Supreme Court upholds copyright law...

Supreme Court upholds copyright law
Affirms return of copyright to foreign works once in public domain
By TED JOHNSON

The Supreme Court on Wednesday upheld Congress' ability to extent copyright protection to works by foreign artists and authors that were previously in the public domain.
The high court ruled 6 to 2, with Justice Elena Kagan recusing herself.

"Nothing in the historical record, congressional practice or our own jurisprudence warrants exceptional First Amendment solicitude for copyrighted works that were once in the public domain," Justice Ruth Bader Ginsburg wrote in the majority opinion.

Orchestra conductors, educators and homevid distributors challenged the constitutionality of a 1994 act of Congress that restored the copyrights, bringing it in line with earlier trade agreements. Perhaps millions of works were covered, and they had argued that the "entry of a work into the public domain must mark the end of protection, not an intermission."

According to the U.S. Copyright Office, after the law was passed, notices were filed to restore copyrights on almost 50,000 works, including such Alfred Hitchcock titles as "The 39 Steps" and "The Lady Vanishes," Carol Reed classic "The Third Man" and a host of musical works and Mexican and Latin American films.

The content industry generally favored the restoration of copyrights. The MPAA filed an amicus brief in which it said that U.S. copyright holders could face "retaliatory measures" if the law was overturned, and the U.S. therefore did not honor the 1994 treaty and the Berne Convention, the international agreement in which countries recognize the copyright of works from other signatory countries.

"In aligning the United States with other nations bound by the Berne Convention, and thereby according equitable treatment to once disfavored foreign authors, Congress can hardly be charged with a design to move stealthily toward a regime of perpetual copyrights," Ginsburg wrote.

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Acad: Digital indies face early death...

Acad: Digital indies face early death
Indie and docu filmmakers unaware of risk, says report
By DAVID S. COHEN

The Motion Picture Academy's Science & Technology Council released the executive summary of part 2 of its "Digital Dilemma" report on the problems of long-term storage of digital movie footage. This new document focuses on the independent and documentary sectors of the movie business, and it paints a grim picture of filmmakers largely unaware how fragile today's born-digital movies are.
"In general," says the report "independent films that beat the odds and secure some form of distribution do so after a much longer time period than movies produced by the major studios. This time period quite likely exceeds the 'shelf life' of any digital work; that is, by the time distribution is secured, the digital data may become inaccessible.

"Most of the filmmakers surveyed and interviewed for this report were not aware of the perishable nature of digital content, or how short its unmanaged lifespan is compared to the 95-plus years that U.S. copyright laws allow filmmakers to benefit from their work."

The original Digital Dilemma report, released in 2007, focused on studio pics. It laid out the expense and difficulty of maintaining a digital archive of any kind, showing it is far greater than that of storing film in a temperature controlled vault. Originally the Acad's Sci-Tech Council recommended a "migration" strategy of moving data regularly from hard disk to hard disk periodically. However in subsequent presentations the Council has said it's been proven to a mathematical certainty that migration is ultimately bound to fail.

The bottom line: "Suitable long-term preservation and access mechanisms for digital motion picture materials have not yet been developed." In other words, there's no known way to preserve digital data over decades and ensure it will remain readable. That is not simply a problem for movie footage. The same issues pertain to digital medical records, financial data, and other information. The Acad is working with Library of Congress and other major industries, to search for a method to preserve digital assets.

However, because those efforts are being backed by big business, they may not prove suitable for indie films and filmmakers. Indie films that lack studio distribution -- and the financial resources that come with it -- are at particular risk of being lost entirely. "Unless an independent film is picked up by a major studio's distribution arm," says the summary, "its path to an audiovisual archive is uncertain. If a filmmaker's digital work doesn't make it to such a preservation environment, its lifespan will be limited - as will its revenue-generating potential and its ability to enjoy the full measure of U.S. copyright protection."

Awareness of the issue was no greater among documentarians than among narrative indie filmmakers. Says the report: "Surveyed and interviewed documentarians did not seem concerned about or aware of the possibility or likelihood of digitally acquired historical footage being lost. To the contrary, they believed that the Internet and today's digital technologies offered unprecedented access to historical footage."

The full report, not yet released, will include proposals for more education, sharing of information and collaboration among archives and other orgs.

