Industry bodies draw clear lines between clients, film production and creative agencies

The Association of Accredited Advertising Agents of Malaysia (4As) and the Malaysian Association of Advertising Filmmakers (PPFIM) have agreed on a Production Agreement template.

The new agreement, which came into effect since 1 March this year, will safeguard the interests of the creative agencies, film production companies and advertisers. It also includes the clause on balance 50% payment terms that will be subjected to individual negotiation between the film production company and the creative agency.

PPFIM proposed the agreement template, which contains many global “Best Practice” clauses and will help raise industry standards upon implementation. The agreement is in line with the National Film Development Corporation’s (FINAS) new requirement for a properly executed copy of a written agreement when applying for a “Made in Malaysia” certificate prior to broadcast.

However, 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 the commencement of film shoots to be executed within Malaysia. The balance 50% payment is to be negotiated between advertisers and the creative agencies.

According to Khairudin Rahim (pictured), 4As CEO,  4As collated feedback from its members on the individual clauses prior to having a dialogue session with PPFIM to finalise the Production Agreement template. The dialogue was moderated by FINAS and witnessed by representatives of the Malaysian Advertisers Association (MAA).

Rahim said: “The 4As fully supports the implementation of a formal written agreement prior to commencing each advertising commercial production,”

“We are satisfied that PPFIM has finally taken the 4As’ perspective into account and incorporated our recommendations in the Production Agreement template,” Rahim acknowledges.

Also, Rahim highlighted that it is crucial that the terms of the agreement must concede to a willing buyer-seller service. With regards to that, the production company or creative agency is able to amend or add new clauses to the agreement.

“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.” he added.

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