Residuals
This notice describes the residual compensation payable to you under the Writers Guild of America Theatrical and Television Basic Agreement ("MBA"), as well as your right to select a beneficiary or beneficiaries to receive such compensation upon your death. Your residuals will be disbursed pursuant to the terms of your will (or trust document) or under intestacy law if you do not have a will, as well as under the terms of community property as may apply.
Residual Compensation. Residuals are compensation paid for the reuse of a credited writer's work. When you receive credit on produced, Guild-covered material, you are entitled to compensation if the material is reused beyond its initial exhibition. Generally, this means that if there is reuse of your theatrical motion picture in a market other than the theatrical market, or if your television project is reused in any market after its initial broadcast, you will receive residual compensation. In 1977, the Guild negotiated for the member's right to receive residual compensation in perpetuity. As a result, even after your death, you will continue to receive residual compensation if your material is reused.
Should you have any questions, email Estates/Trustsin the Legal Departmentor call (323) 782-4612.
As a seasoned expert in entertainment industry practices, particularly in the realm of residuals and compensation for writers, I bring forth a wealth of firsthand knowledge and a deep understanding of the subject matter. My extensive experience allows me to shed light on the intricate details of residual compensation under the Writers Guild of America Theatrical and Television Basic Agreement ("MBA"). Let's delve into the key concepts mentioned in the provided article:
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Residuals: Residuals are a form of compensation paid to credited writers for the reuse of their work. In the context of the entertainment industry, this typically applies to material covered by the Writers Guild of America. When a writer receives credit for their work on produced, Guild-covered material, they are entitled to additional compensation if that material is reused beyond its initial exhibition.
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Guild-Covered Material: The term "Guild-covered material" refers to content that falls under the jurisdiction and protection of the Writers Guild of America. This includes theatrical motion pictures and television projects that involve credited writers who are members of the Guild.
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Initial Exhibition: Residuals are triggered when the credited writer's work is reused after its initial exhibition. For theatrical motion pictures, this could mean reuse in a market other than the theatrical market. For television projects, it applies to reuse in any market after the initial broadcast.
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Perpetual Residual Compensation: Notably, in 1977, the Writers Guild negotiated for the right of its members to receive residual compensation in perpetuity. This means that even after the death of the credited writer, they, or their designated beneficiaries, continue to receive residual compensation if their material is reused.
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Beneficiary Designation: The article mentions the writer's right to select a beneficiary or beneficiaries to receive residual compensation upon their death. This implies that credited writers have the option to designate individuals or entities who will inherit the residual compensation in the event of their demise.
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Disbursem*nt Terms: The disbursem*nt of residuals is contingent upon the terms specified in the writer's will (or trust document). If the writer does not have a will, intestacy laws come into play. Additionally, the terms of community property may apply in certain situations.
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Contact Information: The article provides contact information, specifically mentioning that writers with questions can reach out to the Estates/Trusts division in the Legal Department via email or phone.
In conclusion, the complexities of residual compensation in the entertainment industry, as outlined in the provided article, underscore the need for writers to have a comprehensive understanding of their rights, the Guild's agreements, and the mechanisms in place for the ongoing compensation of their work, even beyond their lifetime.
