How Does Optioning a Book for Film Rights Work?
If you’re a filmmaker that’s interested in purchasing the rights to produce a book into film there are many steps that must first be taken in order to successfully complete the project. When it comes to securing the film rights to a book, the film producer must understand optioning a book for film rights and the steps required to structure, and negotiate, an agreement between yourself and the author.
Optioning vs. Purchase Agreement
The first step to optioning a book for film rights is to determine whether the option or the purchase agreement is the best or most suitable choice.
The option agreement is going to provide the film producer with the rights to make a movie based on the book. Whereas the purchase agreement is going to provide exclusivity.
Basically, the optioning of rights is going to come first. Allowing the film producer time to secure funding for the production from investors and financiers. Whereas the purchase agreement will provide the actual rights to produce the film.
While the book to film deal is under an option agreement, the author maintains the exclusive rights to the book. And the film producer has rights to make an audio-visual project based on the book. This is called “AV rights.”
Option Fees
Optioning a book for film rights will certainly require that the producer pay an optioning fee. This is the price the producer pays for acquiring the exclusive rights to produce the film into a movie.
Typically, the fee that is paid to the author is based on an agreed price. Somewhere between $500 and $50,000. Depending on the investment that the producer expects to secure for the production of the book to film.
The first or initial optioning fee is applied to the purchase price in some cases, but not always. These details should be clearly outlined in the contract.
However, future optioning fees, including those that are provided for the extension of the optioning agreement beyond the first 12-18 months, are generally not applied to the purchase price and are at the expense of the producer.
The purpose of these renewal fees is to ensure timely production of the book to film. Or timely release of the rights. So that the author or publisher may sell the optioning rights to another producer.
Finalizing the Optioning Agreement
If you’re invested in the idea of optioning a book for film rights, you’re going to need a written agreement between the author of the book or the publisher (whoever holds the audio visual rights to the work) and the producer or production company.
This agreement is called an options contract or options agreement, and it represents a key contract that is entered into between the book rights owner and the film producer granting the producer exclusive rights to seek financing for the production of the book to film project.
This is also one of the earliest elements of your chain of title. Before you exchange any money, it’s important to have the option agreement fully prepared, and signed. This is the first of many steps you’ll take in producing a book into a film.
