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Recommendation 5.4: IRS Valuations
Recommendation 5.5: Sharing Storage Costs
pay for adequate storage. Transferring materials to archival custody in many cases benefits the filmmaker while serving the public interest. Filmmakers from D.W. Griffith to Andy Warhol are known today largely through films that have come into the safekeeping of public archives.
Some independent filmmakers interested in establishing archival relationships are put off by the complex custodial and copyright questions that accompany gifts or deposits. They fail to take the necessary steps to protect their work and run the risk of having films lost, destroyed or tied up in court battles after their death.
To explain the advantages of these arrangements and to assist filmmakers and archives in developing mutually beneficial agreements, task force members have prepared a checklist. Depositing Films With Archives: A Guide to the Legal Issues (Supporting Document D). The National Film Preservation Board plans to make the checklist widely available to the film community. Additionally, the Board will work with archivists and filmmakers' groups to alert independents to the preservation needs of their works.
Clarify U.S. Internal Revenue Service (IRS) practices for valuing films, film copyrights and related materials donated to public archives. The tax environment can be a critical factor in the individual or corporate decision to give films, film copyrights and other film-related materials to archives. Some archivists argue that the valuations allowed by the IRS are too low, particularly in cases involving the gift of copyright as well as physical materials, and that these low valuations discourage donations. Without incentives to encourage archival gifts, many materials will remain in private hands and unavailable for public study and use. The National Film Preservation Board will request that the Internal Revenue Service elucidate its administrative guidelines and practices for valuing donations of films, film copyrights and related materials.
Develop, with rightsholders and archives, cost-sharing arrangements for the storage of commercially controlled nitrate film in public institutions. Few will dispute that public archives performed an important cultural service when they opened their vaults to studio nitrate films in the 1960s and 1970s. At that time, most major studios presumed that older works had limited commercial value and sold off their libraries or copied more valuable titles onto safety film, in some cases destroying the unstable nitrate. Transferring the films to public custody and retaining the copyrights offered studios another option. Now, of course, the market has
24 Redefining Film Preservation