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WGA West, CBS Reaches Residual Settlement Of $ 3.4 Million For Reuse Of Streaming Shows – Deadline

WGA West and CBS have reached a $ 3.4 million settlement of a residual litigation arising from the reuse of 62 of the network’s shows on its now renamed CBS All Access subscription streaming service.

“When CBS launched CBS All Access, the company used much of its own television programming to establish and grow the service,” the guild leaders said in a letter to members today. “The authors of these television programs owed a 1.2% residue license fee for use on CBS All Access. Since CBS owns CBS All Access, our contract requires the company to calculate license fees using comparable CBS TV shows licensed in arm’s length transactions. “

The guild said this protection is necessary “to ensure that companies don’t underestimate license fees – and therefore underpay residue – when licensing content.” In a world where most of the major studios have launched or will soon launch their own streaming services, this continues to be a vital app issue for the guild to resolve. “

WGA West sees ‘rise’ in TV contract violations during pandemic

The WGA West legal team claimed that CBS had understated the license fees used for repurposed shows on CBS All Access, from its inception in 2014 until 2020.

“We worked with CBS to come up with a settlement that not only appropriately assesses the license fees for the programming you wrote, but also includes interest owed for late payment,” the guild leaders said, who noted that the checks will be sent to affected writers over the next two weeks.

Guild leaders said they “will continue to monitor how CBS values ​​its television programs and pays for the residue for reuse of the new service in the future.”

The letter was signed by WGA West President David A. Goodman, Vice President Marjorie David; Secretary-Treasurer Michele Mulroney, Senior Counsel Alisa Schlesinger and Deputy General Counsel Kathy Christovich.

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