Tuesday, November 25, 2014

CLAIMS PROCESSING PROCEDURES, TIMING AND MAJOR ISSUE

   Claims processing involves three major steps.

Evaluation of claims by the Claims Administrator according to established criteria.
Challenges to claims by publishers or databases.
Resolution of defense challenges which can't be informally resolved.

A large part, but not all, of the first step took place in 2005-6. The remaining part took place over the last several months and more than 1300 claimants received notices about possible problems with a claim. They are responding. Their responses are considered and a decision made.

Then, the claims that have made it through that process and are still considered eligible are submitted to publishers and databases, who then can present challenges to those claims. Those challenges are presented to claimants who can respond to the challenge. The parties will attempt to informally resolve such challenges, but if that is not possible that dispute will go to a third party for a decision which is final and without appeal. There will be no payments until this process is completed.

There have been statements indicating that this could be completed by early 2015. That is possible but, in my view, optimistic.

There is an issue of major significance presenting itself. I say major because it affects thousands of works and at least hundreds of claimants. In general it involves claims for works that were syndicated. This issue was identified during the negotiations in 2012-13. It was not resolved by those negotiations. It must be resolved now. The parties are commencing discussions to that end.

I am purposely not discussing details of this issue at this time. However, if it appears that it will significantly delay claims processing I will describe it here. It is not an issue on which, so far as I can tell now, claimant input would be helpful.