Venezuela has the largest proven oil reserves in the world. It was once so rich that Concorde used to fly from Caracas to Paris. But in the last three years its economy has collapsed. Hunger has gripped the nation for years. Now, it’s killing people and animals that are dying of starvation. The Venezuelan government knows, but won’t admit it!!! Four in five Venezuelans live in poverty. People queue for hours to buy food. Much of the time they go without. People are also dying from a lack of medicines. Inflation is at 82,766% and there are warnings it could exceed one million per cent by the end of this year. Venezuelans are trying to get out. The UN says 2.3 million people have fled the country - 7% of the population.

Thursday, June 28, 2012

Oscars institute rules changes


Music, foreign language, visual effects and makeup affected

The film academy's Board of Governors has instituted rules changes that affect the music, foreign language, makeup and visual effects categories for the Oscars.
The makeup category has been renamed to include hairstyling, and within that category, all branch members who have seen the seven shortlisted titles will receive ballots to list their top three choices during the nominations process.
In the original song category, the exec committee will now be able to recommend that a fourth songwriter for an individual song be considered "in rare and extraordinary circumstances." Since 2005, the limit has been two songwriters with a third possible if found to be "an essentially equal contributor."
No changes were made to the selection process for songs themselves, as well as original score, which has come under fire in recent years inside and outside of the Academy. In the most recent Oscars, only two original songs were nominated.
In visual effects, the number of potential contenders chosen by the branch's exec committee (via secret ballot) for the category's bakeoff will be 10. Prior to 2011, there was a maximum of seven for the bakeoff, from which three nominees would be selected. But when the Academy expanded the final pool of nominees from three to five, it allowed for a range of seven to 10 bakeoff contenders to be picked. This latest rule change firms up the expansion.
Finally, for foreign language, films must be submitted to the Academy in 35mm or (DCP (digital cinema package), even though they are no longer required to be exhibited in those formats in their countries of origin.
The rules changes were approved at this week's Academy of Motion Picture Arts & Sciences meeting of the Board of Governors.
Contact Jon Weisman at jon.weisman@variety.com
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Saturday, June 2, 2012

Record 322 Movie and TV Projects Vie for $100 Million in California Tax Credits

Only 28 projects are picked from lottery to get funding. Meanwhile, an effort to extend the program is slowly working its way through the legislature in Sacramento.

The California Film Commission received a record 322 applications Friday for a share of the $100 million or more in funding available annually through the state's Film & Television Tax Credit Program, of which 28 have been selected to receive tax credits.

OUR EDITOR RECOMMENDS

Rep. Howard Berman Seeks Tax Credit Extensions for U.S. Film Production

California Extends $100 Million Tax Credit Bill
Last year the commission received 176, of which 27 received funding. Ultimately, 74 projects received credits from last year's allocation.

"The increase was due to the large number of smaller independent projects that moved form the waiting list to receive credits as larger projects withdrew form the program," says Amy Lemisch, executive director of the California Film Commission.

In June 2010, there were 70 applications, of which 43 eventually received funding valued at $121 million. That means the number of applicants has nearly doubled each year.

The program allows money to be rolled over from one year to another year so it can exceed $100 million available.
There was a line of people at the Commission offices on Hollywood Boulevard Friday, even before the doors opened at 9 a.m., to drop off applications .

They were in a rush because all those tax credits were committed by the time the doors closed at 3 p.m. as has been the case every year since the program was initiated in 2009 in an effort to stem runaway production – the making of movies and TV shows in places other than California.

The efforts to attract movie and TV production have become serious business for more than 40 U.S. states and a large number of foreign countries. They like the industry because it is seen as somewhat glamorous, non-polluting and, in some cases, a boon to tourism after the movie or TV show appears.

There have been a number of studies that indicate movie and TV production can contribute to a states economy, but there have also been studies which question its value. It seems that in states like Louisiana, North Carolina and New Mexico, where a based of facilities and a trained work force has developed, there is real benefit. It is harder to find the value for cities, states and countries who give tax breaks but have little to show after the production and its cast and crew have left the area.

