Communications Act 2003

Code relating to programme commissioning

10 (1) It shall be the duty of the Welsh Authority to draw up and from time to time revise a code of practice setting out the principles that are to be applied when they or an S4C company are for a relevant purpose agreeing terms for the commissioning of independent productions.

(2) A relevant purpose is a purpose connected with the provision by the Welsh Authority or an S4C company of a programme service.

(3) It shall also be the duty of the Welsh Authority—

(a) at all times to comply with the code of practice which is for the time being in force under this paragraph;

(b) to take all reasonable steps for securing that the code is complied with by S4C companies;

(c) to exercise their power to revise that code to take account of revisions from time to time of the guidance issued by OFCOM for the purposes of this paragraph; and

(d) to comply with such directions as may be given to the Authority by OFCOM for securing that they properly perform their duties under paragraphs (a) and (b).

(4) The code for the time being in force under this paragraph must be such as to secure, in the manner described in guidance issued by OFCOM—

(a) that a reasonable timetable is applied to negotiations for the commissioning of an independent production and for the conclusion of a binding agreement;

(b) that there is sufficient clarity when an independent production is commissioned about the different categories of rights to broadcast or otherwise to make use of or exploit the commissioned production that are being disposed of;

(c) that there is sufficient transparency about the amounts to be paid in respect of each category of rights;

(d) that satisfactory arrangements are made about the duration and exclusivity of those rights;

(e) that procedures exist for reviewing the arrangements adopted in accordance with the code and for demonstrating compliance with it;

(f) that those procedures include requirements for the monitoring of the application of the code and for the making of reports to OFCOM;

(g) that provision is made for resolving disputes arising in respect of the provisions of the code (by independent arbitration or otherwise) in a manner that appears to OFCOM to be appropriate.

(5) The Welsh Authority must also ensure that the drawing up or revision of a code by virtue of this paragraph is in accordance with guidance issued by OFCOM as to—

(a) the times when the code is to be drawn up or reviewed with a view to revision;

(b) the consultation to be undertaken before a code is drawn up or revised;

(c) the publication of every code or revised code.

(6) The Welsh Authority must submit to OFCOM for approval a draft of—

(a) every code that is required to be drawn up under this paragraph; and

(b) every revision made by that Authority of such a code.

(7) A code drawn up by the Welsh Authority or a revision of such a code —

(a) is to have effect for the purposes of this paragraph only if approved by OFCOM; and

(b) if approved by OFCOM subject to modifications, is to have effect with those modifications.

(8) OFCOM—

(a) must issue and may from time to time revise guidance for the purposes of this paragraph;

(b) must ensure that there is always guidance for those purposes in force;

(c) must, before issuing their guidance or revised guidance, consult the providers of licensed public service channels, persons who make independent productions (or persons appearing to OFCOM to represent them), the BBC and the Welsh Authority; and

(d) must publish their guidance or revised guidance in such manner as they think appropriate.

(9) Guidance issued by OFCOM for the purposes of this paragraph must be general guidance and is not to specify particular terms to be included in agreements to which the guidance relates.

(10) OFCOM may by a direction to the Welsh Authority specify that a code which—

(a) was drawn up by the Authority before the commencement of this paragraph, and

(b) is identified in the direction,

is to be treated as drawn up in pursuance of this paragraph and approved by OFCOM.

(11) In this paragraph “independent production” has the same meaning as in paragraph 7.