DOING BUSINESS: Omnicom, IPG and the MPPA

By: Denise Gilmartin, VP, Business Affairs, AICP

It has been reported that the Federal Trade Commission has finalized the agreement for Omnicom’s acquisition of Interpublic Group. What this means for AICP members is anyone’s guess, but since the benefits of such mergers often include the elimination of redundancies and the creation of new efficiencies, one possible outcome is that IPG agencies will begin utilizing the Omnicom Motion Picture Production Agreement (MPPA) for their productions. If that prediction becomes a reality (and even if it doesn’t), it would be wise for members to review the nuances of the MPPA.

If you recall from AICP town halls and memos, the MPPA is a dense document of more than 60 pages, used by Omnicom agencies when purchasing services for live action, VFX, CGI, and animation. While it has been significantly negotiated, nothing is perfect. There may be times, depending on the specifics of your job, where you might wish to amend the agreement; therefore, you should be fully familiar with its contents. On September 28, 2021, AICP published a bulletin that included a link to possible amendments you may wish to make to the MPPA based on your job requirements, such as licensing photos, travelling agency’s talent, etc. Please note that if you are shooting outside the U.S., you will need to amend the MPPA’s Exhibit D to properly reflect the insurance the foreign production service company can provide (See AICP’s newsletter article from March 2023 “Omnicom MPPA: Are Your Foreign Productions Insured?”). Other than amendments to Exhibit D, Omnicom has made it clear that it is open only to one-off amendments to its general terms based on job specifics.

The first 13 pages of the document are another story. These pages include job specifications and schedules, including financial terms, which will vary from job to job. AICP recommends that you review these 13 pages carefully, keeping your job specifics in mind, to ensure that you are not contractually obligating your company to something you have not agreed to or that is not included in your bid.

If IPG agencies are asked to use the MPPA, it is therefore essential that you, as the production company, have a working understanding of the document so you can promptly correct any errors in the specifications, schedules, or exhibits to ensure they reflect your understanding accurately.

If you have any questions about this article, or any other business affairs issue, please contact me at deniseg@aicp.com.

This information is designed as a service to AICP Members and is intended only to provide general information on the subject covered and not as a comprehensive or exhaustive treatment of that subject, legal advice, or a legal opinion. Members are advised to consult with legal counsel and other professionals with respect to the application of the subject covered to any specific production or other factual situation. Use by a company of any of the options and provisions discussed herein are matters of individual company decision in accordance with its own business needs and nothing contained herein is intended to suggest agreement among AICP members or the adoption by the AICP of a uniform position concerning the content of this article