The summary concludes by saying that unless preservation becomes a requirement for planning, budgeting and marketing strategies, it will remain a problem for indie filmmakers, documentarians and archives alike. "These communities, and the nation's artistic and cultural heritage, would greatly benefit from a comprehensive, coordinated digital preservation plan for the future."

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Europe's digital rollout passes half-way point...

Europe's digital rollout passes half-way point
Smaller cinemas are struggling
By ED MEZA

BERLIN -- More than 52% of theatrical screens in Europe have been converted to digital, up from just 4% three years ago, yet single-screen cinemas are still struggling.
According to a report by the Council of Europe's European Audiovisual Observatory and Media Salles, part of the EU's Media Program, some 18,500 digital screens had been installed in Europe by the end of last year.

While the initial phase of large-scale digital conversion during 2009 and 2010 was largely driven by 3D installations, it was 2D screens that for the first time propelled the rollout in 2011.

This second major phase of the digital roll-out, according to the report, is now driven primarily by full conversions of larger circuits under virtual print fee schemes with the major studios, and by public initiatives, ranging from legislation (such as in France), and publicly funded industry-wide conversion schemes (as seen in Norway and the Netherlands) to direct public-funding programs.

Not all theaters have been able to convert, however. The study shows that small cinemas and exhibitors have significant problems converting to digital. By the end of 2010 only 11% of single-screen cinemas had installed a digital screen, compared to 89% of multiplexes.

Small cinemas form a characteristic part of the European cinema landscape, with single-screen cinemas alone accounting for almost 60% of all European theaters.

"Though presumably not vital for overall box office results, these smaller cinemas play an important social and cultural role in many communities. The fact that these screens have not yet converted highlights the fact that commercial financing models cannot cover all European cinemas, causing a funding gap for between 15% and 20% of European screens," the report said.

Nevertheless, the high penetration rates in various European markets means the end of 35mm distribution is rapidly approaching. Distribs in Belgium, Luxembourg and Norway (which became the first country worldwide to go fully digital in 2011), were expected to end 35mm distribution as early as 2011 and 2012. A total of 11 territories had converted at least 50% of their screens by mid-2011, including France and the U.K., Europe's two leading markets.

The report warns that Europe's theatrical landscape could suffer major upheaval as a result of the fast-moving digital rollout.

"Once large distributors switch to digital distribution in such major markets, demand for film stock will drop significantly, putting pressure on 35mm economics on a pan-European level. This could cause financial strain for those distributors and exhibitors still depending on it."

Bigger companies are set to benefit more than smaller players from the transition to digital, leading to a "fundamental change in the fragmented European theatrical landscape" and posing "a challenge to the European independent sector, characterized as it is by a large number of small exhibitors and distributors."

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Wikipedia, Craigslist, other sites go black in SOPA protest...

Following through on their threats to shut down for a day over controversial proposed anti-piracy legislation, a coalition of websites including the hugely popular user-generated encyclopedia Wikipedia went black as midnight struck the East Coast.

Visitors to English-language pages on Wikipedia, regularly ranked as one of the five most popular sites on the Internet, with an estimated 2.7 billion monthly pageviews in the U.S., instead found only a headline stating "Imagine a World Without Free Knowledge." Stating that the proposed SOPA and PIPA anti-piracy bills "could fatally damage the free and open internet," the message said Wikipedia would be blacked out for 24 hours and asked visitors to contact their congressional representatives, providing a search box to look them up by ZIP code.

Other sites that shut down and displayed similar language included classified listings site Craigslist and technology blog BoingBoing, while a note on the social news website Reddit said it would begin its blackout at 8 a.m. Eastern time. Hundreds of other websites were scheduled to go dark, according to SOPAStrike.com.

Google, meanwhile, didn't shut down but blacked out the logo on its home page and featured a message that said "Tell Congress: Please don't censor the Web!"

Opponents have argued that SOPA, the Stop Online Piracy Act, and the similar U.S. Senate legislation PIPA, the Protect Intellectual Property Act, may be an attempt to stop international piracy of intellectual property but amount to censorship because they don't have proper protections for sites unfairly accused of enabling piracy and would "break the Internet" in the way the legislation blocks them.

Supporters, who believe the laws are needed to stop "rogue" websites that make it possible for Web surfers to illegally download or stream movies and television shows, went after organizers of Wednesday's Internet blackout, demonstrating the ongoing public battle between large media and technology companies.