Among productions in California in the past year that benefited from the state tax credit program were HBO's Hemmingway and Gellhorn, the feature films Argo, Dunderheads, Nina, and the independently financed features Bachelorette Party, Decoding Annie Parker, Lovelace, Lowdown, Suicide Kings 2, Trust Me and Vocal Chords of Freedom. Cable TV series include Franklin and Bash, Justified, Men of a Certain Age, the Nine Lives of Chloe King, Pretty Little Liars, Rizzoli & Isles, The Protector, and Perception. The two TV series returning to California are Body of Proof and Torchwood.

The breakdown of approved projects (and percentage of the total it represents) for 2011 was studio features 4 (14.8 percent), independent features 10 (37 percent), (cable) TV series 10 (37 percent), independent movies of the week 1 (3.7 percent) and TV series that relocated to California from other states 2 (7.4 percent).

On movie credit lottery day in California, each application is assigned a lottery number. At the end of the day, a member of the California Highway Patrol pulled out the winning numbers. Those are the projects that will be funded in the coming fiscal year, as long as they meet all criteria and actually get made as promised.

Those who applied and qualify but were not chosen go on a waiting list. Based on past history, some of them will eventually get funding. New applications are still accepted after the June 1 deadline, but they start at the bottom of the list and chances of ever actually getting credits are not very good.

The rules provide for a 20 percent tax credit for feature films with budgets between $1 million and $75 million; movies of the week and cable TV series.

There is a 25 percent credit for independent films, with a budget over $1 million and under $10 million. Of the $100 million authorized each year, $10 million is reserved to fund independently produced movies.
Notably most TV series are not covered, as the legislators believe that they will probably shoot in California in any case since it makes economic sense to produce them on existing studio lots. The exception is that a series which has been shot out of state can get a 25 percent tax credit if it returns to California. 

The current tax credit program has government approval through July 2013. California Assemblyman Filipe Fuentes (D-San Fernando Valley) has introduced a bill in Sacramento to extend the program for an additional five years. It is currently before the Assembly Appropriations Committee, which in May delayed a hearing due to the heavy volume of other bills that needed to be heard more quickly.

It now appears the committee will hear the bill and probably vote on it by late June.
There is a similar but not identical bill in the California state Senate introduced by Ron S. Calderon (D- Montebello) earlier this year. That bill is awaiting action before the Senate governance committee.

The two bills must pass by the end of the current legislative session, which means by September 1, to go to the governor's desk. Gov. Brown signed a bill last year that extended the tax credit program for one year but has not said whether or not he will sign the five-year extension if it passes.
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Thursday, May 3, 2012

Hollywood's Most Wanted: Megaupload's Predecessors

This article first appeared in the May 11 issue of The Hollywood Reporter.
Megaupload's Kim Dotcom: Inside the Wild Life and Dramatic Fall of the Nerd Who Burned Hollywood

Hollywood's Most Wanted: Megaupload's Predecessors

Inside the World of Cyber-Lockers
Speaking at November 2011's American Film Market, the White House's intellectual property czar, Victoria Espinel -- officially the U.S. Intellectual Property Enforcement coordinator for the Office of Management and Budget -- repeated the oft-cited statistic that intellectual property theft costs the U.S. about $58 billion per year. Given the scale of the problem, one might expect the movie business to have rock-solid numbers on what piracy costs them. But the closer one looks, the more dubious the figures seem.
PHOTOS: 10 Most Pirated Movies of All Time
"Obviously, the movie industry's number is going to be somewhat suspect," says David Abrams, a fellow with the Berkman Center for Internet and Society at Harvard University. "Even if a person downloaded a movie, it's very hard to translate that into, 'And they would have paid $10.50 to see it.' "
It turns out that Espinel's $58 billion figure covers IP theft as a whole -- a far cry from just film and television. It also comes from a source that would astonish Hollywood liberals.
The figure originated in a 2007 report, "The True Cost of Copyright Industry Piracy to the U.S. Economy," written by economist Stephen Siwek for the Institute for Policy Innovation. Just what is the Institute for Policy Innovation? Answer: A right-wing think tank founded by Dick Armey, the former Republican congressman and nemesis of liberals.
The MPAA's credibility on piracy costs was hurt by a separate 2007 report it commissioned that later proved riddled with holes. Among other things, it blamed U.S. college students for 44 percent of the studios' losses due to piracy. Shortly thereafter, the organization that represents the major studios was forced to acknowledge "human error" in its accounting, admitting students were responsible for only
15 percent of domestic losses.
Despite errors like these, the report (prepared by international consulting firm LEK), derived from statistics obtained in 2005, still is cited by the MPAA when it claims the studios lose $6.1 billion or more annually to worldwide piracy. There has been no new report.
As to when one will be conducted, Chris Dodd, the former U.S. Senator named chair-man and CEO of the MPAA in March 2011, told THR last year: "We are planning that report; it's internal at this juncture. It shouldn't be too long."
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Tuesday, May 1, 2012

