Screenwriting : Option Agreements by Martin Reese

My option agreement stated no production without a purchase or other agreement approved by the writer.

Hi Martin, prior to the start of production the producer/production entity must purchase the rights to the screenplay outright, with the purchase price generally being a percentage of the budget as pre-arranged in the option agreement. If they produced the film without securing the rights to the screenplay from you, then they are in deep sh*t. Did someone produce a film based on a script you've written with only an option agreement in place?

It all boils down to your agreement and what's in there.

Hi Jason Mirch . No a film was not produced without purchasing the rights..There just was not a purchase option for the script. So to me if the film is produced I still own the script. So if someone decides to later purchase the script or produce another film based on my original script I should be free and clear. This is what I am not clear about. when there is no purchase option for the screenplay

Where did this option agreement come from? You should have had an entertainment lawyer look at it at the time (or draft their own).

Going forward, don’t assume you still own the rights. Have a lawyer look at it now.

Distributors expect a lot of paperwork to be in order and one of the most critical documents is what's called a 'chain of title', which has to be signed by the writer. Once that document is signed, it would be very hard for a writer to claim any rights back, even if no money had exchanged hands.

^^^ this. Chain of Title and Errors & Omissions policy. I dont remember anyone asking to see script copyrights. Lawyers, man. Thats their job.

Option agreements usually include a purchase arrangement if the project moves forward...or at least an agreement to come to satisfactory terms later when it is ready to move forward. There should be no circumstance in which you cede rights to your material without agreed compensation unless you're doing so just for the potential credit and exposure. There should also be no circumstance in which you enter into an option agreement where someone can base another screenplay on your material without agreed compensation. Why would you enter into such an arrangement? You should be very specific about the language in your agreements. Nothing should be in there that you can't live with.

There is a circumstance where a writer cedes rights without compensation and that would be if they are a speculative profit participant.

Options can be VERY small amounts.

CJ Walley notes a very valid and even popular indie film exception re: speculative profit participant, but even in that circumstance your ceding rights should be contingent on what you agree is fair participation and ensuring you have reasonable access to relevant production and accounting records.

Thanks for this comments folks. Very helpful and why I like this community. Always willing to offer advice.

There is some bad info in this thread. I'm not a lawyer and am not giving legal advice, but here is my understanding of US contract law:

There are REQUIRED elements for a contract to be considered legal/valid/enforceable. One of those elements is that something is given "in consideration" to one party for their "services". Usually, this is $. Therefore, if someone "options" a screenplay from a writer, but does not offer anything in consideration, that contract is not enforceable.

To answer your question, I don't know why a writer would agree to have their script produced without it being purchased. That would be a major mistake. And yes, if they do not give you something in "consideration" for the script, you would still own it and the right to shop it.