The WGA and WME dispute heads to court- but what was it about, anyway?

If in the tumultuous year of 2020, you’ve somewhat forgotten about the WGA’s spats with agencies over packaging fees, you’re certainly not alone. With the final hurdle- the WME- meeting the WGA in court this week, BLAKE & WANG P.A takes a look back at the core of the matter.

This dispute has been ongoing since April 2019 and centers for the most part on packaging fees. The WGA, in a bold and controversial move that has mostly worked out for them, insisted its writer's fire agents who would not sign to their new Code of Conduct. Said code banned the use of packaging and packaging fees, as well as nixing agency affiliations to production companies.

Some of the large agencies have bartered for a modified version of the agreement, often structured around the phased reduction of already-owned interests in production companies to the 20% max allowed, or allowing for pre-negotiated packaging deals to slowly phase out. All- except WME- have signed, with the CAA being the most recent. They signed only last week.

The WME, however, has taken the matter to court. We’ve seen their preliminary hearings go ahead this week, in fact. Judging by the transcript of his statements, it was to a judge that’s not entirely impressed that the matter has reached the court at all. While the application for an injunction has been taken under submission, we were also treated to some firm urging for both parties to remember the writers and agents they serve and try to instead seek out their own, out-of-court, resolution to the matter.

With the CAA having reached that agreement this week, the WME is the only agency that hasn’t managed to come to some form of terms with the WGA’s demands. Will the matter continue through the courts, or will they reach an external deal? Only time will tell. Rest assured, BLAKE & WANG P.A Entertainment Attorney will keep you in the loop as it unfolds.