EAVE 2010 Report EAVE Ties That Bind – Asia Europe Producers Workshop Date: April 25 – April 28, 2010 Location: Palace of the Cultural City Administration Udine Partners: Friuli Venezia Giulia Film Commission - Fondo Regionale per l'Audiovisivo, Udine FAR

EAST Film Festival, Pusan International Film Festival/Pusan Promotion Plan/Asian Film Market

Introduction The EAVE Ties That Bind – Asia Europe Producers Workshop brings together ten Asian and European producers with their feature film projects in development in two workshops in 2010. The workshop is guided by top level Asian and European industry professionals. During the two workshops the participating producers work on the development and packaging of their projects, explore the sources of financing, market and co-production opportunities in both continents. The workshops provide opportunities for networking between the participants and their companies to create medium and long term co-financing and co-production relationships, enable the access to a network of producers, markets, festivals and decision makers in both continents, and prepare the participants to present their projects to decision makers during the Pusan Promotion Plan (October 10-13, 2010) in South Korea. In between the two workshops, the participants are in touch with their group leader and script consultant by SKYPE and email in order to work on their projects before the final session in Pusan. The Experts The team of the EAVE Ties That Bind is composed of high profile professionals: Ties That Bind Head of Studies Christophe Bruncher – Les Films de la Butte (F), Pascal Diot – IDPL Productions (F), Clare Downs – Forever Films (UK), group leader Elise Jalladeau (Charivari Films & Memento Films, F), Claire Lajoumard – Acrobates Films (F), Stefano Tealdi – Stefilm (I) and Lorna Tee – Irresistible Films (HK).

1

The Participants, Group Work and the Schedule The EAVE Ties That Bind workshop was attended by 9 film producers from Asia and Europe – one participant (Jan Brandt from Germany) could not attend the first session due to an illness. Daily group work sessions were the core of the workshop. The participants were working in one group in which they discussed and analysed each other's projects under the guidance of their group leader, Elise Jalladeau. The schedule consisted of plenary sessions and individual meetings. All experts had individual meetings with the participants for further discussions on topics they had previously addressed in their plenary sessions. During the individual meetings they addressed more specific issues related to the participants’ projects. Screenings The screenings during the workshop for film analysis and co-production case study were: TITLE LENGTH PRODUCTION COMPANY DIRECTOR GENRE

Old Boy 120 min Egg Films, Show East Chan-wook Park Feature Film

Bi, Don’t Be Afraid 90 min

Acrobates Films, ARTE France Cinéma, Sudest-Dongnam, Vietnam Media Corp & Vietnam Studio, Vblock Media Joint Stock Company and TR9 Film Dang Di Phan Feature Film

Plenary Sessions At workshop 1 plenary sessions addressed key issues of project development and company management in Europe and Asia. Lorna Tee dedicated her session to producing in the Asian environment, while Pascal Diot focused on producing in the European environment. Clare Downs elaborated on strategies for script development and also gave a film analysis on Old Boy. Stefano Tealdi introduced the principles of pitching and Elise Jalladeau presented legal aspects of international co-productions. Claire Lajoumard gave insight into the co-production case study on Bi, Don’t Be Afraid, which was co-produced by France, Vietnam and Germany and selected for the International Critic’s Week in Cannes this year. 25/04/2010 Welcome Session 25/04/2010 Producing in the Asian Environment – Lorna Tee 25/04/2010 Producing in the European Environment – Pascal Diot 26/04/2010 Strategy for Script Development and Film Analysis: Old Boy – Clare Downs 26/04/2010 Pitching your Project– Stefano Tealdi 27/04/2010 Asia-Europe Co-Production Case Study: Bi, Don t Be Afraid – Claire Lajoumard ’27/04/2010 Legal Aspects of International Co-Productions – Elise Jalladeau 28/04/2010 Closing Session The Plenary Sessions in Detail Welcome Session Kristina Trapp, Christophe Bruncher, Paolo Vidali, Nam Dong Chul, Sabrina Baracetti 25/04/2010

2

Kristina Trapp (EAVE Chief Executive), Christophe Bruncher (Head of Studies – EAVE Ties That Bind), Paolo Vidali (Managing Director - Friuli Venezia Giulia Film Commission, Fondo Regionale per l'Audiovisivo), Nam Dong Chul (Asian Film Market) and Sabrina Baracetti (President - Udine Far East Film Festival) welcomed everyone in Udine. Christophe Bruncher announced the events and the schedule of the upcoming workshop and introduced the experts, the group leader and the organisational team. Afterwards the participants were asked to shortly present themselves and their projects. Producing in the Asian Environment Lorna Tee 25/04/2010 Lorna Tee dedicated her session to producing in the Asian environment. Hong Kong – population 7 million General Financing Patterns & Key Players - HK Studios – companies with investment, production, distribution (sometimes artiste management) capabilities (Media Asia, Emperor, Universe, Mei Ah, Edko, China Star, Sundream, Celestial, FOX/ Star/ FIP) = crowd pleasing genres - Investment/Production Entities – Mandarin, Milkyway, Salon Films, Sil-Metropole, Filmko, Jettone = combination of mainstream & arthouse films - Independent – combination of personal funds and loans = arthouse/ auteur/ low budget indie films Government support: 40% equity investment to a film with 3/5 HK elements (no more than HKD 15m) http://www.fdc.gov.hk/en/services/services2.htm Due to CEPA agreement with China, HK films qualify for release in Mainland China outside of the quota system IF the film can pass censors and find a distributor willing to distribute it. Further information on logistic supports and companies: http://www.fso-createhk.gov.hk/abt/index.cfm Hong Kong hosts several events: Hong Kong International Film & TV Market (Filmart), HAF (HK Asian Film Financing Forum), Asian Films Awards, Hong Kong International Film Festival (last week of March). China – population 1.3 billion General Financing Patterns & Key Players: - China Studios – companies with investment, production, distribution capabilities (China Film Group, Hua Xia, Shanghai Film Group, Huayi Brother, Bona International, Enlight, Dadi Entertainment) = big budget/ crowd pleasing genres - Investment/ Production Entities – (Lion Rock, WE Cinema, Beijing Galloping Horse, plus hundres more etc) = combination of big budget and mid sized films - Independent – combination of personal funds/ Foreign funding = arthouse/ auteur/ low budget independent films (X-stream Pictures is the most well known but hundreds of companies) - Product Placement plays big role in big budget commercial films if there are well known directors and cast attached to the film – certain productions have more than 50% of production covered by cash sponsorship Federal Government support - None

