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THE INDEPENDENT FILMMAKER’S LAW & BUSINESS GUIDE
TO FINANCING, SHOOTING, AND DISTRIBUTING INDEPENDENT AND DIGITAL
FILMS Excerpt from Chapter
1 The submission agreement is designed to protect the production company from claims by submitting writers of theft of ideas or copyrighted materials. These contracts protect the companies and require that submitting writers waive claims they might otherwise have. The production company’s need for such a waiver is reasonable because similar themes, ideas, and characters are often based on cultural influences and many authors may be developing similar themes. The basic purpose of a submission agreement is to allow the production company to review treatments and screenplays written by writers who are not employees of the production company. Often, these are “spec scripts” – scripts written as pet projects by writers hoping to break into the motion picture industry or to move up in the industry. Spec scripts are particularly prevalent immediately after a prolonged strike. Given recent labor unrest, there may be a tremendous number of spec scripts in the next few years. 1. Significant
Terms of a Submission Agreement. The primary provision of the submission agreement is that no implied contract exists that promises to compensate the submitting writer for use of his idea or an idea similar to his. Although, as noted in Chapter 1, ideas are not protected by copyright, those same ideas and plots may be protected by contract. The producer must be careful to avoid making promises or otherwise creating an oral contract that a submitting writer could rely upon. The written contract must explicitly state that the producer will not pay for submitted ideas, explain that similar ideas may have already been submitted, and condition any submission upon the submitting writer accepting these limitations: This contract represents the only understanding between the parties regarding the submission of any treatment, story, idea, screenplay or other work (collectively “Work”). This contract supersedes any oral agreement, and it may only be modified in writing when signed by both parties. The production company will accept submission of writer’s Work only in exchange for entering into this agreement. Because many writers submit materials, and often similar ideas are submitted or otherwise available, the production company does not pay writers for their ideas. The production company is under no obligation to pay the writer for the idea submitted. The production company is under no obligation to review the Work submitted. The production company is free to use all material not protected by the laws of copyright. The production company is not obligated to keep the materials submitted. In contrast with the provisions above, a
production company should comply with copyright law. A general
submission agreement should not be used to force a writer to transfer
copyright ownership from the writer to the production company or to give
the production company the right to make a screenplay or film from the
submission. The submission agreement can state this, in part, as a
means to soften the otherwise harsh In the event that the writer submits a Work protected by copyright, the writer grants permission to review the Work and make copies of the work for its evaluation. The writer shall retain all rights to edit or adapt the screenplay and to make a motion picture or audiovisual work based upon the Work unless such rights are transferred to the production company as part of a written agreement. The submission agreement should also explain that it is the general practice to review all submissions within approximately six months, or such time as is realistic for the producer, but that because of the number of submissions, the production company will only contact those writers with whom it is interested in developing a working relationship. While it is certainly more professional to thank every author, and even to respond with comments if possible, the production company is better off doing so than promising to do so in a contract. The production company is not obligated to
return the materials. The writer will at all times retain an original copy
of the materials submitted and hereby releases the production company from
any claims that may arise regarding as a result of the production company
holding the Work. These suggested provisions are similar to the language that a larger production company would use. The submission agreement is designed to protect the production company from claims from authors who send unsolicited materials. Such contracts help courts dismiss frivolous lawsuits before the trial preparation becomes very expensive. 2. Solicited Ideas
& the Nondisclosure Agreement. In the solicited idea context, the nondisclosure is slightly different than in the traditional business context. The essential component of the agreement is that the idea, story, plot, characters or other elements are treated as confidential unless they were already known by the party who receives the material, or they become known in a manner that does not breach the film company’s duty of confidentiality. The following contract clauses illustrate the core of the agreement: Confidentiality. Producer shall not directly or indirectly, disclose, disseminate, publish, or use for its business advantage or for any other purpose, at any time during or after the term of this Agreement for a period of seven (7) years, any information received from Writer deemed confidential by the other party ("Confidential Information"). Definitions. For purposes of this Agreement, Confidential Information shall be defined as any information not generally known in the industry about Writer’s story, characters, ideas, themes, plots, writings or expressions products, trade secrets, services, or any combination thereof, whether or not such information would be recognized as proprietary absent this Agreement, including but not limited to information related to design or product specifications developed by Inventor. Limitations. Notwithstanding any other provision of this Agreement, Producer shall not be liable for disclosing, disseminating, publishing or using information which (i) was already known prior to the receipt of the Confidential Information; (ii) is information similar to the Confidential Information of Writer so as to make such Confidential Information no longer unique to Writer; (iii) is now or becomes public information through no wrongful act of the Producer; (iv) is independently developed or acquired by Producer without any use of the Confidential Information in such development; or (v) is required to be disclosed by law. Producer shall, within thirty days of receipt of Confidential Information inform Writer of that material Producer deems not confidential pursuant to this paragraph. Documents and Materials. The documents and materials of Writer (including but not limited to all data, screenplays, treatments, records, notes, lists, specifications and designs) are furnished in accordance with the terms of this Agreement and shall remain the sole property of Writer. This information (collectively known as "Evaluation Material") shall, upon the termination of this Agreement, be promptly returned to Writer, including all copies thereof, which are in the possession or control of Producer, its agents, and its representatives. Term and Renewal. The term of this Agreement shall be one (1) year commencing as of the date hereof; provided however, that Paragraph 1 of this Agreement shall survive termination of this Agreement and shall remain in full force and effect for a period of seven (7) years. Using these terms, the producer provides
significant protection to the writer for his ideas and other materials
that are not protected by copyright while still retaining the ability to
avoid paying for material that has become public or he already
owns. Return to top of page Return to Sample Chapters |
Entertainment Law & Practice |

The Filmmaker's
Guide
Excerpt from Chapter
1
| Jon M. Garon, Esq. |
