What Is A Shopping Agreement

The film and television industry has become increasingly informal in recent years. In the past, agents signed actors and screenwriters before attempting to sell their services or equipment, members of production teams signed cooperation agreements with their partners before leaving a project in a studio, and producers entered into written option agreements with screenwriters in which they paid money to exclusively acquire the film and television rights to a property. Nowadays, however, many agents will “put new artists in the hip pocket” and promote them without a contract to avoid a commitment; an employee will bring a project to the studio with the simple promise of a partnership with his teammates; and producers often enter into so-called “purchase agreements” with authors. So we`re going to cover what these deals are today and look at how you can use them to get valuable intellectual property from your side before presenting to producers or studios. Purchase agreements can take various forms, including the following: Purchase agreements, also known as “free options” in industry language, are just that. Typically, an accomplished producer takes over the rights to the project for a period of time – just like a standard option – with the usual difference that the author earns more in the event of a sale because there was no upfront payment. Unlike an option contract, a purchase contract does not confer any rights to the property itself on the producer. In that regard, a purchase contract is, in principle, a contract for services and not a contract for the purchase of property rights. Without property rights, a purchase contract is arguably easier for the owner to violate and therefore grants less protection to the producer.

An owner could go behind the back of the producer and sell the rights to another party. The manufacturer would have no choice but to assert a claim for breach of contract. Conversely, the manufacturer has acquired an interest in the property under an option contract, which does not revert to the owner until after the option expires. If the owner wishes to sell or option the same interest in the property, another buyer expects the owner to have the assurance and warranty that the interest to be acquired is not legally encumbered and that no other person has any potential ownership rights in the property. Under the purchase agreement, the author agrees that if the author negotiates an agreement with a buyer for the dramatic rights, the author will bind the producer to the project during these negotiations. The producer usually negotiates separately with the buyer. Typically, the purchase agreement also includes language that prevents the author from bypassing the producer and creating an agreement directly with the buyer once interest in a project has been demonstrated. An option is made with money paid in advance to the copyright owner. Unlike an option, in the purchase agreement, the copyright owner enters into the purchase contract when the producer finds a studio, network or production company that wants to buy the property. So think carefully and always consult a lawyer before entering into any of these agreements.

And always use the legal advice of a real lawyer. For a producer, a purchase agreement is an attractive approach to engage in the project for free, while a producer must make an initial effort under an option agreement to acquire the right of option. In this regard, the manufacturer waives the risk of an initial investment in intellectual property, which it may ultimately not be able to sell or produce successfully. For the same reason, the producer probably does not have a “skin in the game” without any advance compensation that the producer receives. .