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This article is used by permission of Mark Litwak, Esq. and is taken from
www.marklitwak.com.
Question: When a scriptwriter wants to adapt a book that has been out of
print for at least twenty years, is there a "standard" offering
the scriptwriter should make to the author for the rights? Would it involve
a one-time payment, or is it based on a percentage of future sales?
Answer: The fact that the book is out of print is not, by itself,
a factor in determining whether you need to acquire rights to adapt it into
a motion picture. What is relevant is whether the book is still protected
under copyright law, or has gone into the public domain. The term of copyright
has been changed several times, so one needs to determine when the work was
created and published to calculate how long the copyright lasts.
Once the work goes into the public domain, anyone can use it, and no payment
need be made. If the work is still under copyright, then you need to negotiate
for the movie adaptation rights to the book. The amount to pay for these
rights varies depending how desirable the work is. If the book is out of
print, that probably indicates that this is not a hot book property at this
time. The most sought-after books are usually new books that are about to
be published, or books that have become bestsellers. Books that have been
around for many years, with the movie still available, can probably be obtained
for a modest sum.
Often an option to purchase the rights is taken. The option is frequently
ten percent of the purchase price, but this is negotiable. The purchase price
can vary from a modest sum to millions of dollars for a best selling book.
The purchase price is often an agreed upon amount (e.g., $100,000), but might
be determined by the budget for the film (e.g., 2.5% of the budget). Sometimes,
authors also receive a small portion of the profits from the film.
—Mark Litwak (www.marklitwak.com)
Mark Litwak is a veteran entertainment attorney and Producer’s Rep
based in Beverly Hills, California. He is the author of six books including:
Reel Power: The Struggle for Influence and Success in the New Hollywood,
Dealmaking in the Film and Television Industry, Contracts for the Film and
Television Industry, and the recently published Risky Business: Financing
and Distributing Independent Film. He is the author of the CD-ROM program
Movie Magic Contracts, and the creator of the Entertainment Law Resources
website at www.marklitwak.com. He can be reached at law@marklitwak.com.
Disclaimer-Any
material sent to or provided by Mark Litwak is for illustrative and educational
purposes only and should not be relied upon as legal advice, or be considered
confidential or the basis of an attorney client relationship. This
material may not be suitable for your particular situation and different
legal advice may be appropriate depending on your jurisdiction or circumstances.
Therefore, you should not rely on this material, or any part of it, without
the advice of competent legal counsel.
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