U.S. hammers Canada, other countries over copyright protections...

Canada may be the United States' largest trading partner, but it remains on a "priority watch list" of countries with the worst records for protecting copyrighted material.

In its 2012 annual report on trade barriers and content theft, U.S. Trade Representative Ron Kirk's office put Canada on a list of 13 countries -- including India, China, Pakistan and Russia -- that were singled out as the worst offenders.

The office said it was waiting to see if Canada would enact "long-awaited copyright legislation" and suggested that the country needs to take more steps to tighten border security by "providing customs officials with ex-officio authority to take action against the importation, exportation, and trans-shipment of pirated or counterfeit goods."

Under the category of "positive developments," Kirk's office removed Malaysia and Spain from the watch list, citing improvements to strengthen copyright protections in those countries.

Christopher Dodd, chairman and chief executive of the Motion Picture Assn. of America, commended the trade representative's office for its report, which he said "highlights content theft and barriers in foreign markets that pose threats to the continued growth of U.S. creative industries and the U.S. economy. Strong copyright protection and enforcement are vital to our industry's ability to create U.S. jobs, grow our own economy, and expand U.S. exports."
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How Hollywood Convinced California's Senate to Pass a Bill Increasing Piracy Dam

An obscure case last year challenged the value of damages from piracy. Now, California law on calculating restitution could be on the verge of changing what pirates owe.

Statistics about the economic damage from piracy tend to be controversial because of a dispute about methodology. When calculating the loss to an entertainment company from someone who pirates a song or movie, do you assume the pirate would have purchased that song or movie at full wholesale price? The difference between "Yes" and "No" amounts to billions of dollars in estimated damages for Hollywood each year.
OUR EDITOR RECOMMENDS
MPAA Announces Legal Staff Reorganization

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The problem is not merely academic. Those who are arrested for piracy, and then convicted, often have to pay restitution. If a jury orders them to pay actual damages as restitution for harm, what do they pay? The question led to a decision last year by a California appellate court that the industry hated, and now a possible change in state law.
On Thursday, somewhat underneath the radar, the California Senate passed SB-1479 by a 36-0 margin with four state senators not voting. The bill would amend state law pertaining to how victims of crime who incur economic loss as a result of a crime receive restitution from a defendant.
Among the changes is that now, when someone is convicted of a crime involving the infringement of a "phonograph record, disc, wire, tape, film, or other device or article from which sounds or visual images are derived," restitution will be calculated "based on the aggregate wholesale value." This includes unreleased works, and according to the bill, "Proof of the specific wholesale value of each nonconforming device or article is not required."
In March, the RIAA provided some support for the changes, and specifically pointed to the case, People v. Garcia, decided last year by a California appellate circuit which it said had "dramatically changed the landscape."
In the case, Hector Garcia and Martin Avila were arrested and convicted for intending to sell thousands of pirated DVDs and counterfeit music CDs.
At the trial, the RIAA provided a wholesale value for approximately 4,000 seized CDs of $7.15 each. The MPAA testified that that more than 10,000 confiscated DVDs were worth an average wholesale value of $11.10 each.
As a result, the defendants were ordered to pay more than $61,000 to the RIAA and nearly $174,000 to the MPAA for a total just north of $235,000.
But last April, those restitution fines were knocked out by California appeals judge Roger Boren, who ordered the total award be trimmed to $87,113. According to the decision, "assigning the aggregate wholesale value as the loss where there is none violates the intent of the victim restitution statute."
The appellate judge took a look at the statutory language, debate, and interpretation over how to award restitution for "potential losses." The appellate court completely rejected the industry's theories on how to calculate this.
The judge notes that in passing the original law, the RIAA submitted a "victim-impact statement" that estimated that it was losing $5.33 billion per year. But the judge also notes a comment made by lawmakers in drafting the legislation at committee:
"Industry representatives have argued that a music or audio-visual pirates' unsold inventory of illegally produced or copied works represents a lost wholesale sale. This appears to ignore that a pirate would never obtain pirated works from a legitimate wholesaler. Only legitimate retail sales were preceded by a legitimate wholesale sale. Any illicit work sold at the retail or street level never went through the legitimate wholesale market."
The judge took this as evidence that "clearly shows that the RIAA's rationale was rejected" during the drafting of the legislation.
After the decision, the entertainment trade associations appear to have gone back to lawmakers to get the state to accept their calculations on damage from piracy and to overturn the precedent from last year's appellate decision. The bill has now passed the Senate and is closer to becoming law.
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Animation contract talks break down

