'Vertical integration' bill moves in Sacramento

April 08, 2008 A bill that aims to put an end to alleged sweetheart deals between studios and their parent companies has passed the California Senate Judiciary Committee. SB1765 was introduced in February by state Sen. Sheila Kuehl (D-Los Angeles), a former child star, as a result of years of litigating so-called "vertical integration" lawsuits filed by profit participants, including actors, directors and writers. "Studios should not be allowed to undervalue their products in sweetheart deals with their own parent company and cost creative talent and crewmembers their rightful share in residuals and contributions to health and welfare funds," Kuehl said.

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