Are you planning your next Canadian content film? Be sure to know the initial licensing rule.
Under Film Incentive BC, for productions that are not treaty co-productions or interprovincial co-productions, the initial licensing of the commercial exploitation of the production must be controlled by
- the BC-based eligible production corporation that controls more than 50% of the copyright; or
- an eligible production corporation related to the above-stated corporation.
See Section 80(1)(g) of Income Tax Act (BC) which requires that the production corporation, or a related eligible production corporation, controls the initial licensing of the commercial exploitation of the production and Section 79 (1) for definitions “eligible production corporation” and “BC-based corporation”.