Animation contract talks break down
Contract for Animation Guild, AMPTP expires July 31
By DAVE MCNARY
The initial round of contract talks between Hollywood union animators and producers have broken down after three days, three months before the current deal expires on July 31.
The Animation Guild, which reps about 2,000 animators through Local 839 of the Intl. Alliance of Theatrical Stage Employees, did not disclose when the negotiations for a new three-year deal will resume.

A spokesman for the Alliance of Motion Picture and Television Producers had no comment, noting that the talks have been taking place under a news blackout. Steven Hulett, business representative for the local, disclosed the breakdown of talks in a blog posting, saying, "This morning we broke off the negotiations, as we are far apart with the producers and there didn't appear to be any simple way to bridge the yawning chasm."

IATSE and the AMPTP agreed last week to a new three-year master contract that will, if ratified, cover more than 20,000 members of 15 other West Coast locals.

IATSE president Matthew Loeb asserted that the new West Coast deal resolves the problem of an anticipated funding shortfall of over $400 million in the union's pension and health plans via a $1 per hour increase to the health plan contribution by employers, up 20% over the current rate of $5 per hour. In exchange, IATSE agreed to the first-ever premiums for health plan coverage -- $25 per month for participants with one dependent and $50 for those with two or more dependents.

Local 839 is also in the midst of an organizing campaign at Sony Pictures Imageworks and will hold a meeting Friday at the Culver Hotel.

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Monday, April 30, 2012

Europe Court: Copyright Holders Can Demand Pirates' Personal Information

Europe Court: Copyright Holders Can Demand Pirates' Personal Information

Hollywood Studios Lose High Court Appeal in Landmark Australian Piracy Case

STORY: Hollywood Studios Lose High Court Appeal in Landmark Australian Piracy Case
In what could prove a precedent-setting case, the court ruled in favor of five Swedish publishers who filed suit against Swedish Internet service provider ePhone to force it to hand over the name and address of a user who allegedly uploaded 27 audio books to an FTP server, from where they were illegally distributed online. The case went all the way to Sweden's supreme court.

In their ruling, the European judges said private data could be used in copyright cases if the collection of the information was allowed by national law in individual European Union member states. Currently the law varies greatly between individual European countries as to when use of such personal data is justified
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SAG-AFTRA Moves Toward Halting Music Video Work

SAG-AFTRA Moves Toward Halting Music Video Work

Like a steamy music video, the fight to unionize dancers in that often sweat-infused art form is heating up. Looking to up the tempo of negotiations from 17th century minuet to something a little more cha-cha-cha, SAG-AFTRA on Wednesday advised members that the national board might issue a “Do Not Work Notice” at its May 19-20 meeting.

The new union says it may issue a Do Not Work order next month, days before talks with the labels resume. The decision on an order will send a signal to studios, commercial producers and even talent agents.

