• When its former owners decided to sell Index, they had several offers.  They accepted photolibrary’s offer over the others because only photolibrary’s deal guaranteed paying off the photographers.  Other offers, I have learned, entailed the prospective buyers assuming no debt, which would have left the photographers with no practical recourse and no reasonable expectation of ever seeing a dime of their back commissions.

• The state of accounting records concerning Index Stock’s photographer commissions at the time photolibrary assumed control of them was deplorable. If you don’t believe me, just ask any Index photographer who tried to get timely reports and payments during the years leading up to the acquisition.  KPMG’s review of the company’s accounting records confirms this assertion.

• The fact that photolibrary now finds that the contact information for a majority of the contributors is out of date comes as no surprise.  Given the poor treatment contributors received from Index, and the increasingly complicated business of managing a stock photo career and with keeping up with even those agencies that do right by their contributors, naturally many of them gave up trying to stay up to date with Index.

• photolibrary readily acknowledges there are more commissions due.  While not responsible for creating the problem, the company, to its credit, has accepted the responsibility of disentangling it.  Index photographers have received significant payments since photolibrary took over. As the company straightens out previously contradictory or incomplete records, it continues to pay out commissions owed. To expect, however, that photolibrary could have resolved the entire commissions mess left behind by Index within such a short period is entirely unrealistic. 

• Photographers might reasonably ask, what of the letter sent out by Mr. Santos?  But, given the conclusions of the KPMG report, can one reasonably expect Mr. Santos to have arrived at a clear and complete understanding of the Index commissions mess after only four weeks on the job?  I suspect Mr. Santos thought he was doing the right thing with his letter to the Index contributors.  But I believe that he has done as much a disservice to the photographers as he has to the company by presenting an oversimplified view of a situation far more complicated than he understood.

 
I make the case for photolibrary not because I believe the company needs help defending their position.   I offer these points in order to save the Index photographers unnecessary anxiety over the situation.  Yes, Index did a horrendous job of reporting and paying.  In the end, however, Index could have simply filed for bankruptcy and left the contributors completely out in the cold.  Index photographers were right to celebrate when photolibrary bought Index and pledged to rectify the commissions issues.  They should continue to celebrate their good fortune and recognize the new owners need time to work through the commissions problems while continuing to manage their growing global enterprise.  Ultimately, the health and well-being of that enterprise will accrue to the benefit of all its contributing artists.

Click here to read the entire release about this issue from photolibrary.

[Editor’s Note:  In the interest of full disclosure, I feel compelled to point out that I worked at Index Stock, from 1987 to 2001.  In my capacity as the VP of International Distribution, I managed Index’s relationship with photolibrary, who represented Index in Australia and New Zealand during those years.  My familiarity with the two companies (now one company) and their management teams works as a double-edged sword in this case.  On the one hand, I have long-standing relationships with several of the managers at both companies which might lead one to question my objectivity; on the other, I can claim a better understanding than most of the events discussed here.  Please know that I did not consult with any of the managers at photolibrary/Index when writing this editorial.  Further, I hope the readers will recognize I have nothing to gain (and much to lose) by offering my opinion on the matter in any way but fairly and honestly.  CF]