"[S]ome technology business interests are resorting to stunts that punish their users or turn them into their corporate pawns, rather than coming to the table to find solutions to a problem that all now seem to agree is very real and damaging," Motion Picture Assn. of America Chairman Chris Dodd wrote in a blog post.

On Twitter, News Corp. Chairman Rupert Murdoch wrote, "Nonsense argument about danger to Internet. How about Google, others blocking porn, hate speech, etc? Internet hurt?"

The Obama administration this weekend announced its objections to SOPA and PIPA in their current forms, meaning it's unlikely the bills will be passed soon. Supporters continue to hope, however, that a compromise can be reached.
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Hollywood's design credit dilemma

Hollywood's design credit dilemma
ADG's 'Tintin' nom highlights production designer/art director issue
By PETER CARANICAS

"The Adventures of Tintin" was released without a credited production designer.

A heated dispute within the Art Directors Guild over a credit on "The Adventures of Tintin" has exposed a long-simmering debate over the title of production designer vs. art director while also raising questions about the changing role such artists play in a filmmaking process making ever greater use of digital tools.
Bookings and Signings

On Jan. 3, when ADG released its nominees for excellence in production design in 2011, it recognized an individual for each film, TV show and commercial on the list -- except for "Tintin," one of the five nominees for fantasy film and now a Golden Globe winner. For the Steven Spielberg movie the potential honoree was designated as TBA because no production designer was on the film's credits. "We were looking for who was responsible but couldn't get that info," said ADG prexy Tom Walsh.

Following inquiries, the producers -- who include Spielberg, Peter Jackson and Kathleen Kennedy -- picked Kim Sinclair, referred to in the production notes as visual effects art director, as the person most responsible for the look of the film. As a result, Sinclair is the only art director on this year's ADG's noms list; the other 44 nominees are production designers.

At issue here is that a guild that in name is formed of art directors presents awards to its members for "production design," while the Academy often gives awards for "best achievement in art direction" to those same individuals.

"It's confusing to the industry and the audience that the Academy still chooses to award best art direction to the production designer, and it undermines the director and the producer when the production itself is not clear on the roles," said Alex McDowell, production designer on the upcoming "Man of Steel."

The quandary has historical roots. In film's early years, art directors designed a pic's overall look. Then, on "Gone with the Wind," David O. Selznick agreed to give his art director, William Cameron Menzies, the more all-encompassing title of production designer. Today, production designers are the acknowledged department heads to whom art directors, set decorators and others report.

The producers' designation of Sinclair rankled some guild members because "ADG takes the view that every film should have a production designer," said a person close to the guild.

McDowell added that animated films and those created via performance capture ("Tintin" falls in both categories) should also have a production designer. "The production designer's primary role does not change because of the methodology of the film," he said. "Animation and vfx films have all the same conditions as in-camera films; they're based on real physics, every surface needs to be designed and defined… and they require environments and characters that need to be defined and designed."

McDowell is not alone. "I can't imagine making an animated film without somebody in a production designer role," said Yarrow Cheyney, who had the credit of production designer on the animated "Despicable Me." "If they're fulfilling the role, their credit should reflect that."

Some production designers think their guild should do more to clarify the roles of its members. "Perhaps if ADG were completely clear in its categorization of the art department and its hierarchy, our union would be called the Production Designers Guild," said Scott Chambliss, production designer on "Cowboys and Aliens," who also got an ADG nom in the fantasy film category. "Then the guild would be much less likely to find itself in the baldly embarrassing position of its membership nominating a film for excellence in production design that had no officially designated production designer."

Such a move, added Chambliss, could spur the Academy to end the practice of "giving an award for best art direction to a production designer and a set decorator, but not to an art director."

As for "Tintin," the trio that worked on its design -- vfx art director Sinclair and art directors Andrew Jones and Jeff Wisniewski -- previously collaborated on "Avatar" and imported many of the digital tools from Jim Cameron's opus to Spielberg's work. Many production designers think that in addition to updating its terminology, ADG needs to continue to educate its members on new technology because production design is now often part of a complicated process that includes previsualization and vfx, and the disciplines can't be separated from each other.

"The moral of this story is that these hybrid films reinvent the roles," Walsh said. "This year we put out a film for first ballot with TBD as designer. I assure you we won't go down that path again."

Elevation Talent Agency signed editor Matt Garner ("Butter"), line producer Susan Leber ("Margin Call") and makeup artist Emily Ansel ("Keep the Lights On").

