Production Company Contracts
Outside of booking facilities and managing budgets, equipment and projects, it is imperative for production companies to understand the legal and contractual side of the business if they wish to be successful in business. Likewise, artists need to understand the terms, conditions and obligations of their contract before signing, if they wish to get paid.
A production company contract helps ensure that both parties comprehend and adhere to the set terms and conditions of their partnership by listing it in writing. A Production Company Contract Lawyer specializes in the review and negotiation of contracts and can assist both production companies and artists in the development and signing of their contract.
What is a Production Company Contract?
A production contract is an agreement between the production company and the artist for the development, production, marketing and distribution of said works in connection with the production event. Under this agreement, producers are afforded a percentage of rights to the produced works and financial compensation for production services.
A production company contract may be for music recordings, television, film or video productions.
Who May Need Help With a Production Company Contract?
Is the Help of a Production Company Contract Lawyer Necessary?
Contracts can be intimidating, but with legal counsel, they don't have to be. These, often long and hefty documents, contain a large amount of imperative information concerning each party's rights and obligations including financial compensation, production rights and more, which can be easily overlooked or misunderstood by parties with no prior knowledge of legal documents.
Once a contract is signed, it immediately goes into effect and can lead to legal ramifications if not honored, even if the party did not fully understand what they were agreeing to. However, there are circumstances when a deal may be unenforceable in the court of law. A highly experienced Entertainment Law attorney is well-versed in the ins and outs of contract law and can help determine if your circumstance qualifies for such an exception.
Copyrights and Other Rights
A copyright entitles the author to writing and publishing revenues associated with created works. However, occasionally the producer may become a co-writer on a project. When this occurs, the producer is allowed to share in the copyright of co-written projects, which also entitles them to a share of publishing revenues. A qualified attorney can help ensure that both parties understand and agree on the publishing splits before signing the contract.
Residuals, Royalties, and Subsidies
Most production agreements include a royalty clause that allows the production company to share in a percentage of the royalties generated from the produced project, generally as a way to recoup production costs associated with the project. Sometimes, the royalty clause can apply to several revenue streams, such as secondary publishing rights; therefore, it is vital to understand the wording of the contract before signing.
Sometimes a project may involve various producers, in which case, they are each entitled to a share of the royalties. An Entertainment Law attorney can assist involved parties with the negotiation of an appropriate royalty rate as well as help wronged parties recoup costs in the event of an underpayment.
Advancements and Other Payments
Given that various payment streams can accrue as a result of your contract signing, it is important to know the exact financial wording of your contract before signing in order to benefit from them. For example, it may be several months before the artist receives an income while the production is being made, in which case, they may qualify for an advancement, or percentage of payment towards future earnings to accommodate living expenses. This payment may be received from a record label, production company or other professional relationship and is usually recouped from the artist's account.
Generally, payments should only be recouped from the artist given there are enough funds generated from sales. However, some companies may feel obligated to recoup expenses in either case. A Production Company Contract Lawyer can review the contract and ensure the artist understands the payments and financial obligations involved with their deal as well as assist in the negotiation of reasonable repayment options.
Breach of Contract
A breach of contract is serious business and can result in a court-ordered financial compensation to the wronged party for their loss. Sometimes a party can breach the terms of their contract unknowingly, in which case, there are various provisions for relief that may apply; however, it requires thorough knowledge of contracts. A Law Firm for Production Company Contracts has thorough knowledge of business contracts and can assist both parties with a resolution before filing a lawsuit and provide aid in the event the wronged party decides to pursue legal proceedings.
Legal Counsel is Invaluable During Production Company Contract Affairs
Given the many details and obligations of a contract, it is consequential for both production companies and artists to obtain legal advice before committing to a business contract in order to avoid disputes and legal ramifications later.
An experienced Entertainment Law attorney can assist during the review and negotiation process, so all parties understand their contractual obligations, including reimbursements, to avoid confusion later. In the event a signed party feels wronged, an attorney can assist with legal proceedings to recoup damages.
Perdomo, Klukosky and Associates is a premier Law Firm for Production Company Contracts. Our attorneys are highly knowledgeable in all matters of contract law and work closely with artists, record labels, television companies, film companies and more.
Please contact us for assistance with production company contracts or breach of contracts.