The Canadian Independent (Mar 1, 1938)

_ Mar.-1, 1938 THE CANADIAN WE CUED FOR THE BENEFIT OF ‘WR (DEPENDENT THEATRE OWNERS aie a ae | INDEPENDENT PATRONIZE THE ADVERTISERS WHO MAINTAIN IT. PROPOSED CHANGES IN CANADIAN LICENSE 7 By Harold Kay, Ben Ulster and Harry Firestone (Press Com. ITA) In the summer of 19386 the Independent Theatres Association of Ontario had their contract committee sit down with the organization’s attorney for the purpose of examining the Canadian License Agreement and _ drafting proposed changes for the sorest spots in the contract. The clauses suggested for deletion or alteration together with _ additional clauses embodying an extention of exhibitor rights, were published in the August 15th edition of the Canadian Independent of 1936. Since, at this time, the Motion Picture Distributors and Exhibitors Association has been so courteous as to invite the ITA to submit its ideas of necessary changes in the standard contract, we thought it might be timely to restate the case at this time, as_ practically none of the changes have been incorporated into the contract as yet. The following is not by any means a complete statement of the case. It does however form a basis from which to work, and indicates how much needs to be done if the standard contract is to be made an equitable instrument of trade instead of a bone of contention in the industry . Clause 8 — The protection given by this clause.in cases where films are lost, damaged or _ destroyed should be extended so as to provide — (a) that the exhibitor shall not be liable for loss, damage or destruction until the film comes into his possession or after the film goes out of his possession. (b) That the exhibitor shall not be liable for loss, damage or destruction while the film is in the exhibitor’s possession if such damage, loss or destruction is caused by fire or theft. The exception as to fire while the film -is in the exhibitor’s posses sion shall not apply where the fire originates in the projection machine. (c) The original provision in this clause permitting the exhibitor to return films within sixty (60) days should be allowed to stand. In case of loss of film in transit, the exhibitor should have 60 days in which to trace and return the product before he is made to suffer the full cost of the lost film., Clause 11 — The second: paragraph in this clause should be eliminated. It prohibits the exhibitor from. the full use of advertising: accessories, such as _ stills, and posters, after he has paid for them. This material: should become the property of the exhibitor after purchase and he should be free to make any subsequent use of this material for his own benefit. Clause 12 — This digivd should be eliminated. When the exhibitor pays his rental fee to the distributor, that fee should entitle him to the full use of the product leased without further charges of any kind being levied against him, such as_ taxes and/or charges mentioned in this clause. Clause 17 — Provision should be made whereby the exhibitor shall have the right to cancel any offer made by him to the distributor at any time until the acceptance of the said offer by. the distributor. Clause 19 — The method of computing damages as set out in this clause is unfair to the exhibitor. In eases where the distributor is entitled to damages for the failure of the exhibitor to exhibit percentage photoplays, that the damages to be paid to the distributor should be an amount equal to the average price paid by the exhibitor to such distributor for the last twenty (20) pictures leased by the said distributor to such exhibitor, a i THE FOLLOWING ADDITIONS TO THE = CONTRACT ARE SUGGESTED: 1. Where there are two. er more pictures sold in a group on percentage to the exhibitor and guarantees are provided for, the percentage to be paid above the guarantees should not be based each picture but should be based on the average over the group of pictures. Take as an example the purchase, of ten pictures with a guarantee of $100.00 for each picture and a percentage on receipts of over $300.00 for each picture. The amount to be paid to the distributor should be the sum of $1,000.00 plus percentage of receipts over $3,000.00. 2. Film prices should include score charges as part of the license rights. 3. Where there are prior runs which exercise clearance, there should be an onus on the exchange to notify the exhibitor of the availability of such pictures in sufficient time to allow the exhibitor to receive a date as soon as it becomes available under the clearance schedule. 4. A clause should be inserted in the Agreement for LOTS OF GOOD MILEAGE LEFT IN YOUR SEATS WE MODERNISE THEM | With new FLOATING, AIR COOLED, asa! POCKET SPRING CUSHIONS, most comfortable | of: all. New upholstery on cushions and backs.. re-painting of the standards. hauling of all parts. The result will amaze you, the low. cost will surprise: Your boxoffice too, will show improved receipts. | you. ® ASK US TO-DAY — No Obligation Canadian Theatre Chair. AG ‘|| 277 VICTORIA STx on the returns for | the * purpose -of assessing damages. as against: the distributor for a-breach of contract on priority. -. These damages. should pnb to.at least the rental of the film ; and in addition, the exhibitor should. have the option to refuse to display the film under the contract. "5, There should ya" 4 standard minimum cancellation clause of one picture.in six for any group of pictures leased. In cases where: the distributor ‘sells a group. of pictures without designating stars, directors. or stories, this cancellation clauge should be increased to.one in four. 6. There. should be: standardization, consaltdation or elimination of the extra clauses inserted on the face of the contract by see exchange. SiG S 7. In case film is not made available for exhibition at the time agreed upon, after the picture has been duly booked, the distributor should be made liable for damages to the exhibitor, the extent of damage to be determined by-.a neutral body. If the theatre is forced to remain dark, or the exhibitor is con (Continued on Page 4) Le Modernistic ' Plus a general — _ TORONTO, ONT.