3

Regional/City Government support - Varies (Example – Chengdu City government funded a 3 part film with 3 different directors – Fruit Chan, Hur Jin-ho and Cui Jian titled Chengdu I Love You) Quota System - 20 approved foreign films a year on revenue sharing basis + rest of the films will be sold to distributors at a flat fee basis Key events: Shanghai Intl Film Fest/ Co-CFPC (co-production project market, mid June), Beijing Screenings (Sept or Oct) Qualification Regardless of the type of co-production, the key to structuring a Sino-foreign co-production is the participation of one or more Chinese production entities accredited by the SARFT. Mode of Co-productionUnder the current regulatory regime, there are two common modes of co-production: 1. Joint Production: This is where the Chinese and foreign parties jointly invest in and produce the film, and share the copyright subsisting in the film and risks and profits from the project. Joint production is by far the most popular mode of co-production and Chinese elements usually feature prominently in the film. In fact, it is a requirement that Chinese cast constitute at least one-third of the main cast members. Joint productions are regarded as domestic films and can be directly released in Mainland China after it is completed and passes censorship review. Joint productions can also enter into the Huabiao Awards (Chinese governmental awards) for the ‘best co-production film’ prize. 2. Assisted Production: This is where the foreign party provides the capital, and the Chinese party provides assistance in regard to equipment, facilities, location, labor, etc. in return for a fee. The product of an assisted production is owned by the foreign party and the film cannot be released in Mainland China unless it is imported by the authorized import agent such as China Film Group Film Import & Export Corporation. Relevant considerations in structuring a co-productionIt is generally up to the parties to decide which mode of co-production they would like to adopt. Nevertheless, there are a few issues which the parties could consider in structuring the preferred mode of co-production. The following list is by no means exhaustive and readers should be aware that the relevant issues are intertwined and should not be considered in isolation: 1. Nature: This involves a consideration of whether the investments will be contributed jointly by the Chinese and foreign parties (in which case the parties should adopt joint production), or solely by the foreign party (in which case the parties should consider assisted production). 2. Creative elements: If the story is such that there will be no Chinese elements or insufficient Chinese cast to constitute at least one-third of the main cast, the parties should either consider revising the story if joint production is the preferred mode, or adopting assisted production. 3. Division of obligations: Generally, the Chinese party to a joint production will participate heavily across all stages of production up to promotion and release of the film. In an assisted production, their level of participation and decision-making will be lower, and they are usually not involved in the promotion and release of the film. 4. Censorship: Regardless of the mode of co-production, all films made in China must be submitted to the SARFT for censorship review. 5. Rights and release of the film: In a joint production, it is a requirement of the law that the Chinese and foreign parties share profits derived from the film. The parties, however, are allowed to specify in the co-production agreement how the rights and profits will be divided. In a straightforward assisted production, however, the foreign party will usually be the owner to the copyright subsisting in the film. http://www.cfcc-film.com.cn/en/index.html Procedures for approval of a co-production project A Sino-foreign co-production project may only formally commence upon obtaining the SARFT’s approval, which is in the form of issuance of the Sino-foreign Film Co-production Permit. The process is as follows:

4

Procedures for approval of the completed film Once post-production finishes, the completed film must be submitted to the SARFT for censorship review. Films that pass censorship review may either be released within or outside of China. Procedures for conducting post-production overseas If the post-production and prints development for a joint co-production or assisted production need to be conducted outside Mainland China, the parties may apply in advance for approval by providing the names of the relevant country and lab. Procedures for participating in film festivals/exhibition A joint production (if it passes censorship review) can participate in any overseas film festivals or exhibitions provided that the case is reported to the SARFT 30 days in advance for filing purposes. More information available on the website: http://www.cfcc-film.com.cn/en/index.html Taiwan – population 23 million General Financing Patterns & Key Players: - Taiwan Studio – companies with investment, production, distribution capabilities (CMC, Double Edge, Filmko, Mei Ah) = crowd pleasing genres (usually big budget) - Production Entities/ Distribution Companies – Serenity, Atom, 3 Dots, Jet Tone, Applause, Joint Entertainment - Independent, Homegreen – combination of personal funds and loans = arthouse/auteur/low budget independent films Central Government support from GIO (Government Information Office) – Production, Marketing, Exhibition, Award/ Reward Scheme, etc. http://www.taiwancinema.com/ct.asp?xItem=53146&ctNode=150&mp=2 Local City Government support for film: Taipei Film Commission Required to meet at least one of the following conditions: - Taipei as story context; - at least partly shot in Taipei City; - Post production in Taipei City or local personnel in international productions http://www.taipeifilmcommission.org/Content/PublicContent.aspx?id=4711&subid=4742 Key Events: Taipei IFF (June/ July), Golden Horse Film Festival / Taiwan Film & TV Project Promotion (November) South Korea – population 50 million Key Players: - South Korean Studios – companies with investment, production, distribution capabilities (CJ Entertainment, Showbox) = mainstream pictures (Cinema Exhibitor other than CJ & Showbox who also participates in investment is Lotte) - Investment/ Production Entities – Cinema Service, Boram, Mirovision, Barunson, Chungeorahm, Sidus, Prime, United Pictures, bom, Sponge = combination of mainstream & arthouse films (sometimes also as distributor) plus a list of Venture Capital Companies (Frequently supported by government guarantee of a between 20% to 50% of investment) - Independent – combination of personal funds & government support & international funds = arthouse/ auteur/ low budget independent films

5

Government support: KOFIC - International Co-production Support Programme Feature-length live-action films, with a production budget of app. 3.26 million dollars with investments from at least 2 countries including Korea are eligible. These films must be compatible with Korea’s Film Promotion Law and KOFIC’s regulations. The Korean producer must be registered according to the Film Promotion Law, and have a co-production contract with at least 1 overseas production company. Two films can be selected once a year. Each film can receive up to 50% of its budget, in cash, within the limit of 200,000,000KW (approx. US$ 217.287). (Budgets cannot include office rent/operation costs, script copyright/development fees, print production costs, publicity/marketing costs, etc.) http://www.koreanfilm.or.kr/KOFIC/Channel?task=kofic.user.eng.f_support.command.SupportRetrieve1Cmd&MainGBN=2 Regional Film Commissions – Pusan Film Commission + Asian Cinema Fund, Seoul, Gyeonggi Jeonju, etc. (up to 20% of local spend rebate for some of the film commissions) Key Events: Pusan IFF/ Asian Film Market/ Pusan Promotion Plan (Early October Annually) Japan – 128 million General Financing Patterns: - Committee System – a complex grouping of companies consisting of theatrical distributor, cinema exhibitors, video exhibitor, and television stations plus certain equity funds Production Committee for film X (Investors: A, B,C, D, and E)

