FILM & TV: THE BUSINESS AFFAIRS OF THE FILM AND TV INDUSTRIES

Most films go through pre-production but never get made. Many projects get optioned and scripts get written but
do not get financed.

What is development?
 Optioning film & tv rights – an agreement to acquire something on the happening of certain events in
the future.
 Engaging a writer – write a script based on the copyright material.
 Clearing rights – a matter of judgment.
 Attaching a director – There should be an agreement with the director to capture all their contributions
to the script (i.e. assignment of their copyright).
 Creating a budget and finance plan.

RIGHTS: ACQUIRING THEM AND CLEARING THEM

 Chain of title – the documents that the producer has to prove they have the rights to make the film.
 At the point of completion, everyone will ensure that the necessary rights are acquired and cannot be
challenged.
 The documents are provided to the bank and are checked.

OPTION AGREEMENTS
 In return for a fee, a producer has a period of time in which they can develop the film. On developing the
film, then the rights will be assigned to the producer.
 Adapting a product without an agreement leads to copyright infringement.
 If there is no option agreement, other producers may also vie for the product.
 There is no such thing as a free option – there must always be consideration.

WHAT TERMS NEED TO BE AGREED?

 Option period(s)  usually at least more than three years. This can be extended on the occurrence of
certain events.

MORE ABOUT RIGHTS

 Rights can be acquired by assignment or licence.
 The copyrights may be subject to reservations (e.g. stage/radio rights).
 Holdback on reserved rights  the author may not be able to exploit their reserved rights for a certain
number of years.
 Turnaround  if the producer, pursuant to the option, exercises the right to purchase film rights but
does not make the film, then the film rights may go into turnaround (i.e. go back to the author on a
price).

The completion guarantor certifies the budget.

WRITER’S AGREEMENT
 The writer is paid wages for each stage of writing.
 Principal photography payment  payment on the making of the film.
 Loan-out company  the writer may have a loan-out company which owns their copyrights. An
inducement letter must be should be obtained from the writer.

REAL PEOPLE/EVENTS
 Error & Omission insurance
 Negative checks  Lawyers must ensure they have not included characters that could be mistaken for
a real life counterpart.
 Harman Pictures  it is possible to write a script/produce a film based on historical events and infringe
the copyright of a book based on the same event.

1) False. Copyright can only protect the tangible manifestation of an idea.

2) No – can trademark though.
3) No
4) Yes
5) No, everything that has a copyright is protected regardless of whether there is a notice.
6) No
7) Copying/adapting is itself a breach of copyright
 8)
9) Yes
10) Yes, proof must be credible.
11) No, there is a copyright in the sound recording.

19/08/12 - $8000 – against the purchase price

19/08/13 - $8000
19/08//14 - $10000

Payment must be made by 19/08/15.

Effects of non-payment – cannot exercise right to buy.