A ProducerShopping agreement is an agreement that allows a producer to purchase a film or television project exclusively from financial organizations such as studios; Networks and production companies for a fixed period of time. The producer is “linked” to the project as a producer. In the agreement, the copyright holder (writer/television writer/author/dramaturg, etc.) of the project, which could be a book; Spec scenario; The pilot television episode; The stage play; or any other type of literary property confers this right on the producer. However, the copyright holder reserves ownership of the literary property while waiting for a studio; Network; or the production company buys all the rights or some of the rights to the literary property are negotiated in an agreement with the copyright holder. Unlike an option in which the terms of purchase of the literary property are set and agreed in advance by the copyright holder, usually for a reduced option fee, the copyright holder makes his own contract of sale in a producer purchase contract if the producer finds a studio; Network; or the production company that wants to buy the literary good. This gives the copyright holder the freedom and right to make the best offer at this stage. The producer also makes its own production contract with the studio/network/financing company. The project can only proceed if the copyright holder and the producer each enter into separate transactions. This protects both the copyright owner and the producer and allows both parties to negotiate with the studio/network/financing company in order to reach a satisfactory agreement for each. The main advantage for the copyright holder is that a literary option/sale contract sets the purchase price, there is no change agreement, cannot be changed, and the producer selecting the literary property can actually do more than the copyright holder when selling to a studio; Network; or another funding unit.
A producer offers z.B. a spec scenario for 1,000.00 USD for one year, as part of the option/literary sale contract, the purchase price of the Spec scenario is 100,000.00 USD. During the option period, the manufacturer can exercise the option and purchase the spec scenario at that price. But what happens when a studio comes in and tells the producer that they want to buy the Spec scenario and the producer negotiates a $1,000,000 deal as a purchase price? Is the copyright owner, the author who wrote the screenplay, entitled to $1,000,000? The answer is no. The producer buys Spec`s screenplay from the copyright holder, the author, for the purchase price indicated in the literary option/purchase agreement, which is $100,000.00, and then sells it to the studio for $1,000,000, for a gain of US$900,000. This cannot happen in a ProducerShopping contract, since the copyright holder submits his own contract with the studio/network/financing company. The information contained in this article does not constitute legal advice and is not intentional. While the usual vehicle for controlling the rights of history is the option agreement, a trend among manufacturers is to use a new legal vehicle to freeze a writer`s creative rights. Type the scene correctly — the purchase agreement. Let us know what you think of the shopping deals in the reviews and provide all the advice you think the community may find useful.