• Film Company A -Commissioned to distribute the film; returns distribution income minus a distribution fee

• Video Vendor B -Buys video rights from the committee; pays royalties that exceed the MG • Publishing Company C - The committee that includes them buys the rights to the story • TV Station D - Buys the broadcast rights from the committee • Ad Agency E - Commissioned to handle ads in newspapers, TV, etc. by the distributor or the

committee - Independent – Certain federal/ regional government grants + personal funds Key Players Participating in International Co- productions: Fuji TV, Asmik Ace, Bitters End, NHK, Avex Entertainment

• J Pitch Site (by Unijapan): http://j-pitch.jp/english/co-production/ Pattern 1: Producers, cast and crew from several countries are involved in a film invested by those countries. In 2009:

• Dance Subaru!: invested by Japan, China, Singapore and Korea; with crew from Hong Kong ,

t

t

• Looking for Anne: invested by Japan and Canada; with Canadian crew and cast • The Limits of Control: invested by Spain, U.S. and Japan; with Japanese producer and cast • Red Cliff: Par II: invested by U.S., China, Japan, Taiwan and Korea

Pattern 2: Producers, cast and crew from several countries are involved in a film produced by a single country. In 2009:

• Air Doll: Japanese film; with Taiwanese cinematographer and Korean cast • Sideways: Japanese film; re-made from U.S. film; with American crew including the director

Pattern 3: Foreign country investing in a Japanese film or a Japanese company investing in a foreign film. In 2008:

• Gu Gu, the Cat: Japanese film; with Korean capital• Tokyo Sona a: Japanese film; with the Dutch and Hong Kong capital • One Missed Call: U.S. remake of a Japanese film; with Japanese capital

448 Japanese films were released in 2009, 30 more than the previous year. The box-office revenue in 2009 was 117.309 billion yen, also a 1.3% increase over the 115.859 billion yen in 2008. The fact that

6

2009 outperformed the previous year without a mega hit like Ponyo on the Cliff by the Sea, which grossed 15.5 billion yen in 2008, or any hit that grossed more than 10 billion yen, means that each and every film did quite well. One big topic of the year was that Departures won an Oscar for Best Foreign Language Film in February. Departures had grossed 3 billion yen at the box office by the end of 2008, but, as it monopolized all the film awards in Japan at the beginning of the New Year, and was nominated for an Oscar, it continued playing on fewer screens. Once it was awarded an Oscar, it played on more than 200 screens again, and the additional box-office revenue was over 3 billion yen. Winning 53% of the market share in 2006, Japanese films recorded a drastic recovery after an all time low of 27% in 2002. However, despite this recovery in market share, audience numbers did not show much increase during this period, meaning that the imported film fans just switched over to Japanese films. In the past, imported film fans and Japanese film fans were clearly divided, mainly because the cinemas for imported films and Japanese films were separate. With the rise of multiplexes, imported films and Japanese films started to be screened in the same facility, making the two easily available to audiences. Furthermore, films produced by TV networks were favoured by younger viewers. Works mainly produced by TV networks drew in large audiences; examples include Sea Monkey (Umizaru), Sky of Love (Koizora), Train Man (Densha otoko), and BOYS OVER FLOWERS the movie (Hana yori dango final). Long-running hits among imported movies were limited to blockbuster films such as the Pirates of the Caribbean series, the Harry Potter series and the Spider-Man series, and even Hollywood films suffered badly, especially medium and low budget works. Independent distributors are having even tougher times than with Japanese films. Imported films had had difficulty for a few years, and, particularly because the secondary-use market had shrunk, independents held off on film purchases. The result was 314 imported films released in Japan in 2009, 74 fewer than in 2008, when 388 imported films were released. As compared to 2004, which saw the release of 404 imported films, the difference is no less than 90 films. As noted earlier, this predicament of imported films led to bankruptcy of Wisepolicy and Movie-Eye Entertainment. Now that even Hollywood films have to struggle unless they are blockbusters, there is no end on the horizon to the hardship. Costs for publicity and advertising vary widely, as P&A covers a long period and wide range of activity. Even a minimal release at a “minitheater,” or an independent art house cinema, costs somewhere between 10 to 15 million yen. A release involving three theatres or so in Tokyo can cost as much as 30 to 50 million yen. 100 to 150 million yen for 100 to 150 screens, and 250 million yen or more for 200 or more screens, are said to be needed. One reason why P&A costs so much is because it impacts secondary use. In other words, so much is spent because the secondary use sales are affected by the theatrical release’s visibility. Still, films produced by a production committee that includes a publishing company, TV station, etc., have a great advantage, mainly because of the publicity through the media owned by them. Given these trends, some Hollywood films can cost as much as 1.5 billion yen to promote, as their promotion includes the costs to fly actors over from the U.S. and the enormous expenditure for TV advertisements. Due to the opening of multiplexes in central Tokyo and poor performance of non-major films, one movie theatre after another was shut down in Tokyo. South East Asia Key Players & Financing Partners participating in co-productions: • Singapore (population 5 million) – Singapore Film Commission, Raintree, Boku Films, Scorpio

East, Cathay, Innoform, Clover Films, • Malaysia (population 28 million) – Astro/ Shaw/ Tayangan Unggul, Media Prima (Grand

Brilliance), Double Vision, FINAS (Malaysian Film Board) • Thailand (population 67 million) – Sahamongkol, Oriental Film Fund, Five Star, • Indonesia (population 238 million) – Cine21, Miles Films, Kalyana Shira, Salto Films • Vietnam (population 86 million) – Vietnam Media Corp

7

Red Cliff – mini case study Based on a famous “Battle of Three Kingdoms” (Which is known in China, HK, Taiwan, Korea and Japan, Singapore, Malaysia); directed by John Woo; producer: Terence Chang. Investors:

• Beijing Film Studio (presented by) • China Film Group (presented by) • Lion Rock Productions (presented by) • Shanghai Film Group (co-presented by) • China Movie Channel (co-presented by) • Beijing Poly-bona Film Publishing Company (co-presented by) • Beijing Forbidden City Film Co. (co-presented by) • Chengdu Media Group (co-presented by) • Chengtian Entertainment (co-presented by) • Zoki Century International Culture Media Beijing Co. (co-presented by) • Beijing Guang Dian Film & Television Media Co. (co-presented by) • Beijing Jinyinma Movie & TV Culture Co. (co-presented by) • Emperor Multimedia Group (EMG) (co-presented by) (HK) • Avex Entertainment (co-presented by) (JAPAN) ($30m USD) • CMC Entertainment (co-presented by) (TAIWAN) ($10m USD) • Showbox Entertainment (co-presented by) (SOUTH KOREA) ($3m USD) • Chengtian Entertainment Group (International) Holding Company • Three Kingdoms

