Contra Costa California Agreement for Use of Screenplay Material in Live Stage Performance
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How to fill out Agreement For Use Of Screenplay Material In Live Stage Performance?
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FAQ
In simple terms, a screenplay option is when a producer or production company agrees to take your screenplay off the market for a certain amount of time and (hopefully) for a certain price. During this time, they will see if they can develop the screenplay.
An Option Agreement is simply a contract between the original owner of a specific work (e.g., a novel or a screenplay) and a producer (e.g., a production company or a network) (often referred to as the purchaser) interested in producing the work and turning it into a film, play or television series.
An option agreement is where a prospective buyer enters into an agreement with a landowner for the right to buy their land/property, often paying the landowner a sum of money as an option fee. The prospective buyer then has the option (within a period defined within the agreement) to buy the land/property.
In the film industry, an option is a contractual agreement pertaining to film rights between a potential film producer (such as a movie studio, a production company, or an individual) and the author of source material, such as a book, play, or screenplay, for an exclusive, but temporary, right to purchase the
An option is an agreement where author gives a producer/production company/screenwriter/someone the rights to try and get the movie set up. There's a time period involved, usually a year with provisions for another year extension, and an amount paid to the author for each of those years. That's it. That's all it is.
While everything is negotiable, an option can range from $500$500,000. A good gauge is 10% of the purchase price if the story rights are later bought. (More on that below under #5.) The fees for renewals tend to be higher than the first option.
Ask for better terms if a film producer asks for it. At the very least, ask for an option amount and period at least the same as the initial option. You are within your rights to negotiate a higher total amount (especially upfront) and a shorter option period. Never go lower, unless there is really good reason.
From the producer's perspective, an Option Agreement gives him or her an opportunity to hold on to a screenplay exclusively for a period of time without having to lay out a lot of money up front while trying to get the project off the ground.
An option agreement at its most basic is a contract whereby the writer grants someone, for a period of time and for a payment, the right to make a film of the writer's screenplay.
A screenplay option is typically negotiated at around 10% of the purchase price. According to WGA conventions, the purchase price is around 3-5% of the total production budget. However I've heard of screenplay options being negotiated for as little as $500 and as high as $50000.
