Writer's Agreement vs. Option

Question

I'm being commissioned to make revisions to a script written on spec, by me, to which I own the underlying rights. Under the terms of the agreement I get a modest upfront fee, plus 2.5% of the estimated $4m budget should the film get made, and 5% of the contracting company's net profit.
Here's the hang-up: By agreeing to this, I surrender film rights to the original draft through perpetuity regardless of whether the thing gets made. Anybody ever encounter a situation like this? Wouldn't an Option Agreement be more appropriate, after which I could be commissioned to make revisions?

Usenet · Accepted Answer

[nq:1]I'm being commissioned to make revisions to a script written on spec, by me, to which I own the underlying ... a situation like this? Wouldn't an Option Agreement be more appropriate, after which I could be commissioned to make revisions?[/nq]
Where are you located? Is this kosher under the collective agreement with the writers guild that's in force where you are?

I'm thinking you need to talk to a lawyer who specializes in this kind of thing.

"If you can, tell me something happy."
- Marybones

Usenet · Answer

[nq:2]I'm being commissioned to make revisions to a script written on spec, by me, to which I own the underlying rights. Under the terms of the agreement I get a modest upfront fee, plus 2.5% of the estimated $4m budget should the film get made, and 5% of the contracting company's net profit. Here's the hang-up: By agreeing to this, I surrender film rights to the original draft through perpetuity regardless of whether the thing gets made. Anybody ever encounter a situation like this? Wouldn't an Option Agreement be more appropriate, after which I could be commissioned to make revisions?[/nq]
[nq:1]Where are you located? Is this kosher under the collective agreement with the writers guild that's in force where you ... to a lawyer who specializes in this kind of thing. "If you can, tell me something happy." - Marybones[/nq]
I'm in Detroit, and not yet a WGA member. The contracting company is in the UK, where the film would be produced.

Usenet · Answer

[nq:1]I'm in Detroit, and not yet a WGA member. The contracting company is in the UK, where the film would be produced.[/nq]
Time for a lawyer if you ask me.

"If you can, tell me something happy."
- Marybones

Usenet · Answer

[nq:2]I'm in Detroit, and not yet a WGA member. The contracting company is in the UK, where the film would be produced.[/nq]
[nq:1]Time for a lawyer if you ask me.[/nq]
Sure sounds like it.
I have a hard time believing that anyone needs to surrender underlying rights in perpetuity in any country. Maybe the contract is just one of those stake-in-the-ground things that only people without lawyers ever sign without changes.
Alan Brooks

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Usenet · Answer

[nq:1]I'm being commissioned to make revisions to a script written on spec, by me, to which I own the underlying rights. Under the terms of the agreement I get a modest upfront fee, plus 2.5% of the estimated $4m budget should the film get made, and 5% of the contracting company's net profit. Here's the hang-up: By agreeing to this, I surrender film rights to the original draft through perpetuity regardless of whether the thing gets made. Anybody ever encounter a situation like this? Wouldn't an Option Agreement be more appropriate, after which I could be commissioned to make revisions?[/nq]
I don't know about "more appropriate" it would certainly be a better deal, but ultimately, the deal you get is the best deal that you can get a producer to agree to.
If I'm reading the above correctly, you're really agreeing to sell your spec for what amounts to a low-end deal.
That is, it's small money up-front a production bonus if the movie gets made, nothing if it doesn't and a percentage of net profits which will always equal nothing even if the movie earns a hundred quintillion dollars plus, apparently, they expect you to do a free rewrite, which actually is going to end up equally four, five or six free rewrites for what they're paying you.
Is that a good deal?
I don't know. Given that it is very much a buyer's market, is anybody offering you anything better? Are they likely to give you anything better?
It's always better to get more money up front because the chances of getting money later on are speculative. The movie most likely won't get made (most scripts don't get made).
You can always ask for a clause to be included, which is now standard in WGA contracts that in the event that the project isn't produced and isn't in active development for a certain amount of time (I think it's five years) that the rights will revert back to you that's some kind of consolation, but what you're describing really sounds as if it should be an option agreement that is, you're getting a small amount of money up front against a larger amount of money later if the movie gets made only it isn't an option agreement. They're just changing around the terms and actually buying the script in perpetuity for that small up front fee.
That doesn't make it a very good deal, really.
But, as I said, in the end, the only bargaining chip you may have is your willingness to take the script off the table and you have to decide whether you're prepared to do that if you think that this deal isn't good enough.
And if you really don't, then you have to decide what makes the deal good enough and if they won't give you that, then you need to be willing to walk away, knowing that there may never be another offer.

And, of course, the others are right about getting an entertainment attorney involved in this process.
NMS

Writer's Agreement vs. Option

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