If your script is based on a book, magazine article or other published book, this involves optioning or purchasing the rights to the film from the author (or publisher or other owner, if it is a loan work). If it is based on a life story, you must acquire the life history rights of the subject person. If your story is based on a story reported in the news or on a person`s public life, you may not need to acquire the rights to the story as long as you use your own research to create the script. But even in a book context, acquiring the rights to history can be a way to get the cooperation of the author of a published work or the person whose life history you want to use. Such agreements can also help to avoid defamation and data protection rights in certain situations. The compensation for the option and purchase usually consists of three separate payment methods. First, the initial payment option and all payments are due to extend the option. These option payments are, from the manufacturer`s point of view, “real” funds; that is, the money comes directly from the producer`s pocket. As a result, producers generally want to keep option payments as low as possible. As a general rule, authors can also be flexible when it comes to option payments.
To those who are not, it must be remembered that without the option, the rights of history should not be exploited, and if they are not exploited, they will not generate any income for the author. The rule of thumb is that the option payment should be 10% of the purchase price. However, an option on a nominal amount is not unusual. Because negotiating the option often involves costs (for example. B the legal fees incurred by the author to verify the agreement), it is possible to assess the adequacy of option payments, to determine whether they compensate the author appropriately for the costs incurred in granting the rights, with perhaps some extra money, so that the author feels that he has obtained something to waive the rights without an option for a while. Acquiring story rights is often the first step in the development of a film, a film on television or other creative work. As history is the basis on which successful production is built, it is important to ensure the underlying history rights from the beginning. The option to purchase contracts usually consists of two supporting documents, an option contract and a sales contract, although the provisions of each document are sometimes included. In both cases, it is very important to negotiate the terms of the sales contract at the same time as the terms of the option.
An option contract that does not contain the specific terms of purchase is a worthless option: all it gives the manufacturer is the right to negotiate the terms of purchase at a later date. The owner of the rights to the story is not required to sell the property, unless the essential terms of the purchase (buyer and seller, purchase price, acquired rights, offer and acceptance) are included either in the option or in a joint sales contract. Guarantees and compensation are also included in most option contracts. As a general rule, the author must ensure that he is the sole owner of the work, that the work is original and that it does not defame or infiltrate anyone in private life, and that there are no claims or lawsuits relating to the work. As a general rule, if an option is involved, the author will also guarantee that the rights nauser options will not be sold or otherwise conceded during the option period. In addition to these guarantees, the author is generally asked to compensate himself for any claim against the manufacturer for violation of any of the guarantees provided by the author.