Category: The Business

OPTION OR NO OPTION?

Chris from Victoria, Canada asks:

I am working as an associate producer for a company wishing to produce their first movie project. We have identified the content and now working with a writer to develop the script. We are looking into various types of option agreements in order to secure rights and ownership of this project. Do you have any suggestions and or website links that would explain the best way to make this relationship with the writer win/win and make sure we have everything covered. I am using “The Producer’s Handbook” as a bible at this time.
Thanks

Your question leaves unclear whether the material you have identified is a draft script you wish to option and ask the writer to rewrite or whether you are assigning the writer material to write at your direction. In either case, the best way to make the relationship win/win with the writer is:

(a) make sure you have a writer you strongly believe in, and

(b) pay the writer a reasonable sum for his or her services.

If you are hiring the writer to prepare a screenplay based on material you are assigning, you will need a writing contract, not an option. You also need rights to the underlying material. An option may not be the best way to secure the underlying material since you are paying to have a screenplay prepared which will be worthless if you do not exercise the option. Usually, if you are moving forward with preparing screenplays based on underlying material, you want to own the underlying material rather than merely option it.

This is also true if you want a writer to rewrite his or her own screenplay for you. Whether you option it or own it, you should pay the writer for his or her services rewriting it. Often, if that is your intention, you would rather own it than pay for rewrites and lose the right to the material because your option lapses and you are not ready to move forward.

Occasionally, you will want to simply work with the writer to make the script better without any ownership in the material other than, perhaps, an informal agreement that if the writer gets the material up to the level you wish, you can present it to specific sources for consideration with you attached as a producer. This kind of agreement is sometimes appropriate for a beginning writer who is willing to do rewrites at your direction without pay. From the writer’s perspective, the writer should not agree to this unless: (i) the writer really believes in your notes, (ii) you have a proven track record, and (iii) the writer retains all rights to the screenplay including any improvements made by your contribution. If you want anything beyond that, you should pay the writer a reasonable fee for any writing services.

You can find forms for screenwriter agreements, including options, in the book “Contracts for the Film & Television Industry (2nd Edition)” by Mark Litwak, available through most major books stores and Amazon.com. The WGA’s website also has contract forms if you are a WGA signatory.

THE OUT-OF-TOWNERS

Mike from Raleigh, NC asks:

I am a writer living outside of L.A.– way outside– and would like some advice on how to get a script read.

Some ‘experts’ pooh-pooh the query letter calling them a waste of time. Others claim it is the ONLY way for a first-timer to get his/her work noticed.
Very confusing. Very disheartening.

What is a good/better/best strategy for getting a script read? Query agents? Query managers? Query producers? Win a contest? Buy a full page add in Variety?

In answer, I have a question for you. Why should someone here in Los Angeles read your script when there are thousands upon thousands of aspiring writers all of whom are committed enough to uproot their lives and move out here just so they can be where the people who read screenplays need them to be even though most of them have almost no shot in hell of actually becoming a working writer?

The answer better be, because your work offers something no one else’s work does or ever will: your own very compelling and unique voice. Otherwise, it will be very difficult to get anyone here to pay attention to another run-of-the-mill long distance wannabe. Harsh? Maybe, but this is a very competitive game and the players who actually work regularly are very, very good at it.

Okay. So let’s say your writing actually does reflect a special, unique voice. Now what? The answer is easy – try everything. I’ve said this before and I’m probably not the first to say it, but everyone in the world is only a few degrees of separation from an agent whether they know it or not. Quality writing gets noticed – but the writing really must shine, really must be something special. If it is, you’ll eventually get the attention of someone who can make a difference.

Here are some places to start:

1. Show your writing to people in your own community that can support you in your writing: teachers, retired screenwriters, actors, whoever. If they are excited by your writing, see who they might know that can help.

2. If you respect a screenwriter a great deal, write to him or her and ask him to serve as a long-distance mentor. If he or she agrees, be sure to actually listen to his or her advice and follow it. As a relationship builds, this working writer might just pass your work on to someone who can make a difference.

3. Travel to screenwriting events around the country and make friends with the speakers. It might take a long time before this bears fruit, but it’s another tool in your box.

4. Ask all your friends if they know anyone in Los Angeles. Strike up a relationship with as many people here as you can – even an email relationship. If one of these people reads and gets excited about your writing, or just likes you, they might refer you to an agent, manager, producer, actor or who knows who that can help.

5. Don’t forget about independent film. If your script is appropriate for a low budget quality picture, approach filmmakers in your own community or other communities outside of Los Angeles.

6. Brainstorm and come up with thirty more ideas on how to get your script read and execute on every single idea. It will take that much drive and determination to move forward.

While you’re doing all these things, don’t stop writing. You need a body of excellent work, not just one or two scripts. Finally, every writer gets through the door differently. Keep writing and holding yourself out as a writer until you make something happen.

Good luck.

NO FREE LUNCH

QUESTIONJoseph from Los Angeles asks:

A production company has shown interest in optioning my script. They seem very enthusiastic, but have little experience as producers and want me to option my script for free. I have looked at a few sample options online. However, since this would be my first option, I still have a few questions.

