If you fall in love with a book, you can recommend it to friends.A film producer can bring the story to a larger audience as a movie.It's not an easy task to find out who owns the film rights, especially if the book is older.The lawyer can help you draft an options contract.
Step 1: The owner of the copyrighted work is identified.
The person listed as the copyright holder is listed inside the book.It should be on the other side of the title page.The person who has the film rights might not be the person with the book rights.Many publishers retain these rights.The author may keep them, so you should start there.
Step 2: You can find out if film rights have been assigned.
It is possible that the author signed the film rights over to another producer.The U.S. is located in the United States.If the Copyright Office has a record, you can search it at http://www.copyright.gov/records/.You should look at both time frames if the book was published before 1978.If the author assigns film rights to another producer, you are out of luck.
Step 3: The author's rights are still being confirmed.
You need to check to see if the film rights have been transferred by an author.You can find the author's phone number by contacting the book publisher.
Step 4: Tell the author you're interested in their work.
If the author is well-known, you might need to negotiate with their agent.Less known authors and independent self-publishers don't have agents.Tell them you want to make a film of their book.
Step 5: The length of your option is set.
You will not buy the film rights right away as a producer.You might not know if you can get financing for the project.The option gives you the right to buy the film rights in the future.The option lasts for a certain amount of time.If you can get an 18-month option, you will have more time to find financing for the film.You should push for as long an option period as possible, even if the author disagrees.The original option period can be extended by one or two.
Step 6: The option fee must be negotiated.
You will probably have to pay for the option.You should begin by assessing the book's popularity, because there is no formula for how much you should pay.You might need to offer high five figures if you want to get a lot of people to buy your book.You can get a book that has been out for a while for $5,000.You might not have to pay any money with more obscure books.You can promise to work hard to get the film made.Talk to other film producers to find out how much they paid for options.
Step 7: Agree to a price.
If you exercise your option, you will pay this amount for the rights.If you want to include it in your option agreement, you have to negotiate this amount at the same time.The amount you pay will be based on the budget.The option price is usually set against the purchase price.The ceiling and floor should be included.The author will walk away with peanuts if your budget ends up being tiny.You can set a minimum of $7,000 to protect against this.If your budget is higher than you think, set a maximum amount.
Step 8: The author's cut of net profits is determined.
Authors typically get around 10% of net profits.You have to agree on how to define net profits.The definition used by the domestic theatrical distributor is one of the standard ways.The picture's financers provided a definition.
Step 9: Get other rights.
Do you know what other rights you should negotiate at the same time?You should include the rights to sequels.You can buy the rights before the book is published.If it turns out to be a smash hit, the author will probably create sequels, and a different producer might scoop up the film rights.There areversion rights.You might not make the film after you exercise your option.Authors don't want to wait forever, so they want their rights back.The author can reimburse you for expenses if you set a deadline for the film to be made.
Step 10: Discuss how the author will be recognized.
The crediting of an author may be a sticking point for some authors.If you give an on-screen credit that reads something like, "Based on the book Poison Ivy written by Michelle Jones," it could be part of the opening credits or the credit roll at the end.Some authors would like credit in the paid advertising.The title of the move might include the author's name if they are famous enough.
Step 11: Do you know how you exercise your option?
You need to let the author know that you are exercising your option to buy the rights.You can exercise your option by sending the author a written notice.
Step 12: The publisher can sign a release.
Publishers may hold onto the rights to their books.Ask the publisher to sign a release before signing an option agreement.The document will show you that the publisher doesn't have any rights.
Step 13: You should hire a lawyer.
You should work with a lawyer who has experience in entertainment law.If you want to get a referral, contact your nearest bar association.A lawyer is a big asset when negotiating, so bring them on board early.
Step 14: If you are drafting your own, use a sample.
You might need to draft the option agreement yourself if you can't afford a lawyer.The sample option purchase agreement is from the American Bar Association.It can be used as a guide when drafting.
Step 15: It is important to include warranties.
The terms of your agreement will be laid out in your contract.You also want to include the author's warranty.The author should warranty that the book doesn't violate any copyrights.The book does not violate anyone's privacy.The book is not obscene and does not contain defamatory material.The author has not sold the film rights to anyone else.
Step 16: There must be a clause prohibiting injunctive relief.
An injunction is a court order.If you have a dispute with the author, they can try to stop the movie from being released.The author can only be sued for money compensation by the distributor if they include a provision.
Step 17: It's time to add boilerplate.
The provisions in the contract are meant to protect your rights.The merger clause should be included in your contract.You want to state that the contract contains the entire agreement.There is a choice of law provision.A judge needs to apply state law to a contract dispute.Most people choose the law of the state where they are located, but you can choose any state's law.There is a partnership provision.Make sure the contract says you are not forming a partnership.
Step 18: Go ahead and sign the contract.
Before you write your contract, negotiate all the main issues.Let the author and their lawyer review it once it's finished.They should be discussed further if they have major changes.The author and their agent should get a copy of the contract after all parties sign.You can keep your original in a safe place or give it to your lawyer.