How to Option a Book for Film
Optioning a literary work for film adaptation is certainly something that many filmmakers consider, especially when given the chance to consider an adaptation that they believe will truly stand out in the world of film and movies. Learning how to option a book for film so that you control the rights that you ultimately acquire and you get the best deal for your needs is really all about the negotiations, but it also helps if you understand the legal processes involved and what to expect.
Producers option rights to adapt books to film rather frequently, as we’ve seen in the many books that now have film accompaniments such as Forrest Gump, Charlie and the Chocolate Factory, To Kill a Mockingbird, Little Women and so, so many more.
Sadly, many authors find that they are dissatisfied with the book to film adaptations that result from their works, despite movie audiences absolutely adoring the works. But what’s the process like both for the filmmaker and for the author, when it comes to optioning a book for film?
Step 1: Producer Communicates with the Author
A producer will generally approach the author of a book or, if the author is rather famous they might have an agent with whom the filmmaker will consult. The initial communication in a book to film adaptation is generally a rather short and sweet formality.
Filmmaker asks the author if they would consider a book to film, the author most likely says they would, and the negotiations and terms can begin.
Exclusive Agreement
Unfortunately, at this early stage, the author might tell the producer that someone else beat them to the punch. And already has the option or an exclusive agreement with the author. In this case, the deal ends before it ever really gets started.
But, for the sake of this outline on how to option a book for film? We’re going to say that the author is interested in the idea of having their book made into a film. And they’re not interested in doing it themselves.
So they like the producer’s idea and would consider selling their rights. AKA optioning the book for film.
Step 2: Timeline & Other Negotiations Take Place
At this point, the filmmaker can begin negotiating the timeline and other pertinent details of the book to film deal. Specifically, most book to film adaptation option agreements are for a period of 12-24 months. With 18 months being the generally accepted average. What does this mean?
It means that the filmmaker will be given an exclusive option period, of 18 months, upon which they are the only ones that the book author would consider further selling the full book to film purchase rights to.
The filmmaker now has the exclusive right to purchase the book for film production. But only for the next 18 months unless the two parties agree to extend the option agreement for another period.
This does happen, but it generally costs more. And the payments applied do NOT go towards the purchase price.
Film Rights Purchase Price
During this phase, the filmmaker and the author will also negotiate a total anticipated book to film rights purchase price. Generally speaking, this price is based on a percentage of the estimated total production budget that will be required to create the film.
Authors generally get between 3 and 5% of the production budget as the purchase price. Of which, whatever is charged in the option agreement will be later applied to the purchase price. IF the producer purchases the rights in full.
While there are no set prices for a book to film option, and there are a lot of variables that come into play in determining the total cost that an author will charge. The general industry costs for a book to film option are somewhere between about $500 and $5000.
Of course, extremely famous books, by extremely famous authors are likely to garner a significantly higher option price.
Step 3: The Book to Film Option Agreement
This is what the producer has been waiting for! As you learn how to option a book for film, you’ll quickly find that the film option agreement is the foundation of this entire process.
This is your legal proof of exclusive rights to the book and any negotiations that you and the author of the book have made. Everything should be in writing within the agreement.
The book to film option agreement is going to include all of the following:
- Title of the book and the author’s name.
- Name of the film producer, production company, or individual purchasing the option.
- Timeline and maturity date of the option agreement. As well as details as to whether the agreement may be extended if both parties agree.
- Option purchase price and whether or not that price will apply to the actual purchase agreement.
- Pre-negotiated terms of the purchase agreement. These are the terms the filmmaker agrees to. The purchase agreement will come up if the filmmaker exercises their option to purchase the rights to produce the book to film adaptation.
- Signatures and contact information for both parties.
Step 4: Exercising the Option
Once the filmmaker has entered the film option agreement, the next step in navigating the process of learning how to option a book for film is in the producer’s hands. The producer will spend the next several months working with a screenwriter to create the screenplay.
Securing production funding and raising awareness of the project with the hope of gaining investor attention. So that they can fund the book to film adaptation. If this happens, and the producer is able to raise independent financing.
Or any other form of funding that will allow them to move forward with the project. Then the producer will exercise the option to purchase the book to film rights. They will outright purchase the rights to produce the book on film.
Terms of Agreement
As long as the producer has exercised the option within the timeline that was set forth in the book to film option agreement. And they are willing to abide by the pre-established terms of the original agreement.
Then the project moves forward. The producer pays the author the purchase price and obtains the rights to produce the book into a film.
In Summation
If the producer cannot raise funding, or does not find much interest in the book to film adaptation, they are likely to waive their option at the end of the option term or allow the option to expire without renewal.
There is no penalty to the producer, with the exception of losing the money that they paid upfront for the option.
The author might consider optioning the book rights to another producer in hopes of seeing their story make its way onto the big screen – or they might not. This is up to the author or the author’s agent.
Some authors will have high hopes of seeing their books turn into movies while others may not be so inclined. Either way, learning how to option a book for film is a process that can be relatively simple to navigate, particularly with legal support from your attorney.
