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Collecting the Uncollectable: A Job That Someone Has to DoBy Bob Jenkins According to
Compact Collections Director and General Manager John O’Sullivan, “it
is surprising how many companies, don’t even know they are owed money, much
less how to set about collecting it.” “PACT,” said O’Sullivan, “was aware
that many of their members were either ignorant of the existence
of publishing rights, or else ignorant of how to collect on them, but
PACT itself didn’t have the human resources to effect these collections
on behalf of its members. So, it turned to Palan, as the company
already had very comparable experience in the music publishing business.” This
lead to the establishment of Compact; although originally a joint venture with
PACT, the company is now privately owned and PACT is no longer directly involved. Icon Entertainment’s Humphrey Gravell acknowledged “it is certainly true that since we took Compact on board, collections have increased, and I am very happy with their performance and with the funds they have sent us on a regular basis,” adding, “I am also happy not to have to deal with all the individual societies.” Both companies
appointed Compact just over two years ago after previously handling the collection
of these monies internally. But even for significant companies such as Fremantle
and Icon, it is questionable whether the revenues would justify the establishment
of an operation such as Compact, which employs 15 people in the
U.K. who have over seventy years of experience with collections
between them. Compact has also recently opened offices in Los Angeles,
to add to its existing representation in France, Germany and Spain.
All of which, said John O’Sullivan, “make Compact the biggest player
in the collections game, with annual collections on behalf of clients
running into several millions of dollars.” As for the future of Compact, growth is in the air with the establishment of a new service - CAM - geared towards film collections. O’Sullivan admitted that “there are well-established companies in this field such as Freeway, Vintage and N.F.C.,” but, he countered, “we have just hired Alun Tyers who has 25 years of experience with N.F.C. and we plan to offer clients the ability to track licenses. So, if, for example, you have licensed a film for two transmissions over five years, we will be able to tell you when the second run has been taken. If this is prior to the expiry of the five-year period then the license has been exhausted and the client will be able to immediately negotiate a renewal without waiting for the time-period to expire.” Both strategies would seem to herald a bright future for the company that likes to “collect the uncollectable.“ |
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