The Association of Independent Commercial Producers (AICP) is preparing what its national chairman Alex Blum describes as "a road map" to help member companies negotiate their way through a maze of different ad agency production contracts. The AICP instituted the analysis of agency contracts during its semi-annual national board meeting last month in Los Angeles.
AICP officials reasoned that a significant number of individual agency contracts contain provisions that can carry inequitable legal liabilities for production houses. By sifting through agency production agreements, the AICP intends to pinpoint those pacts and make its membership aware of clauses to look out for before signing on the dotted line.
Blum cited examples of contract language that he contended are unfair and onerous to production houses. He related that several agencies have recently formulated contract provisions that place legal liabilities for potential talent payment problems on production companies—even when the companies aren’t legally responsible for such talent payments.
Additionally, noted Blum, for a number of jobs that involve blanket insurance (in which coverage for the production is carried by the advertiser or agency rather than the production house), there are agency contracts that don’t properly indemnify the production company. Blum said that many production companies assume that the indemnification language in agency contracts for projects with blanket insurance is in line with the standard that was originally agreed upon between the AICP and blanket policy-holding advertisers. But, he continued, some clients and agencies have made changes in that language, often translating into reduced hold-harmless protection for the production company. There are other instances where agency contract indemnification language hasn’t been revised to account for blanket coverage. In these cases, the contract still requires the production company to indemnify the agency and client—even though legally, in a blanket policy situation, the indemnification should be provided to the production company by the agency and/or advertiser.
AICP/West secretary/treasurer Denise Gilmartin, CFO of Gas.Food & Lodging, Culver City, Calif., has been named to head the AICP’s agency contract analysis committee. Blum said that the AICP intends to ultimately review the contracts of every ad agency.
returnees
The AICP board also re-elected its slate of national officers. Set to serve a second year-long term in office are: chairman Blum, who is partner/executive producer of bicoastal Headquarters; vice chairman Alfred Califano, partner/executive producer of bicoastal OneSuch Films; and treasurer Mark Androw, the Chicago-based principal/executive producer at The Story Companies (Chicago, New York, Los Angeles, Dallas). Frank Scherma, proprietor/executive producer at bicoastal/international @radical.media, continues on the board as ex-officio AICP president. Rounding out the lineup of officers are two continuing appointed officials: AICP president Matt Miller and secretary Stephen Steinbrecher, an attorney with Steinbrecher & Ross, New York, which serves as AICP’s legal counsel.
Other highlights of the AICP board session included:
•The AICP made strides toward establishing a national health plan for its member companies, covering nonunion staff and freelance workers. New York-headquartered actuary firm The Segal Company designed a health plan which the AICP board approved. However, the plan must still pass the scrutiny of the Internal Revenue Service and the Department of Labor. If those governmental approvals are secured, Miller estimated that the AICP could begin marketing the plan by the middle of the year. Health insurance coverage could be available effective January 1, 2001.
•A national government affairs committee has been formed by the AICP. Miller explained that while chapters will continue to be active on the political lobbying front, a national committee on government relations will carry greater weight on issues of concern throughout the industry. He noted that even so-called local and regional government matters are of national importance. Miller said that the nationalization of committees has already proven successful for the AICP, citing the achievements of the national labor committee. "We’ve seen over the years that labor is looking across the negotiating table at the same AICP people—representatives from different chapters, providing continuity and a united front," related Miller, who characterized the creation of national committees as helping to make the AICP "issues-united rather than geographically divided." AICP/West president Brian Donnelly, Los Angeles-based executive producer of bicoastal OneSuch Films, has been named to chair the AICP national government affairs committee. Also at the helm of the newly formed committee is AICP staffer Steve Caplan, senior VP, external affairs.
•Kirk Hokanson, executive producer of Minneapolis-based Voodoo Films, made a presentation to the AICP national board regarding the recently formed new technologies committee. Hokanson, who is president of the AICP/Minnesota chapter, chairs the new technologies committee, which seeks to educate AICP membership about evolving media and their impact on commercial production. Citing such advances as digital television, HDTV, DVDs, the Internet, broadband and new media, Hokanson said that the work of the new technologies committee will ideally enable AICP "to be proactive in terms of researching these and other areas. We’ll be able to formulate recommendations and help companies make decisions about how to approach new technologies and what to invest in. Rather than companies always finding themselves having to react to what’s out there, they can take the initiative to make the most out of new technology and new media opportunities."
The new technologies committee consists of: Hokanson; Caplan; Julie Atherton, partner in bicoastal Atherton; Jeff Doud, creative director at Click 3X Atlanta; David Edelstein, executive producer of New York-based Fourth of July Productions; Jay Friedman, staff researcher at bicoastal HKM Productions; Jillian Henry, executive producer of Mougin Henry Films, New York; and Alan Sadler, executive producer of Big Deahl Productions, Chicago. Three subcommittees have already been launched. Hokanson, Atherton and Henry head a DVD subcommittee. Sadler and Doud are at the helm of an Internet subcommittee. And Friedman heads a subcommittee that will explore the much talked about TiVO and Replay Networks personal digital video recorders that are capable of zapping commercials.
•Also discussed during the AICP board session were upcoming talks for a new Screen Actors Guild (SAG) commercials contract. The current SAG pact is set to expire at the end of March. Negotiations will be between SAG and the Joint Policy Committee (consisting of representatives from the Association of National Advertisers and the American Association of Advertising Agencies). In the worst possible case scenario of a SAG strike, Miller said that "a work stoppage will not stop work." Miller noted that there are nonunion talent options available domestically and internationally.