1) They mentioned when I met with them that if they are able to set up a deal with a studio they would like to purchase my script for a flat fee (as opposed to a percentage of the film’s budget or script’s selling price). If they state this in the contract, what would be a reasonable fee to pay to a screenwriter who is un-produced? Should I even agree to such a deal or should I hold out for a percentage of the film’s budget or a percentage of what the studio pays for the script? What is to keep them from stating in the contract that they will buy the script from me for 50 grand, but in a year’s time they find a studio that is interested in buying it for 100 grand or more?

2) During the optioning period am I allowed to use the script to try and get an agent or writing assignments?

3) Is the option agreement my only time to negotiate or do writers usually re-negotiate with the studio once the screenplay is sold? In other words, do I need to take care of re-write clauses, sequel rights, screenplay credit, etc now or will this happen once the script is actually purchased?

I plan to find and meet with a lawyer once I get the contract (which should be within a week) but would like to iron out the contract as much as possible beforehand because I am of limited income.

Thank you very much.

Joseph –

(Standard disclaimer – this is not legal advice, just thoughts on a blog.)

Congratulations on getting interest in your screenplay. Chances are, others will be interested, too.

Your questions present common dilemmas for beginning writers. Many writers (including me) feel that the producer should always pay something for an option. If they were WGA producers, they would be prohibited from asking for a free option. Why should a producer (especially an inexperienced one) have the right to tie up your screenplay for a long period of time without paying you anything? What do the producers intend to do during that time? Based on what they have told you, which is that they want to set it up with a studio, they do not really even need an option. If they want to present your script to studios, you can give them permission to do that without an option. Let them tell you who they wish to take it to and, if you want them to submit it, give them permission to submit it. Then, once they present it, you are free to negotiate your own deal as they are free to negotiate theirs. This is a common practice in the industry; it happens every day.

If, on the other hand, they intend to “package” the project themselves (which means, they intend to raise money and attract talent, director, and distribution without a studio), they should pay you money up front, especially if they have never packaged a film before. This is not a matter of greed or materialism on your part. Rather, it is a reality of the producing business that producers lose interest in projects when the next best thing comes along. They are not lying to you when they ask for the option. They are just under a tremendous amount of pressure to find the right project and, two months from now when they have gotten nowhere with your project, they are likely to feel they have a better shot with something else. If they have paid you money, they have a much stronger incentive to keep working on your project instead of jumping to the next thing. In addition, at least to a small degree, you are compensated for the lost opportunity.

If the producers are as excited about your script as they say they are, they will certainly not let it get away because you ask for a few thousand dollars up front. If your request makes them go away, that should tell you something about their real level of commitment.

As for the answers to the specific questions you asked:

1. If you enter into an option, percentage of the budget deals are not very common. A good place to start for your writer’s fee in the event the option is exercised is 110% of WGA minimum with negotiated bumps for specific events, which can include budget bumps, sole writer bumps, and box-office performance bumps. (For example, if the budget exceeds $75 million, you get paid an additional $250,000.)

2. If you enter into an option, you should make sure before you sign the option that you are entitled to present the script to agents and for writing assignments. If not, you should be compensated at the time you enter into the option for this additional loss of opportunity.

3. The option agreement is ordinarily the only time you negotiate your fees (and credits). If you enter an option, you should make sure it is a deal you can live with if the option is exercised.

Good luck….

SHOULD TYPOS COUNT?

Is it fair that typos count against you? Is it a good thing that ideas are placed second to punctuation, grammar and spelling?

I don’t know and I don’t care. Neither should you. If you have typos in your scripts (or your letters, emails and notes to industry contacts)…you are damaging your career. Typos are that important.

Why?

Because you are a writer and, like it or not, you are held to a higher standard. Every reader, agent, and development exec in town knows he or she is safe to pass on a script that includes typos, bad spelling and usage errors. “Poorly written, derivative work riddled with typos.” That could be the coverage analysis of your script.

So, then, why in the hell are there so many typos in your work? Most of the emails I receive have glaring errors. Today, I got one mistaking “right” for “write”. You’re a writer; you should know the difference. And the problem is getting worse, with emails and text messaging seducing us into relaxing proper spelling and grammar. Just remember, your screenplay is not a casual communication. One script sale can launch your career and permanently change your financial status. In addition, you are asking a studio to invest $50 million or more into producing your writing. That’s not play money to a studio any more than it is play money to you. The jobs and careers of the people making these decisions are on the line. Do you think it’s easier for them to say “yes” to a script with spelling errors and typos or one without?

It is very hard to rid your work of typos, spelling errors, improper usage, and grammar problems. I am not impervious to these errors; no one is. But you must set a zero tolerance standard. If you can’t do it by yourself, enroll the help of a well-read friend. Just get it done.

Enough. Go write.

NOTE: I am not suggesting all sentences in a script be grammatically correct. Screenwriters are notorious for the liberties we take. I am suggesting, however, that while a liberty you decide to take for dramatic effect is acceptable, a sloppy grammatical mistake is not.

