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for made-to-hire works was to benefit directors of U.S. films in Europe by bringing the amount of protection they receive closer to that received by European directors. They have a split between the company that owns, that may own the picture, and the directors of the film, so that both receive some of the money.
If we extend the made for hire amount, the 95,000, the directors will get a much larger share of that money under the European system in Europe, and that was the point that she was making for us when you heard the earlier testimony, and that was a reason that was given for that change.
Would you like to comment on that?
Mr. Belton. I probably am not the right person to talk about it. You're saying that whatever contracts a director has with a studio in the United States will be ignored by a European exhibitor who will decide that the director and the cinematographer, and so and so, should receive royalties?
Mr. MOORHEAD. The Europeans' money — in Europe the money received will depend upon their determination of how they made those splits, and the director, as I understand it, shares with the holder of the copyright. In other words, he has a copyright protection also. We don't do that here in the United States.
But they will not — we have an agreement where — with other countries, and they give our people the protections or at least the amount of money that they would be able to get in the United States. With the pot being shifted, it becomes larger for them or it lasts longer.
Mr. Belton. So that the Europeans are giving artist protections we do not give them.
Mr. MoORHEAD. That's right.
Mr. Belton. And this is wonderful, but I don't think it's the reason for —
Mr. MoORHEAD. No, but they will — our directors will share in that increase in the 75,000. That's what I'm told; that's what she said here in her testimony.
Mr. Belton. I know that American directors have certain rights. I don't know that they have commercial or financial rights.
Mr. MOORHEAD. I think she's in a better position to give that information that anybody else.
Mr. Reichman. That is possible. If the director — the European law recognizes not only the director, it recognizes the screenwriter, the musical composer, and one other person.
Mr. Belton. The cinematographer.
Mr. Reichman. And, actually, the copyright will last until the last of the four of those dies. This is the copyright as distinct from the related right, which they give to the producer. So it is possible that if our director, as director, obtained moreover, it would make it harder to give him less under the rule of the shorter term, if they're applying it to the director as such. It's not clear to me exactly how they will mesh the director under the new directive; that is, will they do that and give him 95 or will they continue to say it's just a work made for hire; we'll give you 70? I'm not 100 percent sure.
Mr. MOORHEAD. Well, she's been telling us that they would benefit from that increase.