The Paris court of appealshas overturned a ruling that prevented the film L'Ex Femme de Ma Viefrom benefiting from French subsidies.
France's National CinemaCentre (CNC), responsible for granting subsidies to French and European films,appealed the decision on the film last year.
Recent controversy hasfocused on Jean-Pierre Jeunet's A Very Long Engagement, denied Frenchstatus last November despite its French cast, location and language.
At issue with both filmswas the involvement of 2003 Productions, a subsidiary of Warner Bros. France.The French cinema unions that brought the complaint against the films contendedthat 2003's ties to Warner made them a Hollywood films and therefore ineligiblefor state funding.
The other two Frenchproduction companies for L'Ex Femme de Ma Vie, Josy Films and Ice 3,were unable to claim subsidies as a result.
The appeals court, however,reinstated the films right to claim funding, finding that 2003 acted as aco-producer and not an executive producer for L'Ex Femme de Ma Vie.
Jeunet's film, on the otherhand, did not fare as well in appeals court. In June the court upheld thedecision on A Very Long Engagement, reasoning that 2003 Productions wasthe sole producer.
The Independent Producers'Association and the Independent Producers' Union, who spearheaded the suitagainst 2003 Productions have been ordered to pay Euros 3,000 each to thecompany.
Earlier this year, Frenchculture minister Renaud Donnedieu de Vabres announced plans to open the subsidysystem up to non-European production companies, under specific criteria.