What is a Shopping Agreement in Film?

Have you ever read a book or an article on a blog somewhere and thought to yourself…“That was certainly amazing. It would make a great movie!”? We’ve all been there. But few think as deeply and passionately about things like this than a producer. If you’re a producer, studio owner, or filmmaker you’re always on the lookout for the next great idea. And you’re bound to find it in something you read, randomly. But, having the idea to turn some written material into a film. And actually seeking a shopping agreement in film that will provide you limited time to execute your idea and see if production would be ideal are two very different activities. 

What is a Shopping Agreement in Film?

A shopping agreement represents a unique agreement. Made between the owner of intellectual property and a producer or screenwriter. Someone with interest in possibly producing a film or television program that uses the intellectual property.

The shopping agreement provides a specified period of time for the producer or writer to “shop”. Or present the project idea exclusively to film financing entities. Including cable television networks, broadcast networks, studios or other production companies. 

Selling the Idea

The shopping agreement provides the writer or filmmaker a right to sell the idea. Or adapt the idea for the project exclusively. And will prevent another producer, director or entity from interjecting and taking your idea.

When you have a shopping agreement from an intellectual property holder. Only you have the rights to production as stated in your contract, for a limited period of time.

Under a shopping agreement in film, the writer or director (you) become attached to the project as a producer. The original copyright owner is providing you with the right to the content. And in doing so, no such right will be granted to anyone else during that period of time. 

Is a Shopping Agreement the Same as an Option Agreement?

There are very distinct differences between shopping agreements and option agreements. But there are also some similarities. Whether you’re a screenwriter, or a film producer.

It’s important that you understand the differences between these two types of agreements. Because they really are NOT the same, not in any capacity.

Shopping Agreement

A shopping agreement provides the right for a writer or producer to find a studio, production company, or television network that is willing to, or wants to purchase, the intellectual property rights and produce the film.

Under a shopping agreement, the original copyright owner retains the right to dictate who the producer pitches the shopping agreement to as well as whether a buyer is acceptable, or not.

Option Agreement

An option agreement provides a producer exclusive rights under a specified period to develop the work. The option agreement basically provides money.

In exchange for putting the book rights on hold. All while a decision is made as to whether the producer believes there is any interest in producing the book to film.

Typically an option agreement will also provide rights to the producer to make sequels, television shows, and merchandising and advertising, too. It’s a much more extensive agreement that provides significantly more rights to the producer than a shopping agreement in film would. 

The Takeaway

Generally, the shopping agreement in film comes before the option agreement. So the shopping agreement is granted and the producer shops the idea to networks, broadcasters, and studios.

Once the producer is able to find a buyer expressing interest in the idea. An option agreement that grants significantly more rights to the producer can be made.