What is a Rights Purchase Agreement in Film?
Unsure about the different types of contracts involved in the acquisition of intellectual property rights for your film production? You’re not alone! The different option agreements and purchase contracts in a typical film production can be confusing for those just entering the film industry. What is a rights purchase agreement in film and what does this particular agreement mean for my production?
What is a Rights Purchase Agreement?
You’ve most likely encountered the rights purchase agreement as part of a buyout. In which you’ve solicited the right to produce a screenplay or to produce a film that is based off of a particular book.
If you’re unsure about the contract and what it means for your production, you’re certainly not alone. Many independent film producers are confused by the various legalese that comes along as part of the process of producing a book to film or similar project.
The Answer
So you ask, “What is a rights purchase agreement in film?” The answer – it’s a contract that provides the producer the right to purchase a screenplay or, in the case of a book to film deal.
It provides the producer the right to have a screenplay for the book produced for the purpose of producing a film based on the book.
The rights purchase agreement represents a purchase agreement. Which allows the film producer to purchase the intellectual property (the screenplay or the rights to produce a screenplay).
Option Agreement
Most likely, the Rights Purchase Agreement has come along in conjunction with the option agreement. Likely immediately following an option agreement, actually. The option agreement is nothing like the purchase agreement.
In fact it simply provides the producer the option to consider purchasing the rights to use a screenplay. Keyword “option to consider purchasing” the option does not constitute the purchase of rights it is the opportunity to do so.
In order for the rights purchase agreement to be executed. The author of the book or screenplay must first provide the producer with the option to purchase his or her intellectual property.
What You Get with a Rights Purchase Agreement
As an independent film producer, you might be wondering what you get if you execute a rights purchase agreement? In short, the rights purchase agreement allows you to purchase the rights to some intellectual property.
Usually a screenplay or a book that you will then format into a screenplay. This is called the “Assignment of Rights.”
In navigating a proper answer to the question, “What is a rights purchase agreement in film?” It’s very important for you to understand that the assignment of rights will generally include terminology. Which specifies that the agreement also provides for the sale of,
“The sole and exclusive motion picture, television, photograph record, merchandising and commercial rights and all allied and ancillary rights, throughout the universe, in perpetuity.”
WHAT?
Basically, this means that when you enter a formal Rights Purchase Agreement you are purchasing all of the rights that come along with a motion picture. This means that you’re not only purchasing the rights to purchase a script or screenplay.
But that you are also purchasing the rights to produce the screenplay into a film, or to later sell the film to a distributor. Or to have merchandise and trademarked items created in connection with the film, or to otherwise commercial benefit from the film project.
Limitations of Rights Under the Rights Purchase Agreement
The rights purchase agreement may impose limitations of certain rights largely based on the bargaining power of the parties involved in negotiating the agreement. When a Rights Purchase Agreement is executed between a film producer and the original author of a book.
For example, in a book to film deal, the rights that are kept by the original copyright holder (the author of the book) depend on how the author negotiates the project.
As well as on the desires of the project as perceived by the independent film producer. Or their chosen representative that is in charge of executing the agreement between the two.
Author’s Rights
The author of a screenplay or a book will generally wish to retain some rights. Effectively excluding them from the rights purchase agreement. Obviously, they will retain the right to the published book. But they may also wish to retain rights to reproduce the book.
Perhaps into a read along format. Such as those that are available through apps like Audible, Kindle or Amazon. Rights may also be retained for the future production of a book series. Or the author may retain the right to distribute the work in other specified markets.
It’s actually quite common for an author to retain the rights to distribute in other areas. As this allows them to maximize the profit compensation. That comes as a result of keeping some level of control over the overall rights to their literary work.
Understanding your rights, either as an author or as an independent film producer, can give you greater bargaining power in the long run.
Maintaining Creative Control in a Rights Purchase Agreement
It’s natural for a film producer to want full creative control when it comes to producing a motion picture. They’re the experts on this stage of the process just as the book author was the expert at that stage.
However, it’s also common for creative control rights to be lost or otherwise tampered with as part of a rights purchase agreement.
In fact, we’ve seen situations in which a rights purchase agreement relinquishes too much creative control to one party or another. Resulting in a volatile situation when it comes to producing a book to film deal.
Producer’s Role
It’s important for the producer to make sure that they have negotiated creative control over the screenplay and the production of the subsequent film. Which is produced in conjunction with the rights purchase agreement, but how?
Producers can maintain creative control by making sure that they have negotiated such control. And clearly outlined their rights within the purchase agreement. As well as stated any rights which are not provided as part of the agreement.
Do not provide the original writer with the right to control the creation of the screenplay, to revise it, or to otherwise interfere with the production.
They can maintain their rights to their original written work. Without you relinquishing your rights to produce a unique motion picture of your own.
In Summary
Ultimately, if you’re wondering, “What is a Rights Purchase Agreement in Film?” then you’ve probably got a lot to learn about when it comes to contracts and agreements in the film industry.
And you really should consult with an entertainment attorney. In fact, your production attorney or entertainment attorney can provide you with a lot of guidance when it comes to understanding your rights, and your abilities.
In negotiating a rights purchase agreement that’s most valuable for your unique situation. And should be your first order of action in terms of moving forward.
