What To Ask For In An Option
By Mary
J. Schirmer
I'm flattered to get mail now and again, and a new
screenwriter wanted to know what to ask for in an option. Here's my reply.
~~~~
I'm a writer, not a lawyer, so just keep that in mind when
I answer your question.
If you have an experienced agent, a manager, or an entertainment attorney
representing you, then take that person's advice. Sometimes you can get one of
these representatives when they know that you already have interest from a
producer.
Some writers give an option for their work for $1, just to make it legal,
because the producers are friends of theirs or because the writers are willing
to take a chance that the film made from their screenplay will be a huge success
and a tidal wave of money will occur on the backend.
But if you're negotiating your own deal, get the most option money that you can
upfront, because most independent films never get theatrical distribution and
most independent films never get video release and, therefore, most independent
films don't make any money on the backend. It's an accountant's game not to
show any profit.
So this is the way it usually works: the screenwriter negotiates a sales price
or licensing fee for the screenplay, and then you ask for ten percent of that
down, for an option.
If the producers can't come up with ten percent of the final sales price or
licensing fee, then they may not be able to raise enough money to make a decent
film in the first place.
The more money they're able to raise, the better the production values will be.
The better the film looks and sounds and the better the actors are, the more
likely it'll get distribution. Everything is circular.
Get the shortest length of time for the option that you can. This encourages
the producers to get busy and look for financing before the option expires.
Whatever you do, even if you decide to make a gift of your screenplay, GET
EVERYTHING THAT YOU WANT IN WRITING. Don't agree to any percent of profit
instead of option money and sales or licensing fee. As I said above, they won't
admit to any profit.
Say your project is touched by magic and the film makes millions. If it isn't
in the contract that you share in those millions, you'll be a little unhappy.
You can read about contracts in lots of places on the web, but my favorite place
is Columns 25 and 26 at
Wordplay.
Don't sign anything until you understand what you're signing. Remember that
EVERYTHING in a contract is negotiable-- don't fall for that old line that,
"This is a standard contract." There's no such thing.
Ask the producer to give you a written contract as a starting point, and then
take it to a free law clinic, if you live in a place where there is such a
service, or ask a lawyer what he or she thinks.
Every kind of lawyer knows about contracts, even if they don't specialize in
entertainment law.
Best of luck to you. This is a really good problem for a screenwriter to have.
Mary J. Schirmer is a professional writer who writes screenplays and teaches screenwriting. Her e-mail is
awarenessprod@yahoo.com.
To read past Film Fuss columns, click
here.
