Common use of Clip Use Clause in Contracts

Clip Use. Exhibit A shall be modified to include the following understandings regarding clip use: 1. The clip rates set forth in this provision shall be paid: (a) when a clip from a program produced pursuant to the National Public Television Agreement is licensed into another program produced pursuant to the National Public Television Agreement; (b) When a clip from a program produced pursuant to the National Public Television Agreement is licensed into a program produced pursuant to another AFM agreement, unless that agreement provides a rate for such clip use, in which case the rate required by that agreement applies; (c) When a clip from a program produced pursuant to another AFM Agreement is licensed into a program produced pursuant to the National Public Television Agreement, except that if a clip from a program produced pursuant to the Basic Theatrical Film or Basic Television Film Agreement is licensed into a program produced pursuant to the National Public Television Agreement, the clip rates established by those agreements shall continue to apply. 2. Payment of the clip rates entitles the Producer to 6 national releases over 5 years (or 6 national releases over 7 years for documentaries), or to 8 national releases over 25 months for pledge shows. 3. When a reuse payment or Supplemental Market Fee is owed pursuant to this Agreement with respect to a program that consists of or contains clips, the following shall apply to the musicians, orchestrators, copyists, librarians and proofreaders who were entitled to clip payments: (a) The reuse payment per person shall be 100% of the clip use payment, except that when an Employer is entitled to additional broadcast cycles (or a 9th and 10th release) of a pledge program for a different percentage of the compensation paid under Table 2 of Exhibit A.I.(A), the reuse payment shall be calculated as the appropriate percentage times the clip use payment; (b) When the Base Amounts Per Person set forth in Exhibit A.I.V.3.a.i. are used to compute the Supplemental Market Fee, the base amount for the computation of the Supplemental Market fee shall be the clip use amount to which each person was entitled; (c) When the Supplemental Market Fee is based on an optional formula requiring the payment of a percentage of Distributor’s gross to be shared among all musicians, the indivduals who were entitled to clip use payments shall be included among the individuals who share the Supplemental Market Fee. 4. Pension, doubles, leader and contractor fees must be paid on the clip use payments. 5. Arrangers and orchestrators shall receive clip payments at the same rate as the leader or contractor. Copyists, proofreaders and librarians shall receive clip payments at the same rate as side musicians. 6. Clips are paid as follows: 0:31 – 0:60 $85 per side musician