SCARY MONSTERS

QUESTION

I’m a director who was recently asked by a screenwriter to read a short script. I’ve decided I’d like to shoot the script but with some fairly major changes. In other words, I like the ideas and some of the imagery of the story better than the actual script. In conversation with the writer, I’ve told her that I would be interested in an option for the script. I’ve told her I want to develop some of the ideas but haven’t been specific. Having only shot my own work in the past, I’m a little unsure how to proceed. I guess my questions are as follows:

a) What if any obligation do I have to the writer to let them know my intentions with the script (that I forsee making significant changes for instance). Should they have the opportunity to reject an option based on their preference to give it to another producer who will shoot it as is?

b) What happens if my changed version of the script bears little resemblance to the script submitted to me by the writer? Do they still get credit, if for no other reason but inspiration? At what point is a script no longer representative of the original writer’s vision?

c) The last questions have to do with money. What would be a fair amount to offer for this script which will be turned into a 10 minute short with a budget of less than $10K; It’s really a project with little or no prospect of making money. Is there a percentage of the budget I should shoot for? I was thinking of paying $500 if we go to production. However, I don’t want to be offensive with my offer.

I really appreciate your time and attention to this. Thanks!

Howard from Denver

Howard,

Your questions send shivers down the spine of every screenwriter alive (and maybe a few dead ones). Nevertheless, here are the answers.

It is not unusual for a director to like some of the ideas of a screenwriter but want to rewrite them significantly. It happens every day in Hollywood and it goes with the territory. The difference between that and your situation is that, in Hollywood, a producer ordinarily purchases the work before the director gets to rewrite it and the screenwriter is ordinarily paid a real wage. If the writer is a WGA member or the producer is a WGA signatory, the writer gets at least the MBA minimum. In your case, you want to pay essentially nothing for the script, hide the fact that you intend to substantially rewrite it, and not even give the writer credit.

I suggest that you would ultimately be more satisfied with your experience on the short film if you work with the writer, who is almost giving her work away for free (while $500 might be fair given the small budget, in terms of a payment for screenwriting services, it is essentially nothing), see if you can enroll her in your ideas, and see if she wants to rework the script with you. If you truly believe she cannot execute the script to your satisfaction even with your guidance, then you may need to move on to other ideas. On a film with a $10,000 budget, the only real value in this for the writer is to get a short film produced that she has written.

SO NOW WHAT? SHORT STORY RIGHTS PART DEUX

QUESTION

This is a followup to my previous question about obtaining short story screen rights…

I recently contacted a publisher to get motion picture rights for a 40-year-old short story. The publisher wrote back requesting a financial and creative proposal for the rights.

What exactly needs to be addressed in this proposal? Or should it be two separate proposals? Or does this look like a job for a legal professional?

I’m very excited (and completely nervous) about this, especially since it’s a story I’ve thought about adapting for the screen for the past 9 years.

Alan from Norfolk VA

Thanks for following up with your progress since last time and congratulations on getting someone’s attention. There is no standard proposal and you should not need a legal professional to prepare it. There is also no right answer to what you should include in your proposal. I imagine the agent wants to know how much money you are proposing or, if you want some rights without money, why you should have them and how the agent’s client will eventually get paid.

In the past when I have sought rights to material, I have sold myself rather than offering a lot of money (mostly because I didn’t have the money and I had some interesting industry credentials). I have, over the years, secured some quality material that way. However, when I was required to deal strictly with an agent, I was not as effective because agents usually focus on the money. Nevertheless, if you have some special credentials that make you the right person to exploit the property, share that with the agent. Continue reading “SO NOW WHAT? SHORT STORY RIGHTS PART DEUX”

PACKAGING AGENTS

One way into a writing career is to make a splashy spec sale. However, it is rare and not the only way. Another way is to get a movie made, even a small movie with independent distribution. Every major agency in town (that would be L.A.) has a department to help you do this. They call it “packaging”. Packaging means taking a great script, finding a director, talent, money and distribution, and bringing them all together. Yes, that is what a producer is supposed to do, but the agencies realized some time ago that they have ready access to all the elements and can charge huge fees for doing the same thing as long as they don’t call themselves producers.

The rub is, there is tremendous competition for the attention of packaging agents just as there is for all other agents. However, unlike in ordinary spec sales, elements you bring to the table besides the script itself can help in packaging. For example, if you have interest from a bankable director, if you have raised part of the budget, or if you have interest from a bankable actor, you have a good chance of at least getting the project reviewed by a packaging agent. And remember, what is bankable to the indie market is much broader than what is bankable to the studios.

Packaging is particularly suited to quality scripts that can be made on a budget. Quality genre scripts are very popular for packaging. There is also a fairly strong market for schlock genre scripts, but because there are so many of these mediocre scripts out there, you really need to bring some other strong element to the table to get your mediocre script noticed.

The money for packaged scripts is typically not nearly as good as for studio projects, but you are launching a career. It pays to consider packaging as another avenue into the biz.