“Unfair royalties burden Polish cinemas.”  They appeal to parliamentarians to change the law

“Unfair royalties burden Polish cinemas.” They appeal to parliamentarians to change the law

Representatives of the cinema industry published their position on the system of charging fees for films shown on the big screen. They claim it is unfair.

“In connection with the work carried out in parliament on the amendment of the Act on Copyright and Related Rights, we would like to inform the public about the position of the cinema industry. In our opinion, in the heated discussion about royalties that is currently taking place in Poland, certain important facts are almost completely absent from the media “- they begin their letter. They then point out that “in the vast majority of countries, contrary to the narrative spread during protests organized by the Polish Filmmakers Association/ZAPA, royalties are not collected from screening films in cinemas, i.e. from the so-called first field of exploitation (except for music fees).”

Kiniarze: On the world map, Poland is a shameful exception

In the statement signed by the Polish Association of New Cinemas, the Association of Arthouse Cinemas and the Association “Kina Polskie” we read that “this is logical because the creators and performers already receive remuneration from the film producer for their work on a given project. In turn, the producer covers these costs from the revenues it receives for showing films in cinemas. However, this logical and commonly accepted system does not apply in Poland,” they write and add:

We have an unprecedented practice in which regulations, developed years ago, entitle creators and performers to receive additional remuneration for showing films in cinemas to an unprecedented extent. All the videos! Even those that Polish creators had nothing to do with creating. On the world map, Poland is a shameful exception in this respect.

The signatories of the letter point out that legal disputes regarding the application of copyright have been ongoing in our country for over 20 years. “It is worth knowing that legal disputes regarding the application of copyright law have been ongoing in Poland for over 20 years. The cinema industry – contrary to the imposed narrative – has never agreed to the solutions that are today used by collective management organizations (OZZs), primarily Polish Filmmakers Association/ZAPA. They demand fees from cinema operators also for screening American films, even though these remunerations are not due to Polish creators nor are they transferred to the United States nothing in common or the money seized from cinemas is spent for purposes other than those for which they were collected,” they write, claiming that due to the insufficient transparency of collective management organizations, some creators may not be aware of the existence of such a mechanism:

We find it hard to believe that Polish creators would demand royalties from the films “Barbie”, “Oppenheimer” or other American blockbusters.

They emphasize that they fully support Polish creators who demand to receive royalties for screening their films, but they also see the need for thorough legal changes in this area. At this point, collective management organizations are demanding royalties from cinemas totaling over 4%. revenues (in addition, there is a 1.5% fee paid by cinemas to the Polish Film Institute). According to the cinema owners who signed the letter, “this is in fact an attack on the cultural life of many Polish cities and towns”, where it is particularly difficult for local cinemas to survive.

Appealing to parliamentarians to take up the matter, they emphasize that cinemas accept royalties for showing Polish and European films, but in their opinion, Polish creators should receive them for works that they actually created, and not for American films. The entire letter is published below:

The position of the cinema industry towards the unfair system of charging fees for films shown on the big screen

Invalid system

Due to the work carried out in Parliament on amending the Act on Copyright and Related Rights, we would like to inform the public about the position of the cinema industry. In our opinion, in the heated discussion about royalties currently taking place in Poland, certain important facts are almost completely absent from the media.

In the vast majority of countries, contrary to the narrative spread during protests organized by the Polish Filmmakers Association/ZAPA, royalties are not collected from screening films in cinemas, i.e. from the so-called first field of exploitation (except for music fees).

This is logical because creators and performers already receive remuneration from the film producer for their work on a given project. In turn, the producer covers these costs from the revenues it receives from showing films in cinemas. However, this logical and commonly accepted system does not apply in Poland. We have an unprecedented practice in which regulations, developed years ago, entitle creators and performers to receive additional remuneration for showing films in cinemas to an unprecedented extent. All the videos! Even those that Polish creators had nothing to do with creating. On the world map, Poland is a shameful exception in this respect.

Remuneration for films not your own

It is worth knowing that legal disputes regarding the application of copyright law have been ongoing in Poland for over 20 years. The cinema industry – contrary to the imposed narrative – has never agreed to the solutions that are today used by collective management organizations (OZZs), primarily the Polish Filmmakers Association/ZAPA.

They also demand fees from cinema operators for screening American films, even though these remunerations are neither due to Polish creators nor transferred to the United States. Polish creators take over remuneration for films they had nothing to do with making, or the money seized from cinemas is spent on purposes other than those for which they were collected.

This is an incorrect system that allows profits to be generated by a narrow group of privileged beneficiaries. This system has nothing to do with supporting young Polish creators.

We have the right to assume that some of these creators are not even aware of the existence of such a mechanism, because collective management organizations operate in Poland in a way that is definitely not transparent enough. We find it hard to believe that Polish creators would demand royalties from the films “Barbie”, “Oppenheimer” or other American blockbusters.

We see an urgent need for thorough legal changes in this area, and at the same time we fully support Polish creators who demand to receive royalties for screening their films!

Cinemas are an important part of the film ecosystem

Many cinemas, especially in smaller centers, are in a difficult situation. Some balance on the verge of existence. The collapse of local cinemas often means the liquidation of the only cultural center available to smaller communities. We shouldn’t agree to this. CMOs’ continued demand for royalties from cinemas in the total amount of over 4% of revenues (in addition to the 1.5% fee paid by cinemas to the Polish Film Institute), this is in fact an attack on the cultural life of many Polish cities and towns.

The entire film community, led by creators and the collective management organizations representing them, must understand that cinemas are an integral part of the film ecosystem. We respect and appreciate Polish artists and performers, but we cannot allow the condition of Polish cinemas to continue to weaken. They also co-finance domestic film production and promote it by screening Polish films. Let us emphasize once again! Cinemas accept royalties for showing Polish and European films because we want to support local film production! We believe that royalties should be paid to Polish creators. But for the works they actually created, not for American films.

An appeal to parliamentarians

In the matter of collecting unfair fees by collective management organizations for showing American films in our cinemas, thorough legal changes are needed. The currently functioning system is bad and harmful and requires immediate legislative repair

We appeal to Polish parliamentarians for this! We deeply believe that the legislative work carried out by you in the Sejm and Senate will ultimately bring transparent – and predictable for each party – systemic solutions. We are determined to fight for them.

Polish New Cinema Association

Arthouse Cinema Association

“Polish Cinema” Association

There are over 450 cinemas operating in Poland with 1,500 screens. The cinema industry is represented by three associations: the Polish New Cinema Association, the Arthouse Cinema Association, the “Kina Polskie” Association, bringing together people and entities running cinema activities in a total of approximately 400 cinemas with over 1,400 screens. In 2023, 50, 5 million tickets (vs 61 million tickets in 2019)

Source: Gazeta

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