Shopping Agreement For Film

The film and television industry has become increasingly informal in recent years. In the past, agents have signed actors and authors before attempting to sell their services or material, members of production teams have signed collaboration agreements with their partners before leaving a project in a studio, and producers have entered into written option agreements with authors, in which they paid money to acquire exclusively the film and television rights to real estate. Nowadays, however, many agents will „put new artists in the hip pocket“ and encourage them without a contract to avoid an obligation; a staff member will bring a project to the studio with the simple promise of a partnership with their teammates; and producers will often enter into „shopping“ agreements with authors. The duration of a purchase contract is short. If the producer cannot deliver, the author can move on to another potential agreement. However, if the producer has largely implemented the project, it is possible to significantly reduce the likelihood of other possibilities. If you create a purchase agreement, you only have a limited time to pilot the project. So you have to do your shopping right away. They are contractually obliged to present the property to potential buyers or financiers with the aim of bringing them out into the world. Under an option agreement, the purchase price, back-end remuneration, passive royalties and other conditions relating to the sale of the property by the author are agreed in advance by the author and the producer. Since there is no payment to the author, the duration of the purchase agreement is usually shorter than an option agreement – usually only six to nine months.

Unlike an option agreement, the trade agreement generally does not give the manufacturer the unilateral right to extend this term. While this short-term delay benefits the author, it can be a potential trap for the producer who, over the lifetime, can lay the groundwork for an agreement with a production company only to be cut by the author after the expiration of the term. To protect itself from this result, the manufacturer may add the following clauses to the additional period: (a) Where negotiations are conducted with a buyer at the end of the term, the duration of such negotiations shall be automatically extended until such negotiations are concluded or interrupted, but not more than 90 days; and (b) the author of this Agreement may not enter into a ownership agreement with an enterprise to which the manufacturer has subjected ownership during the period of validity within twelve months from the date of expiry, unless the manufacturer is considered a party to this Agreement and engaged as the producer of the applicable production on terms negotiated in good faith between the manufacturer and this company. . . .