Motion Picture Herald (Jul-Sep 1931)

28 MOTION PICTURE HERALD August 2 2, 1 9 3 1 ALLIED CONTRASTS FILM CONTRACTS LICENSE AND EXHIBITOR WARRANTIES DELIVERY AND RETURN OP PRINTS TERM AND PICTURES NOT RELEASED PROTECTION AND RUN PAYMENT PAYMENT PERCENTAGE ENGAGEMENT ACCEPTANCE OF APPLICATION ADMISSION PRICES SELECTION OF PLAY DATES DATING IN ORDER OF RELEASE sta'ndard erate reliably and efficiently. B) E has or will have effective license from copyright owners, exhibition and reproduction of sound. Delivery to allow time for trial run-off. E pays return shipping charees to exchange; if shipped elsewhere charges not to ex availability of first pic B) E may claifn withjq^ 30 days ,afLerVcontqact expiration any picture co'ntracted for-aiid released within next two years. to one theatre is waiver to all similar theatres. B) Playing of picture by prior run can be made condition precedent to play by subsequent run ^'P f last day. D) Protection includes new theatre in territory. livery or shipment. manded. B) Liquidated damages based on 30 day ave. if unplayed. C) or 65% last day receipts if uncompleted. D) may examine only enobligations ^r 4 months. E) Checker to be regular employee or accountant. accepted by duly authorized agent . B) No rtoney paid can be construed as oinding. C) Application void if not accepted within specified time. cations accepted or rejected as unit. A) Mihimum admission price lOc, children or adults. A) Prints must be in exchange. B) D must give 15 days notice of availabilitv. C) First run's protection expires^ 120 days after generaT release. A) Exhibitor must play in order of release, B) E may play pictures out of order provided prior releases are dated within 30 days. COLUMBIA 1) Sameas5-S-SA 2) E must have license from American Society of Composers, Authors, and Publishers. 0 D warrants print suitable for exhibition. 2) To arrive one hour before opening of theatre, 3) Return shipment to ex raent to. other exhibitor collect. 1) Same as 5-5-5 A 2) Pictures not generally released by Aug. 31. 1932. are automatically cancelled. 1) Same as 5-5-5 C. 2) Same as 5-5-5 D. 3) Distributor can dehver tracted. 1) Payment demanded 2) ^me as 5-5-5 B, 3) 75%. 4) All books for 60 days. 5) Same as 5-5-5 E 6) E must keep D share separately. Same as 5-5-5 A. B. C. D. 10c 2) Contains schedule of E admission prices which must be maintained if filled in. 1) Same as 5-S-S B 2) If prior run changes date, subsequent run must change date, even though confirmed, to conform with protection. 3) If E fails to designate play date D may assign Same as 5-5-5 A. FOX Same as Columbia. Same as Columbia 1,.2,.3. nSameas S-S-5 A. 2)' Pictures not generally released by Aug 13.1932 may be claimed by E within 30 days and obtained if so released in Same as Columbia 1, 2. 3. 4) No protection on pictures double featured. 3 days Same as Columbia. 1. 2. 3. 4. 5. Same as 5-5-5 A. B. (No provision for lapsing of unaccepted applica (No provision to treat similarly dated applica 15c 2) Same as Columbia 2 ) Same as Columbia 1. 2, 3. Same as Columbia. M-G-M Same as Columbia. 3) E agrees to run on same size reels as tumished by D. Same as Columbia 1. 2, 3. 1) Same as 5-5-5 A. 2) But pictures released before Aug. 31. 1933, must be delivered and accepted by E. Same as Columbia 1,2,3, 4) Distributor's liability for protection violation is limited to rental. 3 days 2) D may ship picture COD to include any prior claim, even though specific picture shipped for. Same as Columbia 1. 2, 3. 4) All books ANY time. 5) No restriction on local 6) Recapitulation state 7) E must pay for all passes except newspaper and advt. Same as Columbia. 10c Same as Columbia 2. DSame as 5-5-5 A, 2) Same as S-S-5 B. 3) If E does not select dates D may designate date for Ist runs and subsequent runs. Same as Columjjia. D A D A llj(r\T I MX Same as Columbia. Same as Columbia 2, 3. (Condition of print not guaranteed.) 1) Same as 5-5-5 A 2) No provision. E has no claim on any picture 'not released during term of contract. Same as Columbia 1,2, 3. 4? ALL l»oks7or'\ mos 5) Same as Metro 5. Same as 5-5-5 A B' C (No provision to treat similarly dated applications as unit.) Same as Columbia 2 1) Same as 5-5,'5 B. 2) Same as Metro 3. SAme as Columbia, R-K-0 PATHE Same as Columbia. Same as Columbia 1, 2. 3) E prepays shipment to I) Eighteen months after first picture. tice must be sent before Sept. 30. 1932. Same as Columbia 1, 2, i 7 days" Same as Columbia 1. 2. 3. 4) ALL books for 1^2 mos. Same as Paramount 10c Same as Columbia 2 1) Same as 5-5-5 A, 2) Same as 5-5-5 B. 3) Same as Columbia 3. Same as Columbia. R-K-0 Same as Columbia, Same as Columbia 1, 2, 3. 1) Terra is from^/1/31 to Same as Columbia 1, 2, 3. 3 days Same as Columbia Same as Columbia. lOc 1) Same as 5-5-5 B, ' Same as Columbia. 8/31/32. 2) Same as 5-5-5 B. 1, 2.3.4, 5, Same as Columbia 2. 2) If E faib to select play date, rental becomes due and protection is lost. JITED ARTISTS Same as Columbia. Same as Pathe, 1.2, 3. (Print in physical condi.tion for exhibition.) following acceptance. 2) Same as Paramount. Same as Columbia 4) Same as Pathe. Same as 5-5-5 A. B C 4) May accept any one or more of similarly dated applications. 5) Breach of one contract is breach of all. Same as Columbia 1, 3 Same as Columbia. UNIVERSAL Same as Columbia. Same as Columbia I. 2, 3. 1) Same as 5-5-5 A. 2) Same Pathe 2. Same as Columbia 1, 2. 4) Protection eliminated on pictures not dated within 45 days. 2) D may withhold picpicture, already paid for. for any claim under this Same as Columbia 1. 2. 3, 4, S. Same as Columbia. 10c Same as Columbia 2. Same as Metro 1. 2. 3. Same as Columbia, WARNER FIRST NATIONAL Same as Columbia. . 3) E agrees to have trial run on before 1st showing. (See Delivery.) Same as Columbia 2. 