A Look at Film Producer Agreements
Most people are familiar with the bare-bones definition of a basic film producer agreement: An agreement between the film producer, or production company, necessitating the duties of an individual or group of individuals who will serve as an employee for them. While this certainly describes the general gist of this type of deal, it is incredibly sparse when it comes to the important details that should be included. The production of any piece of media is a big business, and the differences between productions can make each one a unique work of art, and it is the job of a film producer to take all involved into consideration.
What is most commonly seen in this type of agreement is dictation of the rights and responsibilities of everyone involved, what will happen in the event of a contract violation , and what happens if the filmmaking does not go as planned.
Component Parts
The most commonly seen components to this type of deal will include:
Some agreements will even include specifics in regards to the budget of the production and the money that each individual will be making during the run of the project.
Dispute Resolution
In the unfortunate event of contract violation or other disputes, the agreement should contain correspondent stipulations for dispute resolution, including details for mediation, binding arbitration, and any other provisions required by the particular parties.
As with any type of business deal, the more detailed the agreement is, the better. By including specific elements about their working relationship, the production team can avoid any issues later on down the road.
Key Features of a Film Producer Agreement
A well-crafted film producer agreement protects both contracting parties, and therefore needs to include such contracting parties full names, any alternative billing names, and business contact information. The agreement should also clearly identify the project through its title, the mediums involved, and when the project will be developed and produced.
Another critical aspect of a film producer agreement is defining the rights and responsibilities of all parties involved. This includes whether the producer has the right to make final determinations on anything connected to the project including script changes, editing, and other work items. Other contractual rights can include the ability to terminate or delay the project, as well as compensation ways and methods.
There are many different ways a film producer can be compensated for their work on the project. Compensation methods can be in the form of a fixed fee, payment by hour, a percentage of the overall budget, or a percentage of revenue from distribution.
Film credits are meant to inform audiences who was responsible for a particular aspect of the film, and may also affect the producer’s reputation and brand standing. Therefore, determining when, where, and how film credits will be used should be included in the film producer agreement.
It’s Critical to Use a Template
Using a film producer agreement template can offer a number of advantages. For one, it helps to ensure consistency across the board – regardless of whether you are dealing with principal photography in Mississippi or post-production in Portugal, a template will ensure that all relevant clauses and provisions are included. It helps to save time by providing a starting point that can be used, over and over again. It is easy to customize, as language and any additional items not covered by a template can be added while still maintaining the necessary clauses that will protect you and your production.
It’s Simple to Customize the Template
If you decide to use a standard or pre-made film producer agreement template in the style above, you either need to review the pre-made forms and be sure they are set up to meet your needs or you need to edit them so that they do meet your needs. It is always essential when looking at a downloadable template that you look for items that don’t match your needs, are lacking or can be improved to provide further protection. For example, you might want to include a confidentiality clause, an indemnity clause and a specific dispute mechanism. If you need to secure permission to get funding , have a contract that has to go through a union in your country or the United States – such as SAG-AFTRA or the WGA – all of that has to be included in this agreement or at least referred to in the agreement. Without that language, you could step on the toes of those organizations and suffer the consequences. Sometimes it is appropriate to schedule an hour of legal time with a media lawyer, which can be done over the phone, to go through the form and structure the agreement so that it works for you while still providing the producer with firm language. A strong and enforceable contract will actually help the producer and protect them (and you).
Legal Issues and Focus
It is vital when filling out a film producer agreement template that an accurate projection of the budget and final cost of production is made. Such estimates often end up being undercut by the real cost and a legal expert may be able to provide you with some solutions to help negotiate fairer terms with lenders and investors.
Many lenders will require the producer to provide an assurance from a lawyer that the film will be completed by a specified date, unless such assured completion comes with extraordinary costs and disbursement fees. Often a blanket statement is given that each of the lenders and investors will have first priority on the income from the film. Such statements should be avoided and the producer should instead make a plan to negotiate which lenders and investors will have priority and how such a plan can be implemented.
Budget overspend could also lead to some lenders wanting to pull their funding of the film. It is imperative then that a producer make an assurance in the film producer agreement that there is enough funding to cover the total costs of the film. This demonstrates to lenders that the producer understands the full financial scope of the project and can make amendments if something should go amiss.
During the preproduction phase, the lender or investors may ask for more rights and more assurances from the producer to make amends for the risks involved when investing in the film. Such negotiations may mean that the film producer agreement needs to be amended and to do so the producer may have to go through a thorough and protracted negotiation that might require the involvement of a lawyer whose expertise lie within the film industry. Lawyers who are experienced and knowledgeable about the film industry can offer valuable advice to the producer if negotiations are halted through the lack of knowledge and experience of the producer.
Locate the Right Template
Film producer agreement templates can be found in the following venues and sources:
• Official Sources (such as the American Film Institute or other film production groups) • Online marketplaces that offer a range of templates for nearly every type of agreement, including those specifically for the film and entertainment industry. Some of these online providers also offer other forms of legal assistance.
• Professional legal services. They may charge, but they provide a reliable form of legal assistance and guidance.
• Vendors and providers of other film-related updates, products, and services . This includes legal service providers with dedicated sections for filmmakers, producers, and studios, as well as related services specifically for this vertical.
• Nonprofit and professional organizations that exist to serve the needs of filmmakers
Be mindful of the source of a template. It should be someone who has deep knowledge and expertise with and in filmmaking and film production. Too many online suppliers of generic legal template forms have no idea what they are selling, but they are trying to profit from the time-starved and desperate professional filmmakers who need forms that are just OK. Examine their content and offerings. Don’t buy blindly.
