Remuneration Policy "Standard"
Introduction
At OpenStoryBoard Content may be commercialised in two ways:
First, successful Content emerges through ratings of the community. "Popular Content" is an open or finished story with an average top rating (4 or 5 stars) and at least 50 ratings on OpenStoryBoard. "Prime Content" a finished story with an average top rating and at least 500 ratings. Commercialisation takes place in an automated fashion: As soon as Content is in the Popular category, it can be downloaded for a small price as ebook on OpenStoryBoard. Prime Content is first reviewed and then additionally offered as ebook via traditional 3rd party online shops such as Amazon for a regular ebook price. When published Content is commercialised in the form of an ebook under this remuneration policy, those members of the OpenStoryBoard community who contributed to the creation of that Content are rewarded for their efforts. We will do so by sharing a proportion of the revenues generated through the ebook sale of that Content in accordance with the remuneration policy that applies to that Content.
Independent from community ratings, OpenStoryBoard may sell, license or in other ways commercialise Content published on the Site on traditional media such as screen or print (non-ebook commercialisation). We are under no obligation to do so, or to endeavour to do so, and some Content may never be commercialised further by us. When published Content is commercialised through an OpenStoryBoard initiative, we ensure that those members of the OpenStoryBoard community who contributed to the creation of that Content also to be rewarded for their efforts. We will do so by sharing a proportion of the profits generated through the sale, licensing or other commercialisation of that Content in accordance with the remuneration policy that applies to that Content. Not all forms of commercialisation of Content allows the contributing members to share in the net profits generated from that Content.
Note: Capitalised terms used in this document shall have the same meaning given to them in the Terms And Conditions, unless otherwise indicated.
Application
This is the OpenStoryBoard Standard Remuneration Policy. It applies to all Content published on or submitted to the Site where the OpenStoryBoard Standard Remuneration Policy is stated to apply to that Content, and to all Content published on or submitted to the Site where no remuneration policy is expressly stated to apply.
Calculation of Total Remuneration
If community ratings should result in Content commercialisation in the form of an ebook, or if OpenStoryBoard should sell, license or otherwise commercialise any Content in non-ebook forms, then subject to the remainder of this remuneration policy and the Terms and Conditions, those members of the OpenStoryBoard community who contributed to that Content will collectively be entitled to receive an Distribution Amount. The Distribution Amount will be calculated in the way described below:
"Distribution Amount" contains, in respect of any Content, two portions of remuneration: (i) In regards to Content commercialisation as ebook it is equal to 50% of the total Sales Revenue generated through the sale of the respective ebook. (ii) In regards to Content commercialisation in non-ebook form, it is equal to 20% Net Profits generated through the sale, licensing or other commercialisation of that Content.
"Sales Revenue" means, in respect of any Content, the total revenues actually received by OpenStoryBoard only in respect of ebooks that are based on or derived from the Content.
"Net Profits" means, in respect of any Content, the total revenues actually received by OpenStoryBoard only in respect of any print books and films which are based on or derived from the Content, less all Expenditure incurred in connection with the sale, licensing or other commercialisation of that Content.
"Expenditure" means, in respect of any Content, all: (i) costs, expenses and other outgoings incurred directly or indirectly by OpenStoryBoard in connection with the sale, licensing or other commercialisation of that Content (including, without limitation and as examples only, fees and expenses payable to any editors, advertising and promotional costs and expenses, fees and expenses payable to any external advisors or agents appointed by us in connection with the exploitation or the Content or any negotiations in respect thereof, and internal management costs); (ii) bad debts; (iii) applicable taxes, including taxes on income where the remuneration payable by us to our members cannot lawfully be deducted from the income prior to being taxed so as to reduce our taxable income; and (iv) commissions, licence fees or similar fees payable by us in respect of that Content
We will calculate the Distribution Amount in respect of any Content, quarterly at the end of March, June, September and December, for the immediately preceding quarter. We will report the calculation of the Net Profits, the Sales Revenue, and the Distribution Amount to all Pool Members.
Allocation of Individual Remuneration
All members of the OpenStoryBoard community who contributed to any particular Content that is sold, licensed or otherwise commercialised by us are, for these purposes, the "Pool Members". The Distribution Amount in respect of any particular Content will be allocated to the Pool Members in accordance with the following methodology:
We will allocate to each Pool Member a percentage that reflects that Pool Member's percentage contribution to the Content. We do this by reference to the total number of words that the Pool Member in question has contributed to the Content in question. Where a chapter has been written by multiple Pool Members, the percentage applicable to the words in that chapter will be divided in equal shares between the relevant Pool Members. For example, if the Content in question consists of 1,000 words altogether, and a Pool Member has written 100 of those words, then that Pool Member will be allocated 10% (100 words out of 1,000 is 10%). However if three Pool Members have jointly written a chapter of that Content, and that chapter was for 100 words, then each of them will be allocated 3.33% (100 words out of 1,000 is 10%, divided in 3 equal shares between the writers of that chapter). The percentage allocated to each Pool Member at this stage of the calculation process is referred to that Pool Member's "Allocated Percentage". We will make this allocation initially when we sell, license or otherwise commercialise the Content in question, and thereafter it will remain fixed. We will notify each Pool Member of his/her Allocated Percentage for the Content in question.