Although the member advisory didn’t name the targeted employers, the negotiations have been with Sony Music, UMG, Warner, EMI, Disney and their subsidiary labels. A notice, if issued, would not apply to music work by recording artists -- i.e., major pop stars and other singers -- or to recording artists already contractually obligated to do music videos.
The advisory said that the labels “have failed to agree to some of the most basic contract terms,” among them guaranteed access to water and toilet facilities, proper safety protections for hard surface dancing, overtime provisions, health and retirement contributions and standardized rates of pay.
The goal, said the advisory, is “safety and dignity on the job.”
The advisory came as a result of a unanimous recommendation by the union’s executive committee at a meeting during the weekend in New York. Negotiations began in June. Bargaining sessions have been intermittent, with the most recent sessions Jan. 11-12. The next talks are scheduled for May 30-31, a union spokesperson confirmed.
The national board is scheduled to meet and consider the executive committee’s recommendation next month. That timing puts pressure on the board to issue a Do Not Work order. Without one, the union negotiators would walk into talks 10 days later against a backdrop of their own board failing to follow through on the positioning suggested by Wednesday’s notice.
That would risk sending a signal of weakness not only to the record labels but also to the commercial producers -- with whom negotiation start in the fall -- and also the studios and networks. Even talent agents will be watching because of the possibility that their own relationship with the new union will be renegotiated at some point. That prospect arises from the fact that SAG’s deal with the talent agents ended in 2002 while AFTRA’s is still in effect.
All of this means that the newness of the union raises the stakes in negotiations over what will be a small contract if one is achieved.
A middle ground between issuing an immediate Do Not Work order and none at all might be an order with an effective date several weeks in the future, and contingent on failure to reach a deal by that date. That’s an approach that might light a fire under the talks without immediately disrupting work.
In any event, if the national board authorizes an order, it would amount to a music video strike against the labels. According to the member advisory, the order would apply to SAG-AFTRA members working as dancers, singers, choreographers, cameo performers, models, actors and most other talent. Violating a Do Not Work order can lead to discipline, up to and including expulsion from the union.
The executive committee’s recommendation came about a month after the AFTRA national board, meeting March 24, authorized a Do Not Work order. More colorfully, on Jan. 6, dancers picketed in three cities, with a flash mob-style dance-in and rally at Sony Music in Beverly Hills drawing about 150 people.
That action was sponsored by AFTRA and the Dancers’ Alliance, described as “a grass-roots organization dedicated to educating dancers and building solidarity in the dance community.”
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Deals up at Beijing fest: +87%

Deals up at Beijing fest
Fest organizers say deals signed this year up 87%
By CLIFFORD COONAN

The organizers of the Beijing Film Festival have said that the value of deals signed at this year's event, which wraps Saturday, is up 89% to 5.27 billion yuan ($476 million).
There were pacts involving 21 film projects signed at the fest, with six of them co-productions.

More than 600 shingles attended the fest, with more than 2,000 biz figures involved.

Local giant China Film Group announced a pact with the New Deal Studios to co-produce pics in China, including a war movie helmed by Fang Gangliang, which would serve as a test project. "This project is to see if the two parties can collaborate well. We are looking toward a j.v. at our production base in Huairou," said Lan Shujin, chief representative at China Film Group's L.A. office.

Local shingle Galloping Horse formally announced its link up with the vfx and CG animation company Digital Domain to form Digital Domain Galloping Horse Studio. The agreement includes a license for the new j.v. to use Digital Domain's technology for converting images into 3D.

The two also formally bowed their collaboration on "The Legend of Tembo."

Le Vision Pictures said it has picked up mainland Chinese distribution rights to Lionsgate's "The Expendables 2" and plans a day-and-date with its U.S. release on Aug. 17. The first pic in the franchise took $32 million in 2010.

The org said it intended to make the fest the region's main fest, reflecting the growing significance of the Chinese film market, which is reckoned to have overtaken Japan this year to become the second biggest B.O. market in the world.

"We are aiming to develop the Beijing festival into the biggest film festival and film market in Asia in three to five years," said Pang Wei, deputy director of Beijing's Municipal Bureau of Radio, Film and Television.

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Russian Online Video Service ivi.ru Inks Deals with Hollywood Majors...

ivi.ru became the first company in Eastern Europe to have licensing deals with all of the majors.

MOSCOW -- The Russian company ivi.ru has become the first online video service in Eastern Europe to have signed agreements with all the Hollywood majors.
OUR EDITOR RECOMMENDS

'The Hollywood Reporter: Russian Edition' Celebrates Launch in Moscow 
The company said in a statement that it had finalized the latest in a series of licensing deals with the majors and now is offering to its users 65,000 items of video content, including that licensed from 20th Century Fox, Walt Disney, Sony Pictures, Warner Brothers, Paramount Pictures and NBC Universal.