Cast: Tony Leung Chiu-Wai as Zhou Yu (HK), Takeshi Kaneshiro as Zhuge Liang (Taiwan/ Japan), Zhang Fengyi as Cao Cao (China), Chang Chen as Sun Quan (Taiwan), Zhao Wei as Sun Shangxiang (China), Hu Jun as Zhao Yun (China), Lin Chi-ling as Xiao Qiao (Taiwan), Nakamura Shidō II as Gan Xing (Japan) Trivia The theme songs to the two parts are Xin Zhan: Red Cliff and Chi Bi: Da Jiang Dong Qu, both (as well as their Japanese versions) sung by Alan (Chinese Native based in Japan managed by Avex Entertainment) International Sales outside of Asia/ US: Summit Entertainment Major Markets Country Distributor Official Website Gross Revenue (in US$): Mainland China - China Film Group Corporation: $46,698,967 (Part I) & $38,043,199 (Part II) Singapore - MediaCorp Raintree Pictures & Scorpio East & Golden Village: $1,914,725 (Part I) & $2,091,413 (Part II) Taiwan - 20th Century Fox Taiwan Branch (Part of CMC Entertainment): $5,522,646 (Part I) & $4,512,737 (Part II) Hong Kong - Mei Ah Entertainment & Edko Films: $3,109,405 (Part I) & $3,058,382 (Part II) South Korea - Showbox: $9,950,130 (Part I) & $12,931,947 (Part II) Thailand - Sahamongkol Film International: $944,735 (Part I) & $1,177,713 (Part II) Malaysia - Golden Screen Cinemas: $645,025 (Part I) & $920,257 (Part II) Japan - Avex Group: $52,418,016 (Part I) & $56,374,881(Part II) France - Metropolitan Filmexport: $3,963,155 Italy - Eagle Pictures: $1,779,512 United States - Magnolia Pictures: $565,612 Red Cliff – Analysis: - Big Financial Gamble with biggest budget ever for a film made in Asia without Hollywood injection of cash $80m USD (box office approx $243.5 USD). - Performance across Asian countries performed well as the property (Battle of the Three Kingdoms) is a well known one across East Asia – would be hard to find another property that worked the same way with audiences across East Asia

8

- Film was marketed like Hollywood entity rather than as an Asian title. - Producer held back the US rights from Summit to try to get a US studio on board but none wanted to pay the premium for the film for US as the phase for subtitled action (Crouching Tiger, Hidden Dragon + Hero) was over – finally the box office in the US which was probably pitched to investors as equivalent to a US blockbuster was less than $1m USD. Question: Would the film have worked if the producers allowed a US studio to release the film (without the sky high asking price) at the same time as Asia in a release befitting a Hollywood blockbuster? - Asian producers struggling to find another project of such nature to invest big money as even with the success of Red Cliff, the major box office was derived from China and the transparency of the P& A and box office (plus other revenue streams) have not allowed for investors to fully recoup their investment. TIPS 1: Prepare and sign contracts Signing agreements setting out detailed terms of the parties agreement is common in the West. Traditionally, detailed written contracts are not regarded as so important in Asia, partly due to the small and closeknit industry where everyone knows everyone else and partly due to the fact that Asians are generally not very litigious (certainly when compared to US). Thus, traditionally in Asia, if there are contracts in the film industry (a step above the normal “handshake” agreements), they are generally very short (say one or two pages) and often are not sufficiently clear or comprehensive to cover all the relevant rights and responsibilities. However, this practice does not mean that the foreign co-production partner should accept this as well. In the recent years, legal contracts have become more important due to the increased interest in Asian films and content and Asian filmmakers are increasingly aware of the importance of a good contract. 2: Not your usual 50 page contracts Whilst it is important to ensure that you have proper contracts signed, it is understandable that to ask an Asian co-production partner who is used to a 2 page contracts to now sign a 50 page contract may be a little difficult. Our second tip is therefore to try, as far as possible not to use the usual 50+ page contracts common in the West. In fact, some Asian parties may get offended if presented with an overly long and one-sided agreement and we have certainly seen parties who choose to walk away from the project rather than to have to go through the agony of reviewing and negotiating one of these contracts. Our suggestion is to pare the contracts down to the essentials. 3: ENGLISH is not the main language English is not the mother language in most Asian countries. Whilst more sophisticated parties in Asia are perfectly able to review and sign agreements in English, do not assume that this is always the case, particularly with local casts and crew. There is a real danger that if the cast or crew member signed an English agreement without actually understanding what the terms mean, the agreement may not ultimately be enforceable (which then defeats the purpose of having the agreement in the first place!). Moreover, for co-productions in China, all documents to be submitted to the authorities must be in Chinese. Thus, we strongly suggest that, unless it is clear that the party in question can understand English perfectly, agreements should be prepared in both English and Chinese to ensure that they are understood and thus enforceable. However, do not assume that all translations are the same - legal documents are drafted in a language that even most native speakers who are not lawyers would not be able to understand. 4: Beware of the Taxman When structuring any co-production or distribution deals, it is important not to forget about tax issues. For example, it would not be a nice surprise to find out at the end of production that sending Nicole Kidman to shoot in China will incur a PRC tax bill of 40% of her salary! There are tax treaties between the PRC and some countries such as the US and the UK which would allow US or UK nationals to work in China for around 180 days without paying local salaries tax. If the deals are structured with proper tax advice using legal entities incorporated in different countries (for example, Hong Kong instead of the PRC), substantial amounts could be saved in salaries, profits and withholding taxes.

