Producers are negotiating renewal of option to exploit my Cient's Life Rights. New twist: Investor is agreeing to pay $100k to two writers (both are owners of production company) two write a Screenplay. First, this number sounds high to me.
Second, and more importantly, Client will not have any rights in Screenplay unless Client purchases after expiration of Option Agreement (2 yrs). Looks to me like Producers are double dipping: getting paid to write and getting paid by Client if no deal within option period. What is reasonable purchase price Client should expect to pay for the Screenplay?
Any feedback appreciated.
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$100K is standard minimum for WGA writers to write a screenplay. As to the Second clause, this is to protect writer's creativity and control over the script so that client can't demand a page-one re-write or give flack to the writers for not making him look like Mother Teresa.
https://www.wga.org/uploadedFiles/contracts/2023_Schedule_of_Minimums_Ye...
See page 9
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Michael, this is very helpful. Thank you. Will have to find out if the writers are WGA.
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Hi David, this scenario sounds oddly familiar to me. I was recently working with a client who previously worked with two legit industry pros who took him for a lot of money. Feel free to DM me if you'd like to chat.
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David Adler No problem! Re: The second part of the contract - this should be negotiable. I recently did a life story for someone and all they wanted was veto power over any part of the script that could tarnish their reputation and I was fine with that, and most writers would be too, I think. It's negotiable. I would ask your client what he or she would be comfortable with in the script and not comfortable with and if the writers don't like it, it's probably best to find other writers. Many writers would be okay with it.
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Thanks for the feedback Here's why this is weird: Client paid $45k to develop treatment and pitch deck (all work-for-hire). Took it to major distributor. Was told he needed a screenplay. Now, without notice, option holder/producer has brought in an outside "investor" who is paying one of the producer parities independently to write the screenplay and the producer and investor are telling the client they will own the copyright to the Screenplay, not the client. and that the client will have to buy the screenplay form them. However, the option agreement does not grant the producer the right to create a ANY derivate works - only the right to shop the project - and the proposed screenplay is definitely a derivative work.
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Sorry to hear that, it sounds like an awful deal that should never have been signed for multiple reasons. Right off the bat, no producers want treatments anymore on spec, just real screenplays. There are may other problems with the arrangement, but I am sure you understand that now.
Let me know in the future if you would like any advice prior to.signing contracts.
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Let me see if I understand this... 1) The production company wants to buy or option your client's life rights for 2 years. 2) The production company is hiring a pair of screenwriters to write the script. 3) If after the option expires, your client wants the screenplay that was written, your client will have to buy it. All of that sounds normal. Your client is free to sell their life rights to a different production company once the option expires, and that other company would want their own version of the story anyway. That other script is worthless without the underlying rights. I'm not a lawyer, but I don't see any obvious issues. Make sure a lawyer reads over the contract and negotiates anything that can be better. The writer's rate doesn't seem excessive, and it really doesn't matter to your client because it's about making this specific version of the story. Your client isn't going to buy it. The money isn't coming out of your client's pocket to have the script written. Even if the two producers are paying themselves with imaginary money (basically "work equity" - they are writing the script for no front money but that specific amount when and if the film ever gets made (most don't)) they are taking the risk until the film is financed. Usually the financing doesn't kick in until production. Again, not a lawyer, but I don't see anything odd about this.