirements specified in this paragraph are any temporary additional

requirements imposed under Article 6:

(a) which applied to the film when provisional approval for Approved Co-

production status under Article 3 was given, and

(b) which continue to have effect when the status is withdrawn under this

Article.

RTICLE 8

Benefits for Co-productions with either final approval or provisional approval

(1) This Article applies in relation to any film which has Approved Co-

production status.

(2) Each Party shall permit, in accordance with their respective legislation,

including for the UK relevant European Community legislation, temporary import

and export, free of import or export duties and taxes, of any equipment necessary

for the production of an Approved Co-production.

(3) Each Party shall permit any person employed in the making or promotion of

an Approved Co-production to enter and remain in the UK and Jamaica, as the case

may be, during the making or promotion of the film, subject to the requirement that

they comply with the legislation relating to entry, residence and employment.

RTICLE 9

Additional benefits available only to Co-productions with final approval

(1) This Article applies only in relation to a film in respect of which the

Competent Authorities have agreed to give final approval for Approved Co-

production status under Article 3.

(2) Each Party shall treat a film falling within paragraph (1) of this Article as a

national film for the purposes of any benefits afforded in that country to national

films.

(3) The benefits referred to in paragraph (2) of this Article include, in particular:

(a) eligibility for any benefits in fiscal treatment (subject to the film

satisfying the criteria that national films must meet for such benefits

and subject to paragraphs (4) and (5) of this Article),

(b) the lifting of any quota restrictions that would otherwise apply to the

import, distribution or exhibition of the film, and

between a Party and another country which operates import quota

restrictions, for the import of national films of that Party.

(4) Any benefits in fiscal treatment available in the United Kingdom may only be

accorded to a UK Co-producer.

(5) Any benefits in fiscal treatment available in Jamaica may only be accorded to

a Jamaican Co-producer.

(6) The question of which Party may claim credit for an Approved Co-

production as a national film at an International Film Festival shall be determined

by the Party Co-producers.

RTICLE 10

Exchange of Information

The Parties agree to the exchange of timely information in respect of laws,

regulations, standards and procedure and other information which is relevant or

necessary for the application of this Agreement.

RTICLE 11

Current Laws

All activities contemplated by this Agreement shall follow current laws of the

United Kingdom of Great Britain and Northern Ireland and Jamaica, where

applicable.

ARTICLE 12

Channels of Communication

The channels of communication for all matters concerning the implementation of

the Agreement shall be the Competent Authorities or such nominees as the Parties

may from time to time specify by notification for the purposes of this Article.

ARTICLE 13

Expenses

The Parties shall be responsible for reasonable expenses related to their respective

participation in activities foreseen in the Agreement except where they agree

otherwise.

ARTICLE 14

Dispute Resolution

(1) The Parties shall, if possible, resolve disputes concerning the interpretation or

application of this Agreement through negotiation or consultation or other

diplomatic channels.

(2) If a dispute between the Parties cannot be thus settled, it shall upon the

request of either Party be submitted to an arbitral tribunal.

(3) Such an arbitral tribunal shall be constituted for each individual case in the

following way. Within two months of receipt of the request for arbitration, each

Party shall appoint one member of the tribunal. Those two members shall then

select a national of a third State who on approval by the Parties shall be appointed

chairman of the tribunal. The chairman shall be appointed within two months from

the date of appointment of the other two members.

(4) If within the periods specified in paragraph (3) the necessary appointments

have not been made, either Party may, in the absence of any other agreement, invite

the President of the International Court of Justice to make the necessary

appointments. If the President is a national of either Party or if he is otherwise

prevented from discharging the said function, the Vice-President shall be invited to

make the necessary appointments. If the Vice-President is a national of either Party

or if he too is prevented from discharging the said function, the member of the

International Court of Justice next in seniority who is not a national of either Party

shall be invited to make the necessary appointments.

