The option price shall constitute an advance against the purchase price payable pursuant to section 5. Option fee, and this agreement shall become absolutely null and void and neither party hereto shall have any other liability, obligation or duty hereinunder or pursuant to this agreement. Optioning literary material entertainment law resources. Such scripts are often based on news of crimes, political scandals or tabloid stories about the rich and famous. The literary option and purchase agreement the agreement gives a producer, production company or studio the right to shop, package, set up, or produce a film based upon the screenplay or book the literary property that is the subject matter of the agreement. Most often, the deal to make a movie based on a book takes the form of an exclusive option agreement. The producer may offer a purchase price for the motion picture and television rights the price they must pay if they exercise the option that is one flat payment regardless of the budget of the picture. A screenplay option agreement is drafted between a film producer, a production corporation, and the author of foundation material.
Option contracts can be used for various properties including real estate, foreign currency and stocks. A few weeks ago, i wrote about the importance of option agreements to a. Usually the option contract is a two or threepage document with a literary purchase agreement attached as an exhibit. Another material term in an option agreement is the purchase price, which is the amount of money that the writer will receive in the event the screenplay is made into a feature film or tv. The purchase price may be based on a percentage of the budget usually with a floor and ceiling of the amounts that the holder of the rights may receive. The purpose of the agreement is to protect the work of a screenplay writer. A signed agreement between an investor who is seeking to open an options account and his or her brokerage firm. This agreement represents the entire understanding of the parties and may not be amended unless mutually agreed to by the parties in writing. An option to purchase agreement is a contract between a buyer and seller, which gives the buyer the option, but not the obligation, to purchase some sort of property at an agreed upon price prior to the maturity date of the option. While option contracts are used in both commercial and residential real property transactions, this article focuses on option to purchase contracts in residential real estate transactions. Ideally, an option agreement should include two separate documents, both the option itself and the purchase agreement to be used if the option is exercised. Understanding the option agreement for your screenplay medium. Authors will want the option agreement to include a mechanism which makes it clear that the commencement of principal photography is deemed to be an automatic exercise of the option, necessitating payment of the purchase price. However, as the terms of the purchase agreement were agreed when the option agreement was signed, they cannot be changed unless both parties agree.
There are three main elements of an option agreement that a writer should be aware of. Purchase agreement, which is the actual purchase of the film rights. An option agreement is a deal that essentially loans out or rents the rights to your script to a producer or production company in hopes they can get the movie made. Optioning film or tv rights in a book a checklist entertainment. If exercised, the rights in the creative work will then be transferred via the purchase agreement. If optionee fails to exercise the option on or before the last date for such exercise specified above, the option and this agreement shall be null and void and of no further force or effect. At the end of the option period and the renewals, the producer must either drop the project or purchase the story rights. This option and asset purchase agreementthis agreement is entered into and made effective as of september 16, 1997 the effective date, by andamong mentor corporation, a minnesota corporation, or its assignee collectively, mentor, alchemy engineering, llc, a california limited liability company dba sitech, llc sitech, and. They require chain of title documents, which include the literary option and purchase agreement.
An option agreement is a contract that allows a producer or a studio to obtain the film rights to a writers screenplay for a period of time with the goal of making it into a film. In the film industry, an option is a contractual agreement between a potential film producer such as a movie studio, a production company, or an individual and the author of source material, such as a book, play, or screenplay, for an exclusive, but temporary, right to purchase the screenplay, given the film producer lives up to the terms of the contract. The producer may offer a purchase price for the motion picture and. In general, an option allows the producer or studio the exclusive, irrevocable right to purchase the screenplay at a set price within a specified period of time the option period. This optionpurchase agreement the agreement dated as of september 21, 2007, by and between indieshares, llc a washington limited liability company, including its affiliates and subsidiaries, collectively purchaser and sheila jenca, 2907 haddington dr. This option agreement and the rights granted hereunder may be assigned by buyer to any other person, firm or corporation.
It also contains a separate purchase agreement used for the actual. Option agreement for rights to life story legal forms and. What is the purpose of a screenplay option agreement. Optionpurchase agreements allow producers to keep the screenplay in their pocket why they run around the industry to their contacts and others to secure interest, talent, financing, and the logistics necessary to make the film. Usually, the purchase agreement will be negotiated in tandem with the option agreement. At one point or another in your career, you may be approached by a producer or a motion picture company interested in purchasing rights to your characters and stories which they will refer to as the property in order to turn it into a film, a television series, etc. Seller shall be entitled to retain the option fee, and this agreement shall become absolutely null and void and neither party hereto shall have any other liability, obligation or duty herein under or pursuant to this agreement. The industry standard for screenplays is thus the optionpurchase agreement. No one can circumvent her during the option period not even a major studio. Optionpurchase agreement the canadian film and video fund. Because raising financing for a film, or obtaining a production commitment from a studio or tv network, takes so long, producers will generally ask for the right to extend the option for at least a second 1218 month period and sometimes a third 1218 month period. Films based on true stories can raise issues that option agreements might want to address to limit and to protect a producers future liability. This screenplay option agreement template is a contract that allows a producer or a studio to obtain the film rights to a writers screenplay for a period of time with the goal of making it into a film.
