Making an independent feature film is not an easy task and often involves many negotiations and agreements at all stages of production, from pre-production to production to post-production. This article is intended to briefly address the types and variety of chords most used in an independent feature film. However, this is by no means a complete list of agreements that may be necessary for the production of a feature film. Potential producers should be aware that each film has its own independent problems and requires a list of agreements. Sometimes it may be necessary and prudent to recruit a lawyer who specializes in film and has extensive experience in this field. Options are often used in Hollywood and it is much cheaper to choose a scenario than to buy it from the beginning. An option agreement is particularly useful when a manufacturer is unsure if its financing is going through. It`s actually a way to secure your bets if the financing doesn`t go as planned. In such a case, if you buy the rights directly to the property, you might be forced to buy a script that cannot be made in a profitable movie. On the other hand, with an option agreement, even if you don`t secure the financing, you can simply let the option expire and “reduce your losses” From the filmmakers` point of view, it is very important that the enterprise agreement be developed to ensure that the filmmaker retains full control over the management of the business. Since the films are very personal to the filmmaker, the enterprise agreement should include an “emergency plan” which, as the name suggests, should indicate the backup plan and the consequences in the event that, for whatever reason, the filmmaker is unable to conclude the project. We also recommend that filmmakers` obligations be specified in separate employment contracts, so that filmmakers become employees of LLC and that the intellectual property created be owned by the LLC under the traditional principles of “work for rent.” For example, a director`s employment contract would involve compensation for development and production, depending on when the director was recruited.
The agreement could also include a provision to share a portion of the winnings if the film is doing well in the box office of cinemas.