Montreal: Local distributors are highly critical of the Quebec government’s signing of a four-year distribution deal with the Motion Picture Association of America, claiming their advice has been totally ignored.

The agreement, which establishes the rights and obligations of the U.S. studios under the Quebec Cinema Act, was signed by Diane Lemieux, minister of state for culture and communications of Quebec, and Jack Valenti, chairman and CEO of the MPAA. It took effect Feb. 1 and expires Jan. 31, 2006.

The deal contains a new and separate section for home video distribution (including videocassettes, videodiscs and DVDs), as specifically requested by the majors, and a second section on theatrical feature film distribution.

‘Canadian-owned distributors are extremely unhappy with the decision of the Quebec government to move ahead and sign an agreement with the American majors without taking into account the recommendations made by the local industry,’ says Richard Paradis, president of CAFDE.

CAFDE, which held three meetings with the minister, says the new agreement is ‘a step backwards from the original 1986 agreement’ signed by then Liberal culture minister Lise Bacon.

‘Key industry players like Rene Malo and Andre Link offered their advice to government and the government didn’t take them up on it,’ says Paradis.

In the agreement’s theatrical section, the majors are prohibited from distributing original French-language films, but can distribute other foreign-language titles if a studio has invested 100% of a film’s negative production cost, or receives a special licence from the minister.

MPAA member companies have the right to distribute English-language films in Quebec if they:

* hold the world rights (with specific reference to Canada, the U.K., EU countries, Japan, Australia and New Zealand), excluding the film’s country of origin;

* or if the studio is the producer of the film, defined as having invested/advanced or ‘expects to invest and/or advance’ 50% of the total investment in the film, defined as all production and marketing related costs, or the sum of $15 million.

Paradis says the new $15-million threshold, up from $10 million in 1986, ‘is completely ridiculous.’ He says the new minimum does not reflect increases in average production (to US$56 million in 2001 from US$15 million in 1986) and marketing costs (in the range of US$25 million to US$30 million) for U.S. studio movies over the past 15 years.

The agreement’s video section allows MPAA member companies to transfer rights to other member companies, and distribute English-language films if they hold the Canadian and U.S. rights.

Leo Rice-Barker

-www.mcc.gouv.qc.ca/

-www.mpaa.org