After Months of Pressure, Photolibrary Promises to Pay Index Stock Debts - February 2008

Further information and updates here 

February 3, 2008. Photolibrary is at last moving to contact, report and pay their Index contributors outstanding debts the company assumed when it purchased Index Stock in October 2006.

Over the past few weeks, Index contributors have told SAA that Photolibrary is now acknowledging debts dating as far back as 2001. Contributors who received payment tell SAA the amounts match what was itemized on statements they received in November from Photolibrary's former controller, Carlos Santos. The company had described those statements as "invalid" and "worthless," and fired Santos for sending them to contributors. Now, Photolibrary is validating Santos by paying contributors the exact amounts detailed by him.

Photolibrary's actions follows growing pressure from artists and industry trade associations. Over the past six weeks, Santos, several photographers and archive owners all filed grievances with the Picture Archive Council of America. The complaints focused on Photolibrary's mishandling of past-due royalties. On Jan. 4, SAA also filed a formal grievance with the PACA Ethics Committee, supported by fellow artists' associations ASMP, APA, EP and CAPIC.

Artist Contact Information Lacking

SAA is concerned many Index contributors may not yet have heard from Photolibrary, since the company admitted in a December press release it lacked current email addresses for 40 percent of them. This means that nearly 700 artists never received any communication (or payment) from Photolibrary since they acquired Index Stock more than 15 months back.

SAA therefore urges any past and present Index contributors who have not heard from Photolibrary to contact the company directly.

SAA has repeatedly urged Photolibrary to provide every Index Stock contributor with a full and accurate accounting of all outstanding debt and promptly pay in full all outstanding commissions. This is now reportedly happening, and we consider it encouraging news for Index artists. However, this does not resolve the serious issues that have come to light.

SAA has a history of working productively and positively with stock distributors, serving as ombudsman for our members. This included what started as a positive relationship with Photolibrary in which SAA shared information and provided updates about the company with our membership.

"The problems started," explains SAA President Zave Smith, "when SAA learned of the allegations by the company's controller. We immediately contacted Photolibrary and sought to help, working discreetly in our ombudsman role. Our Board and ombudsman urged the company to conduct a limited accounting review with a group of contributors willing to share records."

Adds Smith, "Photolibrary responded by dismissing both Santos's allegations and SAA's suggestions. It became clear the company had repeatedly misinformed SAA about the status of their KPMG audit and their pledges that all past Index debts to contributors had been paid many months ago. Other troubling questions about Photolibrary's accounting procedures and policies were also raised and deserve explanation."

SAA continues to seek full accountability from Photolibrary on behalf of contributing artists, and by serving as ombudsman and advocate, to help ensure ethical business practices within the stock industry at all levels.

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