How to Negotiate an Option Agreement
Negotiating an option agreement falls in the first stages of becoming a screenwriter of a major feature film, playwright of a Broadway hit or a television writer of a pilot. You've dealt with the cold calls, the mail outs and the rejections, and now you've nailed a great deal, your first option. You negotiate the option agreement with the producer, as described in these straightforward steps.
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Instructions
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Start negotiating option price for your story. Some producers request writers to wave their fee for the option agreement. The smart thing to do is get some sort of money, as it shows the producer likes your work. Be realistic in the price.
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Discuss the option term, which means determining how long you want the script with just this producer. Another way to look at it is how long the producer predicts the necessary measures will take to effectively market your script. Usually a normal option term is a year.
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Make sure you include purchasing provisions. Put everything on the table, up front, the whole scope of the producer's obligations and your obligations to each other. Set compensations you receive for performing your obligations.
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Keep in mind the Copyright Act of 1976 or familiarize with the premise of that Act because you need to know about it for your negotiation. You don't want to sign your rights over. Library of Congress has all the information available to anyone via the Internet.
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Realize the producer wants to restrict your ability to sell your story to others until your option is up with him. It's a coordinating factor because you don't want to compete against the producer to get attention from the public.
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Ask a lawyer, agent or friend to look over the option agreement to make sure nothing is out of the ordinary. Double check it yourself. This is an exciting moment, but stay focused to get the best option you can.
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Tips & Warnings
While negotiating your option agreement with a producer, feel free at any time to contact the Writer's Guild of America or other literary guilds.
When you contact the Writers Guild of America or another guild ask about their "how to" booklets or informative articles, see if they can provide you with sample agreements.
Some websites offer sample option agreements to give you an idea of how one should be written and executed.
Resources
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Comments
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entlaw
Aug 21, 2008
You don't know what you're doing when it comes to your option agreement. Don't negotiate it because you might leave out deal points you should have insisted upon, i.e., your right to write sequel or tv series spin offs. Have an agent or lawyer negotiate it (if you have one), and ALWAYS have an entertainment attorney review the option agreement for you. You may not think you can afford an attorney, but you just cannot afford not to have one.