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Canadian TV biz goes to court

Canadian TV biz goes to court
It wants regulator to treat ISPs as broadcasters
By BRENDAN KELLY

MONTREAL -- The battle to force Internet Service Providers to be treated like broadcasters went before Canada's Supreme Court on Monday, a case that could have a major impact on the local TV business.
A coalition representing actors, writers and producers argued that ISPs should be forced to follow rules set by federal broadcast regulator the Canadian Radio-Television and Telecommunications Commission, including paying a levy to support original Canadian content.

The Internet providers -- including major players Bell Canada and Shaw Communications -- beg to differ.

The entertainment guilds lost the first round in the fight after the Federal Court of Appeal ruled that the ISPs are not broadcasters in July 2010. But in March 2011 the Supreme Court agreed to hear the case.

"Internet providers are the broadcasters of the 21st century," said Jay Thomson, VP at the Canadian Media Production Assn. "We want to give the CRTC the chance to review this and to see if there is any way they can support Canadian programming."

The Supreme Court is expected to take between six and eight months to reach a decision.

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Commercial shoots on streets of L.A. reach record level...

On a sunny Monday afternoon near the Port of Los Angeles, a man straddling a mechanic's red toolbox is wheeling down a street, struggling to maintain his balance as he turns a corner.

A camera crew is filming the action as part of a shoot for oil change chain Jiffy Lube, one of at least a dozen commercials shot this week across Los Angeles County. Others include spots in downtown L.A. for Yoplait Yogurt and Jeep Cherokee, as well as North Hollywood for JC Penney.

Commercial shoots are surging in L.A., fueled by several factors, including an economic recovery, ads for the Super Bowl, the summer Olympics and political campaigns, and even a tax break offered by the city.

Location shoots for commercials in the L.A. area rose 8% in the fourth quarter compared with a year earlier and climbed to the highest level on record last year -- generating 7,079 production days, according to FilmL.A. Inc, which handles film permits for the city and county of Los Angeles.

While they don't get as much attention as movies and television shows, commercials have become an increasingly important contributor to L.A.'s entertainment economy. In fact, since 2009, commercials have accounted for more location filming than feature films, which have been harder hit by runaway production.

Although movies and TV shows employ larger crews, commercials still pack an economic punch: filming a 30-second spot for broadcast TV can employ 40 crew members and carry a budget of $100,000 to $400,000.

Commercial production is up nationwide in part because the overall economy is improving, industry analysts say. The recession caused a sharp falloff in advertising spending in 2008 and 2009, but big brands including auto companies such as Chrysler to consumer electronic firms such as Apple have been setting aside more advertising dollars to market their products as consumer spending grows.

"There are several things coming into play but one of them definitely is the rebounding economy,'' said Matt Miller, president of the Assn. of Independent Commercial Producers, a trade group with 178 members in Southern California. "Overall, it's been a pretty good year throughout the industry."

Sponsors of the 2012 Olympic Games in London already have begun stockpiling commercials as part of their marketing campaigns, generating more business for local producers in the fourth quarter, who also benefited from Super Bowl ads, Miller said. The National Football League recently signed record-setting television rights deals with Fox, NBC and CBS, which are eager to capitalize on huge ratings for the games.

Another factor behind the commercial production upswing is the proliferation of digital media, which has created more demand for ads that can be run across multiple platforms -- on websites such as Hulu, iPads and smartphones.

"A lot of brands are trying any way they can to capture potential customers,'' said Jerry Solomon, managing partner for Epoch Films, which has produced commercials for AT&T, Audi and Apple. "It's not just TV anymore."

Production companies that shoot commercials in Los Angeles also got a boost last year after the City Council reduced the taxes they pay for doing business in the city. L.A. raised the threshold at which producers pay business taxes, lowering their tax burden by as much as $3,400 annually.

Despite the city's tax break, producers say they face growing pressure to consider shooting spots in other locales that offer more favorable tax credits because California's film tax credit excludes commercials. L.A.'s share of overall commercial production worldwide was 51% in 2010, down from 54% in 2007, reflecting growing competition from states such as New York and Illinois, according to the Assn. of Independent Commercial Producers. During the same period, New York's market share has grown to 15% from 12%.

And while local producers may be busier, they're not necessarily making more money since they face more pressure to cut budgets and turn around projects more quickly.

"We use to get two days to shoot one 30-second spot. Now, we're shooting one 30-second spot in a day,'' said Rick Fishbein, special projects producer for Santa Monica-based Green Dot Films. "We're working harder to reach the same bottom line that we had a decade ago."

