Understanding Clean Chain of Title, E&O Insurance, and Film Distribution

Before a film is ever distributed the producer must work with actors, props, locations, and a variety of other elements in order to create the production. The artistic creation, the result of hundreds of hours of combined labor among cast, crew, and support staff, represents proprietary property. That can then be subject to a host of potential legal battles. Should proper clearances and reviews not be established during the course of production. And then, before distribution can take place, a clean chain of title, E&O insurance, and various other steps to ensure limited risk to the distributor will still be necessary.

As a filmmaker, a clean chain of title, E&O insurance, and documented protections against copyright infringement cases, privacy intrusion cases, and other forms of entertainment law represent key areas of importance that frequently come to mind.

Say you’re considering distribution for a film project. Familiarizing yourself with the importance of a clean chain of title and what that means. As well as the value of errors and omissions insurance coverage, should be top of your list of things to do.

What is a Clean Chain of Title?

A clean chain of title represents the phrase used to describe the documented chain of paperwork. Which proves proprietary ownership of a film’s rights and the rights to any and all creative works.

Included within the making of, production of, or subsequent post-production editing of a film. For example, the film will likely be produced based on a script. Which is written based on perhaps a book to film adaptation.

In this case, the chain of title must prove that:

• The scriptwriter or filmmaker obtained the book to film rights from the original author or copyright owner of the book.
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• Filmmaker received rights from the scriptwriter to produce the script into a motion picture.
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• The filmmaker obtained rights to use music, characters, or other copyrighted works within the production.
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• Filmmaker received permissions, including clearances and release forms, from the actors, animal talent, or others included in the production.
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• The filmmaker obtained clearance to use footage produced at a location from the location owner.
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• Filmmaker received clearance to include footage, produced by the cinematographer, in the film.

Consider This

Can you see how the chain of title progresses? With documented proof of permission to incorporate various use of creative elements and works throughout the production of the film?

What Does Clean Chain of Title & E&O Insurance Have to Do With It?

Now you know what it means to have a clean chain of title. You’re probably wondering, where does E&O insurance fit in? E&O insurance, or errors and omissions insurance, is just as vital to the film as the clean chain of title is.

This is the insurance which provides coverage for the filmmaker. Should the film face any lawsuits for potential copyright infringement. Or the use of proprietary works without permission. In theory, E&O insurance protects against any potential errors or omissions to the chain of title.

Think of it this way…

The chain of title represents the key areas of permission granted to the filmmaker for various rights to the production.

Whether it’s the right to use a story from a book, the right to produce the script into a film, or the right to incorporate footage of an actor’s performance into the film.

But, what happens if you forgot to get an actor release form signed? And the missing release form is also overlooked during a review of the chain of title?

Lawsuits

If the actor sues, stating that they no longer want their performance used in your film. Or that you have violated their privacy in some manner.

Errors and omissions insurance will provide coverage for the lawsuit. Including representation in court. As well as the payment of any potential claims that arise out of the lawsuit.

What Else Does Title E&O Insurance Cover?

In addition to provide coverage for copyright infringement cases and violations of privacy rights, errors and omissions insurance provides protections against financial loss resulting from a variety of other potential lawsuits or cases which could arise.

E&O insurance represents professional liability insurance, which therefore provides protection against lawsuits which claim that a mistake was made during the course of providing a professional service.

In fact, errors and omissions insurance actually covers court costs for liability cases, the cost of a settlement should such arise. As well as the cost for attorney representation in the event that a lawsuit is brought forth.

Overall, the insurance provides the following coverage for filmmakers:

• Against negligence should such occur.
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• Should an error in service be provided.
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• Omissions.
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• Misrepresentation.
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• Violation of agreements either in good faith or in fair dealing.
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• Inaccurate advice.

Do Your Research

As a filmmaker, this means that should a case for copyright or trademark infringement be brought up. Your errors and omissions insurance should cover it.

So long as you have done your part to research. Whether a copyright was in place and you have secured appropriate licensing to use copyrighted materials or other works.

It also means that if your film title violates trademark or copyright? As long as you have a title report and the letter of opinion from an attorney, your errors and omissions insurance should provide coverage.

Additional coverages provided by errors and omissions insurance include coverage for things like claims against invasion of privacy or the rights to publicity, allegations of libel in a film, and various other potential claims which could arise.

What Does Chain of Title, E&O Insurance, and Film Distribution Have in Common?

So, how does the chain of title, E&O insurance, and film distribution all tie in together? The chain of title represents the foundation of documentation.

Which outlines your steps along the entire course of production documenting your rights to copyrighted works, actor performances, and various other representations of the production.

Without a clean chain of title, most distributors will not even consider your film worthy of distribution.

Mistakes Happen

But mistakes can and will happen. Things can be overlooked. Contracts can be misinterpreted. This is where errors and omissions insurance comes into play.

Should there be some issue with the clean chain of title, E&O insurance provides a secondary level of protection against the potential claims for copyright infringement or other potential areas of concern for the film distributor. 

So, as long as you have a clean chain of title, E&O insurance will provide you with proper protection to ensure that you can distribute your film and should any legal implications arise, you’ll have attorney coverage on your side.