What Should a Film Distribution License Agreement Include?
Distribution rights agreements are an important aspect of the deal made between a film producer and distributor to get a film distributed to a larger audience. The typical distribution deal will include a signed and dated film distribution license agreement which includes pertinent details about the rights and permissions that are being granted to the distributor by the film producer. Before you sign on the dotted line, it’s important to make sure that the film distribution license agreement includes all of the important details that are required under the contract.
Commercial films frequently pass through multiple distributors as they mature and move along the product life cycle. With each subsequent pass through a distribution channel, a new film distribution license agreement is entered.
Between the new distributor and the producer of the film. The idea here is that multiple distribution channels will lead to commercial success for the film.
Split Rights for a Film Deal
A film distribution license agreement might represent a split rights deal between the producer and the distributor. In this type of agreement the distributor is granted the right to distribute in particular territories.
While the producer maintains the right to allow distribution in other territories. This type of film distribution license agreement aims at getting the film to the right distributors. For maximum coverage across multiple territories.
Restriction of Reserved Rights
You might notice a film distribution license agreement will include a note that allows the producer to reserve some rights. Such as the right to distribute after a predetermined time period. If the distributor places a restriction on reserved rights.
The distributor will not allow the producer some rights. Or will place a hold on the rights for a predefined period of time. This often happens when a distributor wants to restrict a producer from releasing a home video version of a film. During the course of the distributor releasing in theaters.
Terms of the Agreement
In addition to the above items that are included in a film distribution license agreement. The terms of the agreement are outlined as part of the contract between the distributor and the producer.
Under the terms of the distribution license agreement. You might see the total amount of time that the distributor will retain rights to the film. Usually a period of between 5 and 10 years but may be up to 20 years.
As well as the details of what will occur if a distributor does not adequately distribute a film.
In Summary
Because there is a loss of opportunity as a film ages. It’s important for a distributor to do their part to get the film distributed early on so as not to lose out on the “golden years” of the production.
Thus, producers often negotiate terms and clauses for the film distribution license agreement. Which state that if the distribution is not up to a certain level they will retain some rights to seek additional modifications to the distribution agreement.
To secure additional distribution of the film. As you can see, there’s a lot included in a film distribution license agreement and a lot for a producer or filmmaker to consider before entering the agreement with a distributor.
This is why it’s important for you to know and understand how these agreements work and what your rights are.
