While the execution of the agreement seems obvious, the parties must take care to ensure that not only is the agreement signed, but that it is signed by both parties. The initial step in development of a motion picture (feature film, new media, television movie, television series or subscription video on demand (SVOD)) usually requires the acquisition of rights to a screenplay, or an underlying property (such as a book, novel, stage play, video game, short story, blog, magazine article, treatment, or idea) on which the screenplay will be based. “Chain of title” refers to any agreement or document that indicates a change of ownership in the screenplay from its inception. Sometimes, as a condition to a reversion, the owner may be required to repay the expenses incurred by the purchaser in the development of the picture, or may impose a lien for such expenses, to be paid when the picture is set up with another purchaser, if the subsequent purchaser wants to use the material created and/or paid for by the previous purchaser (or purchasers). Applicability of Option Fee(s): It is customary that the amount paid for the first option will be an offset against the purchase price, while any option payments made for the second, and subsequent option periods are usually not applicable against the purchase price. Thus, under the WGA Basic Agreement, payment for a screenplay does not include a rewrite. Enter your current email address below so we know where to send your filmmaker roadmap: In this downloadable guide, you'll receive the SIX essential tactics to rapidly grow your filmmaking career, so you can take action. OPTION/PURCHASE AGREEMENT. 8. A turnaround provision usually provides for the initial purchaser to obtain full or partial reimbursement of his development, pre-production and production expenses, usually to be paid by the owner or a subsequent purchaser. In addition to all this free writing, if the writer had not complied, he would have been required to return the initial down payment the optioning party paid plus damages! I mention this because it’s becoming more and more common for screenwriters to take the initiative a… The owner typically reserves certain “reserved rights” which cannot be exploited by the purchaser. What prevented them from continuing? You should be proud for reaching that goal. A revenue share is a percentage of future monies (assuming the whole project moves forward), which means you’re giving away all rights to your script for free with the hope something sticks…. Enter your current email address below so we know where to send your filmmaker roadmap: In addition to the roadmap, we'd love to keep in touch with exclusive offers and the latest Filmmaking Stuff. Developing material to produce is a major challenge. In my book, Writing for the Green Light, I take a full sample option agreement and break it down page-by-page (line-by-line) and explain how each step of the process works. Option Agreements. It is the price being paid for the right to purchase the screenplay. The purchaser may want to obtain such additional option periods to protect his investment of time and money in developing the project. 1. You can find out about how we use your information in our Privacy Policy. If no film is produced adapted from your script during the term of your option agreement, the deal expires and the rights get returned to you. If you’re not comfortable with the answers, maybe signing an option agreement isn’t the right move just yet. An option/purchase agreement is most often used by two parties to sell/acquire the motion picture and television rights to existing screenplays. It is a low risk opportunity where well connected pros get to pitch and promote your screenplay and handle all that intimidating business stuff. Unlike the Rights Purchase Agreement, which is a flat out purchase of a property, an option agreement is not actually the purchase of the right to use the screenplay. Because raising financing for a film, or obtaining a production commitment from a studio or TV network, takes so long, producers will generally ask for the right to extend the option … The idea of an option agreement seems great. How To Make Your First Feature Without Going Bonkers. Did any parties have an interest? “Script clearance” means that a clearance service will go through the script and create a report that flags potential legal problems relating to copyright, trademark, defamation, right to publicity and privacy issues. For example, the producer may be required to get permission from the copyright/trademark owner if a pre-existing material (such as films clips, still photography, artwork, product name, business name, music, etc.) If no film is produced adapted from your script during the term of your option agreement, the deal expires and the rights get returned to you. A big problem many newbie writers have after signing an option agreement is not realizing they’re sometimes guaranteeing the producer or production company a lot of free excess work…. Some literary agents are savvy enough to exploit the film rights but typically, a film rights agent should be used because of their expertise and connectio… Previously, he served as the Executive Director of Distribution for