Agreements for Film Production Companies and Employees
It is more important than ever to obtain precise agreements when working in the film industry. Imprecise language and a failure to acknowledge new technologies could mean huge losses. Ticket sales are only a part of an increasingly diverse revenue stream that now includes merchandising, internet sales, DVD rentals, and other promotions. With the pace of technological advancement, one must take into account new ways of delivering media that will come in the future.
Two Examples
For instance, in one New York case, Mickey Rooney sued several film companies when they released his pre-1960 films on VHS. VHS was invented long after Rooney first signed his contracts with the film companies. Rooney claimed that he never granted the film companies the rights to sell the films he starred in on VHS, but the court disagreed with him. Even though VHS did not exist when he made his movies, the contract language was broad enough to include new technologies, and thus the film companies had the right to release the films on VHS.[1]
In another case, the opposite happened. One party, the American Federation of Musicians, signed contracts in the 1950s that entitled them to royalty payments for the exhibition of certain programs. The AFM was entitled to royalties from “television broadcasts,” but it wasn’t clear whether that term included cable and home video exhibition. When the AFM was not paid for cable and home video exhibitions it sued, but the court decided that “television broadcasts” did not include cable and home video. Thus, AFM was not entitled to any royalties from cable and home video use.[2]
The production of a film may require some or all of the following contracts, each requiring a specific legal approach:
Release for Submission of Scripts or other Materials to a Film Production Company
Option Agreements
Agreements to Acquire Literary Material such as Novel, Screenplay, Original Idea, Treatment, Script, etc.
Consent and Release for Works Based on the Life of Another
Picture and Name Release
Assignments, Reversions, Turnaround Agreements
Copyright Registration
Letters of Intent
Confidentiality Agreements
License for Using a Film Clip
Writer Employment Agreements
Producer Employment Agreements
Director Employment Agreements
Performer (Actor / Actress) Performer Agreements
Consultant Performer Agreements
Below the Line Performer Agreements
Composer Employment Agreements
Novelization Agreements
First Look Agreements
Extra Releases
Test Option Agreements
Personal Management Agreement
General Representation Agreement
Production Services Agreement
Production Coordination Agreements
Financing
Finder Agreements
Development Money Investment Agreements
Partnership Agreements
Limited Liability Company Agreements (Articles of Organization and Operating Agreement)
Security Agreements
Loan Agreements
Joint Venture Agreements
Completion Guarantees
Distribution
Acquisition and Distribution Agreements
Merchandising Agreements
Product Placement Agreements
[1]Rooney v. Columbia Pictures Industries, Inc., 538 F. Supp. 211 (S.D.N.Y. 1982), aff’d, 714 F.2d 117 (2d Cir. 1982).
[2]Raine v. CBS, Inc., 25 F. Supp. 2d 434 (S.D.N.Y. 1998).
Agreements for Film Production Companies and Employees
It is more important than ever to obtain precise agreements when working in the film industry. Imprecise language and a failure to acknowledge new technologies could mean huge losses. Ticket sales are only a part of an increasingly diverse revenue stream that now includes merchandising, internet sales, DVD rentals, and other promotions. With the pace of technological advancement, one must take into account new ways of delivering media that will come in the future.
Two Examples
For instance, in one New York case, Mickey Rooney sued several film companies when they released his pre-1960 films on VHS. VHS was invented long after Rooney first signed his contracts with the film companies. Rooney claimed that he never granted the film companies the rights to sell the films he starred in on VHS, but the court disagreed with him. Even though VHS did not exist when he made his movies, the contract language was broad enough to include new technologies, and thus the film companies had the right to release the films on VHS.[1]
In another case, the opposite happened. One party, the American Federation of Musicians, signed contracts in the 1950s that entitled them to royalty payments for the exhibition of certain programs. The AFM was entitled to royalties from “television broadcasts,” but it wasn’t clear whether that term included cable and home video exhibition. When the AFM was not paid for cable and home video exhibitions it sued, but the court decided that “television broadcasts” did not include cable and home video. Thus, AFM was not entitled to any royalties from cable and home video use.[2]
The production of a film may require some or all of the following contracts, each requiring a specific legal approach:
[1] Rooney v. Columbia Pictures Industries, Inc., 538 F. Supp. 211 (S.D.N.Y. 1982), aff’d, 714 F.2d 117 (2d Cir. 1982).
[2] Raine v. CBS, Inc., 25 F. Supp. 2d 434 (S.D.N.Y. 1998).