Think Before You Shoot: Why Film Contracts Matter

Making a film is only part of the challenge; producers also need the rights enabling them to finance, distribute and exploit it.

When developing a film, the priority is understandably getting the production made. Against the pressures of securing finance, assembling a team and preparing to shoot, contractual arrangements can sometimes be treated as something that can be finalised later.

However, the time to agree a deal is before the production becomes dependent on it.

A film brings together numerous people, rights and commercial relationships. Writers, directors, producers, performers and other contributors may all provide work which ultimately forms part of the finished production. Appropriate contracts establish what each party will deliver, what they will receive in return and, crucially, the rights the producer has to use and exploit their contribution.

Establishing your chain of title

These contracts form part of a production’s chain of title: the contractual and documentary trail demonstrating that the producer has secured the rights necessary to make and exploit the production.

If a screenplay is based on an existing work, have the necessary adaptation rights been secured? Has the writer granted the producer the rights required to use the screenplay? Do agreements with directors, performers and other contributors adequately address their contributions and grant appropriate rights?

A clear chain of title becomes particularly important when a production moves towards finance, insurance, distribution or other forms of commercial exploitation.

Getting the fundamentals right

The contracts required will vary between productions but may include agreements with writers, directors, performers and crew, alongside arrangements concerning underlying rights, locations and production services.

Depending on the relationship, agreements may need to address services and deliverables, payment, intellectual property rights, credits and what happens if the relationship or production does not proceed as anticipated.

Why not sort the contracts out later?

Once production starts, the commercial position can change significantly.

If money has been spent and a contributor’s work is already embedded in the production, the producer will be dependent on securing the necessary rights. Negotiating the terms retrospectively can therefore put the producer in a much more difficult position. If agreement cannot be reached, the consequences can include protracted legal negotiations, additional cost, delay, or even the need to replace or reshoot material.

To avoid these hurdles, the best approach is to address contracting at the very beginning of the project. Ensuring that clear agreements are securely in place before any creative work or filming starts gives the producer peace of mind and protects everyone's hard work down the line.

Good contracting should not be viewed as getting in the way of creativity. It provides the legal and commercial foundation that allows that creativity to be financed, produced, distributed and ultimately brought to an audience.

If you would like any further information or advice on the information mentioned within this article, please contact Dan Muldoon from the Entertainment, Creative & Talent Team.

*This information is for guidance purposes only and does not constitute, nor should be regarded as, a substitute for taking legal advice that is tailored to your circumstances.