Option Agreement Tv Series
From the producer`s point of view, an option agreement gives the producer the opportunity to stick to a single scenario for a period of time, without having to try to start the project. The rights holder is also entitled to a percentage of the film`s net profit. This varies from deal to deal and can be used as a bargaining point. You can negotiate a lower option fee if you offer them a higher net shareholding. Construction premium: an additional fee paid to the owner if the buyer enters into a contract to develop or produce the work with a third party. Research the book or scenario you`re trying to choose. If you are trying to use a book, you should receive a “quitclaim” from the publishing house that confirms that it is not against your project. Get a lawyer to verify your resignation. If you try to use a script, the author may want to publish it later as a book.
It doesn`t matter – just talk to your lawyer about the writer`s plans, because the option agreement “reserves” these rights to the screenwriter. Purchase price: the largest payment due to the owner if the buyer exercises the option (opts for the purchase). The above rules generally apply to the option contract for a finished play between playwrights and theatre producers. A key difference is that the playwright may refuse to have his product modified in one way or another without consent and participation. 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. I`ve also created a handy checklist, which should include an option agreement that you can use side by side with this article to make sure you`ve covered your basics. An option agreement sets an “option period” or deadline for the start of production of the project. It can vary from six months to two years or more, depending on the length of the negotiations. These agreements often involve additional time for the manufacturer to extend the duration of the agreement, given the additional payments made to the author. In the film industry, one option is a contractual agreement on film rights between a potential film producer (for example).
B a film studio, a production company or an individual) and the author of raw materials such as a book, a play or a screenplay for an exclusive but temporary right to acquire the screenplay, since the producer of the film fulfills the contractual conditions. The term is often used as a verb in Hollywood. For example, “Paramount received the news from Philip K. Dick.” The option agreement also provides for an “option payment,” i.e. the amount that must be paid to the author in return for giving the producer the privilege of using the author`s screenplay for development purposes. Here too, this could go, depending on the bargaining power of the different parties, a very small amount (for example. B, a few hundred dollars or even a dollar) to a larger payment (tens of thousands of dollars). If the other party wishes to extend the option period for an additional period, additional payments would be provided for the author. In most cases, this additional payment is negotiated to be more substantial even when the first payment is low.
Option time: The exclusive time limit is granted to the buyer for the exercise of the option. 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.