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After Months of Pressure, Photolibrary Promises to Pay Index Stock Debts |
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Written by Stock Artists Alliance
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Monday, 04 February 2008 |
Photolibrary is at last moving to contact, report and pay their Index
contributors outstanding debts the company assumed when it purchased
Index Stock in October 2006.
Over the past few weeks, Index contributors have told SAA that
Photolibrary is now acknowledging debts dating as far back as 2001.
Contributors who received payment tell SAA the amounts match what was
itemized on statements they received in November from Photolibrary's
former controller, Carlos Santos. The company had described those
statements as "invalid" and "worthless," and fired Santos for sending
them to contributors. Now, Photolibrary is validating Santos by paying
contributors the exact amounts detailed by him.
Multiple Parties File Grievances
Photolibrary's actions follows growing pressure from artists and
industry trade associations. Over the past six weeks, Santos, several
photographers and archive owners all filed grievances with the Picture
Archive Council of America. The complaints focused on Photolibrary's
mishandling of past-due royalties. On Jan. 4, SAA also filed a formal
grievance with the PACA Ethics Committee, supported by fellow artists'
associations ASMP, APA, EP and CAPIC.
Artist Contact Information Lacking
SAA is concerned many Index contributors may not yet have heard from
Photolibrary, since the company admitted in a December press release it
lacked current email addresses for 40 percent of them. This means that
nearly 700 artists never received any communication (or payment) from
Photolibrary since they acquired Index Stock more than 15 months back.
SAA therefore urges any past and present Index contributors who have
not heard from Photolibrary to contact the company directly.
SAA Seeks Accountability
SAA has repeatedly urged Photolibrary to provide every Index Stock
contributor with a full and accurate accounting of all outstanding debt
and promptly pay in full all outstanding commissions. This is now
reportedly happening, and we consider it encouraging news for Index
artists. However, this does not resolve the serious issues that have
come to light.
SAA has a history of working productively and positively with stock
distributors, serving as ombudsman for our members. This included what
started as a positive relationship with Photolibrary in which SAA
shared information and provided updates about the company with our
membership.
"The problems started," explains SAA President Zave Smith, "when SAA
learned of the allegations by the company's controller. We immediately
contacted Photolibrary and sought to help, working discreetly in our
ombudsman role. Our Board and ombudsman urged the company to conduct a
limited accounting review with a group of contributors willing to share
records."
Adds Smith, "Photolibrary responded by dismissing both Santos's
allegations and SAA's suggestions. It became clear the company had
repeatedly misinformed SAA about the status of their KPMG audit and
their pledges that all past Index debts to contributors had been paid
many months ago. Other troubling questions about Photolibrary's
accounting procedures and policies were also raised and deserve
explanation."
SAA continues to seek full accountability from Photolibrary on behalf
of contributing artists, and by serving as ombudsman and advocate, to
help ensure ethical business practices within the stock industry at all
levels.
For further information, see: http://www.stockartistsalliance.org/info/news/news_photolibrary.htm
About SAA
The Stock Artists Alliance (SAA) is the only trade association
dedicated to the business interests of professional stock
photographers, supporting its members with information resources and
ongoing advocacy initiatives. More information about SAA is available
at www.stockartistsalliance.org
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Last Updated ( Monday, 04 February 2008 )
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