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IBF and AAAI sort out all differences, agreement to be signed in a week

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IBF and AAAI sort out all differences, agreement to be signed in a week

The Indian Broadcasting Foundation (IBF) and the Advertising Agencies Association of India (AAAI) are set to work together once again. The disagreements that the two bodies had on the AAAI-IBF agreement that was signed first in February 2001 to govern the working relations of the two bodies and has been under negotiations for almost a year now, have now been resolved. The agreement was due for renewal in early-2007, but IBF members were of the opinion that some clauses in that agreement were tilted towards the AAAI and that had delayed the renewal process.

One of the most contentious aspects of this agreement was the imposition of net rates on agencies. While the IBF was of the opinion that this would have brought in transparency in channels-agencies-advertisers relations, the AAAI was against this proposition. At an IBF meeting on March 13, 2008, the broadcasters’ body decided to defer the imposition of net rates on agencies for another two years. The draft agreement has now been agreed upon by all, and it would be signed within a week.

IBF President Jawahar Goel said, “This is a mutual decision taken by all, and we believe that this would benefit all involved.” AAAI President Madhukar Kamath, on the other hand, stated, “We welcome this decision of the IBF and we are very happy that the draft agreement has been ratified. We look forward to working with the IBF again.”

The IBF-AAAI agreement has guided the relationships of the members of these bodies since 2001. Members of the industry even cited this agreement to intervene in deals such as the one between Dentsu and SET India before the ICC World Cup in 2007. The last one year, especially the last quarter, had seen heated arguments between the two bodies on various issues. The decision to renew this agreement indicates that matters between the two bodies have been sorted out.


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