The writers think that the agents tear them illegally, so now they are suing: LAist

The Writers Guild and the group representing the four big talent agencies have been in a quarrel that has slowly slowed down for a long time, but now it's in full swing. The WGA, which represents the writers, announced Wednesday that it has filed a lawsuit. The goal is for a court to declare illegal talent agency "packaging fees" now and forever, and to get those alleged illegal profits back.

What is a packing fee? The short version is that it's money agencies charge studios to "pack" the talent together.

A simple example might be saying that they represent the writer X, the actor Y and the director Z – all want them? Give us 5% of the project budget. (It's a lot more complicated than that, because lawyers, money, etc., but you see the idea.)

The named plaintiffs include several high-level television writers, including Meredith Stiehm, who created CBS Case closed. According to the statement, she learned that her show had been prepared by her agency, Creative Artists Agency (CAA), until six years after the signing of the agreement.

"It turned out that in the show I created and on which I was working exclusively for years, CAA ended up earning 94 cents for every dollar I earned," Stiehm said. in his press release. "It's indefensible – an agency should make 10% of what its client earns – not 20, not 50, not like in my case, 94% – 10% is enough."

According to the Writers Guild, the four big agencies collect more than 80% of packaging fees paid by Hollywood studies and networks.

The WGA and many members claim that agencies are now making a lot more money from packaging fees for the entire project, rather than the traditional 10% reduction of agents, which discourages agents. to negotiate more money for writers.

"The packaging fees are not a new practice in Hollywood, but they have always been controversial," said WGA West's general counsel, Tony Segall, in a press release. "It is time to end the flagrant conflict of interest that they pose."

You can read more agency responses to the guild's claims here. You can also look at the argument of the Writers Guild for what they consider to be agency conflicts here:

In addition to the Writers Guild's outlets on the west and west coasts, the inclusion of senior members of the guild as clients can help establish the legal status of the lawsuit.

"All the plaintiff writers have been hurt financially by entering into agreements," Segall said. "These are creators and writers of television shows that have shaped a generation, but their agents have benefited at the expense of their own customers."

They are seeking a court to declare that packaging costs are illegal, as well as an injunction preventing talent-creating agencies from entering into packaging contracts, the statement said.

"The lawsuit will also seek damages and refund of illegal profits from writers who have been harmed by these illegal practices in the past," Segall said.

This follows the Writers Guild asking its members to leave their agents if they have not accepted a new code of conduct. The new code prohibits agencies from engaging in behaviors that the guild considers to be conflicts of interest – which they feel deters agents from trying to make more money available to them. writers in their transactions. Thousands of writers leave their agencies, according to the Guild.

The lawsuit includes two claims. The first is that the packaging charges violate California's law with respect to fiduciary duties. They argue that the law requires talented agents to represent writers without conflict of interest and that packaging costs encroach on that.

The other allegation is that packaging costs violate the law of unfair competition from the state. In this context, they argue that the packaging costs violate part of the federal law on worker-to-worker relations, known as the "anti-kickback provision", which prevents employee representatives from receiving anything valuable from their employer.

The overall agreement between the WGA and the studios is to be negotiated soon – and observers note that the dispute with agencies may make a Writers Guild strike more likely during these negotiations. The dispute between writers and agents could also extend to actors and directors who re-examine their own relationships with agencies.

Editor's note: Mike Roe is not a paid screenwriter, but he has written scripts and participates in the community of writers during his free time.