The distribution contract contains a list of materials that the manufacturer must provide. These consist of technical materials (film and/or videotape), promotional material and a score. Some contracts may also require the provision of an error and abandonment insurance certificate, a script and copies of sharing and production contracts. The manufacturer must assess the cost of making delivery materials available. Distributors will want access to the manufacturer`s original materials, but the manufacturer should insist that the original materials remain in the manufacturer`s laboratory. Production/distribution contract: in a production/financing/distribution agreement commonly known as the PFD agreement, a distribution company (. B for example, a studio or VOD company) instructs a production company to produce a slide and the distribution company undertakes to finance and distribute the production of the film directly. Under these agreements, the production company is little more than a representative dependent on the distribution company and is subject to full control of the distribution company in all aspects of production. The granting of distribution rights to the distribution company is always of all long-term rights around the world, so that the distribution company is the complete and absolute owner of the film.
The production company often retains a theoretical interest in net profits, if at all generated by the film, and often not even that. The role of the entertainment lawyer is to represent a client in: negotiating the terms of the distribution contract; Reviewing the distributor`s contract; and advice to the manufacturer on the entire contracting process. Experienced lawyers are familiar with precedents in this area and rely on favourable precedents to obtain a reasonable contract. However, the lawyer is not a magician and cannot guarantee that all the producer`s points will be earned. Negative pickup: A negative pickup looks like a PFD deal, except that the distribution company, again a studio or a VOD company, agrees to pay a fixed price when the film is delivered. Since the distribution company does not advance production costs, the production company must obtain a loan to finance the production and the lender almost always needs a closing guarantee to ensure the completion and delivery of the film to the distribution company in order to trigger the payment. Because of the introduction of the lender and the final guarantor, these transactions are more complex than a pfd agreement. License: In general, a license relates to any limited rights to a film, with the owner retaining other rights to the film. For example, presale is only a license purchased before the end of a movie.
As a result, licences cover a wide range of rights ranging from a one-day pay-per-view licence to the granting of all global rights for a period of 25 years. Some distributors use very short deal memos that summarize the important background conditions of the sales activity. These are correct in highlighting the main points of the agreement, but they are not sufficient to fully protect the rights of one of the parties in the event of a dispute during the term of the contract. The manufacturer should insist on a full contract setting out all the terms of the distribution contract (content and procedures) and that the contract be clearly understandable or defined in plain English language.