FYI

Deal struck to safeguard creatives in Malaysia

An agreement has been struck in Malaysia in a bid to safeguard the interests of creative, film production companies and advertisers.

The announcement:

The Association of Accredited Advertising Agents of Malaysia (4As) and the Malaysian Association of Advertising Filmmakers (PPFIM) have jointly agreed on a Production Agreement template that will safeguard the interests of the creative agencies, film production companies and advertisers.

The new agreement, which came into effect from 1 March this year, includes the clause on balance 50% payment terms that will be subject to individual negotiation between the film production company and creative agency.

The agreement template proposed by PPFIM contains many worthy global “Best Practice” clauses which once implemented, will help raise industry standards. These include the recognition that work hours for an advertisement film shoot is a 12 hour day and that overtime charges will apply after 12 hours for a maximum of four additional hours. It also provides clarity on the expectations for weather contingency, working with children, and intellectual property rights.

“The 4As fully supports the implementation of a formal written agreement prior to commencing each advertising commercial production,” states Khairudin Rahim, 4As CEO. This is in line with the National Film Development Corporation’s (FINAS) new requirement for a duly executed copy of a written agreement when applying for a “Made in Malaysia” certificate prior to broadcast.

Khairudin adds that it is crucial that the terms of the agreement must concede to a willing buyer-seller basis. In this regard, the production company or creative agency may also amend or add new clauses to suit a particular need or circumstance. “The advertising industry must operate within the framework of fair and intense competition. As such, a standard contract retards competition. The 4As had earlier rejected PPFIM’s position that only the “Standard PPFIM Agreement” be used.”

However, the 4As fully supports and agrees as standard, that 50% of the total project is paid to film production companies no more than seven days prior to commencement of film shoots to be executed within Malaysia. The balance 50% payment, in reference to existing individual credit terms, is to be negotiated between advertisers and their creative agencies.

According to Khairudin, the 4As collated feedback from its members on the individual clauses prior to having a dialogue session with PPFIM to finalise the 4As-endorsed Production Agreement template. This dialogue was moderated by the National Film Development Corporation (FINAS) and witnessed by representatives of the Malaysian Advertisers Association (MAA).

“We recognise the need for a written agreement,” acknowledges Khairudin. “We are satisfied that PPFIM has finally taken the 4As’ perspective into account and incorporated our recommendations in the Production Agreement template.

With the Production Agreement now finalised, Khairudin urges 4As member agencies to take the necessary steps to comply with the best practice clauses and to manage their clients’ expectations.

This is a ground-breaking milestone for the local creative industry as it is one of the 4As’ five pillars to provide industry guidance and leadership by formulating best practice guidelines.

Source: Association of Accredited Advertising Agents of Malaysia press release

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