A residual rights collective agreement is a legal agreement between a production company and a guild or union that addresses the distribution of residual payments. Residual payments are payments made to union members for the reuse of their work after its initial production.
A residual rights collective agreement is an essential document in the entertainment industry as it outlines the rights and responsibilities of both the production company and the union members. The agreement covers various aspects of residual payments such as when they are due, how they are calculated, and how they should be distributed.
One key aspect of the residual rights collective agreement is defining the types of residuals that will be paid. For instance, residuals can be paid for reruns of a television show or movie, syndication, streaming, DVD sales, and others. The agreement also specifies the time frame during which residuals will be paid.
Another essential aspect of the residual rights collective agreement is determining the formula for calculating the payment amounts. The formula typically takes into account factors such as the production`s budget, the revenue generated from the production, and the individual`s contribution to the production.
The residual rights collective agreement also outlines how the payments will be distributed among union members. The agreement may specify that payments should be distributed equally among all members or that members should receive payment based on the amount of work they contributed to the production.
In summary, a residual rights collective agreement is a crucial document in the entertainment industry that outlines the distribution of residual payments. The agreement covers various aspects such as the types of residuals that will be paid, the formula for calculating payment amounts, and how payments will be distributed among union members. By signing the agreement, both production companies and union members can ensure a fair and transparent process for residual payments.