P
ublishing a book is a huge accomplishment. Once
that’s done, though, thoughts turn to other things,
such as fi lm and audio rights.
Film deals don’t come along for every book, but if you
do have fi lm/TV interest, a contract should include such
information as option money and purchase price, royalties,
and the time frame for the option.
It’s the norm for a deal to include both fi lm and TV
rights. Th e producer will determine which of those is
the right venue for the project. Th ey can’t have some-
one trying to make a TV series out of something they
are working on for fi lm at the same time. Th ink of it like
this: Your book wasn’t published by two publishers at the
same time. One publisher bought your book and some
subsidiary rights along with it. It’s a similar scenario for
fi lm/TV rights, although sometimes the license may be
for just scripted rights or just unscripted rights.
Th ere are generally two types of deals: an option/pur-
chase agreement or an outright purchase agreement.
Most fi lm deals start with an option. It’s a short-term
agreement that permits the producer to seek investors
and distributors, to see if they can come up with the
resources to make the fi lm/TV show. Most option agree-
ments we see at my law fi rm are for an initial 12-month
period, but shorter or longer time periods are possible.
I have seen some as short as three months and some as
long as 24 months.
You want a producer to have the rights long enough
to be able to give a good eff ort to fi nding resources to
make the fi lm, but not so long that you feel strung along,
unable to try to fi nd other suitors for the rights.
Oft en, producers want a free option. Th is used to be
something requested by producers who were without
much money to invest on their own. Th ey need someone
with deep pockets to produce the picture with them. But
free options are not limited to those with slender wallets.
For example, a successful production company insisted
on a free option for one of my client’s books. It seemed
unfair to me to ask writers to option for free when the
producer could easily pay them something. We made the
deal anyway, and it was worthwhile because the studio
that stepped in to pay for the option extension (some-
thing we will talk about next) had very deep pockets and
paid good money for the option extension. Th e originalproducers knew what they were doing and my clients
were happy to have placed faith in them.
In another deal, a production company came up with
a $7,500 option for a client’s rights with very little nego-
tiation necessary.
Th e decision to agree to a free option is a personal one.
If you have an agent or attorney, discuss the off er with
them. Is the person or company making the off er repu-
table? Are they new? Th at can be OK. Th ere are many
producers who have never made a fi lm or a TV show
but have an interest in a book and have a vision. Do you
want to take a chance on them or not? Sometimes the
answer will be yes; sometimes it will be no.Option Extensions
A fi lm/TV option agreement usually has a provision for
additional option periods. Sometimes there can be more
than one extension, such as a third or fourth option period.
Option extensions oft en carry a payment for the privilege.
In some cases, the extension is automatic if the producer so
chooses, by notifying you and paying the fee, if any. Your
contract will specify the terms of the extensions.
Money paid for an initial option is normally applica-
ble against the purchase price. Money, if any, paid for an
option renewal or extension, is typically not applicable
against the purchase price. For example, if the producer
pays $5,000 for a 12-month initial option period, that
money is applicable against the purchase price if the
option agreement says it is applicable, which means it
serves as a down payment. If the purchase price of these
fi lm rights is $50,000, when the producer exercises their
option and purchases the rights they only have to come
up with another $45,000. But if fi rst they extend the
option and the second option entails another fee, usu-
ally that fee will not be deducted from the purchase price.
Your agent or attorney should try to ensure the contract
makes that clear.Why Is It an Option/Purchase
Agreement?
A contract can include both an option and a purchase
agreement because otherwise, when the producer wants to
exercise their option (buy the rights), you have to negoti-
ate again. With an option/purchase agreement, you both
already know the purchase price and other key terms.WritersDigest.com I 47