COLLECTIVE MANAGMENT

Argentine Film Directors DAC-association founded 54 years ago, more precisely on July 23, 1958, began as a Gremial Mutual and Cultural entity participating throughout its history in countless actions that transformed the reality of professional Directors. Just to mention one is the struggle to achieve a Film Law that was finally approved in 1994 and which today INCAA received by more than 350 million pesos per year for the production and promotion of the film industry.

The Author´s rights of the Directors

So also our organization struggled for over 60 years to achieve the inclusion of the director as author of Film Work and for decades was considered just a simple script interpreter. With the main defense weapon to the International Berne Convention, signed in 1986 and converted by Argentina National Law, DAC managed to install its strong claim in the National Congress and in 2003 is obtained in a historic parliamentary session amending the Intellectual Property Law 11.723, which from there on Achieved this goal, DAC fits your status becoming a collecting society for collection and distribution o Audiovisual Directors in its Article 20 the director as author of Film Work. Achieved this goal, DAC fits your status becoming a collecting society for collection and distribution of Audiovisual Directors author´s rights meanwhile, generate ties and international awards

The Collective Management Society of author´s rights Directors

The transformation in collective management society to achieve the administration, collection and distribution of author´s rights of directors has been a separate chapter in the history of our organization. In recent years, a tough, intense and collective work was carried out to fulfill the objectives that can be summarized in the main achievements:

2006 NEW STATUTE

Achieved in 2003 the inclusion of the director as author of Film Work DAC, with the active and full participation of its partners, reform its by-laws by adding the Collective Management of Collection and Distribution of the Director´s author rights

2007 INTERNATIONAL RECOGNITION

-CISAC-recognizes the progress and achievements of DAC, accepting it as a provisional member of this important The International Confederation of Societies of Authors and Composers organization that meets all norm and Collecting Societies Author´s rights World.

2008 INTERNATIONAL RECIPROCAL REPRESENTATION

DAC Reciprocal Representation Agreements signed with counterparts in other countries, including Spain, France, Switzerland Poland, Ireland, Holland, Austria, UK, among others, to represent their directors in Argentina and in turn collect the charges for Argentine directors in those territories. Today DAC, is also liquidating rights works in countries like Mexico, Colombia, Spain, France, Poland, Italy, Germany, Great Britain, Ireland, Portugal and other European countries, as well as promoting companies with directors Mexico Chile and the creation of institutions Latin-American Directors for the effective exercise of the rights of the director throughout the region

2009 PRESIDENTIAL DECREE

On 19 February at the Quinta de Olivos, face of all the local film community and guest directors from around the world, the President of the Nation signed the Decree 124/09, which recognizes the DAC as a unique entity with a duty to collect author´s rights of Directors all over the country. Becoming the youngest society managing in Argentina.

2010 RESOLUTION TARIFF

In March and as a result of another year of hard work, together with the Media Secretariat of the Nation, the Official Gazette published Resolution 61/10 putting into effect the Rate Schedules and requiring users to exhibitors of Audiovisual Works paying rights to its directors

2011, DAC STARTS TO COLLECT AND DISTRIBUTE THE RIGHTS.

The Directors´ right is now framed within the regulations of the Berne Agreement, and as a result of article 11 bis and the limitation of article 21 of act 11,723, a Compulsory License System was established by means of Decree 124/2009 (Official Gazette 02/24/09) and the Tariff Resolution 61/2010 of the Chief of the Cabinet of Ministers (Official Gazette 03/11/2010). Notwithstanding that, AC´s purpose is the attempt to establish rates by negotiating with the representative Chambers of the different users´areas.

Cable Television:

On July 14, 2011, ATVC, the Argentine Cable TV Association grouping over 700 operators in Argentina, celebrates the first framework agreement and signs, together with DAC, an allowance for the regularization, compliance and effective payment of authors rights for audiovisual directors, for their represented Works showed by the Cable TV System.

On March 6, 2013 a transactional agreement is signed with DIRECTV ARGENTINA establishing the retroactive payment 2009/2012 of the authors rights corresponding to the Directors represented by DAC, as homologated by the intervening National Court. Furthermore, the applicable fee for the year-to-date is also agreed, along with a permanent tariff increase for 2014 onwards.

