Jon M. Garon - Books & Resources

Table of Contents

Chapter 1 Excerpt – Purchasing the Literary Property

The Literary Property Agreement may be the first contract for the movie.  This may mean buying the rights outright or taking out an "option" on the rights.  An option agreement provides for all the terms of the purchase of the underlying rights, but the purchaser makes a small down payment in exchange for the exclusive right to complete the transaction during a specified option period.

Chapter 1 Excerpt – Submission & Nondisclosure Agreements

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.

 Chapter 3 Excerpt – Duties of the Film Company

A typical film company of even modest size quickly undertakes all the attributes of a well-established business.  The company, however legally structured, will need to engage employees, rent equipment, pay taxes, raise working capital, and sign contracts with landlords, insurance companies, lenders and many others.  If at all possible, the duties of filmmaking should be separated from the duties of operating the film company.

  Chapter 3 Excerpt – Financial Accounting & Responsibility

While a film company has all the same legal and business obligations of any
service company, certain obligations are most important for the successful
completion of the film. The following introduces the most basic of these areas.

  Chapter 4 Excerpt – Equity & Debt Financing

There are two discrete types of equity sales in the motion picture industry.  The first is sale of securities in the film company.  By selling stock in a corporation or membership interests in the LLC, the company raises funds by increasing the
amount of equity owned by people other than the filmmaker. This is the typical
model of equity financing.  The second form of equity financing involves selling the film's distribution rights. In this form of equity financing, the company sells
its assets in exchange for a present or guaranteed payment.   

  Chapter 4 Excerpt – Studios & Independent Financing Options

Today, the major motion picture studios are primarily distributors rather than
film production companies.  Instead of directly purchasing stories or scripts, the studios work through existing relationships with established production
companies.  Those production companies serve to package the script, develop
the budget and manage the production. 

• What To Keep and Avoid in the Investors' Package
• An Overview of the Film Budget
• Financing the Production Company
• Negotiating Employment Agreements
• Use Caution with Personal Debt Financing
• Music, Composers and Performers
• Anatomy of a Film Music Agreement
• Financial Accounting & Responsibility
  for the Film Company
• Purchasing the Literary Property