3, (Condition of print not guaranteed.) 1) Same as Pathe 1. 2) Pictures generally re teased after Sept. 15, 1932. are specifically excepted from contract. Same as Columbia 1, 3. 5 days 1) Same as 5-5-1 A. Same as Columbia 2, 3. Same as Metro 4, 5, 6. Same as Columbia !0c Same as Columbia 2. !) Same as 5-5-5 B 2) Same as Columbia 2. Same as Columbia. Texf of Allied States' Contract Analysis The Contract Exhibitor Warranties When the 5-5-5 contract was being drafted, it was consideted fair, in order that pictures get a proper showing^ for the exhibitor to warrant that his equipment will operate reliably and efficiently to reproduce the recorded picture, and this provision was written into the contract. The warranty that previously appeared, that the exhibitor had a license from the American Society of Composers, Authors and Publishers, was changed to read that he had an effective license from the copyright owners in order to remove from this society the whip that it had. All contracts now in use have retained this warranty that the exhibitor equipment wijl operate reliably and efficiently and have gone back to the old warranty that the exhibitor has a license from the Society of Composers, Authors and Publishers. In addition to these provisions, Met'ro has a special provision whereby the exhibitor agrees to run the photoplays on the_ same size reel as that furnished by Metro, which means that an exhibitor cannot double up on his reels. Warner and First National also have a special provision whereby the exhibitor agrees to have a trial run off before the first public exhibition. This is not optional, but compulsory, and at the same time is impossible for the exhibitor to carry out, since Warner and First National agree to deliver the I>rint to the exhibitor only one hour before the first public exhibition. Delivery, Return of Prints Inasmuch as the exhibitor agrees to provide equipment that will operate reliably and efificiently, it was considered fair that the 5-5-5 contract include a warranty by the distributor that he would furnish a print "in physical condition for exhibition and, if a sound picture, which will clearly reproduce the recorded sound," this print to arrive in time for inspection and projection before the usual time of opening the theatre. The latter provision was inserted so that every exhibitor could have a trial run oft' if he desired so that he could determine at which volume he was to project the picture. Every distributor has abandoned this provision and has gone back to the old provision which required shipment to arrive one hour before the opening of the theatre, which obviously does not give time for a trial run off. Every distributor, with the exception of Paramount and Warner-First National, warrants that the print delivered is suitable for exhibition, which Avould probably be interpreted to cover not only the physical condition of the print, but the sound recording, and therefore differs from the 5-5-5 contract only in that the language is not so clear. Paramount and Warner-First National say absolutely nothing about the condition of the print they are to deliver to the exhibitor — hence the exhibitor can have no complaint and no redress when he gets a bad print not suitable for public exhibition. When the run was completed the exhibitor under the 5-5-5 contract was obligated to return the print to the distributor or ship it to another exhibitor if requested by the distributor, all charges prepaid, but if the shipment was to another exhibitor, the cost of shipment was not to e.xceed what it would have cost to return the print to the exchange. All distributors, with the exception of RKO-Pathe, provide that the shipment to the exchange shall be prepaid, but to another exhibitor shall go forward charges collect. Pathe provides that the exhibitor shall prepay all charges, whether shipment is made back to the exchange or to another exhibitor, with no maximum charges as is provided in the 5-5-5 contract for the protection of the exhibitor. Terms Pictures Not Generally Released The 5-5-5 contract definitely fixed the term of the contract at one year after the availability of the first picture, so that the exhibitor was contracting for one year's supply of photoplays on all of his contracts. Columbia, Fox, Metro. Paramoamt and Universal have all incorporated this provision into their contracts. RKO-Pathe and WarnerFirst National's period is 18 months after the availability of the first photoplay. RKO's period is set from September 1, 1931, to Augrust 31. 1932. which has_ considerable merit because of its definiteness. United Artists' period is "One year from August 31st, following the acceptance." Exhibitors should watch this provision very carefully, for if the contract is signed immediately after August 31, it actually becomes a two-year contract, and the exhibitor must accept any of the photoplays contracted for if delivered to him within that two-year period. If some of the photoplays contracted for were not generally released within the tenn of the contract, the 5-5-5 contract provided that, if the exhibitor desired the undelivered picture, it was compulsory for him to notify the distributor in writing within thirty days after the expiration of the contract, that he wanted the photoplays not then generally released, and if so notified the distributor would have to deliver these photoplays, if they were released within a period of two years. This provision was inserted for the benefit of the exhibitor, so that the distributor could not hold a "hit picture" over until after the term had expired in order to sell it on next year's contract. Pathe, RKO and Universal have included this provision in their contracts, but Pathe and Universal provide that the notice must be sent before