9

5: Know the local rules - get help from the locals Every country operates differently. As a foreign party, it is easy to get confused or overpay if you do not have a local adviser who knows exactly how long it takes and how much it costs for example to have a costume sewn by a local seamstress, or what permits are needed to use the local post office as a location. For co-productions in the PRC (which includes any foreign party who simply wants to shoot in the PRC), a PRC co-production partner is required. There are specific regulations in the PRC regarding anything from applications for shooting permits, censorship and ownership to import of equipment, cast and crew and how much time off local crew should get. Again, the rules vary since there are no guilds or trade unions in Hong Kong or PRC. A knowledgeable and trustworthy local partner, producer or production company will be invaluable. 6: Never Forget “Face” Last but not least, the ever elusive concept of “Face” is indeed very real in Asia. “Face” is essentially understanding, respecting and not embarrassing the Asian partner, and ultimately, making them look and feel good. For example, starting off with a one-sided agreement, aggressiveness, being pushy, or even banging on the table may be acceptable negotiating tactics in the West, but many Asians may feel offended by such behaviour. Asians generally tend to prefer dealing with each other in a more polite, friendly and less aggressive way. 7: Relationships Asians like to conduct business with people they know and a lot of business gets done and deals are made by people who “know someone” – if you are starting out, it is best to do some homework on the films and industry of the country you are working in, identify films and players you like and know, and work your way into meeting those whom you think you want to do business with and be trusted by the “someone who knows someone” to get your deals done. 8: Food & Drinks Asians have a habit of conducting business and building relationships and trust over meals and drinking sessions for many cases. Hence, it is vital to also be participating in a lot of social events and to understand the relationship/status of all the team members and bosses and who to serve. Important questions to consider when co-producing with Asia: - What is the story I want to tell and do I need to co-produce the film in Asia? - Do I need a production support company, a co-producer, investor, market or all above of the above from Asia – the scope of what needs to be done can be found in the answer to this question. - What type (mainstream/ genre/arthouse) of film do I want to make – this will determine the financing structure - Who is the audience of the film – this will determine the partners you work with - What are the pros and cons of co-producing the film in Asia? - Do I have enough understanding or network/connections in Asia to make the film there? Producing in the European Environment Pascal Diot 25/04/2010 In his session Pascal Diot focused on producing in the European environment. CO-PRODUCTIONS MARKETS – HOW TO SELECT YOUR PARTNER? In order to enter the co-production market, the first necessary step is to find a partner: she/he can be a co-producer, but also a distributor or an international sales agent. There are several ways for this, like for example, selecting one producer from a database: one can send them a project and then wait for a reply; actually, seldom such procedure is successful. If one is interested in art-house or cultural/intellectual project, the best solution is attending co-production markets, where projects can be presented to potential future partners.

10

European Co-production Markets

- CINEMART (January, during the Rotterdam Film Festival): it is very friendly and efficient, especially for art-house projects. It is attended by several potential partners for co-productions.

- BERLINALE CO-PRODUCTION MARKET (February, during the Berlin Film Festival): although it is very prestigious, but not as efficient for all kinds of projects. There are several meetings, but not always do they give good results: the approach of participants is very cautious, since nobody is willing to take risks. There are too many sales agents.

- HAF – FILMART / HONG KONG (March): it is well organized and it is attended by the major European sales agents.

- THE PRODUCERS NETWORK IN CANNES (May): it is very friendly and pleasant: one can discuss about his/her projects at breakfast: there are several big tables where consultants, producers, broadcasters, sales agents sit; participants can choose the most suitable table and start a discussion about their projects. Although this market is useful in order to create a network, seldom are those meetings successful: very often, second meetings in other locations are necessary. - SHANGHAI CFPC (China Film Pitch and Catch) dedicated to Chinese directors and Co-FPC (June). This festival is not well organized and it is only attended by few international sales agents and producers.

- PARIS PROJECT (July): interesting for selected projects to get in touch with French sales agents and producers, who are very open minded and have a good network. However, there is a little problem: the French are often on holiday in July and August; this means that not all professionals are available. - LOCARNO, OPEN DOORS (August): it is a wonderful and warm place, so it is perfect for long conversations with potential partners: usually, these discussions are about art-house projects; although it is not attended by many professionals, the quality is high.

- PPP – PUSAN (October): it is very efficient and it is attended by a lot of international sales agents who are interested in arthouse film; obviously, Asian projects play a major role. - NEW CINEMA NETWORK OF ROME (October): it takes place during the new Rome film festival: the presence of all important European professionals and the relaxed atmosphere make this event a perfect platform for international co-productions. - TOKYO PROJECT GATHERING (October). If one is interested in some specific countries, there are some markets which can be suitable: Latin America: BAFICI (Buenos Aires – April), San Sebastian (Spain – September), Ventana Sur (Buenos Aires – November/December) Eastern Europe: Karlovy Vary (Czech Republic) Despite the good amount of festivals and markets, it should be remembered that only 40% of the projects are really completed; very often, a project is presented in several markets. Financial matters are never overlooked: producers and sales agents always look for projects with a safe and stable financial situation; before presenting a project to a market, one should convince some people to invest in the film. In this way, chances to be successful at the market are greater: a project which has secured less than 30% of the budget does not inspire much confidence. THE BIG FOUR Co-production markets are useful for art-house or cultural/intellectual projects. However, they may not be the best solution for mainstream or genre films: the Big Four (Berlin, Cannes, Toronto and the AFM) are much preferred. However, there are some basic rules to remember: first of all, the main buyers do not attend the markets, but they stay in hotels; since it is difficult to get in touch with them, it is necessary to set up a meeting in advance and send them as much information as possible. Usually, producers do not stay for the whole festival, so it is preferable to meet them during the first days. Sales agents are more available towards the end of the market, because during the first week they have to sell their films; towards the end, they have more time and they are willing to discuss about projects.

11

HOW TO SELECT YOUR PARTNER: “To match the right producer with the right project” Finding the right partner is not very easy, but spending some time for this choice is necessary: this will save lots of money and will reduce the risks of disappointments. The first step is looking for information from databases, national promotional associations, trade magazines. Before choosing a producer, it is recommended to consider his/her previous projects and experiences: studying their track records is a good tool to find some artistic affinity. As far as sales agents are concerned, one should consider their attendance in the major markets, articles about them in magazines, awards, and the financial situation of their company. For a co-production, sale agents are very important, since their role has developed in the last years. Not only are they interested in sales, but they are also involved in several other activities: they know producers, festivals directors, co-production markets managers, distributors and many other professionals. A sale agent should be approached at a very early stage, so she/he can offer his/her advice and introduce a producer to other professionals. Good agents will not be involved in the discussions about co-production agreements, but they will save their partners a lot of time and money. Through a good co-producer and a good sales agent, one can create a strong international network, which can be very helpful for the film. It is not a bad idea to contact professional’s former partners, in order to have some feedback about them. If the responses are positive, they can be trusted. Very often, a dinner or a lunch together can be useful in order to know a potential partner better. European producers (especially from France and Germany) are very reliable since they have lots of experience (even with Asia) and a strong network. CO-PRODUCING WITH EUROPE Despite the economic crisis, some new tax credits saw the light recently, namely in France, Italy and Czech Republic; along with these countries, the most lucrative incentives can be found in Hungary, Germany and Ireland. In a European co-production, partners have to share the responsibilities. It is also necessary to pass the “cultural” test (point system), in order to give the project a national status: a certain amount of points (producer, cas , some key technicians, post-production) have to be reached in order to receive funds. As soon as the film is qualified as national, one should start to spend in that specific territory.

