The film rights are sold either by the author of the film or by the author's agent. There are two ways to buy the film rights of a literary work. In this article we will explain how to buy the film rights directly or through the granting of the option right.
Steps
Method 1 of 2: Buying the Film Rights Through the Granting of the Option Right
Step 1. Get advice from a copyright attorney
These attorneys specialize in the legal aspects of the entertainment world, including film stock options. Since they are so well versed in the process, they are invaluable to those looking to buy the film rights to a work.
Step 2. Prepare an agreement with an option contract
This is the most used method, because you don't pay much right away. The option requires that you as a potential buyer pay the author a sum of money for the opportunity to purchase the film rights. The contract usually lasts for a certain period of time, during which you can try to arrange everything necessary for the production of the film. Once you are ready to produce the film, you can then exercise the option to purchase the film rights.
If the option agreements are not completed successfully, the author will process the deposit together with other payments made by the buyer, maintaining full possession of the copyright and the possibility of selling them to someone else
Step 3. Specify a time period for the option right
This period may vary and include extensions on the initial period, during which payment is required from the author each time an extension is activated.
Step 4. Establish the cost to pay for granting the option
Generally, there is an initial sum, which usually corresponds to a percentage of the total agreed price, plus a sum to be paid for each extension included in the contract. Depending on the contract, these costs may be applied to the total purchase price or not applied at all. Furthermore, if you decide to complete it, it is possible that you will not be able to subtract the amount already paid from the total price of the sale.
Instead of a purchase price, the contract could include a percentage of the film's budget. This percentage typically ranges from as low as 2.5% to as high as 5%
Step 5. Include author compensation in the contract
The author may want a small percentage of the film's proceeds if you proceed with the purchase and production of the film. This is usually a small percentage of that amount and can be negotiated before signing the agreement.
Step 6. Determine the amount of royalties to be paid to the writer for subsequent productions
These are, for example, the sequels and television series based on the opera. There are specific figures that deal with these aspects, such as royalties of 1/3 on the sum of the purchase of the rights of the original work for a remake, etc. Television movies and series may have slightly different (and still negotiable) royalties.
Step 7. Include reserved rights in the contract
You should clarify the rights reserved to the author in the option agreement. These may include publishing rights, the right to publish sequels, prequels or other canonical works, or other rights. If the author has particular rights that he or she wants to reserve for himself, you need to be sure to include them in the option agreement.
Step 8. Sign the contract together with the writer and pay the agreed sum
You may need a lawyer at this stage, as the agreement will easily be written in legal technical language. Once the agreement is signed, you will have to pay the amount for the author option.
Method 2 of 2: Buying the Film Rights Directly
Step 1. Look for the registrations and rights transfers registered for the work in the copyright database of the country in question
You have to make sure that the copyright registration is under the name of the author and that there are no other options already, etc. Each database is different (for example the one in the United States dates back to 1978, so works done before then will not be listed).
A company specializing in copyright research will be able to help you, but their services can be expensive
Step 2. Track down the owner of the film rights
You should contact the author's agent, or, if the latter does not have one, the author directly and inform yourself if he has not already sold the rights or granted the option right.
- If the work has been published, you should read the publishing agreement, to make sure that the author does not own the rights to the film in an exclusive manner. You will also need to obtain a Quit Claim ("waiver of right") from the publisher, for further confirmation of the availability of rights.
- The Rights and Acquisitions Department should be able to tell you if the film rights of the work are available, unavailable, or in the public domain.
- By "public domain rights" we mean that you can adapt and sell your adaptation without having to buy the rights from the author.
- If the publisher does not check the rights, check with the author's agent.
Step 3. Hire a copyright attorney
These lawyers are film rights experts and can help you in the whole process of securing the rights to a work; hiring one will make everything easier.
Step 4. Contract to buy the movie rights outright
Once you are in contact with the publisher of the work for which you wish to purchase the film rights, negotiate a purchase agreement. This is a more unusual way of doing things, because it requires full payment upfront, before the movie is even designed.
Buying the rights to a film outright allows you to fully control the film rights of the work in advance, except for any arrangements you may make with the author's agent or whoever owns the rights before you purchase them
Step 5. Reach an agreement on the price, terms and conditions that will belong to the written contract
The terms of the sale may require the buyer and the writer to retain certain rights, such as the role of the author or other persons who own the rights before the purchase (if any).
The buyer, in fact, could include the right to adapt the work to a film and / or to make it available to the public through means such as home video, sequels and remakes, promotions and advertising or take advantage of rights with which to perform. partial modifications in order to obtain a better cinematic adaptation
Step 6. Pay the agreed sum to the writer
Make sure that both you and the writer sign the agreement for the sale of the film rights. Unlike the method explained in the first part of this article, the buyer would have to pay the full agreed amount upfront for the rights.
Advice
- When purchasing the film rights, you must make sure you include a clause stating that you are not required to film the work, so that no one can force you to make the film immediately. However, the writer may include a withdrawal clause stating that the film rights revert to the author, in case the film based on his work is not made within a certain period of time, so that the author can sell them to someone else..
- Bestselling authors will often ask you to buy the movie rights directly instead of granting the option.
