Managers' Forum ~ Business Case Reviews

This is a legal opinion of the Advocate General of the European Court of Justice.  This case entails DIR International Film Srl., a group of film companies from all over Europe, appealing a judgement entered against
them.  This group of film producers and distribution companies applied for assistance for the MEDIA programme.  This program was set up to essentially with the objectives of promoting European culture and films.  The MEDIA programme was created to develop Europe’s audiovisual capacity through the movement of programs, to promote the European high-definition television system, and to encourage the creativity and production so as to demonstrate the richness and diversity of the European culture.

In this case, the advocate general gives an opinion concerning the different European companies that applied for the MEDIA programme and were denied aid.  This case discusses how the different companies did not meet the requirements for assistance.  The appellants are made up of film and distribution companies from Germany, France, Great Britain, Italy, and subsidiaries in Spain, Norway, Finland, Sweden, Denmark and Greece.

This case discusses the legal problems of DIR International in their attempts to get aid for the distribution of their two films.  I am going to focus on the cultural aspect of the case, which comes in through the MEDIA programme.  This program was set up to promote European culture in film.  This program helps filmmakers and distributors to promote their films throughout Europe and the world.  This is a good program, even though the appellants were not able to qualify for the aid.  The case sets out how the MEDIA programme was adopted by the European Council to stimulate and increase the competitive supply of European audiovisual products.  This program had specifically in mind the small and medium-sized undertakings with limited production capacities.

This program which is being argued in this case is a fabulous example of cultural exchange.  This program gives opportunities to small European film companies to finance and or distribute their films.  This opens up
the cultural exchange not only on a European level, but also on global level.  This program not only allows for cultural, but also technological exchange of films and audiovisual programs.  It expands the distribution capabilities of small and medium-size film companies, and affords them an opportunity to reach the world.  This program also
fosters cooperation among companies, which before this program they would be isolated in their particular regions.

This program is very interesting; however, there are some downfalls.  According to Article 2(3), the MEDIA programme has very strict guidelines and filmmakers such as DIR International do not qualify for aid.  There are also rules on cooperation within the program.  The MEDIA programme can provide up to 50% of the anticipated distribution cost in the form of an interest-free loan, which is payable if the film recoups its anticipated costs.

In conclusion, the MEDIA programme is a positive move within the European Union to promote the various cultures through film.  This program, even though very rigorous, can help film makers and distributors reduce the risk in distributing films and helps ensure that these films are released.  Without this program many of these films
would not be able to make it to the cinemas.

http://europa.eu.int/cj/en/index.htm       Case C-164/98P

Contact Us!