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Key clauses in a distribution agreement include the grant of distribution rights for specific territories, confidentiality provisions, and termination conditions. It is also vital to include provisions regarding payment schedules and performance expectations. Carefully crafted clauses can enhance clarity and protect both parties’ interests.
Best Practices for Negotiating Distribution Agreements What Should a Distribution Agreement Include? ... Don't Make Exclusivity the Goal. ... Focus on Marketing Essentials at First. ... Identify Aftersales Requirements. ... Set Clear Sales Territories. ... Outsource Regulatory Obligations. ... Not Having the Document Reviewed By Multiple People.
Distribution fees vary by territory and media. For a domestic theatrical release, a distributor may ask for a fee of 35% of gross revenues. For domestic home video, there are several formulas: either a 50/50 net deal, or a royalty deal.
The percentage of distribution fees can range from 10% to 50% or more, depending on the factors mentioned above. For example, if your film has a gross revenue of $100,000 and a distribution fee of 30%, you will pay $30,000 to the distributor.
A legal agreement that allows a person or company to sell another company's products or services in a particular area or country: domestic and international distribution rights.
Distribution Rights is the copyright granted by the original owner of intellectual property rights to a third party. The Distribution Rights grant the copyright holder exclusive right to use, market, lease, or transfer copies of the protected work to the public.