Every once in a awhile a client gets asked to sign a deal to get its project "shopped" around. Usually its a handshake deal, something about "procuring cause," and some loosey-goosey language about when and how anyone is going to get paid.
My top 3 are: 1) Approval/Obligations, 2) Expenses, 3) termination rights.
What are yours? List in the comments!
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Never had a shopping deal. I just sold scripts for full buyouts. Wish my lawyer didnt raise his fees when I make over ten bands :(
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I'm from the old 'lunch and a handshake' days - I don't even know what a 'shopping' deal is and I'm pretty sure I don't need one.
Thanks Doug! You probably don't.
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“Shopping” is fine so long as the writer understands and agrees. In this situation, it is basically giving the producer a free option on the project. It's good for the producer, who doesn't have to pay for the right to shop it. And it could be good for the writer, who might see a good opportunity but not want to complicate the existing relationship that creates it with something more than a handshake deal.
But shopping is abusive if the writer doesn't know about it. In this situation, the producer hears about the project and just goes on to pitch it to a contact—without telling the writer. If there is any interest, the producer then gets back to the writer to option the project.
What can be wrong about a project getting pitched by an experienced producer on a handshake? Even in the first situation, a written agreement spelling out the terms is better especially since (in both situations) the writer isn't getting paid as under an option contract. The writer also has no say in who gets the pitch or the extent of the rights that are shopped. And if the writer doesn't even know the project is being shopped, he or she can end up later pitching it to someone who already passed on whatever the producer pitched. The producer is unlikely to be happy about that. Neither is the producer's contact, all of which can make the writer's goal of getting the project produced harder. Without a written shopping agreement, the writer's chances of holding the producer liable are slim at best. These are just some of the legal issues that should be worked out between producer and writer.
That's one reason the WGA basic agreement prohibits shopping without the writer's written permission. A pre-WGA writer should strongly consider requiring the same. If the producer realistically thinks there will be enough interest, an option contract would be even better.
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Dane Johnson I have mostly come across it with directors. Directors have contacts with producers, but may not always have ready projects or the right type of project for the producer in question. So, a director may ask if he/she can pitch your project, with the understanding that the director in question will direct.
For an untested writer, this seems to me a fair "deal" as long as the director is legit. The writer gains access and the director looks good as a source of material.
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Ooo, what a great topic! Dane Johnson "That's one reason the WGA basic agreement prohibits shopping without the writer's written permission. A pre-WGA writer should strongly consider requiring the same. If the producer realistically thinks there will be enough interest, an option contract would be even better." Brilliant, sir - and I would agree! Writers go so long before getting paid anyway, this just cuts off their ability during that time and stunts their earnings even further.
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Thank you David M. Adler This is wisdom!