This article has been written by Ms.Pamishetti Supriya, a student studying BBA LLB(Hons.) from ICFAI Law School ,The ICFAI University , Hyderabad. The author is a 5th year Law student .
INTRODUCTION
A lot of written agreements are required during each of the above five phases. From the script to the screen, the process of filmmaking involves a lot of Intellectual property rights. Moreover, a lot of content creators and artists form part of a movie. Hence it is quite obvious that the needs for differentiation and protection of intellectual property rights of various entities come into play. There can be negotiations between content creators and producers in relation to the various IP rights. These are recorded through various contracts.
After all, movies are a form of business. A lot of capital and other resources are involved in business transactions. Failure to document these transactions by written agreements can lead to uncertainties and heavy losses. Moreover, investors and banks have started to mandate the producers to have written contracts with them as well as with the cast and crew of the film. Various liabilities arise during production due to non-performance of duties and negligence of crew members. Hence, the liability in the process of film development is also to be clarified.
The entire process of moviemaking is time-bound as time is one of the crucial factors affecting the commerciality and success of the film. Earlier, the film industry could not enforce its rights due to the absence of written agreements. But, now the media and entertainment industry went through a significant change so as legal awareness. The industry takes its contractual and intellectual property rights seriously. At present lawsuits, litigation and contentious matters are nothing strange for this robust industry. Legal agreements facilitate the parties to approach the court and other dispute resolution mechanisms to protect their IP rights and contractual rights.
The Production Entity
For the purpose of raising finance for a film, it is a general practice to form a film production company so as to call upon investors to buy shares and interests in the company. Such a production company can either be in the form of a Limited Liability Company (LLC) or a Partnership Firm.
The most preferred form of business entity for film production entities is an LLC. This is because an LLC assures:
- greater flexibility in terms of tax benefits and allocation of losses and gains among the shareholders/members as compared to any other forms; and
- protects the investors/individual members from being held personally liable for any debts of the company.
LLC
In order to form an LLC, the most important agreement that is necessary to be drawn up between the production entity and the members is the Operating Agreement. Some of the essential provisions of such agreement are as follows:
- scope of the business of the company;
- functions of the filmmakers;
- duties and obligations of shareholders;
- a contingency/backup plan;
- terms of winding-down of business.
The Business Entity-Security Issues
As the film production entity is a form of business organization, it is bound by the applicable securities and investment laws and has to adhere to regulations of disclosure of information regarding investments in the company. This has to be carried out by the producers as well as the promoters of the entity.
Rights Purchase Agreement
When a producer hires a writer for developing the script or story of the film, he intends to purchase such script or acquire the rights to the script. In order to do so, the producer needs to enter into an agreement with the writer for assignment of rights which is called a Rights Purchase Agreement. Apart from scripts, a producer can also take recourse to such agreements for purchasing a book or story. These are limited purchase agreements, meaning, only certain limited rights are subject to purchase and not all. This wholly depends on the negotiations between the producer and the writer.
Life rights Purchase Agreement
It is necessary to enter into this agreement when a producer wishes to produce a Biopic or Biography on a certain person’s life. This agreement is crucial if the producer wants to protect himself from any future accusations for slander or defamation by the heirs of the deceased. Such accusations often delay the production of the film and results in heavy costs being incurred by the production entity.
Life rights can be purchased in the following ways:
- from the family members or heirs, if the subject is deceased;
- from persons who knew or were close to the subject.
There is no need to purchase the rights to a subject’s life story if it is already out in the public and no has raised any objections or claims regarding the same.
Option Agreement A producer generally enters into this kind of agreement with a writer to purchase rights to a script for future use. Such an agreement enables the producer to purchase the right to purchase a script exclusively at a future date. This usually happens when the production entity has not received sufficient financing for the film and the producer can hence keep the script on standby.
Filmmakers have often adapted the author’s work in their films. This adaptation of work must comply with prior consent of the concerned author or owner. Option agreement grants the producer to use the author’s work or screenplay in the film for a specific period and consideration.
Writer Agreement
Writer Agreements are needed when the producer wants to engage a writer to convert an idea into a script or wants to change or modify an already existing script. These agreements are a form of “Work for Hire” agreements as the producer hires the services of the writer to develop or modify a script.
Director’s Employment Agreement
A director is in charge of choosing the crew members and cast, the sets, locations, costumes and props etc. Basically he/she controls the creative and artistic aspects of the film and is the one who brings life to the script of the film. He is supposed to ensure that every person involved in the film is carrying out their respective duties. In essence, a director is the soul of the film while the producer is the brains behind the film.
Production Contracts Production means the period when the shooting of the film begins and the script comes alive. The agreements required during the production phase are service agreements to hire the services of actors and crew members, renting shoot locations, etc.
After the post-production procedure, it’s time for light camera action. The time when sets are made, and principal photography begins. This is the most engaging as well as expensive period of filmmaking since the camera is rolled, henceforth allocating cast, crew and location. Everything and everyone at this point of time must be conversant with their position and shall adhere to the terms and conditions of the agreement settled.
Post-production Contracts Once the shooting of the film is complete, the film has to go through editing and for this the producer requires editors and film composers.
Editor Agreements
These agreements are entered between the producer and an editor for editing the finished film. They are usually in the form of “Work for Hire” agreements and therefore the producer has the right to retain the edited work. Some of the important provisions included in this agreement are regarding the term, compensation and ownership of rights.
Composer Agreements
Good music and background score uplift the mood of a film. The producer usually approaches a music composer who will compose the original music tracks and background score of the film. A composer agreement determines the ownership of the music. The producer shall be the owner of such music but the revenues generated through the use of the music will have to be shared by the producer with the composer.
Film Distribution Agreement
After the editing and music is in order, the next and the final step is promotion and distribution of the film. A distribution agreement is executed between the producer and the distributor for granting the distributor the right to market the film through various platforms such as Theaters, Television, CD-DVD, pay per view web streaming such as Netflix, Amazon Prime, Hotstar etc. This agreement grants an exclusive or non-exclusive license to a distributor to promote and exploit the film in any medium. However, the distributor has to consult with the producer or company before doing the same.
References
- https://www.filmdaily.tv/template/film-contracts-and-agreements-protect-your-film
- https://blog.ipleaders.in/important-contracts-used-film-industry/
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