t

A co-production which involves several countries is problematic, since it is very difficult to achieve all national requirements. A multi European co-production with UK, France, Italy and Japan is very unlikely to work: if a project needs a three-parties co-production, it is important to choose complementary countries, like UK and Hungary. There are several institutions in Europe which offer soft money: EURIMAGES, national and regional organizations, private banks, financial institutions like COFICINE and COFILOISIRS in France. One should not forget the regional governments, which are rich and willing to invest money: the only disadvantage is that at least 50% of the film has to be shot in their territory. Private institutions can provide money as well: they are open and they are interested in new markets, even in Asia. Potential Sources of Funding in Europe for projects from Asia (for detailed information, please consult

the EAVE infobook): Aide aux films en langue étrangères / France Amiens Screenplay Development Fund EZEF / Germany Fonds Sud Cinéma / France Göteborg International Film Festival Fund / Sweden Hubert Bals Fund / The Netherlands Ile-de-France Post-Production Fund / France Jan Vrijman Fund / The Netherlands TorinoFilmLab / Italy

12

Vision Sud Est / Switzerland World Cinema Fund / Germany

EUROPEAN SOFT MONEY France In France there is the new 20% tax break, known as the international tax credit or “credit d’impôts international”. It provides producers of any nationality with a 20% rebate on their French expenses. A French co-producer is not needed in order to receive subsidies. The film needs to pass a cultural test: 18 points out of 38 are required, but this is easily achieved. This tax system is not oppressive, so international directors and producers are invited to invest in France. However, there is a requirement of spending 1 million Euro in France, which means that small budget films are automatically excluded. Regional funds are available, but they require shooting in their territory (usually at least 50% of the shooting). Germany For a co-production in Germany, there is a requirement of a big budget (4 million Euro); if this amount of money cannot be reached, there is no funding, since there is no interest in small budget films. Money can arrive from several institutions, like for example the DFFF (German Federal Film Fund) and seven regional funds, which are almost compulsory nowadays. They are very interested in international co-productions. Along with the usual “cultural” test, the producer must provide proof of up to 75% of the film financing and confirm that the shooting has not started yet. It is impossible to apply for more than 20% of 80% of the total production costs, while a minimum of 25% of the production costs must be spent in Germany. Italy Italian authorities are trying to attract foreign shootings: the tax system allows some reductions on the expenses, as long as it does not exceed the 60% of the total production costs. For a national film, foreign producers may get a 15% tax rebate of the total budget. Projects have to pass a “cultural” test, which requires 50 points out of 100. If the film is shot in Italy, more points are given. Regional funds are very important and they are not related to the nationality of the producer: what is necessary is that most scenes are shot in that specific region. Most regions require around 70% to 80% of the budget in place, while 20% of it must be spent in the region. Spain Recently, the European Union has approved a new law: an international producer who works with a Spanish partner can receive up to 50% of the budget of the film or up to 75% of the local company’s investment in the project. However, it should be noted that only 33% of the allocated support will be given in advance: the rest will be calculated after the production, using some criteria like: box office figures, selection in A-festival and awards. It is also required to spend at least 600.000 Euro in Spain. Like in almost all European countries, Spain has a rich network of regional funds, although certain regions (like Valencia Community) require a local producer. Spain is also renowned for its infrastructures and studios, which are one of the best in Europe (Studios of Alicante, New Audiovisual Park of Catalonia). UK & Ireland In 2006, the UK government approved a new credit system: if the film is qualified as British, a relief is available, as long as it consists of at least 25% of the project’s total expenditure; in that case, there is a tax relief on a maximum of 80% of this qualifying expenditure. It should be remembered that British crews working outside UK do not qualify even if they are paid in the UK. This discourages the UK production from working abroad and setting up international collaborations; as a consequence, the UK co-productions fell by 78% in the first half of 2009. On the

13

other hand, shooting outside London becomes more and more interesting because the UK regions are now able to offer services and investments to international productions (Northern Ireland, Wales, Yorkshire, Screen East...). In Ireland, there is the renowned section 481, which is active since 1987 and can be used in a lot of international co-productions. Belgium The known Belgium tax-shelter system is really focused on heavy Belgian spending and elements and that’s why it is mainly the French producers who have benefited of this system. A new scheme should emerge in 2012. Luxembourg Films have to be shot in Europe by or with a Luxembourg production company; it can get up to 30% of the entire budget. Similarly to other countries, there is a point system. Hungary There is a 20% tax rebate, while the film has to pass an easy “cultural” test: only 16 points out of 32 are required; it is also open to any nationality. Hungarian system can easily be combined with other systems: for example a combination Hungary - UK is perfect, since the two systems are complementary. Malta Several budget films have been shot in this island, e.g. “The Gladiator”, “Troy”, “Munich”. Any production with a budget of more than 100.000 Euro can apply and can get a cash rebate up to 22%. Because of its geographical position, Maltese locations are used to portray Italy, Greece, Cyprus and Northern Africa. Strategy for Script Development and Film Analysis: Old Boy Clare Downs 26/04/2010 Clare Downs elaborated on strategies for script development and also gave a film analysis on Old Boy by Chan-wook Park. The producer has to bring coherence to the project: there must be logic not only in the early stages, but throughout all aspects of the productions. A good first step is the note of intention. For example, after reading a book or a novel, the producer should ask him/herself why it was interesting and why she/he wants to produce this film. However, a producer should also ask the writer of the script to prepare a note of intention: comparing thoughts is a good way to predict whether the relationship will be fruitful or not; the producer and the writer should think in the same way, although this not always occurs. Through the note, the producer can establish whether a particular director is suitable or not for the film, so it helps to clarify many things and judging others’ ideas and opinions. A very important element is the choice of the main character. The protagonist will have a journey throughout the movie: understanding him/her means understanding the whole story; for this reason, the choice of the main character should be very careful. Although they are often considered synonyms, the central character and the protagonist are not necessarily interchangeable: it is the latter not the former who has to embark a journey and will change throughout the movie; for example, in Amadeus by Milos Forman, Mozart is the central character, but not the protagonist (it is Salieri). A story can be divided in three acts, which are developed from the original five-act structure by Aristotle. Each act is divided into sequences: all these sub sections need to have a beginning (where the conflict is introduced), a middle part (where the conflict is developed) and an end (where the conflict is dealt). Putting a particular scene into the right place is essential: very often a scene works

