How to Create a Movie Exhibition Distribution Agreement
A film exhibition is the showing of a movie in numerous venues to expose it to as many viewers as possible. To exhibit a film in different venues, a distributor is typically required. Film distributors work on behalf of filmmakers to secure showings of a movie in theaters, film festivals and other locations. If a distributor picks up a movie, a film exhibition distribution agreement is created to ensure that the filmmaker and the distributor are protected under the law.
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Instructions
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State the intent of the contract. The beginning of the contract must specify the date the contract takes effect and the parties involved within the agreement. The first party in the agreement is typically the Distributor and the second party is the production company, or Producer. Outline the main goal and purpose of the distribution contract. For example: "This Agreement is effective as of April 20, 2011 between A-CLASS DISTRIBUTION ("Distributor") and FUNNY FILMS AND THINGS PRODUCTION ("Producer"). The Distributor is responsible for distributing the film "THE FUNNIEST MAN IN THE WORLD" to exhibitions throughout the United States and world. The Producer of "THE FUNNIEST MAN IN THE WORLD" retains all rights, interest and copyright of "THE FUNNIEST MAN IN THE WORLD" and agrees to allow the Distributor to distribute this project in a fitting manner."
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State the term of the agreement, which is the period of time that it will be valid, and specify whether it can be renewed and under what circumstances this can happen. For example: "The Term of this Agreement is valid for Five Years starting on April 20, 2011, and tentatively ending on April 20, 2016. This Agreement may be automatically renewed unless the Distributor or Producer wishes to officially terminate the Agreement upon written notice, which must be delivered no less than sixty (60) days prior to the Agreement expiration date."
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Describe the distribution for the film in detail within the next section of the contract. Include the territory for distributing the film in exhibitions. For example: "The territory of this agreement is the world. The Distributor agrees to perform reasonable efforts to secure "THE FUNNIEST MAN IN THE WORLD" in exhibitions throughout the world. The Producer grants the Distributor the following rights: Home Video Rights, Theatrical Rights, Free Television Rights and Pay Television Rights."
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State how the distributor will recoup expenses of distributing the film. If the distributor is not being paid upfront, it is common for the distributor to take a commission of all gross sales. Also say how the distributor will pay the production company. For example: "The Distributor is entitled to retain fifteen percent (15%) of Gross Income in the result of distributing "THE FUNNIEST MAN IN THE WORLD. The Distributor agrees to provide the Producer with quarterly statements regarding the Gross Income derived from "THE FUNNIEST MAN IN THE WORLD." The Distributor is responsible for delivering payment to the Producer within thirty (30) days from the end of the quarterly period."
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Hire an entertainment attorney to review the contract. It is important to have a legal professional review an exhibition distribution agreement to ensure that both parties are protected and that any money derived from the agreement is split fairly.
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Duplicate the contract once it is approved by a lawyer. Sign and date the copies of the contract. Give a signed copy to each party in the agreement.
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Tips & Warnings
Review sample distribution agreement contracts to gain an understanding of how these contracts are written.
Do not sign a contract if you are not comfortable with its terms or if it is not complete.
References
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