Each Pool Member is entitled to a share of the first 80% of the Distribution Amount, calculated by reference to that Pool Member's Allocated Percentage. For example, if the total Distribution Amount was 1,000, then 80% of that would be 800. If a Pool Member's Allocated Percentage was 10%, then that Pool Member would be entitled to 10% of 800, which is 80.
We reserve the right to distribute the remaining 20% of the Distribution Amount in such shares amongst the Pool Members as we see fit in our sole discretion. This is to allow us to recognise, in our view, exceptional contribution or quality. It is not possible to define upfront what an "exceptional contribution" or "quality" would be in any particular case. The percentage allocated to each Pool Member at this stage of the calculation process is referred to that Pool Member's "Special Distribution Percentage". We will make this allocation initially when we sell, license or otherwise commercialise the Content in question, and thereafter it will remain fixed. We will notify each Pool Member of his/her Special Distribution Percentage for the Content in question.
Each Pool Member is entitled to a share of the remaining 20% of the Distribution Amount, calculated by reference to that Pool Member's Special Distribution Percentage. For example, if the total Distribution Amount was 1,000, then 20% of that would be 200. If a Pool Member's Special Distribution Percentage was 50%, then that Pool Member would be entitled to 50% of 200, which is 100.
We will calculate the amounts due to each Pool Member based on his/her Allocation Percentage and Special Distribution Percentage, quarterly at the end of March, June, September and December, for the immediately preceding quarter. We will report the amounts due to each Pool Member only to that Pool Member.
Payment of Individual Remuneration
Subject to the remainder of this section, we will endeavour to pay each Pool Member all amounts due and owing to him/her (less any set-offs and/or withholdings referred to in paragraph below) within 60 days after the date on which we notified that member of the amounts due to him/her, as provided for in section above. We will specify the mechanism for payment at the relevant time, which may include payment by means of cheque, bank transfer, through collection societies or such other means as we may specify from time to time.
It will be each Pool Member's responsibility to provide us such details as we may require to enable us to verify that Pool Member's identity, and to take such steps as we may require to enable that Pool Member to receive payment (including, by way of example only, to become a member of a collecting society or to provide his/her bank details for the transfer of sums owing to him/her). We will be entitled to withhold payment until such time as we are satisfied (in our sole discretion) that we have been able to verify a Pool Member's true identity and/or until such time as the Pool Member has taken steps required by us to receive payment.
Each Pool Member agrees that we may rely on information provided by him/her in relation to the transfer of funds to him/her, and accepts responsibility for any errors in the information given to us and agrees to indemnify us against any claims, losses, damages or expenses made against, or suffered or incurred by us, in acting on the instructions given to us by the Pool Member. We will not be required to make any payments to any Pool Member where to do so would cause us to breach any laws applicable to us.
Unless otherwise agreed by us on a case-by-case basis, all payments to Pool Members will be made in the currency of our bank accounts. Where a Pool Member requests (and where we agree) that we should pay amounts owed to him/her in a currency other than the currency of our bank accounts, the Pool Member acknowledges and accepts that we will calculate the amount owed to him/her in the currency of our bank account and convert it to his/her nominated currency at the time at prevailing rates, and that currency fluctuations may result in the amount payable by him/her being higher or lower than the amount as calculated in the currency of our bank accounts.
Right to Set-Off and Withhold Payment
We are entitled to set off against any amounts owed by us to any Pool Member, any amounts owed to us by that Pool Member as well as all costs and expenses incurred by us in remitting amounts to that Pool Member (including, by way of example only, bank transfer costs, currency conversion costs, and the like).
We are entitled to withhold payment to any Pool Member if there is any dispute that concerns any aspect of that Pool Member's entitlement to receive remuneration, including where there is a dispute as to that Pool Member's compliance with the Terms and Conditions or the Community Framework, until such time as the dispute has been resolved in favour of that Pool Member.
Where we are required, under any applicable laws, to withhold and pay to any relevant authorities any amounts in respect of withholding taxes, we will do so, and will only remit to the Pool Member in question the difference between the total amount due to that Pool Member and the amount so withheld. We will not be responsible to "gross up" the amount payable to that Pool Member on account of such withholding. We will also, on request of that Pool Member, provide that Pool Member documents in our possession evidencing the payment to the relevant authorities of the amounts of withholding in question.
Forfeiture Provisions
You will immediately, automatically and irrevocably forfeit, in favour of us, all existing and future right to any remuneration in respect of all Content that you submitted (not just in respect of Content affected by the events listed below) in the following circumstances:
If you challenge our ownership in any Content that you have submitted.
If you are in breach of the provisions of the Terms and Conditions under the heading "Content That You Publish To The Site".
If you are in breach of any other provisions of the Terms and Conditions or the Community Framework.
If we terminate your use of the Site.
Any forfeiture by you will be without prejudice to any other rights or remedies that we may have.