Showcase Productions, Inc. Copyright, License and Clearance Copyright Prior to January 1, 1978, the effective date of the Copyright Act, works such as kinescopes of live television broadcasts from the 1950s were regarded as unpublished works, similar to an author's unpublished manuscript. In the absence of "publication" the work was protected by common law copyright; there was no need for specific protective steps which were applicable to published works. Thus, the absence of a copyright notice, or timely copyright registration or renewal, did not result in the works' falling into the public domain. However, on transfer to a reproducable format (such as videotape), insertion of a copyright notice, and "publication" -- i.e., the offering of the program for commercial licensing to an unaffiliated third party -- the work could be registered formally with the Copyright Office, beginning the statutory period of exclusive protection. In 1992, Showcase followed the above-described procedure with "THE PETRIFIED FOREST" and the second broadcast of "PETER PAN," and received new Copyright Certificates for each. However, the Copyright Act which became effective January 1, 1978, eliminated the concept of common law copyright, and substutited specific terms of protection for different categories of works, including works which had been created before that date but had not been previously published. Under the Sony Bono Copyright Term Extension Act, PL 105-298((effective January 26, 1998) the period of protection for such works has been significantly extended: 17 United States Code Section 303 covers works created prior to January 1, 1978 and not previously published; if the work was created for hire, its term is the same as that for works covered by Section 302; Section 302, governing works for hire created January 1, 1978 or later, provides for a term of the shorter of 95 years from publication, or 120 years from creation. Thus, assuming that program "X" from the Producers' Showcase series was broadcast on, say, February 1, 1957 -- the date of its "creation" -- and was "published" on February 1, 1999 and then registered for copyright as described above, the copyright term would be the shorter of (a) 95 years from publication, which works out to February 1, 2094, or (b) 120 years from the date of creation, which works out to February 1, 2077. Thus, the shorter term would apply, and copyright protection would expire on February 1, 2077. As a practical matter, this means that the copyright terms of the Producers' Showcase programs will, after publication and registration, expire between 2073 and 2077. All remaining Producers' Showcase programs will be registered for copyright prior to full commercial exploitation. Relationship to NBC The agreement regarding Producers' Showcase has been completed; NBC completed delivery of the physical materials for the programs under its direct control on September 11, 1996; as part of the overall agreement, NBC has agreed not to raise any objection to Showcase's obtaining access to materials in various film archives. NBC will, under the terms of the buyout, receive a portion of revenues from the series for a limited period of time. Negotiations are ongoing regarding other series packaged and produced by Showcase for NBC. Clearances Virtually all of the talent agreements for the original productions, were limited to a live network broadcast, although some delayed broadcast during the period immediately following the initial broadcast, was permitted. In the case of documentaries and similar educational productions, clips are generally believed as being covered by the "fair use" exception, and most producers feel that a license from Showcase, the copyright owner, is sufficient. Notwithstanding this general perception, Showcase's licenses specifically require that any additional clearances which may be required, will be obtained by the licensee. However, Showcase believes that for full-length exploitation, new talent clearances will be required. In the past, it was believed necessary to obtain clearances for rebroadcasts, cable broadcasts, home video, and other reuses, from every single individual involved in the production. With the passage of time, the procedure has been immeasurably simplified, as all of the guilds involved originally have passed or developed "supplementary markets" (i.e., cable, home video, and CD-ROM media) retroactive amendments to the original agreements. These establish set royalty percentages, to be divided among the various cast members, musicians, and so on. In total, the royalties amount to between 10% and 15%, with the variation reflecting media, whether the directors and writers worked for hire or not, and so on. Showcase has met with or spoken with all of the guilds, and it is anticipated that new agreements will be entered into prior to full-length commercial exploitation, on a program-by-program basis. In addition, surviving stars or their representatives will be advised of the pending agreements to determine if there are any objections. Showcase has obtained detailed information from NBC regarding participants in each program, which, coupled with Showcase's own records, and the program credits, are an exhaustive analysis of the parties from who clearances will be obtained. E & O Insurance Showcase does not carry, and will not furnish, E & O insurance for clip licenses. However, Showcase was the original insured party under the E & O insurances when most of these programs were produced; Showcase's records indicate no adverse claims relative to the series, although one or two were presented and were then withdrawn. Showcase has been advised by an underwriter affiliated with Lloyds of London, that new E & O insurance will be available when required for full-length commercial exploitation.