(Page 5 out of a total of 5)  All litigation, with the exception of copyrights arising from, under or in connection with this Agreement, including, but not limited to validity, interpretation, 16 iii) All funds or other consideration of any kind received, used or credited by distributors or authorized distributors or agents of authorized stores with trailers. , posters, copies, still images, excerpts, advertising accessories or other materials used in the operation of a license fee in the image or on videograms that embody it. b) Gross revenues calculated from the source: No distributor, sub-tributeer or agent may deduct gross income duties or fees for the calculation of all amounts incurred by the licensee. To determine the licensee`s share of gross revenue, all gross revenues must be calculated from the “source.” This means that gross revenues from the operation of one of the following licence fees must be calculated at the following levels: (i) for each fee authorized by the theatre, at the level, at the level of theatre payments; (ii) for any non-theatrical or complementary licence fee at the level where payments are made by airlines, shipping companies, hotels or other establishments that issue or make the image directly available to their benefactors or customers; (iii) for any authorized right of home video, at the wholesale trade level or at the direct consumer level, if any; (iv) for any commercial video license or public video license at the level where payments are transferred by local image exhibitors; and (v) for each television fee authorized at the level where payments are made by terrestrial transmitters, cable systems, satellite television channels, telephone systems or similar equipment that broadcast, transmit, transmit or otherwise provide the image. c) Wholesale level: Wholesale level refers to the amount of videogram distribution from which videograms are delivered directly to retailers for final sale or rental to the paying public. The level of wholesale sales may include intermediate distribution levels between the manufacturer and the retailer, such as. B rack-jobbers and others, when such distribution is made by an affiliated distributor, or when the distributor participates in the profits of such an intermediate distribution, but only to the extent of such participation. (d) Direct consumer level: the level of the direct consumer refers to the amount of the distribution of videograms on which videograms are sold or rented directly to the paying public. Direct Consumer Level includes the sale or rental of videograms on retail stores, mail order, video clubs and other similar methods. Where commercial public video or video rights are permitted, the Direct Consumer Level also includes public representation, broadcasting or broadcasting of licensed videograms pursuant to this licence fee. The distributor is not considered to be acting at the direct consumer level in the distribution, unless such distribution is made by an affiliated distributor or unless the distributor participates in the profits generated by that distribution, and then only in the extent of such participation. (e) Licensing rights: all amounts collected by a collective management company, copyright organization, collective management company or public body under compulsory licences, cable broadcasting revenues, music operating royalties, tax rebates, exhibition supplements, royalties on empty video or material films, rental or rental rights , etc., are the exclusive property of the licensee and not in gross revenue, as well as between the licensee and the distributor. The licensee has the exclusive right to claim and recover all these amounts.
If any of these sums are paid to the distributor or recovered by the distributor, the distributor immediately transfers it to the licensee with a statement identifying the source.