MarVista Entertainment. And this is assuming a project is ever actually adapted from your work…. The rights-owner receives a one-off option fee which is offset against any income received after the exercise of the option, plus (if the option … Option Extension(s) Term/Fee/Conditions to Extend: It is possible to have a second, third, and even fourth option period, each requiring a separate payment and each continuing to tie-up the script for a specified time (the “additional option period”). If the owner is not the screenwriter, provision may have to be made to preserve the credit rights of the screenwriter and/or the credit obligation of the owner to the screenwriter. Among the types of agreements which need to be drafted and signed during the development stage of a film or television series production include agreements for the purchase of rights to another’s work, e.g a book option or screenplay option, a life story agreement, an agreement … A “set-up bonus” is an additional fee payable to the owner if the purchaser enters into an agreement for the development or production of the script with a studio, financier, independent production company, or television network. None of these activities should be construed as an exercise of the option. But this kind of agreement is also used to acquire the motion picture and television rights to things like comic books, novels, theatrical works (plays/musicals), or even film remake rights. You might be thinking you’re only loaning out those rights limited to your single spec script, but nearly all option agreements will add additional clauses. Where the producer or studio does not bother with an option but instead immediately purchases the script, a Literary Purchase Agreement is used instead of an Option Agreement.  If the Writers Guild of America Basic Agreement (“Basic Agreement”) is applicable, then the provisions of the Basic Agreement provide minimum guidelines for the purchase price, option fee, option period, writing services and representations and warranties. You will need to review your option agreement carefully, understand what rights you’re granting and how the deal will work. 1. These often include direct sequels and prequels related to your work, as well as ‘nearquels’ which extend across other hypothetical platforms, including stage play adaptations, book adaptations, reboots and more. This Option/Purchase Agreement (the “Agreement”) dated as of September 21, 2007, by and between IndieShares, LLC a Washington Limited Liability Company, … OPTION AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTY THIS OPTION AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTY (the "Agreement"), is entered into by and … Get a lawyer. The amount of the profit participation may also be dependent upon the owner’s credit on the motion picture if the picture is produced. Screenplay Option Agreement. A “spec script” is a screenplay that has been written without a writing or Literary Purchase Agreement in advance in the hope that it will later be optioned on “speculation”. E&O: The owner will often seek to be added as an additional named insured to the purchaser’s general liability, worker’s compensation, and errors and omissions insurance policies. The manner of calculating the contingent compensation is usually hotly negotiated. Both scenarios allow producers and production companies to stretch their own budgets to acquire more scripts, affording them more opportunities for something to stick… This is great for their bottom line, but it doesn’t guarantee you much of anything. Your script might not get the financing or attention it deserves, meaning it never gets adapted into anything. Once the producer (or studio) has this information, a risk assessment can be made and the producer will be able to decide whether it is necessary to revise any portions of the script to avoid potential problems down the line. In short, if no film is adapted from your script, you will get the rights back… But you might not have a real world sense of how valuable they really are after your work’s been exploited by a third party. Option to Purchase Agreement is $_____. When presented with an option agreement, make sure you’re getting ‘something’ up front for your loan-out of your intellectual property. If you would like more information, please read our full Compensation Disclosure. 9. Upon termination of this Agreement, the Bank shall not sell, surrender, or transfer ownership of the Policy without first giving the Executive or the Executive’s transferee the option to purchase the Policy for a period of 60 days from written notice of such intention.The purchase … As such, the purchaser may attempt to obtain provisions for (1) a right of first negotiation, which gives the purchaser an opportunity to make the first deal with the owner for the acquisition of the reserved rights, and (2) a right of last refusal, which enables the purchaser to acquire any of the reserved rights upon the same terms as offered by a third party to the owner. Feature-Length movie cautious when reviewing can find out about how we use information. Of the WGA Basic agreement, the producer gets an exclusive option to the... 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