Does every audiovisual work entitle its authors to royalties?
No. TALI represents repertoire that includes the rights of screenwriting and directing in the following general genres: dramatic works, documentaries and video clips.
Can the royalties for the use of the work be calculated in advance?
No. Royalty calculation is based on the licensing fee of the individual user using the work that belongs to TALI’s repertoire, and the total amount of usage that the user made of TALI represented works. The share of each author in the “royalty pie” is determined by the parameters in the document titled TALI Repertoire Definitions, including: length of work, time of broadcast, frequency of broadcast and the genre. Each ‘slice’ represents a monetary value which is ultimately, at the end of the process, transferred to the authors.
In the new media, the amount of royalties depends on the specific number of usages of the work (for example, the number of views on the internet or VOD). The data accumulates by TALI until the calculation of royalties comes (before distribution). Only then it is possible to determine the exact amount of royalties each member will receive in the relevant distribution.
In case copyrights were not protected adequately in the contract with the commissioner of the work, can it be corrected retroactively?
Yes. In any event where copyrights were not protected, TALI’s lawyer will draft a legal addendum applying the “TALI Clause” to the agreement. Once both parties sign this addendum, the copyrights return to the creator, who transfers them in turn to TALI, for the purpose of collecting and payment of royalties.
Can royalties be received by a company?
Yes. By default, the royalties are deposited to the private account of the creator – in order to give maximum protection to the interest of the individual creator to benefit the royalties he/she deserve, without need to share, against his/her will, with other parties. However, it is possible to request that payments should be deposited to a company’s account, providing that 100% of its shares are owned by a member or members of TALI.
Does VAT apply to royalties?
TALI pays royalty VAT directly to VAT authorities and reports them. In other words, royalties are paid to members without VAT included. In practice, this means that TALI members that are a registered dealer need to issue a tax invoice with zero VAT. No need to send TALI an invoice or receipt.
Notwithstanding, consult an accountant or tax advisor regarding the reporting of royalty payments to the VAT authorities.
Does social security tax apply to royalties?
Yes. Royalties are usually considered as passive income which is defined by Social Security as “another income” – income which is not gained from work as an employee or from self employment.
Notwithstanding, consult an accountant or tax advisor regarding social security payments.
Does income tax apply to royalties?
TALI deducts tax for its members according to law. Each member is responsible to make sure that his/her tax papers are in order and sent to TALI. If this is not the case, contact Income Tax authorities and make the necessary arrangements. TALI’s Deduction File Number is 935630590. Tax coordination from artist/author wages should be updated and sent to TALI every year.
Each member should know that according to law, if the updated tax coordination form for that year is not sent to TALI, the maximum income tax of 47% shall be deducted.
Notwithstanding, consult an accountant or tax advisor regarding income tax payment.
Where can the TALI Clause be found to be used in contracts?
On the TALI website or via email: merav@tali-rights.co.il
What legal assistance does TALI provide?
To ensure that other clauses and provisions in the agreement and its appendices do not retract, negate or override the TALI clause, TALI provides its member legal counsel, before signing the final contract, in regard to copyright protection. Use of this service is free of charge for TALI members.
Are new TALI members entitled to royalties for the broadcasting of their work prior to joining TALI?
No. TALI members are entitled to receive royalties for broadcasts only once they join TALI since only then does the creator transfer the rights to his/her work to TALI. Non the lese, TALI enables the new member to participate a distribution for usages made by users predating his\her membership, as long as those royalties have not yet been fully distributed (subject to copyright protection of the work).
How can a screenplay/synopsis/ treatment of an unproduced audiovisual work be protected to prevent plagiarism?
The Screenwriters guild provides copyright protection services, as is customary in Screenwriters guilds worldwide. The unique registration method creates reliable evidence for the author, which can be used if the need arises, to prove that at the time of registration his\her screenplay had indeed existed in the event of a copyright claim.
More information is available on The Screenwriters guild website.
Can royalties calculation be appealed?
Yes. The creator can appeal the royalties calculation (including the original or corrective calculation) of TALI. Appeals are allowed for 36 months after the initial payment – or 12 months after royalties distribution has been carried out; the longer period of the two. These provisions will apply, respectively, to TALI’s right to appeal.