14

much better if it is inserted at the right moment; one has to think about the function of a particular scene within a sequence. As said before, a script is composed by three acts, the first of which contains two sequences. In the first one, also known as the routine, the main character is introduced; the audience gets acquainted with his/her life and relationship with the other characters and the rest of the world. The end of the routine is marked by an event, the point of attack, which throws the protagonist out of balance. The second sequence, the collision, presents a change in the main character’s circumstances, who by the end of the sequence wants something. If there has been coherence in the development of the main character, audience will hope that she/he will reach his/her goal, but at the same time there will be fear that she/he will not succeed: this contrast between hope and fear is necessary. To obtain this effect, the role of the antagonist is fundamental, too: very often, it is not coherently developed, so it turns to be boring or uninteresting. The following two acts might have a different path, the choice of a world in balance or a world out of balance determining the outcome. Despite of this, in both cases the second act will be composed by four sequences, while the last one by two. In a world in balance, the third and the fourth sequence are characterized by hope rather than fear: it seems that the main character is going to reach his/her goal, but this dramatically changes with the first culmination, which should occur throughout a big emotional scene. This event should happen in the midpoint of the story. The fifth and the sixth sequence present a different situation: the antagonist has taken the upper hand, while audience feels fear and is worried about the protagonist’s condition, who has reached his/her low point. The third act begins with the seventh sequence, the crisis, which sets up the confrontation between the protagonist and the antagonist; in a world in balance, the protagonist defeats the antagonist, while in the final sequence, the resolution, the balance is re-established: the truth is revealed. The world out of balance, instead, presents a different scenario: after the routine and the collision, there is a descent by the protagonist, who reaches a low point, so instead of hope it is fear the main feeling by the audience. After the culmination, the main character seems to have solved his problems, but in the confrontation it is the antagonist who emerges as a winner. When preparing a script, one has to plant something in the first part; in the second part, there will be a payoff, so audience can make connections between the two halves of the movie. Planting and paying off elements is a good tool to further involve the audience emotionally in the story. The above mentioned principles of the script analysis were applied while analysing the film Old Boy by Chan-wook Park. Pitching Your Project Stefano Tealdi 26/04/2010 Stefano Tealdi introduced the principles of pitching. Pitching is not the end, but the start. The main reason for pitching is attracting others and catching their attention: we want to make our audience interested in our project. We should not reveal everything: instead, the audience should be invited to ask more questions. The first essential stage is the preparation: if this task is not accomplished properly, the failure is inevitable. It is necessary to know every detail of the project, so that there will be very few questions which are difficult to answer. Thinking that preparation is useless is a big mistake! Order is

15

fundamental: the pitcher needs to underline what is important and what is not, what should be said at the beginning and what at the end. Adjusting and being flexible is also essential: what is effective with a certain kind of audience could be different with another one. Preparation is always necessary, even when we are confident or we have already pitched the same project before: sometimes things are not effective anymore, since people can change their point of view in time. One should always find a way to improve his/her pitch, in order to make it better! If the preparation has been done properly, pitching is much easier. In pitching, there are two aspects which have to be considered: • You (lead actor in the game) • Business (market, funds, distributors) The pitcher must know him/herself. She/he needs to get things working in his/her favour. Being active is fundamental: the pitcher should not let disadvantageous events and situations change him/herself; she/he has to react and look for some counterbalance. A big mistake is falling into “habit traps”: pitching the same project over and over again in a short amount of time can be boring; however, a good pitcher avoids showing this uncomfortable feeling. Sometimes, who is really interested is the last listener! CONGRUENCE OF COMMUNICATION A passionate, charismatic, ambitious, committed and clear pitch needs to be congruent with the body language and the tone of the voice. A survey: 7% of our communication is verbal (the WHAT) and 93% is non-verbal (the HOW); 55% of non-verbal communication refers to body language and 38% to sound of voice; the verbal part has to be 100% true (consistent). When preparing a pitch, there are some rules which should be remembered. • Avoid negativism and negative sentences. What is negative should be turned into positive. • Precision: be short and focused. Even when plenty of time is available, pitchers should not

forget their focus and lose themselves into useless details. • Use present tense. Talking about current events is much more interesting than about past ones. • Adjust the pitch to the time you have at your disposal. When the pitch is over, one should listen carefully to what the audience is going to say and ask. After a good pitch, there will be many questions about the project and not about the pitcher. Pitching is neither acting nor performing; instead, it is about individuality and authenticity. Being ourselves is crucial during a pitch: don’t play roles you are not able to play! Listeners are willing to work with someone honest and true; if the pitcher is considered trustful, there are many more chances of success. When preparing a pitch there are some standard rules and elements which need to be presented, but there is no fixed order for them: a good pitcher always considers the situation and the audience she/he has to face and choose what is more suitable for his/her task. These are some tips:

Who is the pitcher? What is the project about? (the facts / the story). How will the story be told? (dramatic and visual approach) This point is crucial, since it is what listeners want to know. Who is the target? Who are the listeners? Why should they be interested in the project? Why is this specific story special? This is also known as the unique selling point. Where is the story set? Who are the characters? Why does the pitcher want to do this film? What has inspired him/her? When did the film “pitch” the pitcher? Why should this film be made? Production details (Shooting format, locations)

16

Who is doing it? Who is in it? When? Time schedule and state of the project Who’s paying? Listeners want to know who funds the project and if there are other organizations which will provide money.

This is just a brief scheme of the possible elements which should be presented during the pitch. However, as continuously said, it is useless and stupid to tell everything: in ten or fifteen minutes, certain elements have to be left out. There are some other tips on how to prepare a successful pitch:

• Try it as much as you can! A pitcher should practise the pitch as much as she/he can. Performing it before some colleagues can be useful, in order to get some reactions and feedback. It is also important to see the place where the pitch will take place before pitching.

• Make a good start! One of the pitcher’s tasks is to surprise and wake up the listeners, grabbing their attention. Listeners should not be underestimated, even when they are already interested (or seems to be interested) in the project. A good initial bang is decisive!

• Make a good ending! It should be clear and precise, so that listeners will take away something and then think about it.

• In the middle? Read the Standard Rules! Listeners don’t like complicated stories, so everything should be simple.

• Less is more. Only the most important things should be said. The rest has to be left out.

• Use bullet points and use the right order. If a topic is presented at the right moment, it will be much more effective!

• Be aware of body language (especially if working in a team)

• Be loud and clear. Even in an intimate space.

• Make pauses and smile! Breaks are useful for two reasons: first of all, the pitcher can use them to reorganize his/her ideas; then, they allow listeners to think about what has been said.

• Don’t be afraid to show passion for your story and for your job. • Be yourself.