(5) The arbitral tribunal shall reach its decision by a majority of votes. Such

decision shall be binding on both Parties. Each Party shall bear the cost of its own

member of the tribunal and of its representations in the arbitral proceedings. The

cost of the chairman and the remaining costs shall be borne in equal parts by the

Parties. The tribunal may, however in its decision direct that a higher proportion of

costs shall be borne by one of the two Parties, and this award shall be binding on

both Parties. The tribunal shall determine its own procedure.

RTICLE 15

Entry into force

(1) This Agreement shall enter into force as soon as the Parties have notified

each other of the completion of their respective constitutional procedures.

(2) Either Party may terminate this Agreement at any time by giving at least 6

months’ written notice to the other Party.

(3) The Agreement shall cease to have effect on the expiry of the period of notice

given under paragraph (2) of this Article.

ARTICLE 16

Films in production before and after entry into force

(1) A film shall be eligible for the grant of Approved Co-production status even

if production commenced before this Agreement entered into force, but only if:

(a) the first day of principal photography of the film commenced on or

after 1st April 2006, and

(b) production of the film is completed after the date on which the

Agreement enters into force.

(2) An Approved Co-production shall continue to be eligible to receive any

benefits available under this Agreement on or after the date on which the

Agreement ceases to have effect, but only if:

(a) before that date, the Competent Authorities have given the film

provisional approval for Approved Co-production status under Article

(b) its principal photography commenced before that date, and

twelve months commencing with that date.

RTICLE 17

Review and amendment

(1) The Parties shall keep the Agreement under review and, where they consider

it appropriate to do so, may recommend that changes be made.

(2) The Parties shall report to the other annually in writing on the current state

of the Agreement.

(3) The Parties may, at any time through an exchange of notes, make

amendments to the Agreement.

(4) Any such amendment shall enter into force as soon as the Parties have

notified each other of the completion of their respective constitutional procedures.

RTICLE 18

International obligations

The provisions of this Agreement are without prejudice to the international

obligations of the Parties, including in relation to the United Kingdom obligations

arising from European Community law, and in relation to Jamaica obligations

arising from the Revised Treaty of Chaguaramas establishing the Caribbean

Community including the CARICOM Single Market and Economy signed on 5th

July 2001.

In witness whereof the undersigned, being duly authorised thereto by their

respective Governments, have signed this Agreement.

Done in duplicate at Kingston this twenty-third day of April 2007 in the English

language.

For the Government of the United For the Government of Jamaica:

Kingdom of Great Britain and

Northern Ireland:

RICHARD CABORN PORTIA SIMPSON MILLER

ANNEX

APPROVED CO-PRODUCTION STATUS:

GENERAL REQUIREMENTS

SECTION 1

Co-productions which have no finance-only contributions

Co-producers

1. The co-producers shall include at least one UK Co-producer and at least one

Jamaican Co-producer.

2. Unless the Competent Authorities agree otherwise, the maximum number of

co-producers for a film shall be four.

3. Unless the Competent Authorities agree otherwise, no co-producer may be

linked to another co-producer by common ownership, management or control

(except to the extent that such link is inherent in the making of the co-production).

4. Unless the Competent Authorities agree otherwise, each co-producer shall

have offices and staff in the country in which the co-producer is established.

5. Unless the Competent Authorities agree otherwise, each co-producer shall:

(a) continue to play an active role throughout the time the co-production is

being made (including production planning and decision-making), and

(b) assume responsibility for carrying through practical and financial

arrangements for the making of the film.

6. Each co-producer shall also meet the following requirements:

(a) each co-producer must directly negotiate, contract and pay for rights,

goods and services, and

(b) the co-producers must have entered into a binding contract, the terms

of which reflect their respective responsibilities for the co-production.

7. Unless the Competent Authorities agree otherwise:

(a) the co-producers named in the original application shall not be replaced,

and

(b) no co-producers may be added to those named in the original

application (or previously agreed to under this paragraph).

