Wga Option Agreement

However, many agreements are not subject to the WGA`s terms and conditions. A general rule that is considered an accepted practice of the entertainment industry is that all literary rights that must be acquired to make a film must be between 2% and 5% of the film`s budget. In many cases, LPOs are negotiated to imagine that the purchase price is within this percentage range of the film`s budget. The budget is generally defined as the actual final production budget of the film minus interest, financing costs, bond closing costs and overheads. At the very least, the feature film`s planned budget serves as an effective starting point for determining the purchase price. Instead of buying the script directly, an independent producer, financier, or studio usually acquires an option from the writer or owner of the literary property. It starts with the negotiation of an option agreement between the parties. Sometimes it is necessary to hire a local lawyer to check the chain of titles abroad, including “moral rights”. If the script is based on a property that has been published, e.B a novel, the producer may need to obtain a release from the publisher who waives all rights (except publishing rights) that the publisher has in the underlying property. CREDIT.

Perhaps the most important term a writer will deal with in addition to the purchase price is credit. In possible cases, especially with WGA companies hiring WGA authors, the issue of credit is rarely negotiated. This is because the WGA determines what the credits are. The WGA agreement states that the screen credit is the same size as the director, appears immediately before the director in the main titles, and also appears in virtually all paid ads, with the exception of specific exclusions negotiated with the studios. The initial payment of the option is usually applied to the purchase price or deducted from the purchase price. If an option is extended, this payment is usually not credited to the purchase price. 2. The Company is required to attach to the business memorandum or contract (the document corresponding to your agreement with the Company in memory of its agreement with the Company) a summary of all conditions precedent. (Section 13.B.12.) You should ask your agent about this cover page and make sure these conditions are met before you start services.

If the Producer enters into new Scripting Material with the original Author under this Agreement on the basis of the Optional Material, but does not exercise the Option within the specified period, the Author may grant an option, license or assignment of rights to the contractually agreed modifications to a subsequent Producer, provided that: Generally an option to the Producer or Studio exclusively, irrevocable right to purchase the Script at a specified price within a specified period of time (the “Option Period”). . . .