Between October and December 2013, ATCV and DAC agree to partially set aside the framework agreement to establish the definite fee for 2014 onwards, and despite the efforts made by both parties during this last year (2014), this definite agreement could not be achieved, thus temporarily paying a fee with the allowances that DAC established with its Managing Commission.

Theatrical exhibitions:

In September 2011, DAC signs a payment agreement with CAEM, a Chamber representing the main cinema chains: Hoyts General Cinemas, Village Cinemas and Cinemark, which immediately acknowledge the right administered by DAC and initiate the payment proceedings of authors‘ rights for the exhibition of their films in the movie theaters of the entire national territory.

Since that date, until the end of 2014, several cinema chains that are not part of CAEM, as well as independent cinemas, also agreed to pay, being, at present, in the midst of preliminary mediations with several movie theaters and expecting to celebrate a framework agreement also with the independent cinema group.

Air TV

In the mid-2012, a framework agreement was signed with the Argentine Broadcasters Association (A.T.A for its Spanish acronym) establishing in mutual agreement the fees until 2018, which gave origin to a series of individual agreements with each Associated Broadcaster during the whole of 2012 and beginning of 2013.

General Users (TVs in hotels, bars and public spaces)

The application of this fee gave rise to a series of challenges, since this is a difficult sector for collection. However, DAC opted for inviting the Hotel and Gastronomic Business Federation of the Republic of Argentina to agree on a fee which contemplates the different situation of the broad territory of Argentina and establish allowances for Hotels, Bars and Restaurants which adhere and regularly comply with the payment. This allowance would serves as some kind of bonus, compared to those which are reluctant to payment.

In that regard, we reached an agreement with the Tourism Hotels Association (AHT for its Spanish acronym), which represents the majority of the 5 stars hotels of the country, as well as different agreements with regional business associations and chambers of the hotel and cabins sector of the country.

DAC –The long-awaited distribution

Having technically and administratively prepared during more than two years for the task, and in record time at international level, in December, the entity performs the first pre-settlement of Authors´ Rights for the more than 50 directors with duly declared Works. This achievement, obtained after more than 60 years of struggle and work, was celebrated with a great deal of emotion by our associates in the Ordinary Assembly held at the end of 2011.

These payments are made regularly to date, pursuant to the statutory regulations, and incorporating the new conquered sectors for collection and modernizing the distribution in accordance with the implementation of new methods to identify the Works used.

DAC Attends the World Creators Summit

For the first time, DAC participates in the World Creators Summit in Brussels, Belgium, an event organized by CISAC, where it announces its historical achievement to the sister societies of the world. This active participation has DAC appointed as the host organizer of the International Congress of Literary and Audiovisual Creators of CISAC, to be held in 2012 in the city of Buenos Aires.

2012, New payment agreements and unstoppable growth

DAC signs a payment agreement with FEGHRA (Argentine Gastronomic and Hotel Business Federation). This entity groups over 50,000 gastronomic establishments and hotels in the entire country, cored in 63 branches. It is about 10,000 touristic establishments of different characteristics and 40,000 restaurants, bars, coffee places and tea-rooms. The tariffs chart is established in the Agreement, which shall be paid by the different categories of hotel and gastronomic companies, for the exhibition of audiovisual Works in the televisions used to entertain their guests.

DAC – in the world. More international recognition.

DAC was chosen as the host, and for the first time with office in the Republic of Argentina, it celebrates in April the International Council of Dramatic, Literary and Audiovisual Authors – CIADLV – organized by CISAC. The management societies of authors‘ rights in Argentina, Australia, Belgium, Brazil, Chile, Colombia, Spain, France, Hungary, England, Italy, Peru, Poland, Uruguay and Switzerland, among others, participate in the event.

DAC, full member of the CISAC

Last may, in its General Assembly held in Dublin, Ireland, CISAC – International Confederation of Authors and Composers Societies – with office in Paris (entity composed by 232 authors and composers societies in 121 countries), in recognition of the progress made in legislative, collection and distribution of rights matters, promotes DAC to the “Full Member” category of this prestigious Confederation.

DAC - Present and Future

At present, our entity has facilities to carry out the activities it organizes, functionally developed in more than 500 square meters. These offices with state-of-the-art technology currently work with a Permanent Plant of 16 legal, accounting and administrative professionals, at the service of the Collection and Distribution of the Rights of the Cinema and Audiovisual Directors.