8. Unless the Competent Authorities agree otherwise, a Third Party Co-

producer shall meet all the requirements of this Annex.

Financial contributions

9. In the case of a co-production where the co-producers are all Party Co-

producers, each of the following:

(a) the total financial contributions of the UK Co-producer or Co-

producers (taken together),

(b) the total financial contributions of the Jamaican Co-producer or Co-

producers (taken together),

shall not be less than 20% and not more than 80% of the total production cost.

10. Subject to paragraph 11, in the case of a co-production where the co-

producers are not all Party Co-producers:

(a) the total financial contributions of the UK Co-producer or Co-

producers (taken together) shall not be less than 20% and not more than

60% of the total production cost,

(b) the total financial contributions of the Jamaican Co-producer or Co-

producers (taken together) shall not be less than 20% and not more than

60% of the total production cost,

producers (taken together) shall not be less than 20% and not more than

60% of the total production cost,

(d) the total financial contributions of each Non-party Co-producer shall

not be less than 10% and not more than 20% of the total production

cost.

11. In considering an application for the grant of Approved Co-production status,

the Competent Authorities may agree to reduce the lower limit for the purposes of

paragraph 10(a), (b) or (c), but subject to a new minimum limit of 10%.

Film-making contributions

12. The film-making contribution benefiting a country shall be broadly in

proportion to the financial contribution of the Party Co-producer (or Co-producers)

established in that country.

13. Unless the Competent Authorities agree otherwise, no more than 20% of the

total production cost may be used to source goods and services from a country

other than:

(a) the United Kingdom,

(b) Jamaica,

(d) a CSME Member State, or

(e) where there is a Third Party Co-producer, the State in which that Co-

producer is established.

Rights, revenues, receipts etc

14. The rights, revenues and prizes arising in connection with the co-production

shall be shared between the Party Co-producer (or Co-producers) in a manner that

reflects their respective financial contributions.

Film content

15. Unless the Competent Authorities agree otherwise, at least 90% of footage

must have been specially shot for that film.

16. The film shall not advocate violence, be of a pornographic nature or offend

human dignity.

Language of the film

17. Versions of the film shall be made as follows:

(a) the original version must be made in English or a recognised regional

or minority language of the United Kingdom or Jamaica or a language

of a State in which a Co-producer is established, and

(b) a sub-titled or dubbed version must be produced in English (if the

original version is not already in that language).

18. But nothing in paragraph 17 of this Annex prevents:

(a) the film containing passages of dialogue in other languages if the story

requires it, or

(b) production of subsequent versions of the film in other languages.

Screen and publicity credits

19. The film shall be credited on screen and in publicity either:

(a) as a UK/Jamaica or Jamaica/UK co-production, or

(b) where a co-production has one or more Third Party Co-producers or

Non-party Co-producers, as a UK/Jamaica/Third Party/Non-party co-

production.

Where the film is made

20. Unless the Competent Authorities agree otherwise:

(a) all work on the co-production prior to completion shall be carried out in

the countries in which the Party Co-producers or Third Party Co-

producers are established, and

(b) the majority of the work on the co-production shall be carried out in the

country in which the Party Co-producer or Third Party Co-producer

making the greatest financial contribution is established.

21. For the avoidance of doubt, the reference in paragraph 20 of this Annex to

work on a co-production prior to completion includes studio and post-production

work.

Personnel

22. Unless the Competent Authorities agree otherwise, individuals participating

in the making of the film shall be nationals of, or ordinarily resident in:

(a) the United Kingdom,

(b) Jamaica,

(d) a CSME Member State, or

(e) where there is a Third Party Co-producer, the State in which that co-

producer is established.

Conditions of work

23. The conditions of working for those taking part in the making of a co-

production in each of the countries of the participating co-producers shall be

broadly comparable, applying reasonable standards, and in relation to each country,

consistent with the standards generally prevailing in that country.

