What is FMSMF?
The Film Musicians Secondary Markets Fund (FMSMF) collects, processes, and distributes “secondary market” residual payments to professional musicians who worked on a film, TV program, or streaming media program produced under an American Federation of Musicians (AFM) agreement.
FMSMF is not part of the AFM union – FMSMF operates like a payroll company but is a 501(c)(6) nonprofit that processes residual payments for Producers without charging service fees.
FMSMF also collects, processes, and distributes supplemental market residuals required under the AFM’s Live/Videotape Agreement, on behalf of a separate sub-fund officially known as the Live Television Videotape Supplemental Markets Fund (LTVF). Learn more about the LTVF.
What are Secondary Market Residuals, and How Do They Work?
If you’ve produced projects using the DGA, WGA or SAG-AFTRA agreements and are familiar with how “supplemental markets” work for those guilds, then understanding AFM’s secondary markets residuals is easy!
Secondary Market Residuals are due to the FMSMF if a product moves from its original (“primary”) medium of exhibition into a “secondary” market and generates receipts from distribution in that secondary market. Learn more about Primary and Secondary markets applicable to FMSMF (PDF).
Residuals are generally 1% of what is called “Producer’s Gross.” Producer’s Gross is based on receipts derived from distribution in the applicable secondary market(s), minus certain allowed deductions. Please read a detailed description (PDF) of what makes up Producer’s Gross and the applicable percentages to calculate residuals.
When are Payments Due?
What if You Sell or License Your Project to Another Company Or Studio?
As is routinely done with the DGA, WGA and SAG-AFTRA, a Producer can transfer or terminate its residual obligations to the FMSMF by executing a Buyer’s or Distributor’s Assumption Agreement (PDF), whereby the transferee company agrees to take on the responsibility to report and pay residuals. The signed Assumption Agreement (PDF) should be sent to the AFM with a copy to FMSMF.
Where Can You Learn More?
FMSMF Industry Relations Department
Specific contract terms regarding residuals or other matters under the AFM agreement –