Why use a collection account? Four advantages. Since January 2009, eurimages-funded projects with a budget of 3 million euros or more have been needed to create an independent production collection account with a collection company. The distributor orders each distributor with whom it has entered into a distribution agreement to pay directly into the collection account all amounts representing RoW`s gross revenues. The collection agency is responsible for distributing its share of RoW`s gross revenues to beneficiaries, including commission, expenses and possible advance of the salesperson. Manufacturers may retain the services of a recognized independent collection office, provided Eurimages has agreed. Below is a list of the collection agents eurimages has already collaborated with. Funds received by the MAC in the collection account are allocated and distributed in accordance with the film collection plan to be included in the CAMA. The CAMA is generally signed by all parties with a strong financial interest in the film`s global revenues. By signing a single contract that replaces all other individual agreements and conditions (such as the sales agency agreement, production agreements, financing agreements and talent agreements) with respect to the allocation and distribution of revenues, it reduces or eliminates the risk of disputes and conflicts between interested parties. For projects with a budget of more than 3 million euros or more, co-producers agree to create a collection account for a collection agency. For projects with a budget of less than EUR 3 million, Eurimages reserves the right to request the creation of a collection account by a collection agency.
In all cases, Eurimages must be the signatory of the collection contract. Manufacturers must inform the company`s Eurimages project manager beforehand that they intend to name your collection agency. Eurimages also has the right of authorisation for this decision. With a collection account, none of the parties with a financial interest in the film controls the receipt, allocation and distribution of revenue. Collection Account Manager is an independent, neutral third party whose sole mission is to manage revenue and who is not interested in the film, with the exception of the collection account management. This protects the income of the film`s beneficiaries from the usual financial risks in the audiovisual industry, such as. B the bankruptcy of one of the parties of interest. In addition, a CAMA ensures that the parties to the distribution chain cannot withhold the costs and expenses associated with the revenue generated until those expenses have actually been earned or were properly realized.