24. Conditions of work (including location shooting) in a country other than that

of a co-producer, shall not be significantly less favourable than the standards

required by paragraph 23 of this Annex.

Co-production contract

25. The co-production contracts between the co-producers shall:

(a) expressed to be subject to the approval of the Competent Authorities

and state that amendments to the contract must be submitted for

approval by the Competent Authorities before the co-production is

finished,

(b) set out the steps to be taken where a co-producer fails to fulfil its

commitments under the contract,

co-producers to the production of that film must be completed,

(d) make arrangements for any unpaid balance of the contributions of each

co-producer to be paid within a period of sixty days from the date of

completion of the film,

(e) make provision for any overage or underspend, which results from the

total budgeted costs being exceeded or under-spent, to be divided in

such a way as not to cause the project to fall outside the terms of this

Agreement or the terms of the provisional approval given by the

Competent Authorities,

(f) set out clearly the financial liabilities of each co-producer for the costs

that are incurred:

(i) in preparing a project which is refused final approval or

provisional approval for Approved Co-production status under

Article 3,

(ii) in the event that a relevant authority prohibits the exhibition in

either country of a film which has Approved Co-production

status, or

(iii) in the event that a relevant authority prohibits the export of the

film to a third country,

(g) make provision about the respective copyright entitlements of the co-

producers,

(h) make provision for the distribution of the rights and revenues arising in

connection with the co-production,

(i) set out the arrangements regarding the division between the co-

producers of territories and/or the receipts from the exploitation of the

film, including those from export markets,

(j) provide that the original protection and reproduction material from the

production ("the material") and the first completed version ("the

master") are to be deposited in a place mutually agreed by the co-

producers, and

(k) provide:

(i) that each co-producer is to have free access to the material and

the master in accordance with the conditions agreed upon

between the co-producers,

(ii) either that each of the co-producers is to have joint ownership of

the material and the master or that each co-producer is to be the

owner of a copy of the material and the master, and

(iii) that a sufficient number of copies of the material and the master

are to be made for all the co-producers without restriction on the

number of copies made by each co-producer.

SECTION 2

Co-productions with finance-only contributions

26. For the purposes of Article 4(1)(a), a co-production which does not (and is

not expected to) meet the requirement of paragraph 12 of Section 1 of this Annex

may nevertheless be treated by the Competent Authorities as meeting the

requirements set out in this Annex if:

(a) all the other requirements of Section 1 of this Annex, and

(b) the following six conditions,

have been (or are expected to be) met.

27. The first condition is that the Competent Authorities have, in respect of each

one year period, agreed to and published a limit applying to the number of co-

productions relying on this Section of this Annex which may be granted

provisional Approved Co-production status over that period.

28. The second condition is that the co-production includes one or more minority

contributions from one or more co-producers which are limited to finance only.

29. The third condition is that:

(a) in the case of a co-production where the co-producers are all Party Co-

producers, the finance-only contribution from the co-producers (taken

together) must be not less than 20% and not more than 25% of the total

production cost,

(b) in any other case, the finance-only contribution from the co-producers

(taken together) must be not less than 10% and not more than 25% of

the total production cost.

30. The fourth condition is that the co-production has a Majority Party Co-

producer who makes a film-making contribution.

31. The fifth condition is that the grant of Approved Co-production status to the

co-production would not cause the limit referred to in paragraph 27 of this Annex

to be exceeded.

32. The sixth condition is that the grant of Approved Co-production status to the

co-production does not (other than temporarily) aggravate a state of imbalance

between the Parties with regard to:

(a) the aggregate film-making contributions in connection with co-

productions which have Approved Co-production status in reliance on

this Section of this Annex, and

(b) the number of such co-productions which are UK majority co-

productions and Jamaican majority co-productions.

Printed in the UK by The Stationery Office Limited on behalf of

the Controller of Her Majesty’s Stationery Office

ID5608201 372868 7/2007 19585

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