If an option agreement is negotiated correctly, it can be a win-win for both the author and the producer. The author is paid to pay for his scripts for a limited time, while the producer tries to give the green light to the project of a studio or a production company. In this case, the author receives a nice purchase price for his screenplay. If this is not the case during the option period, the author retains the debit or payment option, and all script rights are returned to the author. The author could then decide to leave the script to another producer. After working for major studios, our Entertainment Law Division lawyers have extensive experience in developing and negotiating test option agreements on both sides of the table. If you or someone you know is being tested in Hollywood this pilot season, please contact Boyd Law in Los Angeles. Post-production refers to the time spent in film production, when filming is over and the film is worked, which requires the help of editors and composers. The joint agreements required during this period include drafting contracts and composers` contracts. Like actors, writers and composers may also belong to a guild or union that may affect the nature and complexity of their agreements. However, the agreements generally cover the duration of employment, the employment rate and should also cover the owner of the final product.
Publishers are typically hired on a “work-for-hire” basis, which allows the manufacturer to retain ownership of the machined product. Often, compensation is divided according to the number of editions of the film or the number of compositions that must be written by the composer. It is not uncommon for a film to use many publishers at the same time, and that is why it is important to divide the agreement in this way to ensure that the producer can continue to adjust more publishers when needed. It is typical for producers to assign experienced securities advisors to draft a Private Investment Memorandum, which they then register with either the relevant federal and regional authorities or apply for a waiver of registration from the same public and federal authorities. These offer plans must contain a description of all material elements of the film project, including the bios of all employees involved, risk factors, budgets and projections. They must indicate where all the underlying supply agreements are available and that they can be reviewed on request. A significant risk that must be disclosed is the risk that the distribution will not be carried out and that the negative costs will be recovered. For example, independent films that never receive a thought, do not recover their expenses, resulting in a loss for investors. Therefore, the manufacturer should be honest from the outset, since it may be held criminally responsible for knowing false statements of fact. Investors may be entitled to a full refund of their investment if the manufacturer or one of its representatives or associates conceals or misrepresents their production. In this article, in order to keep it simple, I will guide you through some of the most important points that you need to consider when negotiating an option agreement.