California literary option and purchase agreement lawyer. Optionpurchase agreements are used in many situations to acquire rights to literary property i. The literary purchase agreement will also contain an explicit provision stating that the. Unlike the rights purchase agreement, which is a flat out purchase of a property, an option agreement is not actually the purchase of the right to use the screenplay. Unlike the rights purchase agreement, which is a flat out purchase of a property, an option agreement is not actually the purchase of. The option can be renewed for two additional terms after the initial term. An option agreement usually comes in the form of two agreements. What that means is that the producer has acquired not the exclusive right to make the movie, but has acquired the exclusive right to purchase the right to make the movie. Option agreement for rights to life story legal forms. Then someone calls you and tells you that theyre an independent film producer and they want to option the motion picture and tv rights to your book. It also contains a separate purchase agreement used for the actual purchase of the rights upon exercise of the option.
Terms include option period, payment, purchase price. An option topurchase agreement is an arrangement in which, for a fee, a tenant or investor acquires the right to purchase real property sometime in the future. Attorney michael norman saleman offers these deal point checklists as a courtesy to users of this website. Whether purchasing an original screenplay or the film rights to a book, a filmmaker may desire to option the material for a period of time rather than purchase the material upfront. Making the deal selling or buying a screenplay rodriques law. The producer may exercise the option by paying the purchase price for the life story or literary property pursuant to the option agreement. Under an option agreement, the producer is granted the exclusive option to purchase the motion picture and television rights to the property during the specified term and consequently has exclusive control of these rights during this period. An option is a term that means exactly what it says it grants the.
The producer and the author sign the purchase agreement only when the producer decides to exercise the option. The purchase agreement is discussed in more detail below. Aug 24, 2017 condition option extensions on progress to production. Option and purchase agreement arts law centre of australia. Producer may freely assign this agreement, the rights granted hereunder, and any of its duties or obligations hereunder without limitation. Optionpurchase agreements allow producers to keep the screenplay in their pocket why they run around the industry to their contacts and others to secure interest, talent, financing. An option contract is a longestablished legal structure where a seller agrees to sell the property in question for a price the purchase price which is to be paid within a specified time frame the option period, if and when the purchaser determines that. If there are more than one purchaser or seller the words purchaser and seller used in. This sample option and purchase agreement is designed to be used where a film maker wishes to secure the exclusive rights to develop a book, play or other existing work into a film option agreement. Which is why producers do not like to spend a lot of money on options. Understanding the option agreement for your screenplay.
Another material term in an option agreement is the purchase price, which is. The option period the time given to the producer or studio to get the film off. Upon the exercise of the option, the literary purchase agreement becomes a fullyenforceable agreement. Secure the worldwide rights to a persons biography for film, tv, book or other media with this option agreement for rights to life story. What to do when someone wants to option your screenplay. It is preferable for you to tie the purchase price to the budget of the picture. Screenwriters dealmaking tips for negotiating a screenplay. An option agreement is a contractual agreement in which a producer buys the right to purchase a screenplay from a writer or other owner. A purchaser who enters an option agreement without negotiating the underlying literary purchase agreement has purchased a worthless option. A writer who allows adaptation of his novel into film might want to retain. Saleman if you need help with any of your projects legal documentation.
In the event the purchaser does not exercise its exclusive right to purchase the premises granted by the option during the option term, seller shall be entitled to retain the option fee, and this agreement shall become absolutely null and void and. In the event that the purchaser exercises its exclusive option as provided for in the preceding paragraph. Among the types of agreements which need to be drafted and signed during the development stage of a film or television series production include agreements for the purchase of rights to anothers work, e. In the film industry, an option is a contractual agreement between a potential film producer and the author of source material, such as a book, play, or screenplay, for an exclusive, but temporary, right to purchase the screenplay, given the film producer lives. This deal point checklist is designed to highlight areas of importance when entering into a screenplay option agreement for your film project. This option and asset purchase agreement this agreement is entered into and made effective as of september 16, 1997 the effective date, by andamong mentor corporation, a minnesota corporation, or its assignee collectively, mentor, alchemy engineering, llc, a california limited liability company dba sitech, llc sitech, and richard a. The rightsowner receives a oneoff option fee which is offset against any income. This option agreement shall apply to and bind the distributes, executors, administrators, successors and assigns of the seller and purchaser. A free option might make sense from the producers perspective. Note that an option gives the purchaser the exclusive right to purchase movie. When the option is exercised, the literary purchase agreement automatically kicks in. Nine months later you decide to exercise the option and buy the movie rights. Lawyer robert zipsers tips to help navigate your option agreements. The option is for an initial period, which the potential purchaser can extend by a further set period.
From book to screen how dramatic rights are sold sidebar. Producer decides to exercise the option, the author must sign the purchase. This agreement is used to verify the investors level of. Writer further certifies that heshe has not entered into any other such agreement with any other party that will infringe upon the rights. California book option and purchase agreement attorney sebastian gibson. Nov 15, 2016 upon the exercise of the option, the literary purchase agreement becomes a fullyenforceable agreement. Oct 05, 2015 an option contract is a longestablished legal structure where a seller agrees to sell the property in question for a price the purchase price which is to be paid within a specified time frame the option period, if and when the purchaser determines that the purchase is in hisherits best interests. Movie forms pro interactive is a complete package of 110 forms for all areas of production.
If youre like most screenwriters, the scenario youre working towards, aside from on outright purchase of your spec script, is getting an option agreement. If optionee timely exercises the option, this agreement shall become a contract for the purchase of the property on the terms and conditions herein set forth. Purchase agreement at the end of the option period and the renewals, the producer must either drop the project or purchase the story rights. Your pulse races as you envision redcarpet premieres and bags of money. Apr 16, 2020 if youre like most screenwriters, the scenario youre working towards, aside from on outright purchase of your spec script, is getting an option agreement.