The BBC has agreed new Terms of Trade for commissioning programmes from independent producers, it was confirmed on Monday.

The agreement was reached with Pact, the trade association representing the commercial interests of the producers. It will apply retroactively from January 6, 2004.

Under the new terms, the BBC has agreed that independent producers will own the copyright, and all other rights, to the programmes they produce. The corporation will then licence the programming for use across its TV channels for five years. Repeat usage fees will be paid by the BBC to the producers when the programme is used in a way not covered by the initial licence fee. This licence will also cover "public service" new media rights. The licence can be extended on a rolling two-year basis whilst the programming is recommissioned.

Independent producers will also retain control of all distribution rights to their programme, "subject to certain protections required to protect the BBC's licence," although the BBC will still "be entitled to a share in net profit from the exploitation of all rights in the programming."

"The Terms of Trade herald a new era in our relationship with the independent sector," said Jana Bennett, the BBC's Director of Television. "The agreement represents an historic transfer of value to independents and very much underlines the BBC's commitment to fostering a robust and successful independent sector."

Pact was satisfied with the new terms. The group's chairman Andrew Zein, who is also managing director of Tiger Aspect Productions, said: "The significant benefits of these new terms will be felt by producers large and small. Ownership and control of rights now reside with those who create programmes - no-one can argue that can't be anything but a good and fair thing."