Hi all!
This post is specifically geared towards writers out there who have experience with optioning their work.
What should a writer keep in mind when considering an option?
What are the common pitfalls or red flags?
And what makes a "good" option actually worth taking vs. holding out?
Open to any general advice, experiences, or things you wish you knew beforehand. Appreciate any guidance!
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Hi, Nicholas J. Benson. Stage 32 has a webinar called "Your Definitive Legal Guide to Shopping, Option and Attachment Agreements - With an In Depth 32-Page Resource Sheet." www.stage32.com/education/products/your-definitive-legal-guide-to-shoppi...
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Options are whatever you agree is fair. So it boils down to what you're comfortable with. I think most important is to have a term (1 year or less) and upfront money for you, with deferred amount to be paid out as soon the film is financed.
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Stephen knows as he has done this.
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Thank you so much Maurice, Stephen, and Jon. I'm aware of most of the norms for but thought I'd stir the pot to see if there was any other useful information/stories out there! Maurice I will certainly check out the webinar, thanks.
You're welcome, Nicholas J. Benson.
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How long (term), how much (compensation). Option for $1, or you can do 18 months for $1,000. Do keep this in mind, the option agreement is a contract and what's in it will be used to purchase the script. So if you're getting bad terms in the option agreement this will be in the contract. So once you sign, you're stuck. Option is "option to purchase." And do get a lawyer's eyes on the agreement to avoid getting sucker-punched.
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Very complex issues - have had 5 scripts optioned now and you must be sure that it's worth giving away the rights for the 6 months or 1 year or however long you choose. Also, protect your IP/your work/your rights - they do NOT own the script when they option it - they only have the chance to shop it around - you retain all ownership. And make sure the producer or company is legit. Do your due diligence on them. Work out a good deal in the option agreement in the event that the script is purchased. Get something fair up front and more deferred if purchased. Some other issues but these are the biggest to mention right away - Nicholas J. Benson
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Hire an attorney. Period.
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Thank you again everyone! Very useful!
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It's on of those things that's highly contextual to a whole bunch of variables.
Giving a first-time producer a $1 option when you are an industry nobody might be a wise move. Doing the same when there's some buzz around your scripts would be foolish.
Options are strange beasts in today's age too. Supply and demand isn't what it was in the 90s. There's small producers out there having to pitch a lot of projects to get anything moving, and a writer with a dozen credits in the indie scene can still be a complete unknown outside of their regular collaborators.
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Be very careful the production company produces with decent production values and isn't just some idiot filming on his iPhone. Ask for reels of their previous work.
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I've had 6 scripts optioned and one film produced as a result. I would strongly suggest vetting the production company thoroughly. It's probably wise to have an entertainment lawyer look the option over, but it's not necessary. In my case, I had worked as an actor on a film that the production was producing, so I got to know the principals very well. The language of the option is pretty simple, but I would look for hidden clauses. Make sure you have your script writing fee clearly laid out (mine was 2.5% of the total production budget) and the companies I am working with were nice enough to include a clause saying that if the movie was a huge financial success, I'd get a piece of the action. My first option was for 36 months. Way too long. That expired with nothing happening so during those 3 years I couldn't shop the script around. This last option is for 18 months. There is a clause in all my options where the production company can bring in a "script doctor" or another writer to help with re-writes. I balked at that a bit, but the writer they assigned was easy to work with and really entertained my ideas. Very important: register all your scripts with the US Copyright office and/or the WGA. Protect your work! All the best with your screenplays....
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Yeah, certainly do your due diligence on the prodco/producer's capabilities and be aware that a couple of credits on IMDb as a co-producer, executive producer, associate producer, or assistant producer isn't proof they can put a film together. You're looking for people with "produced by" credits ideally. Same goes for prodco, they should be the main production company on a project, not someone's personal LLC they use to make their taxes more efficient.