The agreement establishes a legal framework for relations regarding co-production of films for the cinema and TV.
The agreement shall remain in force for a period of five years from the date of its entry into force. The signing of the Agreement ensures better partnership and collaboration between enterprises and institutions which produce, distribute and disseminate films.
The Inter-governmental co-production agreements are umbrella agreements, under which private, quasi-government or governmental agencies enter into contracts to produce films together. The films so produced are treated as national films in both countries and such films cannot be treated differently from a domestically produced film in each of the co-producing countries. The umbrella agreement lays down the extent of financial contributions (usually ranging between 20 – 80%), the need for both co-producers to make effective contributions, modalities of sharing honours and prizes and exporting films etc.
The Agreement would also facilitate producers, screenwriters, directors, technicians actors and other specified personnel to enter and briefly stay in each other’s country.
Currently, as part of the initiative, the Government has signed co-production agreements with Italy, UK, Northern Ireland, Federal Republic of Germany, Brazil, France and New Zealand.