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New rules for Oscar's documentary category

Acad to set new rules for docs
Changes will narrow the number of qualifying pics
By CHRISTY GROSZ

The Academy of Motion Picture Arts and Sciences is set to announce new rules this week for Oscar's documentary category that will have far-reaching implications for the next year's race. The biggest change is that in order for any film to qualify for the 2012-13 awards season, it must have been reviewed by either the Los Angeles Times or the New York Times, which reported the story on Sunday.
The change solves two issues for the documentary branch of the Academy, Ric Robertson told Variety. First, it will reduce the number of films that branch members must watch for the nomination process.

Second, and perhaps more importantly, it ensures that films that are nominated have distribution and have had a theatrical release.

In general, both LAT and NYT reviewers write only about documentaries that are shown in theaters, which, by default, limits the pool to films with theatrical distribution.

"We can't judge every documentary made for every possible audience," Robertson said, adding that the branch's executive committee has been looking for ways to ensure that nominated films have a "legitimate theatrical release."

"This isn't a new quest for the documentary branch, it's just a different way of trying to solve the puzzle."

The change is likely to hit the International Documentary Assn.'s DocuWeeks fairly hard because the showcase, which takes place annually in New York and Los Angeles, was designed to provide a de facto Oscar-qualifying run. For a fee, each film would play for a full week in theaters, regardless of whether a filmmaker had secured distribution.

Robertson acknowledges that DocuWeeks has been a good way for filmmakers to get their work out. "but we have to have our own criteria."

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VOD grows fast in Latin America..

VOD grows fast in Latin America
New video-on-demand services are sprouting across the region
By JOHN HOPEWELL

MADRID -- Latin America's VOD landscape is rapidly gaining definition.
In September, Netflix launched a streaming-only service throughout the region. Argentina's two big telcos, Telefonica de Argentina and Telecom Argentina, also have rolled out VOD services.

In Brazil, VOD is offered by satcaster Sky and cabler Net. Also in Brazil, NetMovies, Latin America's biggest local Internet VOD operator, streams 4,000 films and series, having cut its first major U.S. studio deal, with Disney, in September.

For independent films, worldwide online VOD player Mubi operates throughout Latin America; Mexico has Canana OnDemand, Argentina has website Comunidad Zoom.

At last month's Ventana Sur, Spain's Filmin, an Internet film/TV VOD company, inked a deal with Colombia distrib Cineplex to develop a service for Spanish-speaking Latin America; Cineplex will contribute content and technology to the Colombia Filmin service, says Filmin CEO Juan Carlos Tous.

Cineplex's big 2012 releases -- "Tree of Life," "Drive," "A Dangerous Method" and "Elena" -- will be among pics available on the online service, says Cineplex prexy Elba McAllister. The Colombia launch will take place in the first half 2012 with 1,000 titles, 300 from Colombia and other Latin American countries, the rest international, mostly Europe-sourced.

Working with local territory partners, Filmin aims to expand throughout Spanish-speaking Latin America.

The Filmin-Cineplex alliance highlights opportunities for VOD in the region. Currently, Latin American online TV/video subscription revenues are minimal: 2010 saw just $1 million from Argentina, $4 million from Brazil and $3 million from Mexico, according to Digital TV Research.

Indie VOD in Latin America "is still at a diaper stage of growth, but it is growing," says Canana partner Pablo Cruz, who adds that Canana's VOD release of its TV series "Soy tu fan" solicited more buys than a normal studio release.

But Canana OnDemand is carried on Cablevision, Mexico City's dominant cabler. Online, straight-to-PC services could face a tougher battle. In Mexico, for instance, people don't want to give away credit card details on the Web, Cruz says.

For Latin America in general, Filmin's challenges are little different from those of Netflix: Piracy is high, broadband penetration is low -- at 36% for Argentina, 24% for Brazil and 35% for Mexico in 2011, according to Screen Digest.

Yet pay TV reaches less than 25% of Latin American households vs. 90% in the U.S., so VOD is far better positioned to give pay TV a run for its money in the region, analysts say.

VOD is also essential in a highly concentrated Latin American cinema exhibition market stuffed with multiplexes that, even more so than in Europe, is dominated by Hollywood blockbusters.

"VOD," McAllister says, "offers huge opportunities for the distribution of Latin American and independent films."

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