OT: Need help on signing contracts with crew...

kunal wrote on 5/11/2005, 9:06 AM

Hi,

I'm about to delve into the filming of my project. My crew is essentially just my actress and my DP. Before I go in, I'd like to get them to sign a contract that lays down the percentage distribution of profits (if any) that the movie might make, and, any other legalities that need to go down in writing.

(I'm paying them a flat fee upfront, besides offering a percentage profit sharing)

My question is:
a) Typically what is the distribution of profits between the film's stakeholders? I don't have any investors in this as all the money is coming from my own pocket, so the stakeholders are my actress, my DP and myself. (I'm planning to send this out to fests -- not looking at theatrical distribution right now.)

b) Where can I get the legal forms for this? (either online or mail-order...)

Also, I'd appreciate any other 'legal' tips you might have!

Thanks,
Kunal.

Comments

Coursedesign wrote on 5/11/2005, 9:25 AM
I have used "Media Law for Producers" by Philip H. Miller. Clear book with many contract templates, including some that would cover your situation.

He even advises when you really do need to get a lawyer.

If you don't have a lot of experience with legal agreements, I would recommend you pay somebody to at least review them after you have prepared them. If you use these templates, you shouldn't have to get a specialist to review them, just somebody with contract law experience, perhaps even a qualified paralegal.


rs170a wrote on 5/11/2005, 9:32 AM
Where can I get the legal forms for this?

Ihave no idea about the breakdown for profit distribution but you could try this
Sample Compensation Contract (it's a text file) as a template. HTH.

Mike
Coursedesign wrote on 5/11/2005, 9:53 AM
The Sample Compensation Contract doesn't specify who owns the work result.

You must secure the rights to the work result with an ironclad work-made-for-hire agreement, otherwise you may have a messy situation where your DP can hold up sales of your film. It's happened to others.

The agreements in the book I recommended cover also what happens in the case of certain rights problems and fixes them right away.

JackW wrote on 5/11/2005, 9:55 AM
Do not pass go, do stop to collect $200: go directly to your attorney.

The comparatively few dollars he/she will cost you can save you thousands in the long run. What looks like a "we're all friends, this is coming out of my pocket, it will all work out" deal now can turn into a nightmare if the film begins to make money and suddenly the nice actress and the DP decide they want more.

There are many things videographers and film makers can do on their own: setting up contracts isn't one of them.

Jack

Coursedesign wrote on 5/11/2005, 10:49 AM
Going to a lawyer is best, but I have found that it's not enough.

First you must find somebody who actually practices in your field, not just any lawyer.

A lot of lawyers will take your $2,000 retainer to write a short agreement, without having the expertise necessary to modify the agreement on the CD-ROM they bought.

Once you get a lawyer who does know, and has current case law knowledge even, then you're still not done. You, the client, need to know what to ask for. The lawyer can't tell you what that might be, other than to offer a couple of $300+ per hour introductory discussions.

Even with a competent lawyer, you really need to know the basics of film production rights. The "Media Law" book I recommended is quite good for that, and there are great seminars in Los Angeles by Mark Litwak, a very knowledgeable independent film production lawyer. He also has a couple of books published that are very good.

Imagine you were going to a bike store and told the sales clerk you wanted to buy "a bike."

What would they say? Perhaps something like, "Would you like a road bike, a racing bike, a mountain bike, a sport touring bike, a beach cruiser, a cross bike, a DMX bike, or some other type?"

When you respond, "I just want a bike!," you could expect the staff to roll their eyes. Because they want to sell you a bike, they then just ask nicely how you want to use your bike. Let's say that based on your answers, they sell you a mountain bike.

A bit later, you start reading bicycle magazines and talk to other bike riders. Now you understand the tradeoffs of riding a mountain bike instead of a road bike, and you begin to regret that you hadn't educated yourself about the choices before
spending $2,000...

Same thing with lawyers in any field. They are not mind readers, and they can't know your exact needs.

Most legal agreements, written by a lawyer for $1,500-$2,000 each, are actually created by a paralegal from a CD-ROM document. Of course it doesn't take 5-7 hours of the lawyer's time, so he gets to send his kids to Harvard on the difference.

If you can find a competent template (as recommended by someone in your field), you can fill it out and ask a specialist lawyer to review it. That cost is more likely to be billed in terms of real attorney hours, and it will be a fraction of the cost of having him originate it..

Let me say it again: Make sure that your lawyer actually practices in your specific field. If you just ask this as a question, the answer will be "oh yes yess."
The proper way to ask is "Does your professional insurance policy list Entertainment Law?" That question is more difficult to weasel out of, and if you have reason to feel suspicious you could even ask to see the policy document. Anything extra added on costs money, so you know he or she is using it.

I don't want to sound like I'm negative on the legal profession, but I have seen way too many cases where people got screwed by unscrupulous lawyers. Lots of war stories, fortunately some of these lawyers got disbarred.

I have also seen too many people repeatedly overspend on legal fees because
they didn't educate themselves first.
vitalforce2 wrote on 5/11/2005, 11:08 AM
I'm a lawyer but not an entertainment lawyer. I'm also a writer-director-editor-filmmaker with one DV feature under his belt and have had to deal with these issues with a somewhat larger, but not huge, cast & crew. Your questions bring up these points:

Are your actress and DP members of respective unions? You may need a "SAG experimental contract" and waiver. You also have to be careful how you use the term "stakeholder" in an agreement due to the securities laws. One way to find practical answers (in addition to asking an entertainment lawyer in a brief session) is by posting a question on a site like Mandy.com for persons who are producers. They have to handle such contract arrangements and have experience in how much "play" the language of a contract or deal memo, should have (this should involve at least the offer of a minimal fee for the advice). There's also MovieMagic's "Contracts" software, about $90.
.
apit34356 wrote on 5/11/2005, 11:17 AM
first, check out the the book recommended above. To avoid a lot of stress, do not offer or promise profit sharing, this can become complex very quickly and end up in court. Remember, all actors and everyone else gives up their "rights" to their work that is used in your project. Make sure you have all permitts for all locations...etc.....
kunal wrote on 5/11/2005, 12:34 PM

Thanks all for your replies. I made an appointment with an entertainment lawyer and am also going to see if I can get my hands on that book.

Based on what you all have said, I think it makes sense to invest some $s right now, in the legal aspect, rather than pay up $$$s later on and deal with the trouble of legal hassles...

Thanks!