Pitchers are not actors in a theatre! • Make your listeners want to know more about your project but don’t tell them

everything! Asia-Europe Co-Production Case Study Claire Lajoumard 27/04/2010 The Asia-Europe co-production case study on Bi, Don’t Be Afraid by Dang Di Phan was presented by the producer Claire Lajoumard (Acrobates Films, F). The co-producers of the film are ARTE France Cinéma, Sudest-Dongnam, Vietnam Media Corp & Vietnam Studio, Vblock Media Joint Stock Company and TR9 Film. The film was supported by Fonds Sud Cinéma - Ministère de la Culture et de la Communication CNC, Ministère des Affaires étrangères et européennes (France) and the World Cinema Fund (Germany). Claire Lajoumard mentioned that the project had won the “Asia Outstanding Project” award of the Pusan Promotion Plan at the International Pusan Film Festival in 2007 and had been selected to participate in L’Atelier of the Cannes Film Festival in 2008.

17

During her case study she shared with the participants many difficulties that she had to face when producing this film: legal problems with Vietnamese partners, difficult relationship with the co-producers, a strong-minded director who decided to start shooting before financing for the film was in place, technical difficulties during the post-production, etc. Nevertheless, she managed to raise the financing in France from ARTE France Cinéma and Fonds Sud Cinéma. Claire Lajoumard admitted that some problems had still to be resolved, but all co-producing partners were very pleased that the film was selected for the International Critic’s Week in Cannes (2010). Press file: http://www.isabelleburon.com/upload/Bi-Dossier-de-presse.pdf Note: The film won two awards in Cannes - SACD Prize for Best Screenplay and the ACID/CCAS Prize that helps the film to be distributed. Legal Aspects of International Co-Production Elise Jalladeau 27/04/2010 Elise Jalladeau presented legal aspects of international co-productions. Copyrights When dealing with a co-production, copyright should be owned. However, the first necessary step is the signature of a contract: if the contract has not been signed and registered, there is no share of rights and no property on them: consequently, producers are not entitled to produce films. Copyright relates to the copyright law that is critical for understanding almost any film transaction and/or production. Copyright is part of “the family” that is called intellectual property, which is an “umbrella” term for patents, trademarks, industrial designs, copyright and other laws. Copyright is the set of exclusive rights granted to the creator/author of an original work, including the right to copy, distribute and adapt the work. These rights can be licensed, transferred and/or assigned to third parties. Copyright exists in different forms depending on the system of law: continental law (civil law) and common-law system. Continental law is based on legislative statues (“written laws”) and forms the basis for law in continental Europe (Nordic countries, Germany, France, etc. and the European Union law). Common law is based on law developed by judges, i.e. through decisions of the courts – “case law” and forms the basis for law in the UK, Ireland, USA. One of the major legal distinctions between continental Europe and common law countries is the issue of copyright and author’s rights. “Author” is used in a wide sense and includes composers, artists, sculptures, writers, directors, etc. In continental Europe all rights belong to the initial author of a work. This is why continental law is also referred to as “author’s rights” or “droit d’auteur”. The author is the person whose creativity has led to the work being created. An author will always be a person or persons – not a company. In common law countries all rights of a film can go to the person or company that has made an economic investment in and to the film – “a work made for hire”. This means that the employer – not the employee – is considered the legal author. In some countries this is known as corporate authorship. In common law because of the economic investment in a film, the producer holds the economic exploitation rights in and to a film. In continental law countries the producer does not hold any economic or moral rights by virtue of his/her statues as a producer and may be therefore entitled to exploit the economic rights to the film based on agreements with the copyright holders, i.e. the authors. Author’s rights have two distinctive components: economic and moral rights. The economic rights are a property right which is limited in time and which may be transferred by the author to another

18

person or company. This allows the author to profit financially from his/her creation/work, i.e. the rights to copy, distribute and adapt the work. The moral rights are based on the view that a creative work is in some way an expression of the author’s personality and must thus be protected. Moral rights can be assigned in common law countries, but not in continental law countries. The moral rights typically include the right to be identified as author of the work (to be credited as author of the work) and the right to object to any distortion or mutilation of the work, which would “hurt” his/her honour or reputation as an author of the given work. Under continental law the moral rights cannot be waived. Very often, producers tend to overlook the issue of music rights, but this is a great error. The music rights have to be cleared in order for you to exploit the film. Even folk music may be protected by copyright, so it is necessary to consider this aspect before starting the production of the film. When the film is being sold, a music sheet has to be provided: it is compulsory to present the list of the songs and pieces which are performed during the film with their lengths. When selling a film the producers have to prove that they own the rights on music. Another element which is often overlooked is related to monuments and artistic works: they are not always in public domain, but usually they are an original creation; there cannot be any shooting without an official authorization by the artist (architect, painter, sculptor…). If all these problems are not solved, the selling of the film will be much more complicated. In some countries, there are companies which analyse films and underline every possible problem related to copyright. Co-production treaties Official co-productions are regulated by a treaty, which is an official agreement made by governments. Because of this, co-produced films are treated as national films. Co-productions offer several benefits, since they can receive national and regional funds from both countries and are treated as a national film in both countries. When a treaty is signed, there are some conditions to be followed. For example, minority producers have to invest at least 10% of the budget in their own countries; some countries might apply different rules. Although there are lots of treaties between European and Latin American countries, the situation with Asia is different. In Europe, there is a concept of reciprocity, which has to be fulfilled: this means that the film should be treated in the same way by the countries involved in the co-production; for example, a film should receive public support from both countries, not just from one. For this reasons, there is a very small amount of treaties between Europe and Asia, because Asia is lacking public funding. However, there have been some improvements lately: for example, in 2004 Italy and the People’s Republic of China signed an official treaty for co-productions. Despite the lack of treaties, it is still possible to have a co-production, although it will not be considered an official co-production. In certain cases, the treaty can present some disadvantages, so it is preferable not to use it: for example, if the budget is low, it is more useful to spend money on the film. In addition, a model co-production contract and two examples of co-production agreement checklists were sent to the participants by email. Closing Session Elise Jalladeau, Kristina Trapp 28/04/2010 The closing session was dedicated to setting out the tasks for the next workshop in Pusan, South Korea, where the participants will meet with the decision makers during the Pusan Promotion Plan. In between the two workshops the group leader, Elise Jalladeau, and the script expert, Clare Downs, will monitor the participants’ work and feedback on the development of their projects.

19

Acknowledgments EAVE Ties That Bind is organised with the support of MEDIA International. EAVE is supported by the MEDIA Programme of the EU, Film Fund Luxembourg, MEDIA International, Filmfonds Wien, Mitteldeutsche Medienfoerderung, MFG-Filmfoerderung Baden-Wuerttemberg, Robert Bosch Stiftung, Berlinale Co-Production Market and the partners who have hosted the workshops since 1988.

EAVE is supported by the

MEDIA PROGRAMME OF THE EUROPEAN COMMUNITY THE LUXEMBOURG FILM FUND

20