As soon as an author has completed a work a process, that is intended to ensure the implementation of their rights. The process is called collective management is done by Collecting Societies. This process ends when the author receives the benefits of their creation and consists of the following steps:

REGISTRATION AND DOCUMENTATION OF AUDIOVISUAL

The author´s right Law from the moment of creation protects a work. This only needs to be tangible. However, author’s rights societies encourage authors to record all the works they create, as this allows them to effectively exercise their rights. Conditions of Registration of Works range from one society to another.

The basic information required to protect intellectual property rights effectively, is the data on the author and his works. This documentation allows collecting societies to carry out their task.

For example, the only way that societies can deal with author rights distribution is based on solid documentation. This must have comprehensive records of their members on one side and the other concerned the repertoire.

DAC available to directors authors advanced Statement System Works called DACSIS 01 by which the author, from the tranquility of their computer, communication progresses of authorship of their works to the entity. From there notes DAC data sent; open the Bank Account director and appointment to sign the Statement of Work.

Under this required documentation, the Works Department declared Documentation where they are discharged into our code as Managed Information System for the purposes of determining when users have issued these works.

If the work has been exhibited, we proceed to communicate Liquidations Department to effect the payment to the right holder. If your works are not properly registered in DAC is not possible to make any liquidation of duties.

If you belong and another company rights audiovisual author represents you from abroad (ex, SGAE or DAMA Spain - SACD France, etc.), you cannot register or collect your rights in DAC, but through the partnership with keep you representation contract and who has already declared your works. See also International Collection and Distribution.

If you want to register, your works On Line can do it by following the link REGISTER YOUR WORKS located on the front-page of our website: www.dac.org.ar

The Collection of Rights is a power and duty of DAC that, in principle, we wish to comply with by establishing friendly relationships with the users of the repertoire. For this reason, the filing of legal claims is solely used as a last resource, thus showing our willingness to reach agreements and subscribe payment arrangements of national coverage with the representative chambers of each users sector such as ATVC (the TV Cable Argentine Association), DIRECTV ARGENTINA, CAEM, Chamber that represents the main cinema chains such as: Hoyts General Cinemas, Village Cinemas and Cinemark; the Argentine Broadcasters Association (A.T.A) and FEHGRA – Hotel and gastronomic Establishments of Argentina, among others.

More complex than collect, is equally distributed among all our Directors.

For this enormous task DAC has created as all sister societies, departments equipped distribution of a large information technology for the purpose of being able to determine when a work is exhibited and who their, or their authors, to effect the corresponding liquidation of rights under the existing provisions of our organization is made every six months.

For the liquidation of cable television, the minute value system is used; taking into account the duration of the audiovisual work and all its repetitions.

This lets us know how many total minutes aired.

However, NOT all minutes have value. Only those of Cinematographic Works and similar to movies such as Telefilms, unit, series, dramas and documentaries. Excluded are programs of entertainment, news and sports, among others

We know there are minutes which are worth and others not. Now, within minutes worth, not all are of equal worth. Depend on several factors.

• The type of work.

For example, a cinematographic work is worth more than the Telefilm. Why? Because a Film Director produces, an average of 10 plays in his professional life, that is 1000 audiovisual minutes. What leads him a year or more of work per work. Now the same director can produce these 1000 minutes of audiovisual, in a month of daily television shoots. Therefore worth different

Another factor to consider when valuing minutes is

• The type of channel.

The work may be issued by a channel present in many Cable Operators or by a regional channel for instance, which is present in less-cable operators. Remember that DAC perceives fee proportional to the number of subscribers

And finally consider

• The point value.

This variable shall include the audience.

This means that not only take into account what kind of work is, how many minutes aired, how many subscribers has the broadcast, cable operator, but also how many people saw it.

For example, if a work is issued to an audience of 1,000 subscribers, its distribution is not equal to one that is issued to 10,000 subscribers.

To liquidate air channels treatment is similar, except that the amounts depend exclusively on amount collected by advertising; which in turn depends on the channel audience.As for the general headings mentioned above, the amount collected cast turns to cable operators. As for the general headings mentioned above, the amount collected cast turns to cable operators. Our work is so precise that is part of the "Professional CISAC Rules," which are the standards used liquidation similar societies all over the world.

We want the distribution will be safe and fair for everyone. So we get the only numbers that concern to our directors, are those of blackboard