Nevertheless, there are situations where a purchase contract can be valuable. If the producer is well established, with strong relationships and demonstrated ability to implement projects, the risk could be worth it. Marvin Meyer von Rosenfeld, Meyer-Susman says that a foreclosure agreement is slowly becoming a standard practice among the best dealmakers, in order to avoid future misunderstandings that can sometimes lead to costly litigation. As discussed above, there are drawbacks and benefits for both purchase contracts and option agreements for each party. There is no one-time answer to the type of agreements that are preferable. While a purchase agreement often seems attractive because of its simplicity and the desire of the parties to “receive something in writing,” it can cause significant and unforeseen inconvenience to an owner or producer if the differences between the agreements are not properly taken into account. “Money and maturity problems are probably the two main reasons why an installation – from a star point of view – explodes,” Wyman says. “If the agreement puts these issues first, there will probably be no misunderstanding to come if a film moves from development to production.” Wyman`s lawyer Bob Wyman, Isaacs, Blumenthal-Lynne finds that most adhesion-related disputes arise when a star rejects other films to stay free, and then learns that the image they adhere to is made without them. The flip side of the law foster is the trial of Kim Basinger for “Boxing Helena”. The argument erupted when the actress withdrew from the film and the producers claimed that her engagement was a commitment. The courts have ruled in favour of the producers.
Unlike an option agreement, a sales contract does not confer rights on the property itself. In this regard, a purchase agreement is in principle a service agreement and not an agreement to acquire property rights. In the absence of property rights, a sales contract of the owner is easier to violate and therefore gives less protection to the manufacturer. One owner could go behind the producer`s back and sell the rights to another party. The producer would not resort to an infringement application. Conversely, as part of an option agreement, the builder has acquired a stake in the property that will not be returned to the owner until after the option has expired. If the owner wishes to sell or option the same interest in the property, another buyer would expect that the interest to be purchased would be legally free and that no other person would own property on the property. The long road to putting a piece of intellectual property (IP) on the screen often begins from a legal point of view with the safeguarding of the rights to develop and manufacture the material. Traditionally, the holder of a script, format or other IP object and a manufacturer enter into an option agreement under which the manufacturer pays an initial option fee for the exclusive right to acquire the property within a specified time frame.
This window is intended to allow the manufacturer to launch the project. The registration of the mark in the entertainment industry is relevant to the titles of the works. A production company or network is reluctant to market a movie or television show if someone on the market already has brand rights to that title. The more a project is exposed, the more the brand will be protected. Frequent brand issues arise from the non-declaration to which the trademark rights of a film or television series are conferred. It is always a good idea to assign all intellectual property rights in writing in order to avoid future property rights.