"The reached agreements are an important step for the development of the legitimate video market in Russia and fighting piracy in the digital content industry," Oleg Tumanov, chairman of the board and managing director of ivi.ru, said in a statement. "The partnership with Hollywood's leading studios is opening up new opportunities and creating advantages for our users and for the sector in general."

In the near future, 30 out of 50 all-time box office champions are to be made available to ivi.ru users, the company said.

ivi.ru is Russia's leading online video service, with a market share of about 30 percent, according to the research group Romir Gallup International. It uses a combination of ad-sponsored, pay-per-view and subscription models. Recent box office hits are available to the service's users at 79 roubles ($2.7) per movie.

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Nielsen study finds 'second screen' viewing enhances TV experience...

When viewers watch a TV program with a tablet device, they tend to check their email, hunt for sports scores or seek additional information about the show or a commercial they were watching on the big screen.

A new report by Nielsen Co., released Friday, underscores what network television researchers have been preaching for more than a year: that "second screen viewing" appears to augment the TV viewing experience rather than steal away viewers.

Nielsen's State of the Media: Advertising & Audiences report found that men, when watching TV and using a tablet simultaneously, were more likely than women to look for information related to a TV program they were watching (39% versus 34%). Women were more inclined to seek information related to a television commercial (24% versus 21%).

Not surprisingly, teenagers with tablets were far more apt to visit a social media site while watching TV than were older baby boomers and seniors (62% versus 33%). 

The report also found cultural differences in TV watching and the use of digital video recorders. Nielsen said that white TV viewers use digital video recorders on a daily basis twice as much as any other group, while Asian Americans appear to spend a higher proportion of their overall TV time watching their previously recorded programs.

Adults age 25 to 54 appear to be heavily influenced by advertising. Nielsen said that demographic group was 23% more likely than the average U.S. Internet user to follow a brand through social networking sites, and 29% more likely to purchase a product online that had been featured on TV.

Finally, teenagers used a game console for eight minutes a night, on average -- more than twice as much as the general TV population.

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Euro Data Protection Group Attacks ACTA...

The independent authority warns that the multinational anti-piracy treaty could violate human rights and European law.

COLOGNE, Germany - An independent advisory group has warned that ACTA, the multinational anti-piracy treaty which the European Parliament is set to vote into law later this year, could violate European laws protecting privacy and human rights.

MPAA Chief Christopher Dodd Says SOPA Debate Isn't Over, Defends Hosting Harvey Weinstein Even as He Attacked Over 'Bully'
The European Data Protection Supervisor (EDPS), an independent authority that advises European bodies on data protection issues, said that the treaty, as written, is too vague and could result in the violation of individual rights if passed unchanged.
ACTA, the Anti-Counterfeiting Trade Agreement, is a multinational treaty that aims to create a new global governing body to regulate and enforce copyright laws. The agreement has been signed by the U.S., Canada, Japan, Australia and South Korea, among others, and was unanimously approved by the countries of the European Union in January this year.
But in an opinion published this week, the EDPS said ratifying ACTA could open the doors to indiscriminate or widespread monitoring of users' Internet behavior and electronic communications which could violate Europe's charter of fundamental rights.
In particular, the group said ACTA does not clearly define what behavior would be criminalized under the treaty and who would be tasked with enforcing it. EDPS warned that if the treaty was interpreted too widely, it could criminalize private, non-profit data sharing in a way that could violate freedom of speech and information laws. It also expressed concern that vague language in the treaty meant that non-judicial bodies could potentially carry out widespread, indiscriminate sweeps of Internet traffic, fishing for suspicious behavior.
"While more international cooperation is needed for the enforcement of Intellectual Property (IP) rights, the means envisaged must not come at the expense of the fundamental rights of individuals," said Giovanni Buttarelli, an assistant at the EDPS. "A right balance between the fight against IP infringements and the rights to privacy and data protection must be respected. It appears that ACTA has not been fully successful in this respect."
If the European Parliament votes to approve ACTA, the treaty will still have to be ratified by individual European countries before coming into force.
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