| Negotiating A Distribution Deal |
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| Tara Parker | |
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Page 1 of 3 Some filmmakers, in their haste to secure a distribution deal, make mistakes negotiating that deal and settle for an inadequate contract. You can avoid these mistakes and obtain what you need – a fair and equitable distribution contract.Start by carefully reading the terms of your proposed contract, and make sure you know what they mean. If anything is ambiguous or unclear, ask questions and seek advice from an experienced advisor or entertainment lawyer. Keep at it until you are satisfied that you fully understand the impact of each provision. Be wary of distributors who claim that since their contract is in the distributor's “standard form” it is essentially non-negotiable. This is not the case. These contracts are negotiable – but your ability to obtain more favourable terms will depend upon your bargaining power relative to the distributor, as well as the overall desirability, demand and marketability of your project. Five key pointsEven with limited bargaining power, you can improve your chances of negotiating a fair distribution deal, one that adequately protects your rights as filmmaker. You do it by paying careful consideration to the following five key points:
RightsThe contract should clearly set out the extent of the rights to be licensed to the distributor. By limiting the term, territory, language and/or media granted to a particular distributor, you are helping to protect yourself by limiting your risk exposure (for example, due to distributor's default or bankruptcy) to that particular distributor only.Media Distributors are typically granted theatrical, television and/or home video rights only. Avoid granting any rights that will not be actively exploited by the distributor, such as soundtrack rights, music publishing rights, novelization rights, stage play rights, and merchandising rights. You should reserve them all. Also exclude the right to make sequels, prequels, remakes and spin-offs. What you might grant the distributor is a right of first negotiation or last refusal to obtain the distribution rights to such works. Continued... |
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