What are the payments for Internet use?

There are two types of residual payment formulas for a commercial used on the Internet:

• 1.Commercials “made for” the Internet: There are no minimum fees set under the Contract for a commercial made directly for the Internet. The producer and the performer are free to bargain fees, provided a Pension Health contribution is made. The performer is not held exclusive for “made for the Internet” commercials unless Producer negotiates for this right and pays holding fees.
• 2. Broadcast commercials “moved over” to the Internet: A commercial made for broadcast and used subsequently on the Internet requires payment of not less than 300% of the session fee (3 x $567.10= $1701.30) for one year of use. Extending the use beyond the first year for up to 9 months remaining in the 21-month maximum period of use is permitted if the producer pays an additional $1701.30. Session or holding fees cannot be credited against Internet use payments. If the performer checks off the box on the front of the employment contract, the producer is required to bargain with the performer for Internet use rights.