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Negotiating a Screenwriter Contract PDF Print E-mail
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Tara Parker   
If you plan to produce a film based on a screenplay, you must make sure that you either own the copyright in the screenplay or have acquired the necessary rights from the copyright owner of the screenplay.  If you need to acquire the rights, you will have to negotiate and enter into a written contract with the screenwriter who holds them. In that case, your first step is to find out whether the screenwriter is a member of the Writers Guild of Canada (WGC), or any other guild or union.  If the writer belongs to the WGC, you should carefully review the provisions of the WGC Independent Production Agreement (IPA). Why? To make sure that the IPA’s mandatory minimum terms and conditions – such as minimum script fees, and other payments and protections for the writer – are acceptable to you and possible to perform. 

If you decide to engage a writer who is a WGC member, you need to become a signatory to the IPA, which you do  by signing a “Voluntary Recognition Agreement.”  You can then hire the writer under the WGC’s standard form contract (which can be downloaded from the WGC’s website at www.wgc.ca).

Five Key Points
The contract will include all the provisions spelled out in the IPA.  However, you should  consider adding certain provisions not covered in the IPA – five key points that will ensure you acquire the rights and flexibility you need to produce and fully exploit your film.  The five are:
  1. Grant of rights
  2. Waiver of moral rights/right to edit the screenplay
  3. Reversion of rights
  4. Credit
  5. Representations and warranties
Any additional terms you negotiate with the screenwriter – any terms not set out in the IPA – must be added to the WGC‘s standard form contract as “riders,” and attached to the contract that is to be filed with the WGC within seven days of signing.

Grant of Rights 

You want to make sure that the contract includes the maximum grant of rights to which you are entitled under the IPA.  For example, the IPA allows filmmakers to acquire an exclusive license to produce and distribute a film based on the screenplay – but it does not specify the duration of the exclusive license. You should therefore write into the contract that the license will last ”in perpetuity.” 

Another example: no “subsidiary rights” (e.g. spin off, prequel, sequel, character and merchandising rights in connection with the film) are included in the standard contract. If you want to acquire any such rights, you will need to spell them out in the contract, and agree to an additional fee. The amount of the fee is negotiable, and depends on the number and value of the rights being acquired (and on the relative bargaining power of the parties involved).

 
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