Elizabeth
I fully understand this was and is done with PPR rights. I am not
entirely sure rights holder even realize it , but it has surely gone
on too long to be challenged
I personally believe streaming is very different and would need to be
specified in a contract. If for instance company X had a contract on a
major European film for 7 years and in year 3 sold the streaming
rights in  perpetuity to the Univ. of New Jersey  and later that
contract expired  and the rights were sold to company Y who approached
the Univ. of New Jersey about that and other films in it's collection
only to be told that had bought the rights in perpetuity ( got all
that folks), company Y and the overall rights holder could very well
make a fuss. The reality of this happening is not high but I can tell
you from personal experience that when approached two major French
Film companies who had a contract with a US company to distribute
titles ( that included exhibition rights) said NO when asked if they
could sell the streaming rights in perpetuity. They would only allow
streaming to be sold for the term of the contract. I think it is
essential to have something in writing from the overall rights holder
that such sales are OK. If not in every contract then just an
acknowledgment that they agreed to it for any of their titles under
contract. We all know formats and contracts have been changing very
fast, but as a buyer I would want some assurance that the rights are
guaranteed even if the distribution changes.

Again I think rights holders would be fools NOT to agree but a lot of
the European rights holders in particular can be a little difficult.
One issue to be blunt is that PPR rights on feature films where never
a big deal, streaming is seen a major source of revenue and I expect
rights holders to be very careful about it.  I remember when
DVD came in and a lot of companies got caught completely off guard
believing that their contracts for films covered it at least for the
term of the contract, but in some cases they were directly challenged
by rights holders that this was a different format not in the contract
and they were unable to release the films in DVD. Some contracts were
redone and in some cases the DVD rights were sold to another company.

Basically I just would not be willing to take the position a contract
for a film includes any rights not specified and having had the
experience of being rejected by rights holders when asking for those
rights I am more than a little leery.



Original discussion from videonews

I am not sure this the right spot to discuss this ( as opposed to
videolib)  but I am curious about selling streaming rights in
perpetuity. Mallory I am not trying to put you on the spot, but I find
it odd that so many rights holders particularly foreign ones could or
would agree. Most contracts limit a distributors rights to a fixed
period of years and must be either renegotiated or given back at the
end of the contract. In order for anyone to offer rights in perpetuity
it would have to be spelled out in the contract. I could not for
instance sell broadcast rights to film in perpetuity for a film I had
a 5 year contract on, without this being agreed to by the rights
holder.

I think it very, very unlikely that the studios who could do this,
will do it. They just don't like the concept of granting something
like that in  perpetuity. I worked very hard to get some of the
filmmakers I work with to agree to this and obviously they do own the
rights. I managed to get permission for educational institutions only
on some PD films whose material had been accessed through archives,
but the two major rights holder films I was involved with both refused
to agree to selling rights in perpetuity for educational streaming.

I would just ask folks to be careful when acquiring this and asking
the company to basically certify that they do indeed have written
permission from the rights holder to sell the streaming rights in
perpetuity.. I suspect it may become more common in newer contracts,
but again most major rights holders seem very ornery about selling
something with rights "forever" even if it makes logical and monetary
sense.
Jessica Rosner
Media Consultant
224-545-3897 (cell)
212-627-1785 (land line)
jessicapros...@gmail.com


Jessica,

A quick reply:

When we sell a PPR license, it is for the life of the DVD. We do not
revoke a PPR license we have sold when our license to sell the rights
expires. It would be absurd for me to call our mutual friend Gary
Handman and say, "Hey Gary, please send back those DVDs I sold you for
$249 a pop. My license to sell is up and hence, any license I sold is
up."

Some of our older contracts limit the term beyond which we can license
a program for broadcast but we are not selling tv rights here. A
Digital Site License (DSL) is the equivalent of a download/Electronic
Sell Through, which by general industry standards, is a digital DVD.
Our DSL license does not allow for our files to be hosted on remote
platforms and streamed but only to be locally hosted on a
password-protected connection via  a closed-circuit system that is not
accessible tot he public. You can read more here:
http://kinolorberedu.com/terms.php and check out a sample license
here: http://kinolorberedu.com/images/DSL_sample.jpg

Questions? Let me know.

Best,

Elizabeth

Elizabeth Sheldon
Vice President
Kino Lorber, Inc.
333 W. 39th St., Suite 503

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