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The Legal Business of the Film Industry: 

The Legal Business of the Film Industry It’s All About Money and Credit

Introduction: 

Introduction Contracts/business law Copyright Defamation/privacy Labor law

Agents, Managers and Lawyers: 

Agents, Managers and Lawyers Agents Procure employment Managers Personal managers Advise and counsel Cannot procure employment Business managers Investment advisers CPA’s that pay your bills Lawyers Role can be important even at early stage

Contracts: 

Contracts Oral agreements Written agreements The cocktail napkin Don’t try to make a picture without them

Special Features of Industry Contracts: 

Special Features of Industry Contracts May be subject to union/guild agreements May prohibit injunctive relief against project May result in continuing obligations

Types of contracts: 

Types of contracts Producer and creative elements Director Writer Actors Director of Photography Music

Other contracts: 

Other contracts Production financing Distribution

Types of Payments: 

Types of Payments Explicit On signing On commencement of principal photography Contingent If box office gross reported in Variety exceeds ______ dollars Deferred $_____ six months after general release

“Profit” Definitions: 

“Profit” Definitions Profit, proceeds, contingent compensation Defined by contract Gross participants prevent existence of net

Clearances: 

Clearances E&O Insurance Title clearance Defamation and privacy Copyright Clips can break the budget

Unions and Guilds: 

Unions and Guilds For employees SAG/AFTRA DGA WGAw IATSE/NABET

The Screenplay: 

The Screenplay It all begins with the written word If it’s not on the paper, it won’t be on the screen Rights are acquired by: Options Purchase

The option: 

The option Time to exercise Extension periods Extension payments Exercise of option Role of agent

Business effect of using public domain material: 

Business effect of using public domain material Is it public domain? No proprietary position

Organizations: 

Organizations Film Independent (FIND) American Film Institute International Documentary Association IFTA FilmL.A.

Distribution: 

Distribution Presales Definition of the work What are the key elements Script Cast Director

Distribution: 

Distribution Territory Media and modes of exploitation Term Recoupable costs Delivery and delivery elements

IFTA: 

IFTA Trade association of producers, distributors and rights holders Sponsors AFM Promotes standardized distribution agreement and terms Long established international arbitration tribunal