FINANCE SUMMIT: meeting to simplify funding arrangements

A top-level meeting of film lawyers has been called this month in a bid to tackle the industry's soaring legal costs, the Gazette has learned.

The meeting has been organised by the UK Film Council, the government-backed agency that oversees the British Film Institute and distributes National Lottery-funded subsidies to film productions.

James Shirras, director of legal and business affairs for Film Finances Ltd - which provides completion guarantees - said the meeting was scheduled for this month.

He said: 'I think there is a concern about the increased complexity of film-financing transactions and a desire to simplify matters in the industry.'

He added that such simplification might encompass a consolidation of the charges taken by different financiers over the same film.

'If, for example, you have a film financed by six different financiers, they might each take security over the film using different legal documents.'

Mr Shirras said: 'I think that lawyers have always had a vital role to play in the financing of films, and that is the case more now than ever.

We get a good overview of the film-making process and the initial production side is often overseen by lawyers.'

However, another senior City film lawyer - who preferred not to be named - doubted there was scope for reducing costs.

He said: 'I'm not sure that I can be bothered to go [to the meeting].

One financier cannot ultimately dictate terms to all of the others.

During the 1960s, there was a standard production agreement between Rank Distributors, Allied Filmmakers and National & Provincial Bank.

But that was then, these days it is impossible to apply that policy.'

He said of those looking for a unified finance agreement: 'They can't stop people making comments and advising their parties - it is an understandable desire, but film finance is just not that simple.'

Will Evans, the in-house lawyer at the UK Film Council who is understood to be organising the meeting, said that he did not wish to discuss an event that had not yet taken place.

See [2004] Gazette, 4 March, page 26

Jeremy Fleming